Merchant Account Services

Businesses today are expanding their payment options from cash and check payments to include other payment options like bank transfers, card payments, virtual payments, and more.
Businesses are turning to merchant account services that can meet their needs to provide these payment options and other card processing services. Merchant service providers like PaymentUSA have several types of merchant accounts to meet your specific business needs and improve the efficiency of your services.

What are Merchant Services?

Merchant services are the various services and processes that enable your business to accept and process customer payments. There are four crucial areas to remember when discussing merchant services –

How the service works: The various processes necessary to take customer payments.
The merchant service providers: Companies like PaymentUSA that provide merchant services.
Pricing: What is the cost to obtain a merchant service?
Tools: The software and hardware necessary for payment processing.

What is a Merchant?

A merchant service provider uses the term “merchant” to refer to the customers that use its services. These merchants reach out to the merchant service provider for various services that enable them to accept card payments.
Integrating a POS or virtual terminal into your retail business is a service you can get from a merchant service provider. Other services such as recurring credit card billing, eCommerce credit card processing, and restaurant credit card processing are also available from PaymentUSA.
Merchant service providers recognize several types of merchants and help them provide custom services for specific businesses. Common types of merchants include –

Wholesale merchants: These are merchants who provide products to retail merchants.
Retail merchants: These merchants buy products from wholesale merchants and sell them directly to consumers.
eCommerce merchants: These merchants focus on online sales.
Direct-to-consumer merchants: These are merchants that create a product and sell it directly to consumers.
Affiliate merchants: These merchants utilize affiliate networks to distribute goods to consumers.

What is a Merchant Account?

A merchant account is a unique type of bank account that enables the processing of electronic payments. A significant advantage of a merchant account is that it eliminates delays.
With a traditional bank account, your bank must verify each customer transaction before approving them. This process may take days, so it may be a while before your funds are available.
On the other hand, the financial institutions offering merchant accounts have a special relationship with banks issuing card services to customers. This makes it possible for your business to receive the funds while the transaction is pending and awaiting approval from the bank. The merchant provider can do so since it has vetted the merchant and accepts the risk associated with doing business with the said merchant.

Taking Care of the Middlemen

Since businesses have unique needs, merchant account providers offer different types of merchant accounts. These options include the following –

Domestic merchant accounts
Ecommerce merchant accounts
High-risk merchant accounts
MOTO merchant accounts
Recurring payment merchant accounts
Small business merchant accounts

Things to Consider When Selecting a Merchant Account Provider

Several merchant providers are available, and it is important to select one that meets your business needs. When deciding on a merchant account provider that will be right for you, you must consider the following:

Reputation: The best merchant account providers have an excellent reputation in and outside the financial industry. Also, the provider should have connections/relationships with various credit card providers to support its merchant account services.
MOTO services: Some businesses may overlook this option, but having the option to support mail orders and telephone orders (MOTO) is always a positive addition to your business. PaymentUSA offers reliable MOTO merchant accounts to boost your sales.
Transparency: Merchant account providers must be straightforward and transparent in their dealings with customers. PaymentUSA provides precise details on costs, and fees. Remember that some processors may charge hidden fees including a monthly settlement fee, early termination fee, transaction fees, etc.
Support for CNP transactions: Card-not-present (CNP) transactions are usually remote transactions completed via mail, phone, internet, or fax. The physical presence of the credit card or cardholder is not necessary for these types of transactions. Businesses offering MOTO services support these types of transactions but are usually high-risk businesses.
Support for international payments: As your business expands, you'll start attracting payments from various locations worldwide. Having a merchant account provider that supports international payments is crucial. PaymentUSA offers an International Merchant Account that enables your business to accept payments in different currencies.
PCI compliance: As a company that stores and processes the financial information of individuals, a merchant account provider must comply with the Payment Card Industry Data Security Standard (PCI DSS).

Benefits of Using PaymentUSA Merchant Account Services

Setting aside funds for a merchant account service is a massive step for many small businesses, but this is an excellent way for your company to gain value. There are several benefits of using a merchant account service, and these include the following:

Opportunity for rapid business expansion

Our merchant services give you access to several payment options, which come in handy when you decide to expand your business operations. If you’re currently running a brick-and-mortar operation that depends on in-person payments, you can easily branch into online services using the payment processing solutions from PaymentUSA.

Excellent data records for efficient financial management

Merchant account services make it possible for your business to eliminate the process of counting cash. Moving to online payment systems allows you to keep accurate financial records that you can refer to at any time.
A merchant account also helps you maintain accurate accounts of your business transactions. You can generate monthly statements to know the amount coming in from the business, giving you sales data that you can use to improve your services. With this data, you can identify trends and find other insights that will help you better understand your customers.

Opportunity to boost sales

When starting a small business, accepting cash payments may seem like the fastest way to attract customers. However, as the business begins to expand, you notice that most customers prefer to have the option to make credit card payments.
Adopting the services of PaymentUSA gives you a chance to provide additional payment options and access a new customer demographic. These new customers are always searching for businesses that support credit card payments and other online payments.
Customers are also willing to spend more when they don’t have to make cash payments to your business.

Enhance legitimacy

The way your customers perceive your business is crucial for your growth. Customers trust businesses that can provide essential services like card and online payments. If your business lacks these payment processing facilities, many customers will regard it as an outdated business entity. With the younger generation, convincing them otherwise will be difficult.

Reduced costs from processing checks

Bounced checks are a serious issue for many small businesses. Not only do they cause the business to incur additional costs, but they can also be time-consuming. However, the more significant issue with checks is the possibility of falling victim to fraud. Small businesses are targets for perpetrators of these types of fraud since they usually operate on a certain level of trust with their customers.
The process of dealing with bounced or fraudulent checks is also stressful. You need to try to get in touch with the customer, reach out to the bank, get in touch with the police, and pay a lawyer. You can prevent all these additional expenses to your business if you shift to online payment systems.

Excellent customer satisfaction

This is an important reason to consider using PaymentUSA merchant account services. With the merchant accounts we offer, your business can provide flexible payment options for your customers. This is made possible by adding recurring payment options, mobile payments, and online payments. Customers want businesses that provide convenience and ease, which is what you can offer with a merchant account service.

Merchant Services Costs

Different merchant service providers adopt different pricing models for their services, which may also include additional fees. Depending on the provider and service you select, you can adopt any of these pricing options:

Flat rate pricing: This is the simplest pricing model, and merchant service providers usually adopt this option when dealing with small startups or retail stores with low sales. The flat rate may be a percentage of a processing charge or a fixed monthly fee.
Interchange-plus pricing: This pricing model charges a fee that is equal to the interchange rate from the credit card company plus a markup. This markup is the profit the payment processor makes on the service.
Tiered pricing: Tiered pricing separates transactions into various categories. These include non-qualified, mid-qualified, and qualified transactions. Each category contains different types of transactions, which determine how much the provider will charge.
Direct interchange: With this option, merchants pay a monthly fee for transactions. This fixed charge doesn't depend on sales volume, making it unsuitable for small businesses and startups.

Merchant service providers may also charge you fees on certain types of transactions. Fees to look at include the following:

Chargeback fee: This is a fee your business incurs when a customer demands a refund on a transaction that has already been processed. This fee is necessary for the provider to cater to the costs of processing the refund for the customer.
PCI compliance fee: Businesses that are PCI compliant assure customers of safety from fraud, identity theft, and other issues. However, not all businesses are PCI compliant, giving payment processors a chance to help them meet this requirement. Merchant service providers that help you remain PCI compliant may charge a fee for this service.
Cross-border fees: Exchanging currencies with international merchant accounts creates additional costs for your provider. To offset this cost, the cross-border fee becomes necessary.
Monthly fee: This is a fee the provider charges for offering customer support services and providing monthly statements for your business.
PCI noncompliance fee: Although some merchant account providers help you stay PCI compliant, others may require you to pay a fee if you fail to comply with the PCI standards. This fee may come into effect after a few months of using the service.

Steps to Take to Get Your Merchant Account

Once you decide to get a merchant account service for your business, there are specific steps you should take. The following are essential steps that can guide you through this process:

Assess and verify your needs

Your business needs will determine the merchant service provider that will provide the best services for your operations. When assessing and verifying your needs, you must consider factors like how you want to accept payments and your operating location. If your services are international, you need to look for providers supporting cards from other countries.

Compare merchant service providers

Now that you understand your business needs, you need to find a provider whose services can cater to these needs. At this point, you should have a clear picture of the services that matter to your business, and you can prioritize them when selecting an operator.
Since pricing models vary for each operator, you should get quotes from each operator that meets your needs. Thankfully, most operators offer free quotes to businesses.

Set up a business website

If you’re opting for online services, then there are specific requirements that your site must meet to be eligible for the services from the merchant account provider. Your refund policy, cancellation policy, delivery policy, business location, goods description, and list of available services are some of the details your website must showcase. Security features are also crucial on the website since customers will provide financial information to your business.

Get verification documents

The documents you require for verification may vary depending on the service provider. However, your social security number, business license, transaction volume, and refund volume are some of the documents you should have ready.

Send an application and prepare for evaluation

You can send an online application to the merchant service provider with all the relevant documents. The provider will assess your application by going through your financial issues, business challenges, and more.
The underwriting or risk evaluation process comes next. During this process, the service provider will do its best to determine if your business is high-risk or not. High-risk businesses are those with high volumes of chargebacks to customers.

Open your merchant account

If all your business details and documents check out, you’ll get approved for the account. Your merchant account will then be set up using your business details.

Bottom Line

PaymentUSA offers merchants a chance to accept credit cards at 0.35%. This service is available without a contract, and no hidden fees or cancellation fees are attached. Your business also receives a free terminal to promote its operations.
Understanding how merchant account services work plays an important role in finding the right merchant service provider for your business. Learning to ask questions is also crucial, which is why PaymentUSA provides 24/7 customer support via phone and email.
You’ll find our services efficient and dependable, and benefit from the solid foundations we have in place such as –

Rapid approvals – thanks to our partnerships in-house underwriting processes and bank partnerships.
High-level security – level 1 PCI DSS certification opting for a 125-bit SSL encryption for enhanced security.
Solid bank connections – our relationships with banks around the globe make it possible for businesses to meet the needs of their customers in any part of the world.

Merchant Application