{"id":10791,"date":"2019-12-17T18:38:27","date_gmt":"2019-12-17T16:38:27","guid":{"rendered":"https:\/\/www.become.co\/blog\/?p=10791"},"modified":"2020-06-23T16:27:40","modified_gmt":"2020-06-23T13:27:40","slug":"merchant-services-provider","status":"publish","type":"post","link":"https:\/\/www.become.co\/blog\/merchant-services-provider\/","title":{"rendered":"What is a Merchant Service Provider?"},"content":{"rendered":"\n

You\u2019re gonna pay for that!<\/span><\/p>\n

Now that we\u2019ve got your attention, we have a question for you.<\/span><\/p>\n

How do your customers pay you? Cash? Check? Credit?<\/span><\/p>\n

The volume of each of those forms of payment will differ depending on which industry you operate in. But one thing is clear: there\u2019s been a general <\/span>shift towards electronic payments<\/span><\/a> and away from cash and paper checks.<\/span><\/p>\n

If you intend on keeping your business on the up-and-up, then you\u2019ll want to learn about the role that merchant service providers play in our technology-dominated economy.<\/span><\/p>\n

Find out below!<\/span><\/p>\n\n

What is a merchant service provider?<\/span><\/h2>\n

The phrase merchant service provider (MSP) is a general term that refers to any hardware, software, or services that are required for a business to receive and process customer payments made by credit and debit cards. And as if that definition wasn\u2019t broad enough, the term merchant service provider is also interchangeable with \u2018merchant processing services\u2019.<\/span><\/p>\n\n

[bctt tweet=”If you intend on keeping your #smallbusiness on the up-and-up, then you\u2019ll want to learn about the role that merchant service providers play in our #technology-dominated economy.” username=”Become_co”]<\/p>\n\n

Since the definition encompasses so many different merchant services, sometimes it can be a difficult task for a small business owner to narrow their sights on the \u201cright\u201d merchant service provider for them. Nonetheless, as our world becomes more digitalized, the impact that merchant processing tools (and FinTech<\/a> in general) have on the overall financial health of businesses continues to grow. From streamlining payments to increasing your revenue, it\u2019s clear that the importance of having the best merchant processing services at your small business shouldn\u2019t be underestimated.<\/span><\/p>\n

Before we describe how to choose a merchant service provider for your business, let\u2019s first give a breakdown of the different types of merchant processing services.<\/span><\/p>\n\n

3 types of merchant services providers<\/span><\/h2>\n\n

1. Merchant account providers<\/span><\/h3>\n

In the most basic sense, merchant account providers do precisely what their name suggests – they provide a merchant account that\u2019s specifically designed to allow businesses to accept credit and debit card payments. When a business receives a \u2018plastic\u2019 payment, the funds will go to their merchant account before eventually transferring over to their business bank account (typically on a daily or weekly cycle).<\/span><\/p>\n

A merchant account provider may also offer other services to help optimize your business\u2019s payment methods, including:<\/span><\/p>\n