Back To Basics: What Are MSPs?
“Merchant services” is a term used to describe a lengthy list of financial services that cater mostly to businesses. These were formulated and put into action to give business owners a sense of security when transacting with clients or partners.
These services include transactions made through credit cards and debit cards, payments given through cheques as well as accountability and conversion for them, reward or point systems in purchasing, payment gateways, online transactions, and many more.
Most types of merchant services will require you to have an account with a Merchant Service Provider (or MSP). Merchant Service Providers are any group, organization, or company that offer transaction mediation. As most secure payments are done through banks, most merchant service providers are also banks.
As is the common custom, once you have an account in a certain bank, certain modes of transaction – such as cheques and credit or debit cards – become available to you should you meet the bank’s requirements. The types of processing, deposit, and payment are then limited only by the company’s connections with other institutions. (VISA, MasterCard, and others..)
It is best to research on different merchant service providers before deciding which is best for you or your business. Since there are many MSP’s available, study of their different standards, requirements, and payment modes will enable you to choose the service fit for your needs.
Many people who have availed of different merchant services will tell you that it is as important to find a good merchant service representative as it is to have a merchant service in the first place. Merchant services have gained a negative reputation over the years from salespeople who do not disclose the whole truths of a certain service. You must find an experienced person that you trust within the industry to answer your questions and lay down all the cards of your possible services.