Merchant Services For Small Businesses 101

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In today’s world, your client is much more likely to pull out a credit card than a twenty dollar bill when paying for your product or service. This shift in how transactions are made has led to the significant importance of merchant services. At PayFrog, we are on a mission to streamline your clients payments through simple, secure, and cost effective merchant services. 

Whether you are a new small business owner or have just started considering accepting non-cash payments for your products or services, merchant services can be a bit confusing. With so many options available, choosing what’s right for your company will require some thought. Our knowledgeable team at PayFrog have assembled what you need to know about merchant services so that you can make the best choice for your small business and customers. 

What Are Merchant Services?

Merchant services is a broad term that refers to the tools, partnerships, and programs that enable businesses to accept and process payments that come from credit and debit cards. The tools that make these services possible include hardware and software that come in the form of online payment, card reader, and a point-of-sale system. Financial partnerships made with merchant service providers takes away the stress of mastering complex systems and programs away from businesses. Everything from when a card is first swiped to the digital transfer of payment is included under the umbrella of merchant services.

How Merchant Services Work

While merchant services involve complex technology that allow for payments to be processed, understanding how merchant services work, in general,  is as easy as buying toothpaste from the your nearest convenience store. Merchant services begin when you swipe your card, they continue when your card is accepted and you are handed your receipt, and they finish when the money is withdrawn from your bank account. Now, from your small business’ perspective, merchant services work the same way. Your customer gives their card as payment, the complex technology accepts and processes the payment, and then you receive the digital finances. Now of course, an important part of this process is the technology behind the transaction. That’s where merchant service providers come in. Their hardware and software make it possible for businesses to easily accept credit and debit card payments without having to master difficult technology. 

Choosing The Best Merchant Service For Your Small Business

Now that you have some insight into the purpose and function of merchant services, it’s time to discover what type of merchant service provider is best for your business. Owning a small business most likely means that you don’t have a financial department that you can lean on, which means that finding someone you can trust with your merchant service finances is essential. Luckily, there are plenty of options available that will not only guarantee your business’ ability to accept digital and card payments, but will foster a professional relationship of trust. Here are some important things to keep in mind when choosing the best merchant service for your small business. 

Type of Payment

The type of payment your business will be accepting is important to consider when exploring merchant service options. Online payments require a different type of software than an in-person payment does. If your business is solely online or only has a physical storefront, make sure the type of merchant service you accept only charges you for the services you require. Or, if you offer both digital and physical transactions, finding a merchant services provider that offers both will be important. 

Type of Hardware and Software 

Understanding the type of hardware and software needed to make your transaction possible is also important. The volume and medium of your transactions will be what determines the type of hardware and software that is needed. If your services are strictly online you won’t need a card reader, but will need advanced web security. Another circumstance would be if your business receives a high volume of physical sales, obtaining a reliable and fast-working card reader will be important. Choosing a merchant provider with the right hardware and software for your business will lead to happy customers and easy transactions.  

Type of Pricing Structure

Accounting for processing fees is a necessity when choosing what type of program you want supporting your business’ incoming transactions. Take into consideration your budget as you discuss program solutions with potential merchant services providers. Understanding how your finances will be impacted by different types of payments should be a determining factor when picking a merchant service provider.  

Merchant Solutions With PayFrog

At PayFrog, we are committed to offering merchant services that are simple, secure, and cost effective. That way, when small businesses trust us with their transactions, they can be confident that they are receiving the best merchant services for both themselves and their customers. Our knowledgeable team works hard to ensure that every business we partner with receives personalized service so that their every need is met. Whether you are looking to begin selling your services online or are ready for your merchant services to be handled with care, PayFrog is ready to help you. Contact us today to get started! 


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