As a small business owner, you may have heard the term “merchant services,” but what exactly does it mean?

Merchant services refer to a suite of financial tools and services designed to facilitate payment processing for businesses. These services enable you to accept payments from your customers via credit cards, debit cards and electronic payment methods. Whether you run a brick-and-mortar store, an online shop, or a combination of both, merchant services can play a big role in your day-to-day operations.

Merchant Services vs. Merchant Accounts

A merchant account is a specialized financial account that allows your business to process card-based sales securely. It holds funds temporarily before transferring them to your organization’s main bank account. Most businesses obtain a merchant account through their chosen merchant services provider or payment processor.

Business Benefits

Merchant services serve two primary purposes:

Payment Acceptance:

By using merchant services, you can accept credit and debit card payments seamlessly. This convenience enhances the customer experience and encourages sales.




Security and Efficiency:

Merchant services ensure secure transactions, protecting both your business and your customers. Efficient payment processing streamlines your operations.

Key Components of Merchant Services

Here are some essential components of merchant services:

Point-of-Sale (POS) Systems:

• POS systems are the hardware and software used to process payments at your physical store. They include cash registers, card readers and inventory management tools.
• Modern POS systems often integrate with other business functions, such as inventory tracking and customer management.

Payment Card Readers:

• These devices allow you to accept payments via chip, swipe or contactless cards.
• With the rise of mobile payments, payment card readers also support digital wallets like Apple Pay and Google Pay.

Payment Gateways:

• If you operate an e-commerce website, you’ll need to be able to accept payments online.
• It securely processes online transactions, ensuring that customer data remains protected.

E-commerce Platforms and Services:

• These tools help you set up and manage your online store.
• Features may include product listings, shopping carts and secure checkout processes.

Gift Card and Loyalty Programs:

• These marketing tools encourage repeat business and customer loyalty.
• Gift cards and loyalty points can boost customer engagement.

Understanding merchant services is essential for any small business owner. By using these tools effectively, you can enhance your payment processes, boost customer satisfaction and drive growth. Choosing the right merchant services provider is critical. We can help. Cadence Bank Merchant Services offers a suite of solutions that allows you to stay connected by accepting virtually every type of payment—whether it's in-store, online or through a mobile device. Learn more and start your merchant services journey today with Cadence Bank.

Sources:

clover.com/small-business-resources/merchant-services

en.wikipedia.org/wiki/Merchant_services

forbes.com/advisor/business/what-is-merchant-account

This article is provided as a free service to you and is for general informational purposes only. Cadence Bank makes no representations or warranties as to the accuracy, completeness or timeliness of the content in the article. The article is not intended to provide legal, accounting or tax advice and should not be relied upon for such purposes.