E-commerce and online marketplaces are doing well, not just in online businesses but also in traditional businesses having offline stores. However, as business models evolve, corporations encounter new payment-related barriers. With Merchant Solutions, you will develop a new payment acceptance platform that allows cost-effective, dependable, and secure global electronic payment processing.
What are Merchant Solutions?
Merchant solutions are the tools and platforms that allow online and offline stores to handle electronic payments safely. Credit and debit cards, contactless payments, digital payments, and gift cards may be used for these transactions.
How Merchant Solutions Operate
A merchant solutions provider mediates between your business, consumer, and the bank. It supports a transaction through a secure back-end mechanism.
- Your customer offers a way to pay, like swiping or tapping a card on your point-of-sale (POS) terminal or entering payment information online.
- Your merchant service provider transmits payment data to your financial institution.
- Your bank informs your merchant service provider and the card company, like Visa, Mastercard, or American Express, about the transaction.
- The card issuer transmits the transaction to the customer’s bank for authorization.
- Either the customer’s bank accepts the transaction and sends an approval number to the card firm, or the transaction is declined.
- The card issuer gives the authorization code to your bank.
- Your bank transmits an authorization code to your payment terminal.
- Your payment terminal verifies the transaction and generates a receipt.
- The amount listed on the receipt is charged to the card or bank account of the customer.
Various Merchant Solutions
- POS system
A point-of-sale system is made up of a terminal in the store and a system in the back that keeps track of sales, inventory, and customer information. A robust POS system will enable you to provide smooth shopping options.
- Payment Processing
The basis of merchant services is to streamline the company’s payment processing requirements. When a client or customer uses an online merchant service, it makes sure that the money goes from their hands or bank account to their merchant account.
- Payment Gateway
A payment gateway is a platform that lets your online store accept payments from customers. It lets you securely take credit card and debit card payments online and process them.
Role of a Merchant Solutions Provider
Merchant service providers are crucial partners for expanding your offline or online business.
- Helps Merchants Accept Payments: Merchant service providers offer merchants the technology necessary to accept various payment methods, including credit/debit cards, UPI (Unified Payment Interface), net banking, wallets, etc.
- Provides a High Payment Success Rate: Payment gateways utilizing cutting-edge technologies, such as auto-retry options, enabling merchant service providers to increase payment success rates.
- Payment Safety: They also help businesses follow PCI security rules to ensure the safety of payment transactions. Additionally, merchant service providers safeguard the confidentiality and privacy of consumer data.
- Effective Payment Reconciliation: Merchant service providers help you figure out which invoices have not been paid. It can help you get them as quickly as possible.
Selecting the Merchant Solutions Providers
In the early 2000s, when online businesses started to emerge, bank merchant services were the most reliable service providers. However, as technology progressed, businesses’ demands grew, and customers demanded more streamlined payment interfaces. This is why, the demand for merchant solutions providers increased.
Now that we know why merchant solution providers are essential, the next question that comes to everyone’s mind is, which online merchant services should you go for?
We will help you choose.
You are aware of the services that a merchant business can provide. You are also aware of the pricing schemes they may employ. Here are the most important considerations to bear in mind as you compare different service providers:
- Examine Customer Service Structure: If there is a problem with how you receive payments in your store, your entire operation will be halted until the problem is resolved. Therefore, choosing a service provider who takes your concerns seriously and acts swiftly is essential.
- Look for Pricing Transparency: Varied stores will benefit from different pricing schemes. However, a flat rate is typically the best option for small businesses. The key is to know exactly what you are paying for and what components of your bill you are paying for. It is how you prevent hidden costs that might eat into your profits over time.
Find the Appropriate Merchant Solutions for your Business
With the payments and collections solutions for SMEs from HDFC Bank, you can cut down on your cash flow cycles and speed up your processing. There are two major benefits to having trustworthy merchant solutions in place. One is that your customers always have access to the payment options and methods they need, which makes it easy for them to shop.
The second is your mental peace. Because the funds are deposited into your account within one or two business days, your cash flow is more consistent. You have the time and energy to focus on your goods, marketing, and customers, while payment processing runs smoothly without your intervention.
