The Best Merchant Services for Small Businesses in 2023
Credit card processing is only one small part of the many merchant services your business needs to accept payments. Companies today no longer only rely on credit card readers at physical stores. They need complete packages that can handle their online services, in-store support, and more.
This is where merchant services come in. Think of merchant services as an all-in-one package that handles all your company’s payment needs. What types of services fall under the umbrella term “merchant services” and how can Your FundingTree help? Read on to learn more!
What are Merchant Services for Small Business?
When someone buys a product or service from you online or in-store, they either swipe their credit card or input their payment information into your website. From there, a payment processor must connect to the client’s bank account, place a claim on the account, draw funds from the customer’s bank and put them into yours, and then verify the transaction.
All this must happen within seconds while protecting the information of both the client and the business. It’s a complicated process that requires specialized technology and equipment. Merchant services provide both for a fee, along with other features that help your business.
These services are an essential part of running a business in 2021. What do merchant services offer businesses? Let’s look at the various parts of this service.
Credit Card Merchant Services and Debit Card Processing
As mentioned before, the process of accepting debit and credit card payments can get complicated. Not only do you need the technology to accept these payments, but you also need specialized equipment.
Merchant services provide both for in-store and online purchases. The type of payment processor you choose will have a major impact on your business, as customers want fast checkouts and security.
Payment processing should be adaptable, scalable, and able to keep up with changing technology. Your business needs processing services that can keep up with advancements in payment methods, such as EMV chip technology. The service should also grow with your business.
One of the most important parts of payment processing is that it needs to protect customer data. Security issues cost businesses billions of dollars each year. A security breach can cause a business to shut down because of the loss of money and lowered customer trust. A merchant service provider should update their security methods frequently and provide equipment and hardware upgrades whenever they detect a new threat.
ACH Check Services
If your business accepts checks, this is an important part of any merchant service. When processing checks, you still need to worry about security, but you should also think about speed.
With ACH check services, someone can pay with a check, but instead of having to deposit the check and wait for it to clear with the customer’s bank and then yours, the money will go from their account to yours in a matter of minutes. The software uses the routing number of the bank and the account number to automatically draw the funds from the customer’s account.
Most of the time, the customer doesn’t even need to fill out a check. Modern software allows the person running a station to place the blank check into a printer which then puts the information on the check. All the customer needs to do is provide their signature. This gives your customers another way to pay for products or services that’s both secure and fast.
Payment Gateway/Online Transactions are Types of Merchant Services for Small Business
If you want your business to grow, you’ll need to have an online presence. Having an online storefront allows you to reach customers when your physical location isn’t open. You can also expand your company’s reach and serve customers around the world. Business services being offered online come with certain challenges, however.
The issue is that accepting payments online requires more technology and security measures. If you accept payments from other countries, you also need to convert currencies into your home country and follow international rules regarding online transactions.
This is a lot for a company to handle on their own, which is why they need merchant services.
You can accept a wide variety of online payments, including credit cards, ACH checks, PayPal, Apple Pay, Google Pay, and more.
Choose the merchant service company that provides your customers with the most options. You never want to lose a sale because your business doesn’t accept a customer’s preferred method of payment!
Point of Sale Systems
Merchant services often provide clients with a point-of-sale system. These systems make it easier for a business to track their sales, make data-driven decisions, and control their inventory within one program.
POS systems can handle all aspects of a business. Often, payment processing is built into a POS system, although sometimes you’ll need your own equipment. Your POS will allow you to run reports that show labor costs, inventory, customer data, and more.
They give you a detailed look at your business by shift, day, week, month, and year. Think of these systems as the central nervous system of your business. They’re a central hub that uses all the other processes in your company and combines the data produced by those other programs to create reports and keep your business running.
Clover™ POS System
These systems tend to specialize in a certain industry, such as restaurants or retail. The Clover™ POS system is a state-of-the-art system that can help you manage your business and employees. You can run real-time reports and simplify your payroll and financial processes with one system.
When deciding on a POS system, you should consider a few things. First, you should make sure that the service can meet the unique needs of your business. Many POS systems allow you to test-drive their product so that you can see the features first-hand before committing.
You should also consider the system’s customer service. Make sure that you can talk to someone if there is a problem and that they have a technical team that responds quickly to requests.
You can either lease or buy a POS system, and there are benefits to both. Buying will save you money long-term, but it’s a large financial commitment that many companies can’t afford. Merchant services that provide a POS system will save you money and stop you from having to make this decision early when you’re starting a business.
Loyalty Program/ Gift Card/ Customer Retention Support
One of the hardest parts of starting a new business is figuring out how to build brand loyalty with your customers. How can you get customers to come back to your business? What’s something you can use to encourage new customers to try out your services?
Gift cards and loyalty programs are a great solution, but they also require specialized technology and equipment to manage. A POS system will help, and you can use payment processing machines that allow customers to input their information into the machine.
Gift cards will help you grow your business. Existing customers can buy gift cards and give them to friends, family, and business associates, allowing them to discover your business.
You can also use gift cards as a form of marketing. Give out gift cards to new customers at trade shows or anywhere else new clients might be to encourage new customers to try your business.
A rewards program encourages existing customers to buy more. You can give customers a certain percentage or dollar amount off once they meet a certain threshold, encouraging repeat business. You can also hold contests and special sales for members of your rewards program.
Merchant Cash Advances (MCA) are Considered Risky Merchant Services
Some merchant service providers will allow you to take out cash advances based on your sales. These tend to be short-term loans in which a business pays the lender back by giving them a small percentage of future sales or credit card transactions. Since many merchant service providers own the software used by businesses, they can take the money off the top of each transaction so that the business doesn’t have to do anything.
These expensive loans allow businesses to make needed purchases, such as upgrading equipment, expanding services, or funding expansion efforts.
Other merchant services provide financing through lines of credit, term loans, or through a network of lenders.
Choosing the Best Merchant Services for Small Business
Think about your business and where you would like it to go. Do you expect your business to grow rapidly over the next few years or are you more concerned with solidifying your current position in your market? What services do you need in order to accomplish your goal?
You need to find a merchant service provider that can help you achieve your goals. Find one that offers the features you need to grow. The best merchant services offer a wide variety of services and can act as a business partner that’s interested in your success.
Your FundingTree offers the services you’ll need throughout each life cycle of your business. If you’re a new startup, we can help you find capital, set up your merchant services, provide you with web services, and more. If you are an established business that’s looking to expand your reach, we can help you find the funding you need to grow while improving your payment processing methods and POS systems.
Your FundingTree Can Help You Grow Your Business in 2023 By Offering You the Best Merchant Services
We view each of our clients as business partners. When your business is successful, we grow together. We have experience working with companies of every size and we know what it takes to succeed.
We can help set you up with one of the top POS systems in the world, Clover™.
Clover™ provides multi-layered protection that helps protect your customers and your business. The processor comes with EMV and signature technology, and it also requires a fingerprint for your employees to sign in. The software comes with 4GB of RAM so that you can run several apps at once while still processing transactions fast.
Clover™ is also compatible with several peripherals and gives you two printer options, one for an optional customer-facing display and another for contact-free payment acceptance.
We can also help you find the best payment processors for your business. Our team of experts have the experience you need to save thousands of dollars when choosing a processing partner. Finding the best merchant services for small businesses takes a lot of time and money. We’ll do the heavy lifting so that you can focus on running your business.
Using a Merchant Service Provider is Not Free, Apply for Funding Today!
We can also help your business find the funding it needs to grow. If you want your company to thrive, you need a partner that can help you secure the funding you need and provide you with different options. Your FundingTree has a nationwide network of preferred lenders that will compete for your business.
All you need to do is fill out a quick 90-second application and our experts will take it from there. We’ll get in touch with the lenders we have relationships with so that they can prepare financing options for you.
Since these lenders know that they are competing for your business, they’ll present you with their best offers. You only have to decide which one works best for your business and you’ll have the money you need fast!
Are you ready to work with a company that provides complete merchant services? Do you need a partner that can help you grow and assist you in every aspect of your business? Get in touch with us today to see how we can help you, or you can easily fill out our quick online application to get started today!