With online platforms gaining huge popularity among the masses, everyone seeking to make money off the opportunity is lining up for a piece of the cake. For online platforms to conduct their revenue-generating business, they need to create online transactions by accepting online payments.
Since there is no physical contact between the buyer and the seller, online businesses have but one true way of legitimately accepting payments from their virtual customers. The significance of owning a merchant account, where any online business has the clearance to accept online payments via various payment gateways and processing structures, is reflected in the growing demands of the public through the growth of online platforms.
Understanding the Merchant Services
Merchant Services are a customizable set or array of Payment Processing solutions, tailor-made for your Business convenience and growth. For example, Merchant Services Broker Solutions . They are an established Merchant Service provider that furnishes streamlined solutions for all payment processing and management purposes. A few of their services include online gateways, mobile payments, point of sale software, software integration, and accounting among others.
While the entirety of what a merchant service offers to different business models differs widely, their key objective is to increase the revenue of your business. The requirements for a small business model will be quite less when compared to a larger business model. At a minimum, a small business may require a merchant account to carry out online transactions or payment services for lower transaction rates and payment gateways that make it possible to receive the funds.
Best Online Merchant Services for Small Business
Many small business owners never truly understand whether they require merchant services or if they are doing fine without it. They often make the mistake of letting their decision be influenced by the opinions of other shop owners around them.
The best way to figure out if your business requires merchant service solutions is to simply browse through the internet and look up information about the features that each merchant service provider offers.
Here, we have put together a simple comparison of the best online merchant services that are available in the market for your convenience.
One of the most preferred Merchant Service providers for small businesses, Square doubles up as a payment service provider with its basic POS software. For business models that do not require a merchant account, Square offers its merchant services at rates that are among the lowest and cost-effective rates in the market.
With a fixed transaction processing rate of 2.5%, Square requires no monthly fee and also furnishes an array of features like payment gateways, integrated service accounts, payment hardware like POS and card readers, merchant financing, and more.
Square may not be as compatible with larger business models that have to deal with larger amounts of transactions and require a merchant account.
For small businesses that make significant revenue and can invest in more affordable merchant service providers, PayPal serves as the ideal choice. Businesses that do not require a dedicated merchant account but are seeking online payment solutions, PayPal provides online rates that no other service provider will be willing to allow.
Online payments cost a 2.9% fixed rate + $0.30/transaction. If you are willing to opt for custom checkouts through PayPal, you will have to deposit $30/month. In-person payments are also possible via PayPal, with an added incentive of 2.7%/transaction. Since PayPal also is a payment service provider, it is not as compatible with high-volume businesses.
Your best bet when it comes to catering to high-volume businesses is Cayan, offering services with better custom rates and dedicated customer support. Although, it does not integrate the payment processing which is a significant trait needed to receive the card sales proceeds.
This service provider easily integrates with the top-notch payment gateways and POS systems. Since it is not a fully integrated processing solution, PayPal goes as far as furnishing simple credit card readers and terminals at low and reasonable prices.
As mentioned earlier, the necessity for an online merchant service provider depends on the volume of transactions of your business and your specific requirements like integrated POS systems or the need for a merchant account or not. Ensure to create a thorough analysis of your work environment before you zero in on a particular online merchant service provider.