Merchant payment refers to the financial services that enable businesses to accept and process electronic payment card transactions. It is a broad category of financial services intended for use by businesses, and it includes merchant processing services that allow businesses to accept transaction payments through a secure (encrypted) channel using the customers credit card or debit card or NFC/RFID enabled device. Merchant payment services can also include credit and debit card payment processing, check guarantee and check conversion services, automated clearing house check drafting and payment services, gift card and loyalty programs, payment gateway, merchant cash advances, online transaction processing, point of sale (POS) systems, and electronic benefit transfer programs.
Merchant payment processing is the process by which a business accepts payments, and it involves the behind-the-scenes process by which a business accepts payments, the companies businesses work with for this purpose, as well as the hardware or software involved with taking and processing payments. Merchant services providers work as an intermediary between the bank, a person or organization wanting to receive funds, and the person or organization looking to purchase goods or services.
A merchant account is a type of business bank account that allows a business to accept and process electronic payment card transactions. Merchant accounts require a business to partner with a merchant acquiring bank who facilitates all communications in an electronic payment transaction. Merchant accounts are a type of commercial bank account, and they allow a business to accept credit cards or other forms of electronic payment.
In summary, merchant payment refers to the financial services that enable businesses to accept and process electronic payment card transactions. It includes merchant processing services, credit and debit card payment processing, check guarantee and check conversion services, automated clearing house check drafting and payment services, gift card and loyalty programs, payment gateway, merchant cash advances, online transaction processing, point of sale (POS) systems, and electronic benefit transfer programs. Merchant services providers work as an intermediary between the bank, a person or organization wanting to receive funds, and the person or organization looking to purchase goods or services. A merchant account is a type of business bank account that allows a business to accept and process electronic payment card transactions.
