Merchant Solutions

Here is another useful tidbit about credit card processing lingo from your team at SlashMyFees.

Merchant Solutions also known as Merchant Services designate a broad category of financial services intended for use by businesses. In its most specific use, it usually refers to the service that enables a business to accept a transaction payment through some secure (encrypted) channel by use of the customer's credit card or debit card or NFC/RFID-enabled device.

More generally, the term includes the following in its use:

  • Credit and debit cards payment processing
  • Check guarantee and check conversion services
  • Automated Clearing House (ACH) check drafting and payment services
  • Gift card and loyalty programs
  • Payment gateway
  • Merchant cash advances
  • Online transaction processing
  • Point of sale (POS) systems
  • Electronic benefits transfer programs, such as food stamps

Merchant services typically require the set up with a merchant account with a payment acquirer either directly or through an Independent Sales Organisation (ISO) or Referral Partner such as Banks or B2B Service Companies.

The exception to this is mPOS systems which are mobile pin entry devices (PED) typically connect to a mobile phone through Bluetooth and then use the phone's WiFi or mobile data to connect with the banks. These systems don't require a merchant account although the companies that offer this type of service will still have a relationship with an acquirer. However, your SlashMyFees team would like to warn you that payments made through this method cost a lot more per transaction so are ideal for businesses that don't put through many card transactions.