Which merchant service you choose and how you develop a good relationship with the people who run it should all be integral to the smooth running of your business operation.

Choosing the Right Merchant Bank

When you are first starting out in business, it can often be the path of least resistance to choose the first merchant bank you come across. Like all other things in life, however, you should shop around and take a closer look at the service you are being offered. If you already have a merchant bank but feel that you have made the wrong decision in choosing them, then it might also be time to look around at the market and what’s on offer.

The problem many businesses find is that some merchant banks tend to be poor at communication. That, in turn, can make it very difficult to build a profitable relationship which is flexible to their needs.

When you are choosing your merchant bank you need to:

• Check their helplines and support thoroughly. Either give them a test call or research online to see what complaints have been made.
• Check the costs you are being asked to pay and compare these with other providers – it can be difficult to do but if you know the sector it’s a lot easier.
• While there are many reputable suppliers of merchant services out there, you can also come across ones that are not so great.

The last thing you want is to start using a merchant bank and find there are problems with connections, the tech you are using or the costs you are being charged for the service. If you are not sure about the market and what you should be looking for, choosing a company that helps you find the right card payment or online merchant service is a good option.

Building a Relationship

Gone are the days where we used to have a local bank manager who we could sit down with and chew the fat. Most business relationships are carried out remotely nowadays, either online or via a web chat facility. That doesn’t mean you can’t still build that relationship and get what you want from your service but is a little more difficult.

Doing your research is a good start and understanding how your merchant bank works with customers is important. You want to know how flexible that bank is going to be as your business grows – for instance if you want to take on new payment options to give your own customers choice. You can often tell a lot about a merchant bank, or any other service, from their helpline and support. This includes how flexible they are in dealing with your queries and, perhaps more importantly, how knowledgeable they are.

• Do they operate a 24/7 helpline service?
• Are they easy to contact?
• Do you get a polite and, above all, helpful response?
• Are they responsive to changes in the payment market and delivering what your business needs?

All these are important if you want to build a trusting relationship with your merchant bank. It can be difficult to gauge with so many providers available but this relationship should be top of your list when you are looking for a service that compliments and benefits your business.

The post How to Build a Good Relationship with Your Merchant Bank appeared first on Accept Card Payments.

Terminology

Card holder – The person who the card was issued to or an authorized user of the card and is financially responsible for payments made using the card.

Card not Present (CNP) – This is a card payment made where the cardholder is not physically present when the transaction is made. They are not able show the card for a merchant’s visual examination or for then to verify using their pin.

Chargeback – When a customer requests the purchase amount to be returned to their card. There can be many reasons why this may happen. The customer does not receive their goods. The customer does not receive the services. The customer did not place the order. The customer did not make the purchase. This being the case they can then request the issuing bank to charge back the value. The merchant will need to validate the purchase by providing required information.

Chip and Pin – Secure method of undertaking a face to face Transaction. – (see Pin below)

Contactless – Contactless payment systems are devices which use radio-frequency identification for making secure payments.

Credit Card – A payment card, banks earn money through interest charged to the cardholders. There are possibly other fees and if not sure you should check with your provider. Credit card issuing banks have a charge known as interchange.

Debit Card – A payment card that lets buyers pay for goods and services with funds from their account.

E-Commerce – The supply of goods and services conducted electronically over the Internet.

Face to Face (F2F) – Also known as a Customer Present Transactions. – The Cardholder is physically present when the transaction is processed and the card transaction is processed using a Point of Sale Terminal.

Gateway – A payment processing solution that protects cardholder data during the payment process.

Interchange Rate – A fee charged by Visa and MasterCard to complete a transaction.

KYC (Know Your Customer) – KYC is the due diligence that financial institutions and other regulated companies use to identify their clients and ascertain the relevant information required.

Merchant – Merchants are the establishment or person authorized to accept card payments. for goods or the services that they supply.

Merchant Account – This is the type of bank account that allows businesses to accept payments in multiple ways, be this via debit or credit cards and , this account is used for the settlement of payment card transactions.

Merchant Bank – A bank where merchants hold their account(s).

Mail Order Telephone Order (MOTO) – These are cardholder not present transactions where the payments are taken over the phone or in writing.

Payment Card – A general term used for any plastic card be it Credit, Debit or Charge.

Payment Card Industry Data Security Standard (PCI DSS) – This is a standard for organizations to apply by if they handle credit cards from the major card schemes.

Payment Terminal – also known as a point of sale terminal, credit card terminal, or a PDQ terminal – It is the device that interfaces with the payment card to make the transfer. There are various types of terminals available but, most have the same basic purpose and functions.

Mobile Terminals – These terminals use a mobile telephone connection. you can away from a fixed location and still accept card payments, for example, a stall holder, show, exhibition or on the road Merchants can use a mobile terminal, provided that a stable signal is available.

Online Payments – The terminals listed are physical pieces of hardware that are used to accept card transactions These can be used when the merchant is with their customers – or used to key in the card details for a card-not-present transaction.

Portable Terminals – The difference between a portable terminal and a mobile terminal is that it must be used within a specified radius of a base station. The base station must be connected and sited. These terminals are predominantly used within the hospitality industry.

Standalone also known as counter-top – These terminals accept card payments at a fixed location. You will require a power socket and cabled Ethernet connection.

Integrated payment terminals – Simply put: integrated payment terminals are networked.

PDQ – Process Data Quickly.

PIN – A personal identification number commonly used to verify a transaction.

Point of Sale (POS) – This is the time and place when a retail transaction is completed. It is also the point at which a customer makes a payment for goods or services received.

PWCB – Purchase with Cash Back – an optional transaction type that can be offered by a merchant. The merchant can choice to have this feature activated or disabled in the vast majority of cases.

Set Up Fee – Some Acquirers, Processors and ISO providers will charge a one-off fee for the setting up the card processing arrangements.

Terminal – This is the hardware device that captures card payment details and submits these for processing.

Void – A void cancels a transaction.

Are you still confused about card payment terminology? Let ACP do the hard work for you, we offer free impartial advice helping you find the bespoke card payment solution for your business.

Get a free card payment quote or call us on 0333 305 4500.

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