What Does Merchant Services Mean? - CCSalesPro

Merchant services is credit card processing.  Those terms are interchangeable.  You may not realize when you make a purchase in any business using a credit card, the business owner is not able to deal directly with Visa or Mastercard to get the funds necessary to fund your transaction.

The business owners go through a credit card processing or merchant services company.  Every merchant out there who accepts credit card payment goes through a credit card processing company who funds each transaction.  If you spend $100 at a small retail store, that transaction is going through a server of a credit card processing company.  The credit card processing company is going to fund that $100 to the merchant’s bank account.  There are going to be certain fees assessed for the transaction, usually ranging from 1 1/2% to 3%.  If you process a $100 transaction with a retail merchant, then the merchant is going to pay $1.50 to $3.00 for the amount to get funded to his or her bank account.  The interesting thing is that part of the fees is actual cost paid directly from the credit card processing company to Visa or Mastercard and part is profit.  Thus the reason we sell merchant services – the profit margin.

Here is a brief overview of the meaning of selling credit card processing:  You would go to retail and restaurant locations in your local area.  Normally starting with small to medium size businesses is best.  These would be businesses with only one location or two to three at most.  Don’t go after huge corporate accounts in the beginning.  We basically go in and save the merchants money by lowering their fees while still preserving some profit for us.  That is the meaning of selling credit card processing or merchant services.

I hope this gives you a better understanding of what “Merchant Services” means.

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