How to Choose a Merchant Services Provider (and What They Actually Do)

When your business needs to accept payments, a merchant services provider can help your business grow and run smoothly. These providers will facilitate all transactions, infrastructure and technology, while offering other helpful services and tools for your business.  

Merchant services providers make it possible to accept payments, such as credit, debit and electronic payments. They help businesses access the payment technologies, processing relationships and support needed to accept electronic payments.  

Additionally, they can provide your business with the necessary tools to track payments, business insights and other technological services. Choosing the right merchant services provider means they give you the visibility, control and the foundation to continue to scale.  

What is a merchant services provider? 

A merchant services provider supports electronic payments for businesses by offering various financial services and business insight tools to accept and authorize customer payments. Although they can support moving money from one account to the other, they also give merchants the tools they need to operate more efficiently.  
 
The term ‘merchant services provider’ is often used broadly to describe companies that help businesses accept electronic payments. Depending on the provider, these services may include payment processing, gateway technology, acquiring relationships, hardware, software and customer support. 

Merchant services providers can also be your payment processor. Instead of working with multiple third parties, you can work with a single, integrated partner for your merchant services, payment processing and payment gateway. This approach makes it easier to manage your entire payments ecosystem.  

When your customers make purchases, there are three key components of the transaction process that work together in creating a smooth experience for all parties:

Payment gateway securely transmits payment data from online and eCommerce transactions to the transaction processor for authorization, settlement and funding. 

Card brand networks route their cardholders’ transactions between the payment acquiring banks and the card issuing banks for authorization, settlement and eventual funding.   

Merchant accounts are established by the transaction acquirer to hold information, transaction detail and payment history of the transactions settled to the merchant’s depository account. 

Depository account is the merchant’s bank account where approved credit card funds are deposited after transactions are processed and settled.  

Together, each component ensures that each transaction is fast and secure. With an integrated partner, you benefit from faster setup, fewer points of failure, consistent security standards and a better experience for both your staff and your customers. 

Here are 4 key factors to look for when choosing a merchant services provider 

Look for a provider who keeps payments secure and seamless. You need a provider who can make a difference for your business and support your growth. 

Consider these key factors: 

1. Transparent pricing and fees

You can prevent unexpected fees by asking for clear, honest pricing. Common pricing models include interchange-plus, flat-rate and tiered pricing. Transparency often matters more than finding the lowest advertised rate.  

Possible fees to consider:  

• Monthly account or statement fees
• Hardware and equipment costs
• Chargeback and dispute fees 
• Early termination or contract exit fees

2. Payment security and compliance support

Strong security is essential to protecting your business and your customers’ data.  

A quality provider offers PCI compliance guidance and support to help you meet industry requirements and advanced security tools such as end-to-end encryption, tokenization and real-time fraud detection.  

3. Range of payment solutions 

Find a provider who will support all the ways your customers want to pay.

This includes: 

• In-person payments using POS systems and card terminals 
• Online payments using secure gateways and ecommerce integrations
• Mobile payment tools for on-the-go or service-based businesses

4. Reliability and uptime

Every minute your payment systems are down means potential revenue lost. Look for providers with a reliable, consistent performance. Ask the provider about their historical reliability, the backup and redundancy systems they use and how they monitor and resolve outages. 

Reliable infrastructure ensures you can accept payments whenever your customers are ready to make a purchase. 

Why the right provider matters

Choosing the right merchant services provider can directly affect your customers’ experience with your business. The same goes for cash flow and long-term business growth. When checkout is fast and secure, customers are more likely to complete their purchase and return to your business. 

A strong provider will deliver advanced fraud protection, encryption and compliance support. This extra layer of security can help protect your brand’s reputation from breaches or chargebacks.  

The right provider should be able to scale with you. Scalable solutions allow you to add multiple locations, sales channels and new payment types without having to switch providers.  

But if you choose the wrong provider, it may cost you more down the road. Unexpected fees, long-term locked-in contracts and overall poor support can quickly eat away at your profits. Evaluate your merchant services provider options to ensure you choose one that will support your business.  

How does Elavon support your business? 

Elavon combines global payments expertise with dependable technology that will support businesses of all sizes. As a merchant services provider, payment gateway and payment processor, Elavon delivers a secure, globally trusted network.  

With transparent, flexible pricing options, such as next-day funding, you can choose what fits your business needs. Benefit from advanced security features, including encryption, tokenization, fraud monitoring and PCI compliance support. 

When you need help, Elavon’s customer support team is available to help resolve issues or answer questions 24/7. As your business grows, Elavon scales with you. 

Final Thoughts 

Choosing the right merchant services provider is a long-term investment. The right provider will help you deliver a smooth checkout experience to your customers, strengthen security and support steady cash flow.  

When you’re equipped with the right provider, you’re set up to succeed by serving customers better, operating more efficiently and continuing to grow with confidence. 

Start accepting payments with confidence. Explore Elavon’s merchant services solutions today.

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