What’s the Difference Between POS Systems and Merchant Services?

You may have come across the terms merchant services, merchant pos or merchant point of sales, merchant accounts, and payment processors.

What Is Merchant Service?

Merchant services is an umbrella term that describes the services and equipment a business uses for processing and accepting credit card payments.

Merchant services enable money to flow into and out of your merchant account, whether it’s through a payment processor or gateway, credit card reader, or the financial institution where you have a business account.

What Is a POS System?

POS systems or points of sale were originally the place where a customer would make a purchase. Modern POS systems can do much more than just process sales and track returns. They can also help you manage your inventory and gain insights into your business performance. Merchant services integrate payment solutions with POS systems.

What Are the Types of Merchant Services Available?

The services offered by merchant service providers vary and are often tailored to the needs of each business. You will need a few services to accept credit cards in-store and online.

Credit Card Processing Terminal

You insert your credit cards into this machine when you checkout. Different terminals are suitable for different businesses. Wireless, handheld payment terminals connected via Bluetooth, for example, are ideal for businesses that run pop-up stores or curbside pickup. Countertop terminals have become a standard for businesses of any size and need.

Use payment hardware compatible with your processor. Incompatible terminals can cause security and connectivity problems. They may even stop working.

A Payment Processor

Payment processors facilitate the transfer of money between an issuing bank and an acquiring bank. This allows for secure transactions.

Payment terminals will only function if you purchase a service for payment processing. Not all payment processors are the same. It’s important to choose a processor that has no hidden charges.

A Merchant Account

This type of account allows you to accept and process credit card transactions. This is not an official bank account and it’s not meant to be used for storing funds over a long period.

This is more of a temporary space for storing funds in the event of fraud or chargebacks. These funds will be deposited in your business account after a short period, provided that there are no chargebacks.

This post was written by a professional by Exzact Business Solutions. TRANSPARENT | AFFORDABLE | SIMPLE payment processing companies Downtown St Petersburg fl, Websites, and Social Media Done Right. Exzact Business Solutions are on a mission to educate local businesses to ensure smiles, savings, and solutions. Exzact clients save an average of 30% on their processing alone. No Contracts, Free Equipment, Local Support, No Rate Increases, and More. Exzact Business Solutions goal is to educate the local business community in order to ensure smiles, savings and solutions. Exzact Business Solutions is an Independent Sales Organization with strategic partnerships dedicated to cultivating reliable and trustworthy relationships in the Payment Card Industry, allowing to tailor products and services to the needs of each merchant. Contact EBS and see what a difference having the right advocate can make!

By lexutor