What Is A Merchant Account & How Does It Affect Online Payments?

The business world has evolved drastically. While in the past people preferred cash payments over anything. However, times have changed. Entrepreneurs want to offer all kinds of payment methods to their customers to ensure their high sales and therefore high profit.

A research report from TSYS suggests that 82% of consumers prefer to pay via credit cardsor choose to prefer card solutionsover the cash counterparts, and only 10% of consumers prefer cash.

Hence, businesses need to apply for merchant accountwith a professional merchant service provider to allow exchange of funds between a customer and a business, keeping the customer’s personal and financial data encrypted. But what are the best merchant services you can adopt for your business and how they are important for your business growth?

This post entails all the points regarding what a merchant service is and what are the benefits they bring along themselves for a business to grow and expand rapidly.

Online Merchant services in USAallows businesses the ability to accept debit and credit cards payments online.

Merchant services are also referred to as credit card processing services.

The offline services include POS infrastructure, merchant accounts and check support. Whereas, the online services comprise of internet merchant accounts, chargeback support, credit and debit cards, e-wallets and mobile payments.

The Process of Online Payments

The process of merchant service comprises of the following steps. These are:

1. Gathering payment information for the customers

2. Giving the authority to customers to make the payment to the business

3. Transferring the funds into the business’s bank account.

The most significant aspect of an online payment process is the authorization; the stage at which any fraud or customer’s inability to access enough funds to pay for the goods and services is analyzed. The authorization process, however, varies according to the type of payment used by the customer for example Visa or Mastercard and the machine type used by the business to make the payment.

If this part of the process goes smoothly, an authorization code is generated on the customer’s payment provider who then shoves it back to the bank account of the business. The code is then sent through to the card machine, point of sale or online system to complete the process.

There are a number of different tools offered by merchant service providers which allows businesses the ability to accept and process credit card payments onlineproviding convenience to both the businesses and their customers.

A credit card terminal, on the other hand

A credit card terminal, on the other hand, is a device that comes with the features to swipe, dip, or tap a credit or a debit card. The device helps to connect with the merchant service providers and aid the business to receive and verify payments from customers in exchange for the goods and services offered.

Credit card terminals are available in a variety of shapes and sizes – from simple magstripe swipers to handheld terminals depending upon the business requirement.

Point of sale system is another tool of the online payment process. A point of sale system is both a software and a hardware that not only provides credit card payment processing solutions but also offer abilities to business to manage their general day to day sales and processes.

Why Merchant Account And Merchant Services Are Important For Businesses?


The days when people preferred paying via hard cash have long gone. Nowadays, people prefer online payments over anything. For this reason, business need to have an option to offer online transfer of funds to keep up with today’s norms.

A business not offering non-cash payment methods is more likely to fail in the market than those who do.

According to various studies and research, customers are likely to spend more when they are offered credit and debit card services by businesses compared to when they are not. Research from community merchants USA revealed that 83% of small businesses that adopt merchant accounts and provided online merchant services experienced boom in their sales.

Not only sales, the transfer of cash via credit and debit cards allows better money management as your cash streams down to online systems managed by financial institutions – saving you the hassle of keeping a track of your money physically. Result? Electronic payments not only help your business organized but allows better cash flow management and budgeting.

Another amazing advantage of adopting online payment merchant services is that it reducesrisk of receiving bounced checks and the cost associated with it.

As customers can pay the money later whilst enjoying the goods and services such as shopping grocery, making mobile payments according to their convenience and ease,the flexible payment option of plastic money in the form of debit and credit cards leads to happy and satisfied customers.


Having merchant account for a modern-day business, especially an Ecommerce store isn’t only a trend, but rather, a necessity. These accounts save time, costs, along with extensively adding to the efficiency in the financial payments process.

Are you too looking for a merchant account in USA?  Get one from EmpirePaytech! We provide the best online merchant services in USA and make sure that the entire process goes as smoothly as possible for each one of our clients.


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