Merchant Service Providers (MSPs) maintains merchant agreements and services. They handle all the application process including your rates and fees including preparing the contract.

They also deliver value added services: payment gateways, virtual terminals, credit card terminals and POS systems.

Additionally MSP will support you on any issues relating to your account. But if something goes wrong with a transaction, you’ll have to contact the payment processor for help.

Payment processors are in charge of securing the process of your payments.

An MSP can also be a direct processor, meaning that both merchant accounts and processing services are offered.

MSPs usually set up and maintain merchant accounts, but they will use a third-part company to handle the processing side of things.

Credit Card brands organize  the processing networks, as well as dictating the interchange rates and defining usage rules. There are several brands in the U.S. like Visa and Mastercard.

Banks issue credit cards to extend credit to customers whenever they make transactions with their cards.

However, merchants barely interact with issuing banks.

A Payment Gateway links an online payment to the bank that processes it. They are not the same as merchant accounts.

Internet merchant accounts combine gateway services and payment processors such as PayPal.

Mobile processors such as Paypal or Square Cash are payment service providers that does an indirect agreement with a card processor.

They use payment facilitators and third party processors to do this.

Using a PSP benefits growing businesses that tend to have a low volume transaction. PSPs can also waive monthly fees sometimes.

PSPs are the most ideal for merchants who process transactions once in a while.

Tier pricing is the rate structure for credit card processing services. This allows the processor group to interchange fees into different tiers.

There are two types of rate structures:

• Tiered Pricing
• Interchange-Plus Pricing

However, interchange-plus pricing is more encouraged since this structure breaks down the charges and shows the markup the processor is charging you.

There are other fees to consider with interchange-plus pricing as well, so be sure to ask your credit card service processor.

Normally, the contract that a service provider gives is about three years. These terms often include automatic renewal and early termination fees (ETF).

However, now more providers are offering month-to-month agreement with no ETF.

Merchant service providers is available for live customer service support depending on the merchant.

A sort of honorable mention, Payment Depot has month-to-month billing, predictable costs, and superb customer support. They also offer the ability to upgrade to a higher-level subscription plan if your business outgrows the processing limits of your plan.

(Visit Payment Depot to learn more)

Flagship Merchant Services is a merchant account provider that is one of the first to provide free account setup with no application fees. Additionally, they even offer month-to-month contracts with no early termination fees.

(Visit Flagship Merchant Services to learn more)

National Bankcard offers a point-of-sale (POS) system that meets its merchants’ needs on top of competitive pricing, free hardware, and live customer support 24/7 365 days of the year.

(Visit National Bankcard to learn more)

For eCommerce merchants looking for dependability, Shopify is the platform for you. Its ease of use and elegance is especially great for those on a tight budget and don’t need a tone of advanced functionality. If you’re still curious about the service, sign up for the 14 day free trial to test it out.

(Visit Shopify to learn more)

PayHub comes with an integrated payments platform designed for eCommerce as its primary product. Their Virtual Hub and Flat Pricing Plan are all you need as an eCommerce-only merchant, but if you are a traditional retailer, you may need some more functional features. Luckily they have a sibling company, SignaPay, that offers a full-blown merchant account.

(Visit PayHub to learn more)

If you’re looking for a credit card processor that offers a full-service merchant account, CDGcommerce is one of the best and affordable options for small- to mid-sized businesses. The provider does not charge gateway fees, PCI compliance fees or monthly minimums, so account maintenance fees will always be low and predictable. What’s more, equipment is provided for “free.” All you have to do is pay a reasonable annual insurance fee to maintain it.

(Visit CDGcommerce to learn more)

If you need developer tools and other advanced features beyond just payment processing at no additional cost, then Braintree is the perfect service for you. Although they dont offer the cheapest rates in the industry, Braintree gives good services for the price. For an eCommerce or mobile merchant, you won’t find much better providers. Their products and services offer a lot of customizability which is great for internet-based, tech-driven merchants.

(Visit Braintree to learn more)

Authorize.net features an advanced fraud detection suite (AFDS) which is included for free with your account. It’s made up of thirteen filters that you can customize to help flag and block seemingly fraudulent transactions. AFDS helps to prevent fraud-related inventory loss and reduces chargeback incidents.

(Visit Authorize.net to learn more)

Paper receipts and things of that nature are out dated. Having to deal with storing organizing and retrieving paper documents is a pain. On top of that, it is harmful to the environment on both the production front and the product itself. Because receipt paper is generally coated in BPA, it can potentially be toxic to humans and the environment.

For a more organized and efficient move, PayJunction is the way to go. With this service, you will reduce risk, widen customer payment options, and eliminate the need for a traditional credit card terminal with its paperless system, all while saving with competitive rates and stellar customer service.

(Visit PayJunction to learn more)

As you might guess, Amazon Pay sits at the top of this category. With this service, customers can complete purchases, make donations and set up recurring payments, by making payments through their Amazon account. Like PayPal, customers won’t have to leave your website to complete a payment.

(Visit AmazonPay to learn more)

From a fundraiser who uses GoFundMe to needing to collect payment from conference attendees via Constant Contact, WePay can help you with all of those needs. On top of these features, they also offer facilitating capabilities that you can embed inside these platforms. WePay also provides self-branded payment solutions within each software platform, also known  as “white label” payments.

(Visit WePay to learn more)