Merchant service industry is a broad classification of financial services designed for the exclusive utilization of business establishments. In its broadest sense, it covers all of merchant processing services which allows a merchant to accept payment through electronic transfer from a customer and to then provide a refund for any goods or services received. Learn more information about high risk merchant accounts.
The term “merchant service industry” is generally used to refer to either the commercial or the non-commercial sector in which merchant services are offered to consumers in exchange for payment. There are basically three types of this service industry. These categories include:
Electronic-only merchants (e-wallets), whose transactions are primarily electronic in nature such as through e-mails, text messages, etc. Electronic-only merchants do not need to hold inventory, and this is their primary advantage.
Traditional brick-and-mortar merchants, who conduct their business from retail stores and franchises. Their business is generally based on the sale of goods and services to consumers. Since these businesses must maintain physical outlets for their business operations, there are still some processes involved in managing this aspect of their operation.
Retail websites, which are primarily focused on providing goods and services and/or other items to the consumer for a fee. This includes a wide variety of businesses, both large and small. With e-commerce websites, customers can purchase items using online payment systems, and they will also be able to pay through credit cards or through social media sites such as Facebook. The latter allows customers to make payments by sharing their personal information on a secure site.
As previously mentioned, a merchant must first establish an account with a website for the purpose of accepting electronic or online payment. In order to receive payment, the merchant then needs to collect personal information from the customers. This information includes the name and/or email address of the customer as well as a few other pieces of information and is used by the merchant in order to process payments and to provide customer support.