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The Guide to Merchant Banking Services
Posted on Sunday, March 27th, 2022 | By IndusInd Bank
Customers prefer to make payments electronically because of the convenience that they provide.However, businesses, need to have the necessary payments infrastructure in place in order to accept payments digitally. But how do you actually go about it with all the jargon around this topic such as merchant accounts, merchant services, etc.?
Worry not. Here’s a complete guide to merchant banking services for businesses.
What is a Merchant account?
A Merchant account is a business bank account that lets you accept and process electronic payments made using credit cards, debit cards, or payment apps.
Whenever a customer makes a payment electronically, a whole process is initiated wherein the merchant bank provider and the card network (such as VISA and MasterCard) work together to authenticate the transaction and move the amount from the customer’s bank account to your Merchant account.
If you are looking to start accepting electronic payments, do apply for Merchant account right here. In addition, you can get a chance to avail unsecured loan.
What are the different Merchant services?
In order to start accepting payments, there are other things that a business will need other than a bank account such as card readers, QR codes, etc. All these services fall under the umbrella term ‘Merchant services’. The details of these services follow:
- POS Machines: A POS machine is just the card reader that you must have seen while shopping somewhere. You put in the customer’s credit/debit card into the machine in order to initiate a transaction. In the background, the customer’s bank authenticates the transaction and if everything checks out, the money is transferred from the customer’s account to yours. If you are looking to accept credit/debit card payments, you will definitely need one off these. Apply for one today right here.
- Merchant payment apps: Today there is an app for everything and why not? They are useful and accessible. A merchant payments app allows you to keep track of all your transactions from your phone, like Khatabook.
- QR codes for mobile payments: QR codes are again super common nowadays. They let you accept payments from customers using any of the payment apps. Customers just need to scan the QR code, enter the amount, and make the payment. As simple as that!
- Payment gateways: Payment gateways let you accept electronic payments for your ecommerce businesses through websites and mobile apps. If you own an ecommerce business and are looking to accept payments, you will need payment gateway services. You can apply for these services here.
Final Words
Now that you know about the different merchant banking services, it is time to consider applying for a merchant bank account in order to start accepting electronic payments. When applying for one, do consider things like the fee structure of your merchant bank provider and the settlement time for payments. You can visit IndusInd Merchant Solutions by IndusInd Bank to check out the merchant bank.
