Over the years, there have been a series of changes in the mode of operation of businesses over the world. One aspect where there is an interesting growth is in the way payments, banking, and investments are done. However, we won’t be talking much about what it used to be like years back. Instead, we would be digging deeper into merchant services, how it works, and the way it is incorporated into CBD oil business.
MERCHANT SERVICES: HOW IT WORKS USING CBD OIL AS A CASE STUDY:
Payment processing and merchant services for businesses
Basically, the concept of merchant processing is quite easy to understand. You sign up with a merchant provider (this gives you the pass to accept credit cards, debit cards, and other forms of payment and at the same time, receive payment for yourself). Then it goes into a payment system that is configured to collect the transaction fees from your account and the rest is deposited in your business bank account.
The interesting thing about merchant payment options is that there is more than one way to accept payments. Other merchant payment service options actually exist. You might want to do a further probing into their mode of operation and see which one exactly is good for your business. You do this by checking which one allows you to save money, access more useful data, and find solutions that align with your business mode of operation.Here are some popular merchant payment service options.
1. Retail merchant account
Retail merchant accounts are built to provide middle-class product-oriented businesses get access to a physical storefront. The merchant account makes your business the merchant in the directory. However, the accounts may be made available by a third-party agent, a corporate body or an acquiring bank (which serves to connect you to the card networks and issuing banks).Typical retail merchant accounts come with several card-reading options. These systems are configured to function in solving physical card problems and related security challenges.
2. Mail order/telephone order (MOTO) merchant accounts
This class of merchant accounts is designed especially for telephone or mail order establishments. Recent trends have seen such services merged into online or retail options. Notwithstanding, they are still available as standalone options in some cases.
Comprehending fees and categories of merchant services
The way merchant accounts are structured makes it quite intimidating to smaller businesses as a result of their fee structures. These accounts give their fees a wide variety of labeling. They are arranged based on the particular type of account.
Looking at the sum total of fees is quite important when we put into consideration the overall expenses of a merchant account. However, there are other factors. Also, you do well not to forget that there are additional services that are affiliated with your merchant account. Common fees in merchant services include
Minimum fees: These fees are incorporated into a merchant account on a monthly basis in most cases. It is up to the service provider to dictate the mode of charging for this fee. They might decide to offer discounts or waivers for new businesses or decide to charge the fees straight up.
Statement fees: This refers to processing fees that may shift or vary based on your mode of acceptance.
Gateway fees: This category of monthly fee will apply if a merchant service provider makes use of a third party payment process to gain access to the network cards. It happens sometimes that merchants make use of third party gateway in gaining access to some payment process features that would not have been available to them if they had made use of their payment processor. In cases like this, it is not uncommon for the service provider to act as a middle man. In effect, only third party gateway accounts are made available.
Payment gateways are an important feature of merchant services. They are just like the credit card machines you swipe your card through when you buy from a store. However, there is one difference between the said payment outlets and payment gateways of merchant services. Unlike the POS, payment gateways do not need a physical card to make a charge. In fact, that is where it got its name from. It is a gateway between a business, a client, a client’s credit card provider, and an institution’s bank; they are all linked together.
For some gateways, merchant accounts are required to handle funds received through credit cards.Brick-and-mortar stores or any retail businesses that swipe cards already have merchant accounts.Unlike some bank accounts that allow you set up for free, there is a cost to setting up an online payment system. If your gateway offers a variety of functions and services, the rate tends to be higher.
Credit card processing and merchant services for CBD oil
An area where the use of merchant services has been very helpful is in the sales of CBD oil. Also known as cannabidiol, CBD oil is largely beneficial. It has many therapeutic advantages which include its antioxidant and neuro-protective attributes. All this makes it to be in high demand in the market.
However, here is the problem; the sale is surrounded by obscurity due to the fact that its parent material (marijuana) is under ban in a number of states in the United States. Therefore, banks and traditional credit card processors are quite fearful of engaging in transactions related to CBD. Therefore, CBD oil merchants prefer to leverage on the cashless set up of merchant services in selling their products. That way, they are able to make transactions without putting banks and traditional credit card processors in trouble with superior authorities.
Merchant services open up the trading sector to a new world of possibilities when it comes to transactions. You can make use of this service if you are interested in buying products and services like CBD OIL. This industry will definitely experience tremendous growth in coming years.