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What are the Different Types of Credit Card Merchant Services?

By Felicia Dye
Updated: May 17, 2024

Many merchants understand the importance of accommodating their customers. Doing so often requires them to offer different types of credit card merchant services. These include options to process credit cards at the point of sale (POS) or using the Internet or telephone.

Credit card merchant services are often facilitated by service providers. These service providers can enable merchants with numerous credit card merchant services. One way that they can do this is by providing POS terminals.

POS terminals are small machines that can allow a merchant to process credit cards during face-to-face transactions. To do so, a person generally swipes the credit card and information travels over a telephone line or by way of an Internet connection. Many of these machines have built-in printers that allow for the printing of receipts and error messages. Some of these machines are battery operated, but many require a power supply.

Wireless credit card merchant services may also be necessary. These allow credit card transactions to be processed from a variety of locations. Such services are generally made possible by portable terminals. Some of these operate on a swipe and store basis, whereby the information is stored until the user can get to a telephone line or access an Internet connection. Others have mobile connection capabilities which allow processing to be completed instantly.

The rise of ecommerce has increased the need for Internet credit card merchant services. These allow merchants to process transactions that are conducted online. These types of transactions generally do not require the involvement of the merchant. The work is done by the consumer, who generally enters her credit card details and other required information for processing.

Internet credit card merchant services can be beneficial to merchants in other ways. These services can provide a method to process additional payments that were not made on the Internet. For example, a merchant may receive payments through the mail, but having an Internet processing system can give him the capability to enter this information manually and to have it processed online.

Many merchants also rely on telephone payment processing. These credit card merchant services can generally be employed using any touch tone telephone. The merchant simply needs to dial a specified number, and when he is prompted, he will enter the requested details. These systems quickly inform the user whether the transaction is approved or declined. If the transaction is approved, the money will be transferred.

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