Point of Sale (POS) Glossary
A merchant account is a payment processing service that a business uses in the electronic payment transaction process. These accounts facilitate accepting credit cards, debit cards, and other types of electronic payments that are presented at a point of sale terminal in a store.
When a customer’s transaction is processed at the POS, the merchant account acts as a middle man to negotiate the transfer of money from a customer’s account to a business bank account. Services such as Paypal act as both a merchant account and bank account and are not merchant accounts.
In order to accept electronic payment transactions, a business will usually need a gateway that does the initial authorization of a transfer. This information is later sent to the merchant account (sometimes known as a credit card processor) that settles the transactions. If the transaction is confirmed, the money is sent to the merchant’s bank account.
Customers love promotions! Buyers are often pulled in by one deal and wind up buying regularly priced merchandise in addition to, or sometimes instead of your discounted items.
An eCommerce website is open 24/7 and accessible from all over the world. Being online and having physical store opens your business to a global market.