Merchant payment processing is a service offered by payment service vendors to businesses to enable them to receive electronic payments from customers. Merchant payment processing services include a wide range of payment solutions from providing payment hardware like a POS to setting up a payment infrastructure and network for your business. If you’re wondering how your business can take advantage of available merchant payment services, you’ll find important information on how to get started here.
How does Merchant Payment Processing Work?
Merchant payment processing covers the entire transaction process from when a customer initiates an electronic payment to when the funds are deposited into your business account. Here’s a breakdown of the complete process:
- At the payment terminal, a customer initiates a payment by providing his card or bank details which are received by a payment processor
- The payment processor communicates with the customer’s bank and the associated card network and bank to receive approval or a decline for the transaction.
- Once the transaction has been approved, the payment processor communicates with the customer’s bank to ensure the funds are transferred and deposited into the merchant’s bank account.
Merchant payment processing options
Merchant payment needs vary between various types of businesses. For example, e-commerce stores utilize a checkout page for receiving payments, while physical stores typically have a payment terminal for processing and confirming payments. Here are three available merchant payment processing options for any type of business you run.
1. Instore Payment Processing
This merchant payment service is for you if your business owns a physical storefront where customers can walk in and make purchases. Instore payment processing typically requires you to connect to a payment network and set up hardware systems like a card payment terminal or QR code banner to receive and process payments.
2. E-commerce Payment Processing
E-Commerce payment processing is designed for businesses that sell to customers via an online commerce platform. This option requires a checkout page where customers can input their card and bank payment information to make payments. Next, a payment gateway integrated into the checkout page is usually responsible for transferring payment details to the payment processor for completion.
3. Non-eCommerce Online Payment Processing
This final option is for businesses that do not operate a physical store or an eCommerce website. A great example of this is an Instagram or Whatsapp business that connects with customers via messaging platforms. For this option, business owners can send payment links to their customers who are redirected to a payment page provided by the merchant payment processing company for them to complete their transactions.
Choosing a merchant payment provider
When choosing a provider of merchant payment processing solutions, reliability, flexibility and ease of usage are among a long list of factors to consider. Here are five things we suggest you consider:
- Is the merchant payment system easy to set up?
- How much do they charge as transaction fees?
- Does the payment system offer a seamless process to customers?
- What payment options does the merchant payment system accept?
- How reliable is their customer support service?
Tingg Africa – Top Merchant Payment Processing Provider in Nigeria and Kenya
When it comes to merchant payment processing, Tingg Africa is a leader with over 100000 merchants across Nigeria and Kenya using our platform to empower their businesses. Our payment solutions cater to all types of businesses in Nigeria and Kenya, from in-store to online businesses, ensuring that everyone can receive digital payments without hassle.
Visit tingg.africa to check out our merchant payment solutions and set up an account for your business today.