A merchant service provider, or MSP, is a company that makes it possible for a business to accept payments in exchange for products and/or services. These companies may go by other names as well, such as:
Let’s take a closer look at the different types of MSPs.
A merchant account provider is a company that offers businesses a merchant account and/or payment processing services. This allows the business to accept payments and receive funds in their business bank account.
Payment service providers may also be called payment aggregators. This term refers to companies like Square, PayPal, and Stripe.
PSPs offer a quick and easy way for businesses to get payment processing. But there is a catch. All businesses share one master merchant account for processing. Still, it is a popular method because businesses usually get approved right away.
Payment gateway providers offer payment processing services to businesses that need to accept payments online. These companies may or may not also provide the merchant account. Businesses that need payment gateways may need to get a merchant account with a different MSP.
Merchant service providers offer a variety of services, including:
Many can also assist businesses by providing them with working capital, merchant cash advances, and small business loans. Other value-added services may include payroll management, employee management, inventory tracking, ATM placement, and more.
« Back to Glossary IndexSed ut ullamcorper nulla, eu consequat turpis. Duis ac molestie orci. Suspendisse blandit ullamcorper eros
CTA Button