MSP (Merchant Service Provider)

An MSP (merchant service provider) is defined as any company that enables a business to accept credit, debit, and other types of payments.
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(MSP) Merchant Service Provider

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: 

  • Acquiring banks
  • Payment processors
  • Credit card processors
  • Merchant account providers
  • Payment gateway providers

Let’s take a closer look at the different types of MSPs. 

Merchant Account Providers

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 Services Providers (PSPs)

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

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 Services Options

Merchant service providers offer a variety of services, including: 

  • Merchant accounts
  • Credit card terminals
  • POS systems
  • Mobile POS systems
  • Virtual terminals
  • Payment gateways
  • eCheck processing
  • ACH processing
  • Online shopping cart integration
  • Payment security

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. 

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