Understanding Various Merchant Processing Bank Services

There are many services that a merchant processing bank provides for its commercial customers. Merchant banks work with businesses to provide transaction processing services. They provide a way for businesses to accept credit cards and other forms of payment other than cash. A merchant bank helps business process payments necessary for growth and profitability.

As a business, you should understand what services a merchant bank provides. These services provide you with an ability to accept different forms of payments for the products and services that you offer. These services include recurring bill payments for customer transactions, processing services for debit cards and electronic checks.

Recurring Billing Payments

A recurring bill payment service helps businesses process payments for customers who pay automatically. This payment can be processed via a credit/debit card or electronic check. Businesses such as utilities, mortgage lenders and insurance companies use these services as a way to continuously bill their customers without the necessity to generate a paper bill or send a payment reminder to the customer.


Recurring bill payment processing by a merchant bank reduces the amount of paperwork that is required to alert a customer about upcoming payments.  The merchant bank establishes the recurring payment via a form of payment such as a credit card and it will continuously processed.


A recurring bull payment may be prone to mistakes or overcharge a customer if the payment information is erroneously entered into the processing system.

Debit Card Processing

Merchant banks can provide their customers with debit processing services that allow them to accept debit payments for products and services. With a large percentage of credit card transactions being done with debit cards, being able to accept debit cards gives a business greater payment flexibility for the customers.


A business has the ability through debit card processing to accept additional forms of payments. This helps the business offer more payment options for their customers.


The merchant bank may assess additional charges in order to access an electronics benefit transfer system that accepts a wide range of debit cards from different issuing networks.

Electronic Check Payments

Electronic or e-checks are a way for customers who do not have credit or debit cards to make online and other merchant purchases. An e-check payment processing service helps a business expand it customer base and provide another option for paying. Electronic checks reduce the cost associated with accepting paper checks and are easier to handle and process.


An electronic check processing service gives the business more flexibility and payment options for their customers. This is important for those customers that do not have a credit or debit card.


Electronic check processing may create problems for a customer if there are entry or software recognition problems at the point of sale. Merchants have to verify the account’s owner to prevent theft or fraud.

These are a few of the processing services offered to merchant bank customers. They provide a way for businesses to increase payment options and make life easier for their customers.

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