Merchant services is the set of tools and agreements that allow a business to accept card payments and receive funds. A typical setup involves a processor, an acquiring bank, card networks, and a merchant account configuration.
Most pricing structures include (1) card network and issuer costs (interchange) and (2) a processor or ISO markup. The exact presentation depends on the pricing model and the merchant’s transaction profile.
After authorization and capture, transactions settle through the processor and acquiring bank, and funds are deposited into the merchant’s bank account according to the funding schedule.
Related: Interchange-plus, Pricing models, Effective rate
Compliance note: ClearRate Payments is not a bank. Payment processing services are provided through sponsoring banks and processing partners.