So which model is better—and what does this shift mean for merchants and merchant services sales agents?

The answer isn’t either/or. It’s about fit, flexibility, and long-term strategy.

What Are Embedded Payments?

Embedded payments are payment processing capabilities built directly into a software platform.

Instead of a merchant choosing a processor separately, payments are:

• Integrated into the software they already use
• Often bundled with monthly software fees
• Managed behind the scenes by the platform provider

Examples include:

• Industry-specific SaaS platforms
• Online ordering systems
• Appointment scheduling software
• Marketplaces and vertical software tools

For merchants, payments feel seamless—because they are.

What Is a Traditional Merchant Account?

A traditional merchant account is a standalone payment processing relationship.

Merchants:

• Choose their processor
• Select pricing models
• Use POS systems or gateways
• Maintain a direct relationship with the provider or agent

This model offers:

• Pricing transparency
• Greater flexibility
• Customization by business type
• Direct human support

Traditional merchant accounts remain dominant in retail, restaurants, and service businesses.

Embedded Payments: The Pros and Cons

Advantages of Embedded Payments

Embedded payments offer:

• Convenience
• Faster onboarding
• Fewer vendors to manage
• Tight software integration

For some merchants, especially smaller or niche businesses, this simplicity is appealing.

Limitations of Embedded Payments

However, embedded payments often come with trade-offs:

• Limited pricing transparency
• Less control over rates
• Higher long-term costs
• Few customization options
• Little or no direct support
• Difficult exits if problems arise

Many merchants don’t realize these limitations until issues occur.

Merchant Accounts: The Pros and Cons

Advantages of Merchant Accounts

Traditional merchant accounts provide:

• Clear pricing structures
• Flexibility in POS and gateway choice
• Ability to implement dual pricing or other strategies
• Dedicated support and advocacy
• Easier negotiation and adjustments over time

This flexibility matters as businesses grow and change.

Limitations of Merchant Accounts

Merchant accounts require:

• More upfront setup
• Ongoing management
• A knowledgeable partner to navigate options

Without proper guidance, merchants can feel overwhelmed.

Which Is Better for Merchants?

It depends on the business.

Embedded payments may be a fit when:

• Payments are secondary to the business
• Software dictates the workflow
• Simplicity is the top priority

Merchant accounts may be better when:

• Payments are core to revenue
• Cost control matters
• Multiple channels are involved
• Customization and support are important

There’s no universal winner—only better alignment.

Where Merchant Services Agents Fit In

Despite the rise of embedded payments, sales agents are not becoming obsolete.

In fact, their role is evolving.

Agents add value by:

• Explaining trade-offs honestly
• Helping merchants evaluate embedded vs. standalone options
• Identifying hidden costs
• Solving edge cases software platforms can’t
• Protecting merchants when issues arise

Embedded payments remove friction—but they don’t remove complexity.

The Hybrid Future of Payments

The future isn’t embedded or merchant accounts—it’s both.

Many businesses will:

• Use embedded payments for certain workflows
• Maintain merchant accounts for others
• Rely on advisors to connect everything cleanly

Choice and flexibility will matter more than ever.

How Beacon Payments Approaches Embedded & Traditional Payments

At Beacon Payments, we don’t force a single model.

We help merchants and agents:

• Evaluate embedded solutions honestly
• Build merchant accounts where flexibility matters
• Integrate payments into broader business workflows
• Avoid long-term traps disguised as convenience

Technology should serve the business—not lock it in.

Final Thoughts: Better Depends on Strategy

Embedded payments aren’t the enemy—and merchant accounts aren’t outdated.

The best payment strategies are:

• Thoughtful
• Transparent
• Scalable
• Supported by real people

Merchants benefit from understanding their options.
Agents succeed by guiding—not pushing.
The future of payments belongs to those who can explain the difference.