A merchant account is a particular type of bank account that enables businesses to accept credit cards and other payment types.
Opening a Merchant Account
The most convenient way to open a merchant account is with the help of a payment service provider (PSP) that offers several different options. These include payment through different currencies and multiple payment options. These PSPs are able to acquire bulk discounts and attractive terms from banks and card companies which they can pass on to merchants. However, not all merchants are eligible to open accounts. Certain types are considered “high risk” and these may include e-commerce businesses, membership clubs, and telemarketing businesses. Nevertheless, such businesses can also get merchant accounts if they choose the right PSP. Getting approval from merchant account providers can boost your business and build your brand.
5 Top Benefits
- Builds Customer Trust and Confidence: When you display the logos of credit and debit cards that you accept on your website, you actually piggyback on the card brand’s reputation. Customers have faith and trust in these cards and they automatically transfer that confidence to your business. This is especially beneficial to small businesses and start-ups who can increase their sales by as much as 500% when they hold merchant accounts allowing them to accept leading credit cards.
- Customer Loyalty: By accepting credit card payments, you give your customers flexibility and ease of doing business. Merchant accounts enable you to provide different options like shopping cart enabled online payment, credit or debit card swipe, mobile payment, and recurrent billing. Your customer reach is widened because you can offer multiple currency options. This means you can get the benefit of international customer loyalty too. Card payments show a dramatic increase in returning customers as well.
- Boosts Ticket Size: Cash payments generally lead to more conservative spending habits. This can be traced to the physical handling of cash, whereas credit cards provide a more virtual experience. Studies show that people spend at least 18% more when they shop with a card, and studies also show that when customers are able to pay by credit card, they tend to make more impulse purchases. So you get to boost your sales and revenue both online and in-store.
- Better Organization of your Money: Your money management process gets streamlined since the PSP provides you with regular reports on all transactions, payment methods, and so on. It simplifies your cash flow and information gathering methods.
- Cuts Fraud/Security Risk:You are protected from bad check risks and check fraud when you accept plastic or online payments. Another big advantage is that you don’t have to store cash in your premises, which is subject to theft or employee ebezzlement.
For more information about the benefits of signing up for a high risk merchant account, or to sign up for a merchant account, please call (888) 924-2743 or go to Charge.com.