You Own a Small Business – Can a Merchant Account Provider Provide You With What You Need?
Check and cash usage is dropping, while online and card payments are on the rise. To harness this, a small business must have access to a merchant account, which will allow you to receive payments in a variety of ways. This article will discuss the benefits and pitfalls of having access to a merchant account.
- Start processing credit card payments
One of the most important and most sought after benefits of having a merchant account is the ability to accept credit and debit card payments. As these methods rise in popularity, customer demand will shift from cash payments to card transactions. Small businesses who want to stay on top of this trend can improve customer experience by eliminating any friction caused by the lack of a preferred payment methods.
- Increased sales
There have been a number of studies over the years, which have shown that customers tend to spend more money if they are given the option to use cards over cash. One survey from Intuit found that 83% of small businesses that have started accepting credit cards saw an increase in sales–sometimes by as much as 500% or more. Needless to say, this is very positive for the growth of your business.
- Easier money management
Electronic payments such as card and online payments, improve cash flow management and forecasting, by eliminating the need for the many operations that revolve around cash payments. Cash has to be moved, counted and secured, while electronic payments are simply transferred from one account to the other, only taking the form of cash when necessary.
- No bounced checks
Checks also have their problems when compared to electronic payments. There is a lot of hassle and cost when dealing with a bounced check. On top of that, you can opt for a system that allows you to take in recurring payments straight from the client’s debit or credit card, once again streamlining operations and removing any unpleasantness that may occur due to a bad check.
- It is more convenient for the customer
Finally, being able to accept credit and debit cards leads to an experience that is more convenient for the customer. The more options you give your clients, the happier they’ll be to do business with you. You want to be able to accept cards, online payments, mobile payments and recurring billing, if you think you have the business model and the customer base for it.
All in all, opening a merchant account is a great, cost effective way for a business to expand its operations, reach new customers, and keep the existing ones happy. Some merchant account providers have no application fees, very low rates, and a plethora of free special offers with every sign up.
For more information on how a merchant account provider can help your small business, or to sign up for a merchant account, please call (888) 924-2743 or go to Charge.com.