Cash is an increasingly less popular method of payment for many customers, and checks take a relatively long time to cash in, while coming with the added risk of bouncing. Credit and debit cards on the other hand are growing in popularity. For businesses, a merchant account becomes essential if they want to keep their customers happy and tap into the market of buyers who use credit cards almost exclusively. Here are some of the benefits of opening a merchant account.
- Start accepting card payments
The first and obvious benefit of a merchant account is the ability to accept credit and debit card payments. Given that these two payment methods are becoming widely used, and sometimes to the exclusion of all other payment methods, a merchant account becomes a huge asset for a business. It will help you reach a larger customer base and increase customer satisfaction.
- Increased sales
Besides opening the door to new customers, credit card processing has also been shown in numerous studies across the years to increase the amount of money a customer is willing to spend. If you only accept cash, then your customers are limited by how much cash they have in their pockets. With a credit card, the amount they can each spend is virtually unlimited. In a study done by Community Merchants USA, it was shown that 83% of small businesses see an increase in sales once they start accepting credit cards. This can have a tremendous impact on your bottom line and growth prospects.
- Less money management problems
Cash comes with a bundle of problems. It has to be counted, moved, and stored securely after it is received. This can mean extra man-hours and costs at the end of the day. Card payments on the other hand are straightforward, almost instant, and with no extra management requirements. This can help you better organize, free up time, lower costs, and improve cash flow management and forecasting.
- No more bad checks
While checks somewhat remove the need for extensive money management, they still come with their own problems. A bounced check comes with a lot of hassle, frustration and added costs. On the other hand, merchant account services are much more reliable. Merchant accounts can also be set up for recurring payments, removing many of the bottlenecks that subscription-based companies face when processing payments from their customer base.
- Better customer experience
A happy customer is a returning customer, and customers greatly appreciate variety when it comes to payment options. If a first time customer enters your store and has to pay with cash when he would prefer to use a credit card, odds are that he will not return to your business. On top of that, a merchant account allows for online card payments, which are essential if you are selling goods or services through the internet. The convenience, speed and security of online card payments have pretty much eliminated the use of money order and checks for online purchases.
For more information about the benefits of opening a merchant account, or to open a merchant account, please call (888) 924-2743 or go to Charge.com.