Gone are the days when people used to carry cash with them. People used to carry large amounts of money if they wanted to buy expensive products. This was a huge problem as there were chances of the money to get stolen. When the banking sector became more and more prominent this problem was solved in a way as people would pay in cheques. But this was also not a safe way as the cheques would often bounce because of fraud customers. All of these things became a thing of the past when electronic payments were introduced. Credit cards and debit cards have completely changed the dynamics of buying and selling of products. Everyone seems to be interested in having a credit card or debit card as it would make the process of carrying money very easy. You can just carry a small card which has your money in it. Even if you lost your wallet you won’t be losing your money as it is safe in your bank account.
However there are several types of bank accounts each one is designed to serve a specific purpose. For example, you open a personal account in a bank to keep your money safe. Only you will be able to withdraw money from it. But you cannot use it for business purposes. This is not because it is incapable of storing business money. It is because it cannot give you the level of services that can make your business transactions smoother. Oftentimes when money is deposited in accounts there is a delay in confirming the transactions. This cannot happen in business as you have to give the customers their products or services as soon as they pay for it. Apart from that, you should confirm the payment if not you might lose your products to a scamster. How do you deal with this problem?. It’s simple to just open a merchant account for your business. Many of them have heard about it but may not know what it is exactly.
A merchant account is just like any other bank account but for businesses so that they can accept credit or debit card payments from their customers. Not only that but it also makes the process of buying and selling easier for both consumers as well as merchants. It is one of the fastest, easiest, and most reliable ways for businesses to accept payments. Even though the process, everyone has to always be careful when it comes to money transactions.
Follow these 10 steps to secure a merchant account. Unlike the regular money transactions where there is a delay between payment and receiving the notification of payment, the payments and notifications related to them are immediate. There is literally no delay in knowing if the transaction is completed. So what happens is when a customer requests to pay through their credit card or debit card the details of the transaction are sent to your merchant account by the card processor. Then details are then sent to the issuer of the card by your merchant account. The card issuer checks if the card has sufficient balance in it to make the payment then notifies the card processor. The card processor then notifies your merchant account that the customer is eligible to make the payment.
All of these processes are taken care of by Visa and MasterCard which are credit card networks. The amount is deposited into your account after a small fee deduction for processing the payment. A merchant account is not a free account by any means. There are several fees that are associated with merchant accounts like setup fees, transactional fee, maintenance fees. Setup fee is a one time fee which depends on several factors like sales volume and size of business. Maintenance fees are charged on a monthly basis. A small amount will be deducted for every payment made to your account as everyone involved in the processing payment demands a cut.
Here are some of the benefits of using a merchant account.
Credit cards can be accepted
This is probably the best thing about having a merchant account. You can easily accept credit cards if you have a merchant. When people want to buy something they don’t want to go through a long process. They just want to make the payment and get their hands on the product as soon as possible. Having a credit card makes it even easier for them as they do not need to have money in their actual account. Then just make the payment to you and pay it to the bank later. On the other hand you will have more chances of selling your products by accepting credit card payments.
Easy to manage money
One has to have a merchant account to see how easy it is to manage their money using them. You don’t have to spend your time counting the cash and do it several times to ensure that you have received the exact amount of money. When you start accepting money through credit card or debit card payments it is easy to analyze the cash flow. You can just see who has paid what amount for which product.
Increase sales
Various studies have shown that a merchant account can increase the sales of an e-commerce business tremendously. This is mainly because of the ability to accept payments from credit cards. When customers see a product on your e-commerce website and like it, they don’t have to wait for anything to make the payment. They can just simply buy it using their debit or credit. If you give them this option then they will most likely buy the product from you than a website that has complicated payment options. The easier it is to buy, the easier it is to sell in large numbers.
Decreases the customer’s inconvenience
Any customer prefers to buy products from a service where they do not encounter any inconvenience. When you make the process simple it will make the customers happy as they do feel any difficulty in availing your services. This will result in returning customers who are willing to buy more from your e-commerce website. A merchant account can easily do this as it has the flexibility which makes it simple for the customers to buy products ensuring them an easy, fun, and safe online shopping experience.
You can sell your products internationally
This also one of the biggest advantages of having a merchant account for your e-commerce business. Whether it is a small business or large business the size doesn’t matter. A merchant account will help you in expanding your business. An e-commerce website has the ability to sell its products across the globe and a merchant account grants the ability to accept payments from all around the globe. You can get payouts in your native currency. It will help your business reach potential customers all around the world.
Good for high-risk businesses
A merchant account is a great relief for high-risk businesses. If your business falls under the category of high risk then you don’t have to worry. Many of the merchant account providers are associated with various offshore and domestic banks. This means your accounts are safe even if you have a business that is of high risk.
Conclusion
Merchant accounts are bank accounts that are designed for businesses to accept payments from credit cards. These transactions are instant unlike regular transactions. A merchant account makes it easier for an e-commerce website to accept payments and provide services. This is because they accept instant payments through credit cards. Merchant accounts have proven to increase sales and decrease customer inconvenience. Business owners find it easy to manage money through merchant accounts even if they have a high-risk business. You can expand your business to international markets as you can accept multiple payment methods because of your merchant account. So if you have an e-commerce business irrespective of its scale get a merchant account today and expand your business.
