More people in the world are using payment cards than ever before thanks to investments from major credit card firms. And worldwide, plastic payment methods like credit and debit cards have become more commonplace. A merchant account is a must in today’s cashless society if you want your company to thrive.
Accepting payments by credit card is only one of several methods that may be processed via a merchant account. Increased safety, the flexibility to accept numerous currencies, and improved financial management are just a few of the other advantages offered by merchant accounts.
Working with a payment service provider (PSP) is the best and least costly approach to obtaining a merchant account. PSPs simplify multi-currency and payment processing. The bulk discounts they obtain from financial institutions and credit card issuers allow them to offer you low prices. The PSP will also utilize risk management measures to safeguard you from fraudulent activity, which is a nice added bonus. Having a merchant account has the following key advantages:
5 Key Benefits Of A Merchant Account
1. Accepting Credit Cards
The ability to accept credit and debit cards is one of the biggest benefits of having a merchant account. Customers’ preferences for using credit cards and debit cards continue to evolve, and these payment methods are quickly becoming the new ‘standard.’ Businesses that place a high priority on providing a positive experience for their consumers often discover that reducing or removing any friction that may exist in the purchasing or payment acceptance procedures may help them acquire new customers and enhance their cash flow.
2. Raise The Number Of Sales
Customers spend more money when they have the choice to use credit cards rather than cash, according to the findings of a number of studies and other pieces of research conducted over the years. According to a study conducted by Community Merchants USA, which was sponsored by Intuit, 83 percent of small companies that took credit cards noticed an increase in sales after implementing credit card processing. This rise may have a direct bearing on the sales as well as the general development of your company.
3. Improved Financial Planning And Management
Streamlining the way your company processes transactions may be accomplished by embracing online payment methods and credit card acceptance. Electronic payments, as opposed to counting cash, can help you stay organized, allow for improved cash flow management and forecasting, and eliminate the need to count cash.
4. Steer Clear Of Bad Checks
Your company will be able to avoid the headaches and additional expenses that come along with bouncing checks if it makes use of merchant management services and accepts electronic payments. In addition, if your merchant account is combined with a full payment processing system, you will have the opportunity to take recurring payments for services that you offer on a regular basis (such as courses, gardening, or cleaning, for example).
5. Providing Convenience For The Customers
Because it enables customers to pay for their items in a variety of methods, having a merchant account may result in satisfied consumers who are more likely to return for further business. Your consumers will have a more positive experience with your company when they are able to shop how and when it is most convenient for them, whether that be via the use of a credit or debit card, online payments made using a shopping cart for your services, payments made through mobile devices, or recurring billing.