Credit cards and debit cards are now accepted as one of the most common forms of payment in the world. And it is normal for retail and businesses online to use this particular method of payment. New and seasoned entrepreneurs will certainly be familiar with the term merchant account.
Setting up a business merchant account means you can accept debit and credit card payments and also provide this service to your customers. This allows your customers the flexibility to shop in person, online or even by telephone as payments can be made in any of these circumstances.
Businesses will usually accept the following credit and debit cards, Visa, American Express and MasterCard. Accepting these familiar credit cards will ensure happy customers and provide an opportunity for you to increase your sales potential.
Using a merchant account system is simple; once a customer has paid for your goods or services with their credit or debit card, the money is deposited directly into your account within 2 to 3 working days. At the end of each month the merchant account provider will send you a bank statement allowing you to track your sales and deposits. As a business owner you can either purchase your credit card terminals and software outright, or they can be leased.
Some merchant account providers may also extend factoring services to their clients. Factoring is a form of cash advance based on monthly credit card receipts from your business bank account and it allows companies to access cash quickly, as and when it is required.
If you wish to open a merchant account there are several options you should consider. Apart from retail, virtual, wireless and mail order merchant accounts, there is also the option of online shopping mall accounts.
Some businesses may find it more useful to open an online shopping mall account. Along with online payment processing services, online shopping malls allow businesses to make these card payments by selling through them.
There are different types of business merchant account, also referred to as merchant acquirers and acquiring banks. Each type of business merchant account will offer different services and will charge different fees accordingly. For example, acquiring banks may charge an account set up fee of up to ú300.00. And day-to-day or regular fees may also be charged in the form of a fixed fee or as a percentage of daily transactions.
Regardless of which business merchant account provider you choose, make sure that the merchant account provider will fulfill the necessary requirements of your growing business. Do enquire about extras features such as reward card programs that allow companies to generate extra traffic, or additional necessities such as security features to guard again fraud. The best business merchant account providers will have fraud and risk management experience, and provide excellent customer service and technical support.