The current progression of the online payments & plastic money is presenting stiff competition to cash and cheques and also picking up gradually in the market. Merchant accounts are useful to accept and receive payments in different ways to allow businesses with multiple opportunities and contribute to your company.
What’s a Merchant Bank?
Merchant accounts are the bank accounts that accept debit/credit payments using online modes. These merchant based accounts are required when using a payment gateway to process transactions routed through the website. These merchant accounts are called Merchant IDs. Several companies provide merchant accounts and these accounts can also be opened with affiliated banks that offer these services to their users. These merchant accounts have tie-ups with payment processors. Payment processors are essentially financial bodies that work in tandem to provide all payment related services provided by the merchant. They have associations with companies that directly deal with buyers and sellers.
Alongside, independent contractors or Agents of ISOs also provide Merchant accounts.
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Different merchant payment companies have different cost structures. They are different in their fees and governing zones. They differ in the monthly fees and transaction costs. It is significant to choose the right company for your merchant account to set up a profit-making unit. The payment processor bridges between the merchant account and payment gateway, disseminating information keeping it trusted for the users, providing full information to them.
Major Benefits of Merchant Account:
Admitting Credit Cards
The greatest advantage of a merchant account is the ability to accept plastic money like credit and debit cards. Credit cards are the talking town today due to their flexibility usability. Businesses are about the feel-good factor of the products and credit cards have gained popularity in a very short span. It bestows upon the smoothness to do any transactions whatsoever, keeping the cash flows untouched.
Increasing the Revenues
A recent study proves that people tend to spend more with a credit card as their spending capacity automatically goes up. In fact, 83% of small businesses that accepted credit cards saw an increase in their sales and revenues which in turn affects the business growth.
Credit cards really work well to straighten out online transactions, by making efficient pay outs. Electronic payments ease out the process of calculations which in turn is good for finance management.
Negate Bad Cheques
Transactions made online can save the pain of cash mishandling and also avoid situations like bounced cheques. Electronic payments are much simpler. Recurring payments can be easily paid without doubling the effort.
Not only electronic payments ease out the task of the payment processors but also enhance the customer experience in totality along with the option to make different purchases. Whichever mode of payment it is, the idea of shopping the way one wants is highly impressive and unwieldy for the customers.
For many sellers, accepting online payments and chalking the best-fitted integration methodology for their business is the foundation for a sustainable business model.
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