If you are new into the business or thinking to start the one. You will be need a merchant account for the online transactions. To understand the importance of merchant account firstly you need to know that what a merchant account is exactly then it will be easy to understand that why your small business need merchant account?
What is Merchant Account?
A merchant account is an electronic transaction method for any business owner, which enables his/her company to accept the payment by credit card, debit cards and NFC(Near Field Communication)/RFID(Radio Frequency Identification Chips) through an encrypted or secured channel.
Basically it’s a kind of bank account which allows online or electronic transactions to your business. It helps to provide numerous ways for the money transactions. It requires an agreement between acceptor and merchant acquiring bank. Every merchant service is designed separately for every different business. Means merchant services are not designed in same way for all kinds of companies or businesses. It completely depends upon your business structure, need of your business, type of your business you run, size of your organisation or company. You will be need a separate merchant account for your separate business need. while large companies or enterprises will be need a different kind of high risk payment solutions or services as per their business structure or requirement.
Merchant services are not only useful for the online or electronic transactions but it also provides many other benefits such as:
1. Point of Sale(POS) System:
It helps you to track your business, sales and customers. You can email or text the receipt of the orders or sales done between you and your customers. Also you can ask them to share their business experience with your company and personalised their feedbacks.
Merchant Services also provide you EMV system which helps you to secure your customer’s data from any kind of frauds and unethical activities.
It allows you to charge a small service fee on the customers who pay through the credit cards.
4. Gift Cards
Every business owner wants to his/her customers come back for the next purchase. It help to make a strong or repeat customer base. It’s a wonderful way to retain your customer.
Now the point is why your small business need merchant services? Before discussing this I want to let you know that merchant services providers charge a small amount of fee as well. The another way is to make your business trendy with online payment method is third party payment method. Third party payment service providers charge a small percentage of every transaction. Which is also a good as business owner. But it doesn’t provides above mentioned benefits. Merchant services charges a small monthly fee but if those few bucks retain your customers and increase your number of sales then I personally recommend you to use the merchant account services. Moreover if you are newer in business and need funds for your business; merchant account providers can help you to receive cash advance payments and business loans. In short merchant services will be a good choice for your business, no matters if you are running a small business or a startup.