Opening a merchant account with a credit card processing company allows your small business to diversify payment options for customers. The electronics age is here to stay, and the very fact that the majority of consumers now use plastic cards to make purchases is reason enough to equip your business with a means of accepting virtual payment.
More importantly, remember that consumers pay bills, buy movie tickets, and extend membership subscriptions using their smartphone. It is in your best interest to provide your paying customers with a means to conduct transactions regardless of their present location. Every point on the planet is now a potential point-of-sale.
Credit Card Processing Services
Since most people prefer to pay for merchandise or services with a credit or debit card, having this option available will help to increase business. However, keeping track of the daily transactions can be a real problem if you don’t have pinpoint, accurate accounting tools handy. A merchant account with a credit card processing service alleviates this problem. It allows you to go online to check your accounts receivable, choose whether to hold or capture an individual payment, and even set up an information panel for each individual customer.
Merchant Account Costs
Depending on the type of credit card processing account you open, the fees can vary according to the size or number of sales recorded. If a payment gateway is included – which is the encryption of card information – you may be charged a monthly fee as well as a per-transaction fee. It is important to do some math to see just how high your monthly bill is likely to be. The idea is that the increased sales will more than make up for this, but you must decide whether the monthly account fees are low enough for you to afford the service. Avoid merchant account and credit card processing companies that charge a per-item fee once a minimum number of sales is reached. If your volume is high enough, the flat monthly rate should be all you’re required to pay.
As a merchant, you want to avoid fraud at any cost. However, credit card fraud is rampant, and most major credit card companies are now fighting back by protecting their cardholders. From time to time, your business may receive a chargeback even though the sale was legitimate. This is because your consumer may have had his/her account hacked. When this happens, all transactions are grounded by the credit card company, even the legitimate ones. Your own card processing company can help you in this situation.
Mobile Devices Sales
One of the great advantages of opening a credit card processing account is the flexibility you can extend to your current and future customers. Your online business page can be reconstructed to allow for immediate acceptance of card payments, even if the customer is purchasing with his/her smartphone. Not only that, you can even send sales info in the form of a text or email to customers.