Merchant account services carry the stigma of ambiguity, and as such, a lot of businessmen don’t know what these services entail. This lack of information often holds business owners back from investing in such an account, as they literally don’t know what they’re getting into. This is a grave error, as there is huge business growth potential through the investment in merchant account services, and by refraining from indulging in these services, small businessman inflict direct harm to the growth prospects of their businesses. Merchant account services as a concept isn’t that difficult to understand though, and this article covers its multiple facets.
Everything you need to know about merchant account services
- What are Merchant account services? Simply put, merchant account services allow your business to accept and process credit card payments. This means, your business receives a merchant account which is similar to a bank account and becomes the hub for all credit card transactions pertaining to your business. Furthermore, business owners receive the relevant machinery and software to facilitate these credit card transactions, and also receive training on how to use them. It usually takes about 2 business days to operationalize the whole set up.
- Services provided. Merchant account services provide credit card benefits across multiple media. Credit cards can be accepted physically over the counter at your business, or wirelessly if your business isn’t based out of a stationary property or involves a lot of travelling. For example, taxi drivers, plumbers, exterminators and mechanics can all benefit from mobile credit card machines. The final service offered is online, the ability to accept credit cards over the internet, and the software needed to process them are also part of the repertoire of merchant account services.
- Expenses for credit card services. Typically, merchant account services cost an upfront fee for to set up the account and provide the peripherals in terms of both machinery and/or software, this is a one-time cost. Apart from this there is usually also a monthly fee to be paid for to keep the service running. The final cost is that of a minimal charge per transaction. The amount of each fee is largely subjective and dependent on the volume of business you conduct and what services you choose to engage.
- Difficulty in operation. A very popular myth about credit card services is that the process of accepting a credit card payment is extremely complicated and fairly difficult to master. This is patently untrue, the technology involved is advanced, and as is optimized to make it as user friendly as possible. Furthermore, the merchant account services provider ensures you receive adequate training in the operation of the equipment till you are completely proficient with it.
- The benefits. Accepting credit cards has a wide range of benefits that can help small businesses grow. With the variety of options offered by merchant account services, businesses can expand their reach from just citywide to state and country, and with the inculcation of internet sales services via credit cards, even internationally. This helps bring in higher profits and widens customer base. The extra conveniences of the credit cards make small businesses more desirable and professional in appearance as well. Also, the swift transfer through the system’s digital medium increases cash flow for the business.
Reluctance to invest in merchant account services have held back the improvement of many small businesses, and no ambitious small business owner should succumb to this, instead they should explore the wide variety of merchant account services available across the market, chose the right fit for their business, and start enjoying the benefits of such an association.
About the author: Jordan is a 28 year old entrepreneur and a former Business Developer. With an insatiable appetite for the good life, keeps himself current on topics related to technology, gaming and his first love, food. He shares his views in his blog posts hoping to provide valuable information to entrepreneurs like himself who wish to establish a successful business.