Merchant accounts are vital for the running businesses online. It has been proved that the sales in businesses that accept payments via credit cards are higher than those that accept money orders or check. The reason is obvious. Making payments by credit cards is a more convenient payment option for the clients. Many customers these days prefer to pay with plastic and sales transactions are quicker for those businesses that have debit and/or credit card merchant accounts. Here are some of the factors that explain why profits increase on getting an online merchant account:
• Customers will buy more willingly when they can pay through cards
• Real time transaction processing
• The flexibility of credit card processing attracts more customers to buy without any holdups
If you too want your business to start getting the above mentioned advantages, then you need to set up a merchant account. Here are some of the things that you need to keep in mind if you are planning to get an online merchant account:
Verification by merchant account providers:
The bank or financial institution that you will apply for a debit and/or credit card merchant account, will conduct a basic investigation into your business’ credentials. They will look into the following details of your business:
• Credit history
• Business plan
• Organization’s financial stability
When the bank or financial institution is assured of the fact that your business is able to sustain a merchant account, they will establish the ability of your company to take payments by credit cards.
Significance of the verification process:
The verification method followed by the merchant account providers is very significant. It makes the company more trustworthy to a customer. The customers also know if the company that has a merchant account, has undergone the basic inspections required by a bank or financial institution. It’s just like having a “stamp of approval”.
Cost of Merchant Accounts:
You must be aware of the fact that a majority of merchant accounts require a minimum monthly fees to be paid, regardless of the fact, whether any credit card processing is made or not. It’s advisable that you analyze the fees and features of several merchant accounts providers, before registering in for an account. Also remember to thoroughly read the terms and conditions.
Keeping a track of sales:
The merchant accounts come with a comprehensive monthly statement of transactions. This statement helps you in keeping a record of the credit card number of your customers. This will make it simple for you to match charge-backs or returns. This will also help you by providing you with the precise monthly and yearly sales figures.
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