Reasons For Opting Merchant Account

Reasons For Opting Merchant Account

Reasons For Opting Merchant Account

As a merchant when you decide to accept credit card payments you need a credit card merchant account or a third party processor to process the credit card transactions. Only through such account you can accept payments online and offline through credit cards. With the growing popularity of credit card due to its convenience and ease of carrying it becomes compulsory for a merchant to accept them as the mode of payment. There are many reason for taking a credit card merchant account. Understanding them will enable you to decide when to take merchant account and when you can opt for third party processor.

If as a merchant you are selling large volume of products and services then its always a better option to go for credit card merchant account. This is because when compared to tird processor account your transaction fees are low when compared to third party processor. Though there is fees for every transaction but by doing large volume business you can get better discount rates and that will help you in saving money. Your saving will increase as you volume of transaction increases. In fact the discount rate of third processor account may range as high as 6% when compared to true credit card merchant account which will be just half of this rate.

Another important benefit of merchant account is that you are the actual owner of the account which gives you greater freedom and flexibility to use it to your convenience. This account is usually opened for a particular business and so you can easiliy keeps track of all your transactions. All the monthly statements and other letters will have your name in it which gives you a better credibility in the eyes of the customers. As a original owner of the credit card merchant account you can directly deal with all the customer care executives and clear your queries regarding its usage and other charges. All these are not possible in case of the third party processor as they have to follow very stringent rules and regulation. Violation of such rules may lead to termination.

There is greater transparency in the credit card merchant account. This is because the payment gateways of merchant accounts have application programming interface which allows you to interact with the services from the merchant website. This eases te purchase process of the customer. All the transaction will appear on the website of the merchant itself and will be transparent enough for the customers to view them. Thus the website will have a better and professional look. This will increase the image of your website in the eyes of the customers.

However while applying for the credit card merchant account remember some of the below mentioned points. In case of businesses which are termed as high risk a separate account will be opened and fees charged will be higher. There might be bond for few years with your merchant account provider. While opening the merchant account the provider will do a complete background and credit check of your company. This will in fact increase your image in the eyes of your customers.

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