What are the benefits of having a merchant account for a small business?
Small business entrepreneurs have a lot of competing demands when it comes to running a business efficiently and successfully. To increase income, improve customer service, and challenge competition, you must make it easy for your customers to conduct business with you. Accepting card payments in person or online is an essential element offered to small businesses in providing quick and flexible option for customers to pay for products and services. For this, you’ll need a merchant account.
Setting up a merchant account entails more than simply allowing customers to pay with a credit card, and wise business owners recognise the importance of getting the best deal available when choosing a payment processor. While a merchant account may be set up in a matter of days, it is easy to ignore the full potential of your merchant account.
In this post, I’ll go over five ways why a merchant account may help small businesses succeed, as well as what you can expect once you sign up with a payment processor.
1 – A merchant account establishes your credibility and can lead to increased sales.
Businesses who do not accept credit card payments may be seen as antiquated or out of touch. When opening a merchant account, small business owners must demonstrate that they are a reputable and trustworthy company. Customers are more willing to engage with organisations that appear to be legitimate, which can lead to a larger customer base and more sales. Furthermore, because the contactless limit is currently set at £100, clients can spend more on their card in a single transaction.
2 – Provide what your clients desire by accepting credit card payments.
Allow customers to transact with you more easily by allowing them to pay securely by card, either online or in person. Customers expect to be able to pay for goods and services with their credit or debit card, whether you have a market stall, an eCommerce website, or a firm that has traditionally dealt in cash only. Existing consumers will benefit from extra payment options, and the credibility that comes with accepting credit card payments may attract new customers.
If you’re a small business that sells both online and offline, keep in mind that 67 percent of customers want brick-and-mortar establishments to accept contactless payments, so the question isn’t if you should accept card payments, but how. You can accept card payments in person, online, or over the phone with a merchant account.
3 – Merchant account providers are familiar with the needs of small businesses.
Setting up a merchant account is only the first step toward bettering your business practises. Your account will get you access to a comprehensive range of products, services, and offers tailored to your specific company needs. When you open a merchant account, talk to potential payment providers to see what other products and services you might be able to take use of.
For example, if cash flow is an issue and you’d rather not wait the customary 3 to 5 days for card payments to reach your account, you can obtain your money the same or next day for a small monthly charge.
4 – Use a merchant account to process payments in a secure and safe manner.
Payment Card Industry Data Security Standard (PCI DSS) applies to you if you store, handle, or transfer cardholder or sensitive authentication data. The financial consequences of a security breach can kill your business, thus it’s critical to renew your PCI compliance every year. Non-compliance is a financial penalty imposed by all acquirers. Payment providers understand what you need to do to stay compliant, and for a little monthly fee, you won’t have to.
5 – How can a merchant account assist small firms in keeping correct records?
In order to run a successful small business, you must maintain track of your finances. Details of all card transactions are provided in your monthly statements with a merchant account, allowing you to keep accurate finances and identify where your sales are coming from. When it comes to understanding your customers, making decisions regarding your product offering, and monitoring sales trends, having access to reliable sales data may be extremely beneficial.
Are you all set to open a merchant account?
Get in touch to find out more and arrange a quick quote tailored to your business needs.