31, Jan 2013
Who Needs Merchant Services?
If you own a business, merchant services allow you to accept credit and debit cards. Merchant services are available for both online stores or mail orders and those with a physical presence.
Today’s customers rarely use cash for their purchases, so you can increase sales by offering credit and debit payments. The average sale price is often higher when you offer credit card processing versus accepting cash.
Credit cards are less risk than accepting checks. Checks can be drawn off an account that does not have enough money in it or a closed account. You will have a hard time recovering lost money from a bad check. It is true that a credit card can be stolen, but merchant services offer some protection against fraud and stolen cards. Check the terms of your account to learn more.
Customers like the convenience of using a credit card at the store. The transaction is quicker and easier, which helps the cashier get through the line quicker and makes customers happier.
Merchant service providers deposit the money directly in your bank account, so it is safer for the store owner. If you have a lot of cash at your store, you are a target for theft. Less cash means less loss from employees or thieves.
Using merchant services also makes your business look more professional. Customers will see that you are serious about your business and that you value their services by making it easy for them to shop.
When applying for a merchant account, look at the fees. Some charge a monthly fee, but others do not. All merchant services charge a percentage of the total sale, and this rate varies between merchants and the type of merchandise or service you offer. Some change a small flat fee per transaction, which should be taken in to consideration when selecting a provider.