The old way of thinking is to have one merchant account per business. Anything more than that seemed like a headache. But times are changing and if you want the best services at the lowest prices, having multiple merchant accounts can help you achieve it all. This is especially true if you are a high-risk business.
It may seem like a higher initial investment but reaping the benefits of having multiple merchant accounts can save you money in the long run. Here are six multiple merchant account benefits that you can take advantage of.
Additional Payment Processing Options
Providing additional payment options means that your e-commerce business is accessible to more customers. If one front of your business deals internationally, while another side deals locally, each side has different needs and will be subject to different fees.
Don’t be restricted by the payment methods or currencies that you can accept when multiple merchant accounts can help you process so much more!
Save On Surcharge Fees
If you’re processing both card-present and card-not-present transactions with only one merchant account, the fees you’re paying might be raking up. This is because card-not-present transactions are considered high risk.
You’ll still have to pay the high-risk fees for card-not-present payments, but using merchant accounts set up for both of these types of transactions can save you money when you use them for their corresponding payments. This is especially true as your transaction volume for each payment method increases.
Spread Out Monthly Transactions
Speaking of transaction volumes, monthly transactions totaling more than £100,000 are considered as high risk. This categorization may increase your fees and stipulations put in your contract.
Avoid this by spreading your monthly sales volume over multiple merchant accounts to keep your risk low and your fees in check.
Distribute Chargebacks
High chargeback volumes are also common with high risk businesses and can increase costs with your provider. Multiple merchant accounts can allow you to disperse inevitable chargebacks and reduce the volume per account to lower your ratio and save you money.
Be Prepared for Disruptions or Changes
In a highly technical world, sometimes hiccups in service may occur with your payment processor. By having multiple merchant accounts, you are prepared for any downtime or unforeseen account cancellations due to policy changes. Never be blindsided by developments that can affect how and when your business operates.
Address the Needs of Multiple Websites
Payment processors and acquiring banks typically don’t like to provide a single merchant account for multiple website URLs, even if they’re under the same business name. This is because the more websites you have, the higher your risk becomes.
Be prepared for that and take advantage of having multiple merchant accounts that meet the needs of each of your websites.
In Summary
The benefits of having multiple merchant accounts are apparent the moment you realize that your business has various demands that need to be met.
More options mean that you can negotiate competitive rates from each of your providers and interruptions in their service can be managed seamlessly on your end.
It’s time to make payment processors work for you.