Unlike physical stores, which can make use of traditional payment methods such as cash and checks, the only way customers can pay an online retailer is through a merchant account. Such an account enables the holder to accept payments in credit and debit card form. With multiple forms of payment at a merchant’s disposal, he or she can capture and make use of the borderless market that is the internet.
The following are some of the reasons why a merchant account is essential for the survival of an online business.
1: Better sales
It is a no-brainer that a website with flexible payment options will attract more customers. Studies have shown that we all spend more when given a chance to use credit cards over cash.
Of course, other factors such as proper gateway integration and a friendly website will significantly affect your sales, but without credit card processing, you can only go so far. With a merchant account, therefore, you can achieve the profits you require to grow your business steadily.
2: Smooth money management
A merchant account is the best way to go, but it is not the only one. Traditional retailers could choose to accept payment through online invoices or even snail mail, but these manual methods often demand cumbersome money management practices. Rather than filing invoices and tracking extensive bank statements, a merchant account helps to maintain an organized payment system, as well as smooth cash flow.
3: Chargeback protection
Chargebacks are an online retailer’s worst nightmare. However, opening a merchant account from a provider that offers a reliable solution will help you curb the losses. A company like EMB, for example, provides merchants with a chargeback shield system, which alerts them every time a customer requests a chargeback. This way, the retailer can take action immediately, and where possible, stop the chargeback before it happens.
4: Recurring customers
In addition to increased sales, the flexibility that comes with a merchant account can help an online retailer maintain a happy and returning customer base. Your clients will appreciate you more when you give them the ability to make purchases in different ways because it means they get to shop how and when they want.
Undoubtedly, an online retailer has quite a lot to benefit from a merchant account besides the usual payment processing convenience. However, ensure you take your time to choose the best account provider for your business. Make sure they understand the needs of your operation and know how best to help you achieve your goals
A healthy and successful relationship with your merchant account provider is the only way your online business will achieve success.