Merchant accounts are the most practical way for businesses to accept debit or credit card payments directly through their website.
Possessing a merchant account is now seen as invaluable considering the growth of online shopping. Allowing potential customers to pay for products quickly and securely via their bank card could make the world of a difference to the profit margins of a small business.
Those looking to set one up for their business should be aware of the wide range of different merchant accounts available.
Additional benefits of merchant accounts
As well as the financial benefits of allowing customers to buy products by providing their bank details online, business owners will enjoy being able to track their profit margins much easier.
Merchant account providers will be able to provide a monthly statement showing all financial transactions. These statements can prove invaluable when the time comes for businesses to sort out their tax payments.
Many business owners love the fact that the application process for merchant accounts is so quick and simple. Most applications take a matter of minutes to complete and just a few days to be approved.
Common merchant account fees
Many banks will charge a sign-up fee ahead of the inception of a merchant account. Often account holders will be expected to pay an annual renewal fee as well.
Nearly all providers will also charge a business for every transaction made on the account. Transaction fees are the most common type of fee on merchant accounts. An account provider will charge these fees irrespective of whether the transaction was processed or declined.
Transaction fees could be charged at a flat rate or as a percentage of the money taken. Many account holders will assess the value of their account based on the above fees.
These costs are often subsided by the massive growth of online business provided by a company website.