A merchant account is a type of bank account that allows your business to securely accept electronic payments. Now that online payments via credit and debit cards have become increasingly popular, making cash and check payments less common, a merchant service account offers flexibility in terms of accepting online orders .
If your business is going to offer online payments to customers, a merchant account must be established to set up credit card processing capabilities and accept mobile payments. This can add value to your business in a few of ways:
- By accepting credit and debit card transactions your business can prioritize its customer experience by eliminating any friction in the buying or payment acceptance process, granting your consumer the flexibility to make purchases with ease.
- It can directly increase sales, improve cash flow and the overall growth of your business by capturing more customers and providing convenience for both you and your consumers.
- It provides you with better money management. Instead of counting cash, and waiting on checks to arrive in the mail, electronic payments will keep you organized and allow for better cash flow management and forecasting. Multiple software integrate with your merchant account, syncing with accounting, inventory management, and other departments within your business.
Merchant services may be offered by your bank, through specialized merchant providers, and with independent sales organization. Due to the competitive industry of credit processing services, incorporating an electronic payment has become relatively reasonable for any business budget. No matter the type of business you are involved in, there is no doubt that accepting credit cards can increase sales, generally produce positive results to the business, and capture more customers.