Many business owners may think that getting a merchant account isn’t necessary, but that couldn’t be further from the truth.
Consumers increasingly rely on credit and debit cards to make purchases, so having an effective merchant account can definitely improve how your business runs, whether you own a small business, a large corporation or an online store.
So, yes, you do need a merchant account. And yes, it’s worth it—as long as you know what to look for in a merchant services company.
First, what on earth is a merchant account?
Merchant services are provided to business owners who want to accept credit, debit, gift, and other card payments from customers.
A merchant account results from a contract entered into by a merchant services company and a client that details the relationship, including the price, how long the agreement is in effect, and what processing platforms and funding banks the merchant services company will work with in order to complete each transaction.
Once the account is set up, the client is supplied with credit-card processing solutions so the business can start accepting these payment methods. Each month the client receives a credit-card processing statement outlining what the client owes based on how much business was processed during that particular timeframe.
Why You Should Have a Merchant Account
The thought of adding another business expense may have you asking yourself, “Do I really need a merchant account, or am I better off not getting one?”
But you should know that this is money well spent.
By having access to the most up-to-date credit-card processing solutions through your account, you’ll not only be able to accept card payments at your place of business—increasing your profit margin and keeping you from falling behind the competition—but you can also keep track of employee activity and inventory, and manage transaction reports. Some solutions, like the Clover® Station, are EMV compliant as well, which makes use of the new chip-and-signature cards that American consumers are now receiving that prevents a data breach from occurring.
The bottom line: Although getting a merchant account requires some work on your part, you’ll be happy that you did. And so will your customers.
Discover how to choose the merchant account right for you.
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