01 May Setting Up a Merchant Account
When a company does not accept credit card payments, they could be losing out on a major amount of business. Because of the many options credit card processing offers the customer, it will create a wider customer base for the business. However, before the business can offer credit card payments as an option for the customer, they must first set up merchant accounts.
Merchant accounts are bank accounts established by a company so that they can receive payments from credit card for purchases. It is a bit more extensive if the business decides to accept credit card processing online; however, it is well worth it for the business due to the potential to increase sales for the business.
To set up a merchant account, the business will need to lease software and equipment. This helps to ensure the customer and business that the transaction flows into the business operating account.
If the business is looking to accept payments by credit cards online, they will need to sign up through a payment gateway. This allows the business to accept the transactions by credit cards online. Make sure when selecting the gateway that it is compatible with the software so that all transactions go through smoothly. There are some very well-known payment gateways out there. It is important to research the one that suits the business best.
When searching for the financial institution to help with the merchant account set-up, be sure do perform an in-depth research. There are several financial institutions out there that will offer you an account, but the business should look for one that has plenty of experience with businesses. Because the business is just starting out, they need a financial institution that will assist them with setting up their merchant account.
The business should expect to pay on average about $300 for setting up the merchant account. Next, there is the processing fee that will cost the business about two percent of the annual sales volume for the transactions online. This is actually a small fee for having the ability to open doors for more customers and adding versatility.
It may seem like an involved process, but it is rather painless and fast to set up a merchant account. Once it is done, the business can then accept both offline and online credit card payments.