07 Nov Deciding Between a Merchant Account and a POS System
Choosing between a merchant account and a POS system is one of the most important decisions a business owner can make. Making the right decision the first time ultimately affects productivity, flexibility and customer relations. Processing transactions can be done with a simple merchant account or credible POS system.
What is a merchant account?
A merchant account is set up with a bank. The arrangement allows checks to be handled through a central bank. The credit card transactions are authorized online using a specialty provider. The money will be credited to the person’s account if the transaction is authorized. Merchants use this method of processing transactions because it is convenient and cost effective. Merchants can then process credit card payments conveniently from their website. Accepting a quality provider will minimize risks of mistakenly accepting invalid credit cards. Having a merchant account permits businesses to handle larger transactions with customer who value that level of flexibility.
What is a POS system?
A POS system comes with a drawer, printer, scanner and a reader. These systems are configured with everything a merchant needs to get started. These systems are unique in that every purchase made deducts whatever items are listed in the inventory directly from the totals as purchases are made. This streamlines the process of managing transactions and inventory tracking for businesses. Merchants can run reports daily and tracks items low in stock conveniently from within the same solution. CRM solutions available with some of the solutions enable effective targeting among certain demographics.
How do you determine which solution is best for your business?
Business owners must factor in the different options in determining which option makes the most sense for their business. If there are sophisticated reporting needs such as inventory tracking, a POS solution would be recommended. If the business plans on building high level marketing campaigns around customer profiles, a POS system would permit tracking customer profiles. A merchant who simply requires a payment solution to conduct business online for a limited number of services may benefit from a merchant account. A home-based business owner benefits from having a merchant account payment solution if the bulk of the transactions conducted in an online environment.
Finding the right solution will minimize risks of nonpayment and fraudulent charges. Working with a reputable merchant solutions service improves accuracy in reporting and increases the opportunity to increase sales. After assessing company needs, contact us to learn about the solutions available.