A business account that permits a business to process customer payments via credit or debit card, under a contract between a merchant and their bank or credit card processor, is commonly known as a merchant account.
Currently, most credit card transactions are electronically transmitted for authorization to the processing bank. Once there, they are captured, authorized and deposited to the merchant account. In the good old days, prior to electronic processing, two part paper credit card slips were mailed into the bank after being approved on the phone via an automated response unit. Those methods are sometimes still used today, but most transactions are done electronically. In fact, many new technological innovations make accepting credit and debit cards wirelessly, not only possible, but simple for merchants.
Merchants align themselves either directly to the processing bank or via a relationship with an authorized merchant account agent, better known as a member service provider or sometimes as an independent selling organization, who is directly contracted with MasterCard and Visa.
Some larger merchant credit card processors have also partnered with warehouse clubs to further their merchant accounts, while offering special deals to the club’s business members. Warehouse Clubs often offer even better deals to their premium membership holders along with no application fee, no fees for monthly statements, free online account access, no batch fees, as well as a discount on all equipment.
Let’s face it, being able to offer customers added options for payment always helps any type of business to garner additional sales, thus greatly increasing the number of clients in their customer base. Merchant credit and debit card processing helps businesses to:
- Strengthen their customer sales and services
- Make their customers’ payments for goods safe, quick and easy
- Allow for more client retention
When choosing the best merchant account and processor, business owners should look for the best offers in many areas, including:
-Â A good personalized account representative Same-day approval
-Â No set-up fee
-Â No application fee
-Â Low swipe rates
-Â Free virtual terminal
-Â Toll free support that is available 24/7
-Â Next day MasterCard and Visa funding
-Â Next day Discover and American Express funding
Check services
-Â Total fraud protection
-Â Loyalty and gift card program
-Â A good free user-friendly account management program online
In addition, merchants should look for a merchant account processor who also offers ash advance services. As a business owner, it can be quite tiresome dealing with the hassles of applying for business financing when it becomes necessary. A merchant cash advance is not the same as a credit line or bank loan, but simply a cash advance against future merchant credit card processing totals at an often-lower percentage rate than a business could acquire from their bank. The biggest plus is the no hassle application process and quick funding of the cash advance. The cash advance is usually not dependent on your credit rating, just your merchant credit card processing monthly totals. Future renewals, when a merchant needs further quick funding, are another benefit of the merchant account cash advance.
Even if it isn’t needed right now, a merchant account cash advance is always a good option to have open and available for any business for some of the following reasons, which could easily make a business more profitable:
-Â Expanding the business
-Â Purchasing more inventory
-Â Buying new updated equipment
-Â Paying taxes, especially before they incur penalties or interest
-Â Marketing and advertising to bring in more business