We’re living in a day and age in which merchant services are considered to be a bigger and bigger necessity when it comes to how people do business. The days when literally everyone paid for things with cash (or by check as an alternative) are long behind us. Today, most people use credit cards and debit cards to pay for just about everything. Plus, they don’t limit their shopping experiences to only what can be had at brick and mortar stores. Many people sincerely prefer doing their shopping online and their numbers keep growing with each passing day.
Merchant services are what allow an established business to accept payment for products or for services rendered via credit or debit card. Without a proper merchant account, you and your business are pretty much limiting your customers to cash or check. As you can imagine, limits like those can really hurt a business, as many customers today actually expect to be able to pay via their cards everywhere they go. Many no longer even carry cash, as they consider it unsafe and inconvenient.
Plus, if you ever decide that you want to expand the reach of your business into cyberspace with a merchant website, you will need to be able to accept cards as a method of payment. That’s just all there is to it. Most websites do not accept any other form of payment and even if they did, today’s customers would not typically be willing to deal with the hassle. They prefer the safety, convenience, and peace of mind that comes with using their cards instead.
What are merchant services?
Merchant services are services provided to a merchant by way of a merchant account. Merchant services are actually what are responsible for the nuts and bolts associated with your average, everyday credit or debit transaction. They include processing of the payment, collection of said payment from the customer, and in many cases, transfer of the payments your business accepts via credit or debit into one of your own bank accounts. Without merchant services and a proper merchant account at your disposal, your business is unable to process transactions in this manner as touched on above.
When it comes to making your business all it can be, offering clients their choice in options as to how to pay is necessary. It strengthens your services and your reputation among your clientele to begin with. It also allows your customers the peace of mind that comes with knowing they’re completing a secure transaction that is also quick and convenient. It sends your customer loyalty rating soaring through the roof as well.
How do I go about obtaining merchant services for my business?
Your business can start taking advantage of merchant services once you’re approved for a merchant account. The process associated with this is actually pretty similar to the process you go through when you apply for a standard bank account. However, it is important to note that a merchant account issued to you and your business through the bank is different from a bank account in a number of ways.
Once your business is approved for a merchant account, you are issued what is commonly known as a merchant number or a merchant ID. All businesses that accept payment via debit or credit card have a merchant ID. In the business world, the issuance of a merchant number is symbolic of your business’s official acceptance into the infrastructure of payment and the changing hands of money. It not only allows you to take advantages of merchant services in the first place, but it is a great way to show your customers that you’re trustworthy as well.
In many people’s eyes, a bona-fide merchant number is what makes you completely legitimate as far as your business practices are concerned. This goes for not only your clientele, but business associates, banks, credit card companies, and many other individuals and establishments that you will want taking you seriously.
What is the application process like for a merchant account?
Getting the application for a merchant account started will remind you a lot of applying for a checking account, a savings account, or a credit account. The reason an official merchant number and merchant account are considered so valuable is that the bank thoroughly checks your business out beforehand to see whether or not you’re trustworthy enough to be accepted into the fold.
There are a number of different questions you will be asked by your potential account provider. You will also be expected to provide certain key documents and pieces of information at different points along the way and they will most likely include the following:
-  The bank will want to hear from you in regards to your business plan and they will look into it by asking you for specific details. They’ll want to know about your cash flow up to that point, for instance. They will also want you to outline your plans for how you plan to keep things growing once you’re approved for your merchant account.
-  You will also need to provide the bank with the bare-bones basics in regards to your business. This includes an overview of products and services you provide, as well as the price range attached to each one. You’ll need to be able to relay info about your suppliers, delivery policy, and other basics as well. If you have a website, they’ll want to take a look at that, too.
- You’ll be asked to speak with the bank about the amount of online business you see yourself conducting in the ensuing months and years. You should also be prepared to present an estimate as to how many overall credit card and debit card transactions you expect to handle.
-Â Â Lastly, you will be asked about your trading history, as well as any information about business partners and business directors. A credit check will be conducted. You should also at least expect the possibility that your partners will be contacted and interviewed about the way you handle your business, as well as your general approach to entrepreneurship.
What should I look for in a provider of merchant services?
Choosing a merchant services provider is a lot like choosing anything else of importance. You want to make sure you get the best services and the best value for the lowest possible rates and associated fees. Pay special attention to whether or not a particular provider’s services include the following:
-Â Â Low fees in general are an obvious one, but first-time applicants may not know what form they should take. Look for a completely free set-up and application process. You also want to carefully compare swipe rates per transaction (because all merchant services charge those), as well as look for other freebies or discounted services. Some provide free virtual terminals and toll-free support among other perks.
-Â Â Customer service is key when it comes to the best merchant service providers. A reputable service will feature next-day funding for all the major credit cards used today including Visa, MasterCard, American Express, and Discover. Check services should also be supported. There should also be an easy way to obtain support online or over the phone if you need it.
-Â Â Extra perks to look for would be things like an associated loyalty card and gift card program. Loyalty and gift card options are becoming a bigger and bigger part of how all companies do business and it really pays to get on board sooner rather than later. Plus, both options will maximize the likelihood that your customers will come back to you and only you for the products and services they purchase the most.
How else can merchant services help me grow my business?
You definitely want to at least consider sticking to merchant services that provide cash advance support, as this will come in handy in ways you wouldn’t believe. Cash advances as provided through your merchant services provider allow you an alternative to applying for business loans and additional funding each and every time you need it.
Unlike typical loans, cash advances involve the act of you borrowing against future credit card and debit card transactions. Since you’ve already run the gauntlet in order to get approved by your provider in the first place, there’s no need to do it again in order to get separate loans. It’s hassle-free, simple, easy, and very convenient which is something any busy businessman can no doubt appreciate.
Access to cash advances whenever you need them mean that you have an expanded range of options open to you when it comes to growing and expanding your business. You can purchase more inventory or update your various types of necessary equipment as needed. You can pour needed money into advertising and marketing when the time comes in order to keep things moving along. You can even pay taxes if need be.
Even if you think you won’t have any need for a cash advance in the future, it’s still a smart decision to make sure that it’s there. Smart entrepreneurs understand that expecting the unexpected is an important part of success and the unexpected almost always seem to required access to extra funds in a pinch. Plus, good services cover all the bases, in regards to merchant services as well as anything else.