How you handle your business finances as a merchant greatly determines the success of your business. Whether you own a small, newly established business enterprise or you’ve been heading a large corporation for years now, finance is the fuel that keeps your business running.
So, how do you manage your finances? Have you hired a merchant service company or do you handle your finances independently? Did you know that your business could greatly benefit with assistance from a merchant processing provider, especially if you’re a start up?
Let’s explore how beneficial this is to your business enterprise.
What are Merchant Services?
The term ‘merchant services’ is used widely in the United States to refer to a broad category of financial services used by businesses, both big and small. It specifically refer to credit card processing and the handling of electronic payment transactions for merchants. They enable businesses to accept payments through secure channels with the use of the customer’s debit, credit or gift card. It also enables merchants to accept payments via mobile and online banking transactions.
A Provider is an individual or a company that provides services to oversee the monetary transactions of a merchant’s business
What Does A Merchant Service Provider’s Work Encompass?
• Credit, debit and gift card payment processing
• Obtain sales information from the merchant
• Obtain authorization for financial transactions
• Collect funds from the financial institution or bank which issued the card to the customer
• Ensure that the merchant receives the payment
• Provide check conversions and check drafting services
• Oversee payment gateways and point of sale systems
• Process online and mobile transactions
• Assist with merchant cash advances
To obtain access to any of the above services, a merchant account needs to be established with a bank. A merchant account is simply a bank account which enables a merchant to accept payments made by the client’s credit, debit or gift card or any other mode of electronic payment.
How Can a Merchant Service Provider Benefit Your Business?
When you are a start up business enterprise, you will need all the help you can get. Acquiring help from experienced hands is especially beneficial to your business. A service provider with years of experience in the industry can help you manage the financial transactions of your business.
Suppose you’re selling a product and / or service to a potential customer and you have convinced him to make a purchase. He’s ready to pay, but he suddenly realizes he’s not carrying enough cash. He reaches out his credit card to you; however, you do not have a merchant account or a credit card processing machine to accept the customer’s payment. Unfortunately, you lose out on a sale.
In the above scenario, if you had the power of a merchant account, you would have benefited.
Additionally, your business will not have to face problems which come with customers’ bad checks when you have a service provider looking after the financial transactions of your business. Eventually, your business will succeed with an increase in sales through electronic modes.
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