Author : Lisa Kaye
Credit card purchases and transactions are becoming common these days. It no more depends on the size of your business. Big or small, every business today requires a method of credit card processing and collecting credit card payments. Merchant account is the solution. Through a merchant account, businesses can accept debit /credit card payments.
However merchant account is very important for retail businesses, it has become essential for online businesses. Keeping in view these two types of businesses, merchant accounts are also loosely divided in two types. The over-the counter (OTC) account is for retail businesses and shops. The Internet Merchant Account is for e-commerce businesses.
The very first reason that defines how a merchant account can help your business is flexibility. A merchant account makes credit card processing easier and therefore offering you the flexibility of receiving payment anywhere. It can be in a real store, an online store or even on the phone.
Merchant accounts don’t require cold cash payment, which in case of a heavy expensive transactions, is a relief for customers. Customers and clients feel much secure paying through credit cards via some reliable bank rather than handing down the payment in cash.
A single business can have multiple merchant accounts and can accept cards from a verity of credit card providers. It also allows you to venture into online business along with the traditional retail businesses. E-commerce can literally do wonders to dramatically increase the sale.
If your business already has a great cash flow which is difficult to manage, a merchant account will allow you to keep track of your transactions in a better way. The account bearers get a monthly statement for all the transactions that take place during that month, making it easier to maintain the accounts information.