Finance is the elixir of
life for businesses. It is the corner stone in the foundation of new
enterprises, it allows multiple opportunities for growth, it favors expansion
plans and it shields businesses from unforeseen, unfortunate circumstances.
Money, therefore, should be managed well.
The first two steps
towards managing business finances are:
1. Establishing a
merchant account
2. Implementing a
merchant processing agreement
Both these steps are
prerequisites to get started with credit and debit card processing for your
business. And, in today's day and age, where people do not carry bundles of
cash with them and where checks keep getting obsolete by the day, accepting
card payments determines how advanced your business is.
What is a Merchant Account?
A merchant account is
specialized to accommodate a merchant's business needs by allowing him / her to
accept debit cards, credit cards, gift cards and other modes of electronic
payment made by customers for the merchant's goods and / or services.
A merchant account
involves 4 key players:
• The merchant
• The merchant's
financial institution in which he holds an account
• The customer
• The customer's card
issuer
So, when a customer buys
a merchant's goods and / or services by paying for it through an electronic
medium (credit, debit or gift card) issued to him by his banking service, the
transaction is passed on to the merchant's financial institution for approval.
Once the transaction is approved by the financial institution in which the
merchant holds an account, the amount gets credited to his / her account.
Who is the Payment
Processor?
The payment processor,
the vital link in the merchant account circle, is the financial institution in
which the merchant holds an account. A card processing company is usually a
third party appointed by the merchant himself to manage credit card, debit card
and gift card transactions. The merchant processing company or the payment
processor oversees the transaction of fund removal from the credit cardholder's
account and fund deposition in the merchant account.
Why Should You Hire a
Credit Card Processing Service?
Credit card processing
services offer merchants a bunch of value added benefits for their merchant
accounts. Choosing a reputed and experienced credit card processing service
provider can be very beneficial to your business enterprise. Listed below are
some of the benefits you can avail of upon hiring a card processing service.
• Merchant processing
companies offer packages depending on the merchant's business size and
industry.
• The merchant need not
be physically present to oversee any transaction as the credit card processing
company handles the process.
• Hiring a card
processing service helps you keep pace with the ever-changing payment industry.
• Accepting all types of
electronic payments, such as mobile payments and online payments, is made
possible.
• Frauds can be reduced
due to the dismissal of bad checks and counterfeit notes.
• Merchant processing
companies make tech support available 24 / 7.
The biggest boon of
hiring a credit card processing company to manage business transactions is the
freedom it allows you to focus completely on expanding your business.
Hiring a credit card
processing or merchant processing services is the first step to a successful
business enterprise.
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