Merchant account fees: Are they worth it?

Merchant account fees: Are they worth it?

By accepting credit cards you can attract and keep more customers who like the convenience of paying with plastic. Setting up a merchant account to accept credit cards for your business isn't cheap. Between the merchant account discount or interchange fee (2 percent to 4 percent per transaction), the initial fee, merchant account monthly fees, minimum fees, gateway access fees and others, you're going to be doing quite a bit of merchant account paperwork. But there are also some good reasons why you should have a merchant account to accept credit cards:

• Attract more customers. People like the flexibility of different forms of payment. Even though consumers may be cutting back on credit card purchases and trying to reduce their debt, credit cards continue to be one of the most commonly used methods of payment. If your business does not have a merchant account to accept credit cards, your customers might just go to your competitors that do accept them.
• Keep your customers. By using a merchant account to accept credit cards, you improve your relationship with your customers by showing them that your business is concerned with their convenience. When they know that you care about them and want to make their shopping convenient, they will come back.
• Increase your sales. More customers means more sales. When customers know you have a merchant account to accept credit cards, they will feel more secure and comfortable with your business. And if customers know they can put it on their credit cards, they might be enticed to make larger purchases than they normally would.
• Reduce risks. Aside from the occasional case of fraud or stolen identity, credit cards are a secure means of making and accepting payment. By accepting credit cards with a merchant account, you do not have to worry about accepting personal checks that could be returned due to insufficient funds. You also reduce the inherent risks of handling a large amount of cash.
• Show your status. Accepting credit cards with a merchant account legitimizes your business and gives you an edge over competitors that do not accept them. When you accept credit cards with a merchant account, your business appears more modern and innovative.
• Streamline your administration. By accepting credit cards with a merchant account, your business will have a steady cash flow and a monthly statement that can help to streamline your administrative and accounting work. Then you can devote more time to managing your business and selling, instead of handling administrative duties.

Published: May 28,2023