Pros and Cons of a Merchant Account

There is no question that setting up a merchant account is pivotal to the growth of a business. The additional forms of payment a merchant is able to accept by establishing a merchant account instantly expands their potential consumer base. The problem is that many merchants are scared by the thought of setting up a merchant account without having a good grasp on how the industry works. Throughout the rest of the article I would like to point out all o the pros and cons of having a merchant account.

First, let’s establish the possible disadvantages of setting up a merchant account. The most obvious issue would be the amount of risk associated with accepting credit cards. Risk is a big factor in the credit card industry especially when dealing with Mail Order, Telephone Order, and Internet accounts. There are many defrauders out there that are looking to take advantage of merchants by purchasing goods and services with fraudulent financial information. To combat the ever-growing threat of fraud, Merchant Service Center has created Fraud Monitoring Tools to nearly eliminate fraudulent transactions and keep your business safe.

Another possible downside that is pretty clear is the cost of a merchant account. For most merchants, the cost is not prohibitive but you obviously want to make sure you are receiving the best deal possible. Visa and MasterCard directly set the majority of the cost involved but many merchant service providers will charge a high setup fee along with the monthly processing fees. Merchant Service Center has created programs for every type of processing account to contest the pricing objectives in our industry.

Now that we’ve established some of the main drawbacks to accepting credit cards, let’s go over the advantages of having a merchant account. By accepting credit cards you are responding to your customers preference: many people expect to be able to pay by card. Another advantage is that you are encouraging impulse purchases since the customer does not need their cash present, this also helps to avoid lost sales opportunities. You can also improve on your company’s cash flow in that the funds from a credit card transaction will hit your account faster than most checks. When accepting additional forms of payment you are also making sure your premises is safer for your employees by holding less cash in-store.

At Merchant Service Center we continually strive to provide you with the best products and services including a wide array of tools to keep you safe from fraud. We will personally train you on steps you can take to reduce fraud, offer the latest information so you are kept up to date on all the vital issues, and offer a fraud monitoring suite on our website. When you start a merchant account you gain access to a multitude of tools: batch reports, transactional detail reports, fraud reports, monthly statements, account documentation, and much more. With these tools at your fingertips you are much less likely to be a victim of fraudulent activity.