The Benefits of a Merchant Account

There are many benefits of having a merchant account, including the ability to offer customers more payment options, the ability to process payments 24/7, and increased security for both businesses and customers. Merchant accounts also give businesses the ability to track sales and monitor spending patterns.

Increased Customer Satisfaction by Providing Payment Options

Cash may be king, but credit cards give customers more options— and consumers overwhelmingly prefer to pay with credit cards, according to a report from American Consumer Credit Counseling. Credit cards give customers the ability to make large purchases they might not normally make because they are given the option to pay over time, and that can boost conversions and benefit businesses.

Increased Customer Spending

By offering customers the option to pay by credit card, businesses can increase customer spending. According to a report by Harvard Business School, businesses that accept credit cards see an increase in customer spending of 18-25%. The reason for this increase is that customers tend to spend more money when they use a credit card as opposed to cash.

Improved Cash Flow

Another benefit of having a merchant account is improved cash flow. With a merchant account, businesses can process payments 24/7, which means that funds can be deposited into the business’s bank account quickly and easily. Improved cash flow is especially beneficial for small businesses because it gives them the working capital they need to grow and expand their business.

More Control

With a merchant account, your business is assigned a unique merchant ID number. Businesses that opt for a payment service provider like Stripe or Square do not get a unique merchant ID; they are aggregated with other businesses into one merchant account with one merchant ID. This means your business could be subject to account freezes, holds or terminations — for reasons over which you have no control.

Overall, there are many benefits of having a merchant account for your business. By offering customers the option to pay by credit card, you can increase customer spending and improve your cash flow. Merchant accounts also offer businesses increased security and the ability to track sales and monitor spending patterns. If you’re looking for a way to take your business to the next level, use our merchant account comparison tool to find the best merchant account to fit your business!