What is an Alternative to Merchant Accounting Services?
A common alternative to this type of account is a no-card-payment system. This can be quite limiting for your business and customers as well. Another option would be processors controlled by a third party, and these types are better suited to small firms. However, larger companies would struggle with this option.
A popular example is the PayPal business account which allows its users to collect electronic payments like credit cards. However, the company only acts as the middle man while PayPal processes the payments through their master account. As expected, this option would cost more due to the charges that are deducted per transaction.
What To Gain From a Merchant Account
Although you can receive credit payments through other ways, merchant accounts come with several benefits. Most of them cut across financial and credibility gains for your company.
Hiring a merchant accounting service can open up several financial possibilities for business. For one, it helps customers easily access your business as it shows your company is keeping up with payment system trends. Card payments likely get more normalized in businesses everywhere. After all, it would be rude to turn down money from a customer.
If customers can begin to trust your business, then it’s likely that they will take their money somewhere else. By accepting payments via a processor controlled by a third party, you expose your customers to some hassle of getting thrown off your platform to the third-party site. That alone could motivate some clients to quit the payment process altogether.