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Merchant Services 101-Why Do You Need a Merchant Account

by | Jun 19, 2021 | Uncategorized | 0 comments

Merchant Services 101

Congratulations, you have not crossed over into the world of small business ownership, the only thing is you need a merchant account to start taking payments.  Where would one even begin to find a good merchant provider when there seems to be a gazillion out there?  Well, lucky for you we have narrowed down some key factors when trying to decide the best option for your business.

Why Merchant Accounts?

We uncovered the meaning of Merchant Accounts and Merchant Services in our last article Merchant Services 101: All You need to know. Now, we will use this time to uncover some feedback on why merchant accounts could potentially be a good fit for your needs. 

It is no secret that we have entered the digital age.  More Brick-and-Mortar locations are turning into hybrid models between storefront and online presence, while some larger companies are scaling back storefronts to go completely online. Regardless of what your setup may look like having a good merchant account in place is vital for any business in today’s economy.  Cash feels almost obsolete with consumers relying more heavily on credit cards for payment methods.  One of the great benefits of having a merchant account is the extra layer of security that merchant providers have put in place to protect consumers and businesses from fraud.  

Consumers can feel safe about swiping their payments because of the different safeguards used to help prevent fraudsters steal personal data. Layers of Protection by merchant providers can include two-factor authentication, tokenization, and built-in encryption.  This can help both the business owner and consumer feel safe when it comes to receiving and making payments.

Merchant Account Features and Benefits

Besides the added layer of security, and the rise of digital payments another reason to consider using merchant accounts is the features and benefits that may come with their services. For example, some merchant accounts may be attached with hidden fees, contracts, or higher rates. While others may have something a little different.

Some merchant service providers may offer some great incentives on rates, free terminals, and other perks.  For example, with 5 Star Processing, you can get all 3 offers with their new 5 Star Perks Program.  5 Star specifically designed this with the business owner at the forefront of their mind.  The Perks program will unlock many great features and benefits including access to business credit building.  It is always good to do a side-by-side comparison to see what other benefits merchant providers will offer other than competitive rates.

Small Business Payment Processing 101

Payments are the thing that makes the world go round and makes your business operate. So it’s essential. You might have heard of payment solutions like Square or PayPal, those are great, don’t get me wrong, but they only do a part of the job. So we’ll go through the different things you should be mindful of when searching for your next payment processing solution.

Alright, mobility is the first thing you want to be mindful of when searching for your next payment processing solution. Because most people and small business owners are on the go, you want to be able to take a payment from a customer wherever that customer may be. And that solution is the ability to take a phone, use the camera, not take a picture, scan that credit card, and receive the information on the card. What that allows you is the confidence that when you’re out on the job, and you’ve completed the work, and the customer is standing there with a credit card in hand, you don’t have to worry about your credit card swiper thing your Oh, it’s not connecting. Take your phone, scan the credit card, and receive the payment.

What’s the next thing to be mindful of?

How much you’re getting charged? So different companies out there offer other things. And if you need to pay attention to the rate of the company that you’re deciding to use, you might be in trouble because it can get costly. So you want to look for a solution that offers a rate of 3% or less and charges no more than 30 cents for every transaction. Now there are something else right there, called Card Not Present Transactions. That’s when you’re on the phone with the customer. They’re giving you the credit card information; maybe that customer is going online and using a credit card to secure their appointment. In those two scenarios, the cards are not physically present. Most payment processing solutions will charge more for that. However, there are solutions like 5 Star Processing that will never charge you extra for a Card Not Present Transactions.

The third thing you want to be mindful of when finding your next payment processing solution is finding a key connected to all the other things you do to run your business.

Maybe it’s marketing; it’s perhaps sending emails. It’s more insight into your customer. By having your payment processing solution integrated and connected to everything else you do. It makes you and your business that much more powerful. So what you’re doing by having your payment processing solution connected to everything else you do is getting more insight into how much your customers spend, allowing you to take action to make more money. Who doesn’t like making more?

Ready to Get Started?

So, have we convinced you to sign up for a merchant account yet? If the answer is yes, then give our team a call today. Let us show you what 5 Star service is all about. 

You can reach us at (888) 253-9692 or [email protected]. Our team will be happy to go over any questions about credit card processing. Also, we gave you a solution as quickly as possible.