Merchant Services:a Convenient Mode Of Payment
According to smallbusiness.yahoo.com ,if the company is successfully invoicing the customers, you may be put off by the costs of merchant services, which take a percentage of all your sales. However, avoiding potential loss from non-payment can quickly make up for the expense. Plus, you will no longer have to spend staff time issuing late invoice notices or wait 30, 60 or even 90 days for invoices to be paid. Credit cards allow funds to be transferred to your bank account in less than a week. This can be a welcome relief for businesses that experience a tight cash flow.
If the company sells to consumers, merchant services will allow you to expand your customer base and provide a more convenient method of payment than cash or checks. And if you are interested in selling over the Internet, credit card processing is a must you have. It is possible to accept credit cards over the Internet without establishing your own merchant account. Third party merchants can accept credit cards on your behalf, without requiring a credit check. However they typically batch the money into regularly scheduled payments, negating the advantage of quick turnaround. In addition, their rates tend to be higher significantly higher, in some cases they can make the business seem like a small time operation.
Not every company needs to accept credit cards, though. If youâ??re per order cost is typically in the thousands of dollars and the customer base is stable or subject to credit checks, you may
Find it cheaper to continue invoicing your customers.
Some companies provide merchant accounts service for e-commerce stores. Accept Visa MasterCard credit cards. Determine what software you are going to use to process credit card payments before you get a merchant account. What do you really need to get credit card transactions going on a site, and how do you find a reputable bank that's knowledgeable about the internet? Some people remain reluctant to use their cards on-line, but in general credit cards have become the standard method of payment on the net. Ensure the gateway at least offers avs protection.
There are two types of authorization processing: Batching and real-time. Without exception all merchant account providers charge a fee every time you accept a credit card payment on your website. If you want to do business online, you do need to accept credit cards. But these machines aren't too helpful for internet businesses, where you don't have the customer's card to swipe; you'd have to get pretty good with the keypad. You might have to pay higher start-up fees, per-transaction fees, and discount rates. Remember that price should only be one factor in your selection process. In industry parlance these are called independent sales organizations.
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