A merchant account can simply be defined as a bank account that allows your business to accept payments in multiple methods such as debit or credit cards. The merchant account is established after an agreement is reached between your business, a merchant bank and a payment processor regarding the settlement of the payments made through the credit or debit cards.
Who needs a merchant account? Well, in this article we look at 5 types of businesses that should have a merchant account.
1. Sole Proprietorship Business
As an entrepreneur running a small sole proprietorship, you would probably wonder if a merchant account is ideal for you. The answer is yes. In order to make your business more attractive to your customers, you will need to allow them to pay for goods and services via credit cards. In order to do this, you require a merchant account.
When you sign up, a credit check will be done to determine if you qualify and how much money you can process each month. If you have bad credit or no credit at all, do not worry. There is always the option of going through a high-risk merchant provider to offer the services you need.
E-commerce or online businesses are the types of businesses that involve buying or selling goods and services across the internet. E-commerce businesses can greatly benefit from opening a merchant account since their sales volumes will be greatly determined by their ability to offer fast, reliable and flexible payment methods to their customers.
With a direct merchant account, you will be able to serve customers all over the world as they are able to make international payments using a merchant account. Online payment options ease the payment and check out options and more customers will complete their transactions rather than abandon their online shopping carts.
3. Legal Firms
Lawyers, just like any other businessmen require timely payments from their clients in order to keep their business running smoothly. This is why law firms should have merchant accounts. Credit cards are convenient and they are here to stay. Allow your clients to pay for services using credit cards. However, you should carefully choose which cards your firm should accept as some of them could affect your business bottom line. Always integrate for payment automation, review your costs frequently and your business will flow smoothly.
4. Travel Agencies
The world of travel and hospitality is always changing. In this business, you need a merchant account to facilitate smooth payments for travel tickets and online bookings for your clients. The travel industry is categorized among the high-risk businesses; therefore, it is important to do your due diligence in order to get the most reliable and beneficial travel merchant account.
5. School Business
Schools should also have merchant accounts. In today’s busy world, the last thing you need is the hassle of billing and collection of tuition fees. Whether you are running a technical school, an art institute or a small private daycare, you need an account that can customize and streamline all the payments to keep your educational institution running without a glitch.
With a good merchant account for your school, your students will always have their account status updated in real-time.
There you go; 5 types of businesses that should have a merchant account. Looking for a collections merchant account for your business? Talk to Payment Savvy today; they are the best payment partners and their payment processing experience is seamless.