How Does Merchant Processing Work? And is it Worth it for Your Small Business?
Among the most important investments a small business can make is a merchant account with a reliable merchant account provider. The ability to accept credit and debit card payments can transform small startup businesses into viable competitors, opening them up to a wider clientele base and keeping their money in a consistently manageable state.
How Does it Work?
Merchant accounts can be set up through a number of merchant service providers in order to provide merchants with a convenient method of payment directly to the merchant’s checking account.
Step 1: The customer offers the vendor a form of electronic payment (credit or debit card) through the vendor’s desired payment gateway.
Step 2: Merchant captures the credit card information, sending it to the card-issuing bank for approval.
Step 3: An MSP issues the value of the transaction to the merchant’s account within one to two business days of the purchase.
Step 4: The merchant is sent a bill/statement including the previous month’s fees and transactions.
Is it Worth it?
While it is possible to do business without the help of a merchant account, a merchant account makes it much easier to receive credit card payments. With a merchant account, you can rest assured that the money you expect from your transaction will be safely deposited into your business’ account with minimum hassle.
Merchant account providers also offer a number of other services with help in tracking your transactions, managing your terminal gateway, and setting up product lists. With PCI compliant merchant account providers, you’ll benefit from an added measure of security, with encryption and password protection services that will keep your money and information safe at all times.
While you might think that your business isn’t large enough to merit a merchant account, it’s one of the most effective ways you as a business owner can plan for future business growth.
Contact Vision Payments today to find out which services are right for your business—we’ll help you manage your transactions and give you the resources you need to help your business succeed.