As a business owner when you have a start-up business, want to expand an existing one or you’re already established, one major decision you need to make is the mode of payment in today’s high-tech market including electronic payments. Today, most businesses are shifting to a cashless system where the customers use credit and debit cards. When you opt for these payment methods, you need a traditional merchant account to process card transactions.
How Does Your Traditional Merchant Account Work?
Merchant accounts are set up for the business, linked to their business bank account, and when a card transaction is processed through the merchant account, the merchant account provider assesses a fee and deposits the funds. You can then use the funds within approximately two business days but some businesses can qualify for next-day funding allowing funds to be available within 24 hours. Traditional merchant accounts are an ideal option for almost all kinds of businesses due to the increased use of debit and credit cards.
The Safety of Traditional Merchant Accounts
Traditional merchant accounts have a terminal, point-of-sale system or payment getaway to use on your website. For card-present sales, terminals & POS systems are used to process swiped transactions. For card-not-present businesses such as mail-order/telephone-order businesses and eCommerce web stores, a payment gateway is used and you can personalize the security levels that decide the types of transactions that can be declined or flagged through the getaway. You, therefore, gain confidence in the security that secures the data of your customers as it does not leave your website in any other way apart from the secure gateway of the payment processor.
Traditional merchant accounts have great customer confidence since they are supported by years of regulation and experience with banks, financial institutions, payment processors, merchant service providers, and card associations such as Visa, MasterCard, Discover and American Express. The account confers a sense of professionalism that business relying on other methods may lack. With traditional merchant accounts, you also have an added security perk in that you have full control on your bank account and the manner in which the transactions are done.
Another safety perk that comes with traditional Merchant Account is the application process. When you apply for this account, there are three things that are considered. The credit history of the business owner, the business model as well as any existing business history is all considered. The three factors have a significant role as they can impact the ability of your account getting approval. By working with the right providers, they understand you and your business, so they know the risk before you even before you begin accepting cards. Your account is, therefore, safe since there is less possibility of your account being frozen or the funds held. If something unexpected happens, the traditional merchant account provider comes in handy since they most likely have other alternatives in place to alleviate the risk.