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How to Choose a Merchant Account Service Provider?

Boaz Gam

Boaz Gam

CEO

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1.07.2021
3 min
Points to Take into Account when Picking the Right Agency Benefits of Acquiring a Merchant Account
A Piece of Advice at Last

Choosing a merchant account provider to handle electronic check or credit card payments is one of the most important decisions you will make as a business owner. Pick the wrong service provider, and you’ll pay high rates and fees, getting poor quality of service and a payment solution that doesn’t meet your business needs. Choosing the right supplier means gaining a competitive advantage.

Points to Take into Account when Picking the Right Agency

Getting deeper into this issue, you’ll find out that the question is rather tricky. There are many options, and different companies provide various types of services. So keep in mind the following points:

  1. First of all, you should clearly understand what type of business you have or start. Take a seat and think about the issue thoroughly. The thing is that the amount of potential income directly influences the decision. For instance, if your business is small and you get several thousands of dollars monthly, there is no need to deal with a merchant account service provider.
  2. Analyze pricing policies and fees. Each service provider is free to set its own fees. So, some systems may charge fees for membership, exchange, and flat rate. Compare several agencies to find out their pricing policies and pick the most suitable conditions for cooperation.
  3. Clarity and ease of use. When dealing with new technology, users should at least understand how it functions and feel confident when using it for operation processing.
  4. Features provided by merchant account providers. If things are good with the previous points, find out what additional functions are available. Perhaps, a potential agency offers different payment gateway types or allows its clients to track their sales with the help of special reporting tools.
    “Although you don’t need them now, perhaps, in the future, you’ll need to upgrade your merchant account and unlock new functionalities.”
  5. Customer feedback is a useful point since by reading users’ reviews, you can find out some pitfalls of a particular provider. So, look through reviews, chat on specialized forums to find out information on the level of merchant services providing.
  6. Security is last but not least. Check in what way a service provider ensures data security. What algorithms are used to guarantee transaction confidentiality and protection? How can one get access to information?

“Last year, almost $25 billion was lost due to fraudulent transactions with payment cards.”

In this regard, payment security is vital for businesses that store customer information and process their payment card transactions. Check PCI DSS compliance. This is a certificate confirming that a company meets the industry requirements for payment processing and, accordingly, guarantees the security of storing personal data of bank cards.

Benefits of Acquiring a Merchant Account

The modern world has become more and more cashless. Online transactions displace cash payments. Turning to a merchant account service provider will benefit:

  • Better funds managing;
  • Sales increase;
  • Potential risk decrease;
  • An opportunity to take regular transactions.

A Piece of Advice at Last

Not to get lost in the abundance of merchant account providers, answer yourself what kind of services your business deals with and what your company requires. Each enterprise is a unique organism that should be treated individually. So, find out what works for your very business and then, pick the most suitable merchant account service provider.

F.A.Q.

What Are Merchant Account Providers?

This is an agency that provides clients with all the required tools for transaction processing. Some of them serve as a connecting chain link between your business and banks.

How Do Merchant Account Providers Work?

The merchant account provides users with a whole pack of tools that help make international transactions secure, convenient, and quick. Thus, it does not only speed up and simplify the process of paying services online. The account also allows users to manage transactions, set rules for their implementation, set anti-fraud filters for security, get analytics, etc. As a result, by opening a merchant account a user gets a complete set of tools to manage e-commerce.

Who Needs a Merchant Account Provider?

Every large enterprise (online retailers, shops, casinos, in particular) will require it. This financial tool will be interesting and beneficial for companies engaged in international businesses and B2C. Big companies will simplify the process of payment management by acquiring a merchant account provider.

How Much Do Merchant Account Providers Cost?

The cost differs. The price for merchant services varies from one provider to another. Besides, lists of provided services and extra features are different, which influences the final cost.

Why does an online retailer need a merchant account service provider?

There are several reasons. First of all, you can get payments from all over the world. Secondly, online retailers avoid all the risks related to payment processing and cheating. Thirdly, merchant account providers guarantee that delivered services or goods will be paid.

Commentaries 0

Emily P

Thanks for such an informative article. Still, I have one question. You say that a good payment service provider must guarantee data security. What exact measures must be implemented by a provider to protect transactions?

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Boaz Gam

Payment security is the first factor you want to consider when choosing a payment service provider. Since you trust the PSP to handle all payments of your business, it must be ultimate in every respect, including its ability to safeguard valuable information.

To prevent these risks, it is vital to choose only a PCI DSS-compliant payment provider that implements cutting-edge security standards, among which are multi-stage anti-fraud system, behavior analysis, Ethoca integration to decrease chargeback ratio, encryption tools, dispute management tools, etc.

https://payneteasy.com/payment_technologies/risk_management_and_dispute_management_system

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Victor D

Articles like that enhance my financial intelligence. Such a simple yet interesting explanation on acquiring. Thanks, guys, good job. One question. Can a bank provide such an acquiring service that I can legally accept cryptocurrencies as a valid payment from my customers?

-1

Boaz Gam

Traditional banks generally do not work with cryptocurrencies such as Bitcoin or Ethereum. Still, there are some solutions at the market that allow merchants to accept settlements in virtual tokens. These solutions are known as cryptocurrency payment software, and they basically present a gateway that allows businesses to receive payments made with tokens from clients in exchange for products or services.

When you make a purchase using your cryptocurrencies, the transaction is processed by that software. The gateway almost immediately converts your tokens to the national money (called fiat), automatically charging a certain fee from you for the crypto-to-fiat conversion, so that the merchant receives a payment to their bank account in national currency.
Crypto payment gateways can integrate with various platforms used by businesses, including e-commerce systems, POS terminals, and website shopping carts to process crypto settlements.

https://payneteasy.com/solutions/fintegrate

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Mia K

Web acquiring is a handy solution for everyone who is getting into the business game and strives to provide a great customer experience. I’ve been running a small café for several years and, believe me, I managed to go without any acquiring, old good payments in cash… It suited us both, me and my regular customers. But as the pandemic stroke and I could not serve my clients in a way I always did (banknotes are notorious disease vectors, you know), implementing web acquiring with its cashless card payments veritably saved my business and helped me stay afloat during hard social-distance times.

You know, during the universal COVID-19 hardship, hospitality companies could not work as usual, and the only way to survive was to work online and organize food delivery services. As my café business went online too, the only way I could accept cashless payments is through implementing acquiring. And I have never regretted my decision!

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