Why Having Just One Merchant Account Is Better Than Many Accounts

By Author: sifip
Total Articles: 686
Comment this article

Before you hire another online payment gateway India service provider to collect payments for your company, you should think about the risks of having more than one merchant account.

While many business owners believe that using multiple merchant accounts for the same business has advantages, working with multiple vendors and contracts takes time, money, and energy.

Collecting payments with a single consolidated merchant account allows business owners to save money and time, mitigate risk, protect cashflow, and plan for growth when working with the right gateway and a single payment processor.

Here’s Why It’s Best to Have One Consolidated Merchant Account:

Reduced Fees and Predictable Costs
When you use more than one payment processor, you must pay multiple recurring account maintenance and processing fees. If a company has multiple active merchant accounts, it is very likely that it is losing money by paying the same PCI compliance and maintenance fees to different third parties. Consolidating merchant accounts and processing through a single provider ensures that businesses pay no more ...
... fees to collect electronic payments than is necessary.

Merchant processing fees can be flat, interchange, tiered, or interchange plus, and no two merchant providers bill in the same way. Statements are already cumbersome to decipher, so when multiple merchant providers with varying fee structures are thrown into the mix, it is nearly impossible to understand what is actually paid in processing fees each month.
Choosing a single merchant provider, especially one with transparent fees and easy-to-read electronic statements, allows business owners to more accurately predict monthly overhead costs, which is a critical component of running a successful business.

Lower Risk to Protect Your Business
It is a common misconception that having multiple merchant accounts protects a business if one is compromised or shut down. However, the opposite is true. When a company opens a merchant account to accept electronic payments, the signer agrees to terms that frequently include a non-compete clause. If it is discovered that a company is collecting payments through multiple merchant accounts at the same time, the processer may label them as 'high risk.' The processor then has the option to close the account and hold any unsettled funds. Businesses that consolidate merchant processing accounts are more likely to avoid unneeded shutdowns and subsequent funding delays, which can halt business operations.

Access Insights to Plan for Growth
Businesses that collect payments through a single merchant account or online payment gateway, rather than multiple accounts, have access to concise reporting that summarises business performance at a glance. This information enables businesses to reconcile quickly and easily, freeing up time and energy that can be redirected to revenue-generating activities.

When businesses use a consolidated merchant account, payment data is easily translated into business insights, which are used to understand business trends and empower businesses to promote and grow more effectively.

Streamline your Payment Experience
Consolidating merchant accounts simplifies the payment collection process for both the customer and the business owner. Customers can pay using the method that is most convenient for them by using a single merchant account linked to a payment gateway that supports multiple payment channels. This enhancement to the customer experience promotes more timely payments and increases cashflow. Because customer payment information is securely stored in one location, return customers can easily make future purchases, encouraging more revenue.
Working with a consolidated merchant account allows you to work with a single point of contact who understands your billing cycles, goals, and the nature of your business. This relationship advocates for your company's success and gives you more bargaining power when it comes to contracts and rates.