Merchant Account Advantage

By Author: Vikram Kuamr
Total Articles: 2912
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Whatever the nature of a company, a merchant account provides a great way to collect payments for goods and services. Merchant accounts are specialized business accounts authorized to accept credit card transactions, typically from several primary credit cards.
Checks are gradually becoming obsolete and the use of payment cards is on the rise. Asking customers to run to an ATM machine for more cash isn't a good option. The majority of merchants around the world accept payment cards.

Processing Rates and Fees

Merchant accounts have associated fees, which vary depending on the company providing the service, but merchant accounts typically have two main costs:

1. A transaction or authorization fee is charged for every electronic authorization request and transaction made, including every approved and declined sales as well as voids, returns and batch settlements.

2. With many merchant service providers, each processed sale is classified as one of three qualification levels: Qualified, mid-qualified and non-qualified. Each process is charged the discounted percentage rate associated with the specific ...
... qualification. Every sale's level and rate is determined by the type of card used and/or how the card is accepted and processed.

When signing up for a merchant account, make sure the contract isn't sprinkled with surprise fees. Also, some merchant servant providers charge an exorbitant amount of money for equipment.

Increase Sales and Provide Customer Convenience

Carrying cash is on the decline while the number of people making payments with a credit card continues to soar. Also, customers typically spend more money when paying with a credit card. The convenience of using payment cards leads to more purchases. Merchants who limit payment options can easily loose customers to competitors.

Keep Track of Financial Transactions

A merchant account helps a business owner keep track of his financial activity because they're sent a monthly statement of all credit card transactions they received. These statements can be helpful in calculating expenditures.

Protect Against Theft and Fraud

A business knows right away if the purchase is valid when the payment is made with a credit card. Accepting credit cards allows a business to protect itself from losses due to bounced checks. Accepting credit cards lowers the amount of cash held; lowering the monetary damages due to theft.

Author Bio.

To learn more about merchant accounts visit http://www.elect-mer.com/. Whether it's electronic credit card terminals, cell phone credit card processing, websites or specialized software, Electronic Merchant Systems offers credit card machines and credit card processing services at affordable prices. Electronic Merchant Systems has successfully provided services to businesses nationwide for more than 20 years.