Finance is the essence of business life. It is the cornerstone of new business creation, offers multiple opportunities for growth, promotes expansion plans and protects businesses from unforeseen and unfortunate circumstances. The money has to be well managed.
The first two steps in managing a company's finances are:
1. Create a merchant account
2. Implementation of a merchant processing agreement
These two steps are prerequisites for getting started with credit and debit card processing for your business. In addition, nowadays, when people do not carry cash and checks become more and more obsolete, the acceptance of card payments determines the progress of your business.
What is a merchant account?
A merchant account is specialized to meet the merchant's business needs by allowing them to accept debit cards, credit cards, gift cards and other electronic payment methods made by customers for their goods and / or services.
A merchant account involves 4 key players:
• The financial institution of the merchant in which he holds an account
• The consumer
• the issuer of the customer card
Thus, when a customer buys goods and / or services from a merchant by paying them by an electronic means (credit, debit or gift card) issued to him by his bank service, the transaction is forwarded to its financial institution for approval. Once the transaction is approved by the financial institution in which the merchant has an account, the amount is credited to his account.
Who is the payment processor?
The payment processor, essential link in the circle of the merchant account, is the financial institution in which the merchant has an account. A card processing business is typically a third party designated by the merchant itself to handle credit card, debit card and gift card transactions. The merchant processing company or payment processor oversees the withdrawal transaction of the credit card holder's and the fund deposit account in the merchant's account.
Why should you rent a credit card processing service?
Credit card processing services offer merchants a multitude of value-added benefits for their merchant accounts. Choosing a reputable and experienced credit card service provider can be very beneficial for your business. Below are some of the benefits you can get when hiring a card processing service.
• Merchant processing companies offer packages based on the size of the company and the industry.
• The merchant does not have to be physically present to oversee the transactions as the credit card processing company manages the process.
• Hiring a card processing service helps you stay in step with the ever-changing payments industry.
• It is possible to accept all types of electronic payments, such as mobile payments and online payments.
• Fraud can be reduced due to the rejection of bad checks and counterfeit notes.
• Merchant Processing Companies provide technical support available 24 hours a day, 7 days a week.
The biggest advantage of hiring a credit card processing company to handle business transactions is the freedom to focus fully on your business development.