Small business owners face tough competition when it comes to attracting customers. The big box stores benefit from the volume of sales, which minimizes their cost for each transaction. To maximize profits while still maintaining personable customer service, small business owners can use merchant accounts. These three strategies can help small business owners take advantage of a variety of merchant account services to grow their revenue streams.
By setting up a merchant account, small business owners can increase their hours of operations by offering their goods and services online. Merchant accounts allow small business owners to accept credit card payments through their websites. These account services also include setting up a virtual shopping cart as well as the calculation of sales tax, shipping fees and handling charges. Customers will appreciate the convenience of not having to wait until a brick-and-mortar store opens to purchase the product or service they need.
These days, consumers carry around a limited amount of cash in their wallets. A limited amount of cash places limitations on the number of goods they can purchase from a small business. When the business can accept credit cards as payments, customers are likely to spend more. Customers who pay with a credit card rather than with cash or a check may spend 30 to 50 percent more in a single transaction. For a small business, this leads to increased sales revenue and profitability.
If a customer attempts to pay with a fraudulent credit card, the merchant account services provider will get nearly instantaneous information about the declined transaction. The client would be unable to leave the premises with the products due to the declined credit card payment. On the other hand, the consumer is also protected from financial losses due to a defective product or an item that is damaged upon receipt. Customers also appreciate the protection against fraud as they will not be held responsible for fraudulent charges to their card if it is reported stolen.
Setting up a merchant account increases the flexibility that small businesses have in conducting each transaction. The account adds credibility to their services and helps customers feel more confident in doing business. The increased convenience may even bring more paying customers through the business’ doors.