Why You Need to Know about Merchant Accounts

Cash is going out of style. According to a 2016 Gallup poll, the majority of consumers now pay with credit or debit cards because cards are easier to carry, there is no need to count money because bank accounts do it for you, and losing your credit card doesn’t mean you lose your money, but losing a wallet full of cash does.

With cards becoming popular among consumers, businesses are working to adapt and cater to this paperless form of payment in order to stay relevant. Many companies still do not have the resources available to accept electronic payments. Merchant accounts can help businesses keep up with new payment trends. If you are a business owner and do not have a merchant account, now is the time to set one up.

What Is a Merchant Account?

A merchant account is a bank account specifically intended to help your business accept and process multiple payment types, such as credit and debit card transactions.

According to econotimes.com, the two different types of merchant accounts that coincide with credit card processing are “swiped” and “keyed."

• Swiped: A face-to-face payment, meaning the customer is at the place of business and is paying in-person

• Keyed: When the business gathers payment from the consumer through internet, phone, or fax

It is important for business owners to recognize the difference between the two merchant account categories in order to determine what company is best suited for their business.

From small to large businesses, merchant accounts are becoming more necessary as payment methods continue to evolve. Although the shift from cash to card may seem like a quick one, many companies have been expecting this for quite some time. For instance, merchant account companies have been popping up for years as cards have become a more popular form of payment.

Small and Large Business Merchant Accounts

In the past, large businesses have been the primary target of merchant account companies, yet small businesses are now in the forefront as well. Currently, there are merchant account services and benefits specifically tailored to small businesses. Leaders Merchant is just one of many merchant account companies that strives to service a variety of businesses such as “retail establishments, home-based businesses, mail-order companies, and internet accounts,” according to bestcompany.com. With these services, small business owners can expand their businesses and get on the radar with larger companies.

Merchant Account Companies: Why These Might Be a Good Fit

According to our in-depth research, the top-three ranked companies in the merchant account industry are Leaders Merchant, goEmerchant, and Flagship Merchant Services. Leaders Merchant was founded in 2000, goEmerchant in 1995, and Flagship Merchant Services in 2001. As you can see, these companies have been around for more than 16 years, which highlights their foresight into this paperless payment trend.

Each of the top-three ranked merchant account companies provides a variety of options for businesses to choose from.

If you are a business owner, you’ll need a merchant account provider that will present you with a wide range of services. Leaders Merchant provides a variety of services to fit the needs of different business models, ranging from point-of-sale solutions to restaurant mobile services. If, however, your company focuses on specific equipment, you might go with goEmerchant. This merchant account provider offers innovative technology services like advanced EMV and credit card machines. Lastly, if you are a company that is looking for specialty programs or management options, Flagship Merchant Services might be the company for you. It offers a specific digital loyalty program as well as a business management portal.

Although these companies have been active for years and have a variety of options available, they still may not be the right fit for you. As always, it’s important to shop around before making a final decision. In the end, your merchant account choice is dependent on your specific needs and wants as a business owner.

Merchant Accounts Takeaway

Overall, there are definite pros and cons that come with each merchant account company; however, business owners need to remember that these companies have stuck around for a reason. The best merchant account companies, specifically the top three ranked on bestcompany.com, have managed to adapt with the times from online payments to in-store card processing. Merchant account companies have adapted to put an emphasis on servicing all business, small or large.

Whether you are a first-time business owner or part of a large company ownership, merchant accounts might be your solution to keeping up with various payment transaction trends.