Why You Need a Merchant Account to Accept Credit Cards

Posted by Mr. Merchant Helper

May 29, 2009

by Mr. Merchant Helper

Nowadays, a huge part of the retail market share comes from online purchases. Consumers buy anything and everything online, from shoe polish to electronics. With so many purchases taking place in the fast paced world of e-commerce, money changes hands often, with customer and retailer never coming face to face. Tapping into this market requires retailers to make payment as easy as possible for online shoppers. This is why a merchant account is so important.

If you sell a product or service online, then you’ll need a merchant account in order to accept online credit card payments. A merchant account is similar to the credit card machines that you see in retail stores, only your ‘machine’ is virtual and the payments are approved and processed via the Internet.

Internet shoppers aren’t a loyal bunch, so a merchant account is crucial to your online business success. It’s difficult to develop customer loyalty for many online businesses, since online shoppers are mainly concerned with convenience and rock bottom prices. If you don’t offer secure online credit card processing, you’re likely to lose customers who can’t or won’t pay by another method. Many consumers just don’t want to deal with the hassle of writing a check or sending a money order. They want instant gratification and convenience in the form of automated online credit card processing.

You’ll also make a better impression on customers with a merchant account. Consumers will view your business as legitimate, and are more likely to purchase from a retailer that displays credit card transaction options and relevant security features. If you can’t accept a customer’s credit card, consumers may perceive your business as unprofessional, or may assume you’re not a legitimate retailer.

A merchant account also saves you time and money by automating online credit card transactions. You merchant gateway will provide fully automated service, and most shopping carts even process coupon codes, shipping charges, and sales tax. The system functions like a virtual cashier, without the need for you to mediate the transaction.

Another important benefit of a merchant account is that transactions are approved, denied, or processed in real time. You don’t have to worry about dealing with bounced checks, or declined credit transactions. Funds from completed transactions are conveniently deposited right into your bank account.

You may want to offer PayPal as an option for your customers, but this will not eliminate the need to process your credit card transactions with a merchant account. For one, not all of your customers have or want to create a PayPal account. Secondly, you could be paying higher fees with PayPal, depending on your transaction amounts and overall sales volume.

If you want to make the sale, a merchant account is vital to your online business. You might offer the best product or service on the Internet, but if you can’t process credit card payments online, you risk losing valuable customers. The more convenience you provide for shoppers, the more likely it is that your business will prosper.

About the Author:

For honest unbiased reviews of merchant accounts come visit our site at MerchantAccountDetective.com. Read our latest review entitled: Merchant Account Review.

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