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Pros and Cons
of Merchant Accounts
There are many pros and
some cons to having a merchant account. However,
if a merchant account is used correctly it will
always be a pro. A merchant account will allow
your business or organization to accept all
types of credit cards and debit cards. This is a
huge benefit to any business that operates in a
non-face to face environment. Merchant who run
phone based, mail order or internet business
need to accept credit cards since there is no
other real-time solution for accepting payments.
Customers are not going to send you a check or
money order and wait for it to clear. Businesses
that operate brick and mortar establishments
also need to accept credit cards. Over 80% of
transactions are settled in a non-cash form.
These merchants who choose not to accept
multiple payments will find themselves with
customers who are leaving to shop at their
competitor’s establishments.
Some cons to merchant
accounts can include charge backs. This is one
of the main concerns with merchants today.
Someone walks into your store to purchase a
product or service and then later charges it
back. For businesses who become victims of
charge backs, there are a couple steps to take
to minimize this. First of all, all receive
signature. Does not matter how large the item
always receive signature. Secondly, if you are
shipping products make sure to fully insure them
and obtain a required signature by the carrier
when they are delivered. This will reduce the
chance of losing any money. Always ship to the
billing address on the credit card and refund
fraudulent charges as soon as possible. This
will limit or eliminate the chance of charge
backs.
The pros of credit card processing and merchant
accounts drastically outweigh any cons that
might occur. It is important to work with a
credit card processing company that will work to
assist you and your business at all stages.
Power Pay Services can set your company up with
a payment processing solution as well as provide
ongoing support with the use of your merchant
account. When and if your company receives a
chargeback, a helpful account representative
will contact you to assist you through the
process. It is important to double check with
your potential processing to see exactly what
the procedure is when you have a customer
problem or a dispute with a client.Setup a
credit card processing
merchant account today! |
