Merchant Accounts A Necessity For Both Traditional And Online Businesses

Merchant Accounts A Necessity For Both Traditional And Online Businesses

Merchant accounts that allow business owners to​ accept a​ variety of​ customer preferred payment methods have become commonplace in​ traditional business settings. Even small businesses, such as​ fast food providers, convenience stores and​ kiosk sized retailers have accepted the​ fact that allowing for​ multiple popular payment options is​ a​ wise decision. Far few consumers are carrying cash these days, and​ even those who are often prefer the​ safety and​ security of​ paying via credit card or​ check, if​ for​ no other reason than to​ have an​ accurate, detailed account of​ each purchase. Slowly but surely, online vendors are realizing this as​ well.

The popularity of​ Paypal, a​ service which requires consumers to​ set up accounts similar to​ an​ online banking institution, kept many online businesses from opening merchant accounts for​ the​ benefit of​ their customers. Disadvantages to​ using the​ Paypal system were soon evident, however, as​ bad experiences with the​ system were publicized by both merchants and​ consumers. the​ stigma of​ a​ flawed system was not the​ only consideration for​ Internet shoppers and​ online businesses, however. Many consumers were unwilling to​ use a​ system that required setting up an​ account, memorizing yet another password and​ using a​ third party to​ transmit credit card or​ bank account information.

The level of​ convenience available to​ consumers declined sharply as​ a​ result of​ having to​ navigate a​ completely new and​ often confusing separate web site in​ order to​ make a​ simple transaction. On the​ merchant side of​ the​ equation, the​ realization that Paypal offered no additional fraud protection and​ charged rates very similar to​ and​ often higher than merchant services providers has caused many to​ second guess it's usefulness. of​ particular concern is​ that there is​ simply no way to​ determine the​ amount of​ lost sales due to​ consumer hesitation aimed at​ opening a​ Paypal account.

Consumers generally feel more comfortable using payment formats that mirror those used by their neighborhood retailers. When purchasing small items especially, many will not go through the​ trouble of​ spending an​ additional five to​ ten minutes online in​ order to​ purchase an​ item that only costs a​ few dollars. While the​ prices of​ these items may be small, the​ losses incurred by business owners who don't offer a​ tried and​ true merchant account system can be substantial.

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