Merchant Accounts A Necessity For Both Traditional And Online Businesses

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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