When it comes to managing the finances of your business, you need to decide how you’re going to accept payments. To that end, there are a host of services that can help you manage that process, but few of them can be quite as helpful as the right merchant services provider. For those who aren’t fully aware of what, exactly, they do, we’re going to look at some of the most common services they provide and the benefits they can offer.
Improving Cash Flow With Reliable Payments
One of the most common financial problems growing businesses tend to run into is cash flow issues. Merchant services can improve cash flow by reducing the amount of time between a sale and the money getting into your account. If you’re waiting for checks or invoices to clear, it can take weeks before you actually get paid for your goods and services, while card and digital payments can move funds into your account much more quickly. This, in turn, makes it a lot easier to cover your operating expenses and ensure that you’re able to take care of your inventory needs, and improves your accounting and forecasting in general.
Take Your Customer’s Preferred Payment Option
Customer satisfaction matters at every point of the transaction, and perhaps the checkout process most of all. To that end, merchant accounts typically allow you to accept payments across a variety of formats, such as credit cards, debit cards, online payment processors, and can even offer alternative payment methods such as installment payments. A little more flexibility allows you to accommodate a wider range of customers, making sure that you don’t lose sales and have to cope with abandoned shopping carts. You don’t need to pay extra to make sure that you cover every potential payment type; just make sure that your customers have access to the most popular options.
Streamline Checkout With Tap And Contactless Payments
Reducing friction in the checkout process as best as possible can create a much better customer experience. When it comes to brick-and-mortar stores, in particular, customers expect it to be fast and almost effortless. Many merchant services allow for more streamlined options like tap-to-pay and contactless card payments, which can drastically reduce transaction time. This not only provides a much smoother experience for customers as they pay, but also allows your team to handle lines much more quickly, as well, which can be vital if you deal with seasonal sales rushes or other busy periods. Frictionless payments help your business feel much more modern and professional, meaning that your customers are more likely to return for future purchases.
Establish Customer Trust With Payment Security
Given how complex and frequent digital theft is, ensuring customers of the safety of their payments is vital. Many merchant services provide built-in protections that encrypt purchase data and automatically detect attempts at fraud. This safeguards not just your customers, but also your business, which can be found liable if data breaches can be traced back to your business. Handling payments manually or through outdated systems can, in turn, increase your risk and liability. By using trusted financial services like a merchant account, you can build trust and credibility in your brand, as well. This trust then goes on to inform buying decisions and your reputation across the sector in general.
Make Smarter Decisions With Better Sales Data
With the help of a merchant account, you’re better able to centralize all of your transactions and sales in one place. This one place can become a valuable source of data, helping you keep an eye on things like transaction reports, sales trends, peak hours, and average order values. You can see where the money is actually being made in your business, which can then improve decision-making, like price adjustments, staffing during busy periods, and inventory choices. Many merchant accounts allow for easy integration of their sales data into your accounting software as well, which can make it a lot easier to track your cash flow and to prepare for tax season. As your business grows, streamlining your sales data and how you organize it can save you a ton of time.
Easier Online Payments
Whether you’re transitioning from a brick-and-mortar store to handle online sales or setting up an e-commerce store from scratch, merchant services can be foundational there, as well. They can make it much easier to set up secure, seamless payment integration directly into the website, allowing for fast checkout, saved payment methods, and all of the other expectations that customers have of the online shopping experience. You can prevent shopping cart abandonment by eliminating friction and preventing transaction failures, while still accessing all of the other benefits of their services, like centralized sales data and diverse payment methods. They are, simply put, the best choice for how you handle online payments.
Powering Mobile And On-The-Go Transactions
If your business operates on the go, whether it’s a mobile doggy styling boutique or you’re serving up local delicacies at events or your local spot, payment can be a problem. Fewer people are carrying cash on hand these days, which means that merchant accounts can be crucial for accepting payments everywhere. This is just as true for businesses getting up out of their usual environments to set up pop-up stores or event booths. They can provide portable card readers and mobile apps that allow you to connect to your merchant services account with ease, and to accept cards seamlessly in person, no matter where you go. This flexibility lets you meet customers wherever they are, without sacrificing professionalism or speed.
Care must be taken to choose the right merchant services provider. You should research what they provide and ensure that it meets the specific ways you want to handle payments, look at ratings and reviews to see, generally, how satisfied their clients are, and, perhaps most important, get to know their fee structure. While all providers do charge fees, the right ones can be more than worth it.
