The pandemic has already changed how we perceive businesses. Due to COVID-19, many companies have undergone various changes and losses. One of which contactless payment. With the pandemic spreading like crazy, the contactless payment process is appreciated and encouraged whenever someone buys. Hence, businesses have started using payment processing solutions all over the world. It doesn’t matter if you run a small brick and mortar business; you still need a contactless payment method to let your customer buy without worry. In order to do a payment processing service to work, you need to open a merchant account. So, what do you need from a merchant service provider? Everything is described below.
Merchant Services Go Beyond Payment Processing
Merchant service is not only for payment processing and transferring payments from buyers to sellers. As I have spoken earlier, contactless payment has become the only consequent way of buying due to social distancing. Hence, e-commerce shopping has increased by a more significant percentage. Gift cards allow consumers to promote your business while allowing you a bend in payment, which can be considered a contributing factor for online profits. Therefore, a merchant service provider can help you implement the gift cards and rewards for a profitable business.
Merchant Service Providers’ Function
The role of merchant service providers is to act as an agent to run the process and secure payment between businesses and their customers. The merchant service bank receives money from sources like debit/credit cards, bank transfers, e-wallets, etc. The merchant service providers shoot a message to the customer’s bank about a transaction and checks if the customer’s account has money to make a purchase. This is pretty much the role of a merchant bank. Merchant banks are also known as payment processors.
Tiered Merchant Account Pricing Can Cost More
Don’t fall into processors’ different rates, for example, qualified, mid-qualified, and non-qualified. Tiered merchant accounts can cost more than you think. Even they charge a suitable low quality, but most of your transactions will eventually be categorized into the non-qualified higher rate. So, make sure you don’t fall into the trap. Some solutions do charge a flat fee by offering a single flat rate. This helps to save your money as well as the company’s reputation.
Younger People Are More Likely to Pay Using Prepaid Cards
Shocking but true, the younger generation is more likely to pay using prepaid cards. Most of the young generation don’t have the credit to obtain a credit card. The number of prepaid cardholders in younger people is greater since they can get one quickly without earning credit from the bank. If you don’t accept prepaid cards, start doing so cause your business target will be the younger people unless your service is catered to the elderly.
The pandemic has indeed changed the way we pay, but that also allowed businesses to connect with many customers worldwide. This also improves your business by doubling your profit. Hopefully, you have learned something from these facts. If you haven’t started with online payment processing services already, now is a good time.