Everything You Need to Know About Merchant Accounts in 2022
What’s the best way to accept payments? Do you want to take cash? Debit cards? Credit cards? The answer depends on what kind of business you’re running and how big your clientele is. Read this guide on everything you need to know about merchant accounts in 2022 and see if the information can help your business grow. We’ll cover everything from the differences between types of merchant accounts to specific strategies that helped other small businesses get off the ground or increase their revenue significantly.
A short history of merchant accounts
In 1990, a payment system for web transactions, called e-gold was created that allowed consumers and business owners alike to exchange funds on the internet. As a result of this new system, we saw an increase in online commerce, even by the likes of big chains like Wal-Mart. To make payments possible online merchants had to be able to accept these electronic funds; thus the need for merchant accounts.
Types of merchant accounts
There are two types of merchant accounts: traditional credit card transactions and keyed-in transactions. With a traditional merchant account, an individual swipes the customer’s credit card and passes it through a terminal. Keyed-in transactions work the same way, but there is no need for the swipe machine.
Choosing the right merchant account
These days, just about every business out there needs a merchant account in order to be able to accept credit card payments. Getting one that fits your needs can be tricky. Fortunately, we’re here to help!
If you’re trying to decide which is the best option for you and your business, here are some things you’ll want to consider.
The role of merchant accounts today
Merchant accounts allow companies and individuals to process payments from consumers through their business or e-commerce site. In order to accept payment, merchants need an account with a financial institution, like a bank or credit union.
Conclusions about merchant accounts
Merchant accounts can be essential to business growth and sustainability, but they’re not always easy to set up. As a small business owner, it’s important that you do your research before applying for one so that you know exactly what you’re getting into.