How SMB’s Can Benefit From Using Merchant Services

Merchant Service can help address most of the challenges that SMB’s experience. From increasing the number of customers to improving revenue, it delivers solutions that make running your business a lot less stressful.

What Is Merchant Service?

Simply put, merchant services are a system that allows you to process electronic payments. According to Cayan, a payment solutions company, while the service is mostly associated with credit and debit cards, electronic payment does cover a whole lot more than that. Below are some of the payment solutions the best merchant services facilitate.

1. Gift Cards – This form of payment is a great way to promote purchases. A report on com on the popularity of gift cards cited that most Americans hope to get these as gifts. The reason behind this is that they get to choose the item they want without appearing too tacky by asking for cash.

Merchant services for retail allow companies to accept gift card payments. Since these have already been paid for by the original purchaser, there is less risk of payment not being collected. In addition, studies have shown that most consumers purchase more than the amount on the card which brings additional revenue for the establishment.

2. ACH – ACH or Automatic Clearing House is the automated process of clearing checking account payments. Some consumers prefer to use their checking accounts for purchases and not having this payment option available at your location may result in loss of revenue.

With merchant services for checking accounts customers don’t even have to issue a physical check. The payments are automatically sent through without much trouble.

3. Electronic Benefits Transfer – Also known as EBT, this form of payment is commonly referred to as food stamps. The main difference though is that it can be used for non-food purchases. Consumers who use this type of method get a card that can be swiped the same way as credit or debit cards. Merchant services payment systems automatically checks whether there are enough funds to cover the purchase.

Having various methods of payments accepted means you get to increase your target audience. This is one of the reasons your SMB can benefit from merchant services systems.

Features and Advantages of Merchant Services

With numerous providers of merchant services systems competing for business, there are quite a lot of features available for you to choose from. Below are some of the merchant services features commonly available,

1. Security – One of the main concerns consumers face is the threat of fraud. Electronic payments seem to be the most vulnerable when it comes to fraud. This is where choosing the right merchant services can come in handy.

Reputable providers have advance security features that ensure your customers’ protection. Systems follow strict compliance laws and guidelines so that PII data is encrypted and protected from compromise. You can rest assured that every time you and your staff process electronic payment on the systems you use, the information is kept secure.

2. Mobile POS – Merchant services for restaurants offer an invaluable feature that allows your POS to be mobile. This means your wait staff can bring the system to the diners’ tableside for a more accurate order taking and billing.

Some restaurant businesses have even seen an increase in revenue due to the POS being available on a mobile device. Services to customers are more efficient and there is less errors that result in chargebacks.

3. Simple Interface – One of the challenges when implementing a new system in any business is the learning curve. Training employees to use the system and giving them time to get used to it often means there will be a costly period of time riddled with mistakes.

Top merchant services providers have addressed this challenge by ensuring that the interface of the systems is easy to both navigate and understand. Most of these systems work the same way as regular websites or smartphone apps. This basically means even new users can easily find their way around the system.

While having an automated system is a great thing, making sure it is simple enough for everybody to use is absolutely crucial. This is why this feature should be on top of the list of things you look for in a provider.

4. Flexible Access – Businesses nowadays are no longer restricted to just the physical location. With websites and even remote operations, merchant services allow you to be able to address your needs.

From wireless card readers that can be used with tablets or smart phones to remote access to reports, providers now have innovative equipment and software to make sure that you have access any time you need it.

5. Real Time Reporting – One of the most useful features that merchant services have is the ability to view previous transactions. You are able to keep track of your sales as well as use the data these reports provide as a tool to improve your business. For example, if you run a restaurant business, you can check which of the dishes in your menu get ordered more frequently through these reports. You can also identify what hours your restaurant is the most profitable.

In addition, having access to reports help you plan your marketing strategies more efficiently.

The best way to find the right fit is to check out reviews of merchant services. Other users of the features offered by the providers will be able to give you a better insight of how useful these really are.

Benefits of Merchant Services on SMB

As with any other system that you decide to implement in your SMB, features only become impressive when these can deliver benefits.

1. Improve Credibility – One of the challenges of running an SMB is competing against bigger and more established brands. Consumers often base their decision on who to do business with based on how trustworthy a company is.

Accepting more payment methods such as credit cards can significantly affect your credibility with customers. For example, only taking cash payments may make prospects a little apprehensive about hiring your service or purchasing your product. There is this belief that once the money has exchanged hands, the customers lose control over the transaction.

In addition, seeing VISA, Mastercard and other PCI brands posted in your place of business is almost similar as getting recommended by them. Prospects feel more at ease when they know that you have established your business enough to be able to process electronic payments.

2. Widens Your Market – When you limit the payment methods you accept, you also limit your market. For example, if you’re running a small restaurant, it can be a challenge to set yourself apart from the other businesses. You have to compete with other restaurants in terms of appeal and food quality.

The last thing you want to happen is to lose interested diners just because they don’t have cash. More than 50% of consumers nowadays prefer to pay using their credit or debit cards. That’s a huge amount of customers that you simply cannot afford to turn away.

Running a business is all about making your products or services available to a wider market. By having a merchant account and hiring merchant services providers, you open your business to different types of customers.

3. Improves Your Operations – Not all merchant services are created equal. There are providers who offer services to a specific market. For example, there are services designed specifically for restaurants. These deliver features that enhance the day to day operations such as taking orders and creating the bill.

While services designed for professional services such as private practitioners focus on an entirely different set of features. Professionals such as doctors and lawyers need to have merchant services that can handle recurring and installment payments.

Whatever industry your SMB is in, you can count on improving your operations or business processes with the right merchant services.

4. Increases Your Revenue – With a wider market and more efficient business processes, it will be easier for your SMB to drive revenue. You have more customers patronizing your service or purchasing your product that the additional initial investment of getting a merchant service company does eventually pay off.

One of your key priorities in driving your SMB to success is of course becoming profitable. With the additional revenue that the additional payment methods and efficient system brings, it will be easier to achieve profit.

5. Promotes Your Online Presence – Whether you currently do business online or just planning it for the future, working with a merchant service firm will be beneficial. Most transactions done over the internet require electronic payment processing. So if you are planning on making profit as an e-commerce business, then merchant services will be an absolute must.

However, not all providers can support online payment processing. Make sure to check if it is one of the listed features of the company you are considering on choosing before making the final decision.

With so many features and benefits that electronic payment processing brings, investing in one is certainly a sound business decision. Check out the list of merchant services providers on CrowdReviews.com to find the right fit for your SMB.