Why do I need a merchant account?
A merchant account allows businessmen to accept credit card payments. These days most consumers prefer to shop using their credit/debit cards, if a merchant accepts credit cards payment, the sales could increase from 15% to 100% depending on the types of business.
Advantages of accepting credit card payment:
- Many customers will buy from a merchant that offers payment by a credit card.
- Accepting credit cards levels the playing field with larger retailers.
- Customers feel secure in using their credit card. If the service or product is faulty, the use of credit card allows customers to dispute a charge that protects them.
- Making it easy for your customer to pay you
However, most small business owners online do not need any merchant account. There are already options for them in third-party payment processors such as clickbank, paypal and e-junkie. You can use these third party payment processors who function as go-betweens. All you have to do is get registered with these companies and once people buy your products or services, they help you collect your money for a percentage of the total sale. The range of charges collected most times is often between 0.04% and 10%.