Shoppers today expect to quickly pay with the tap of a card or the click of a button on an app. Using cash or checks to make purchases is basically a thing of the past. A survey from the Pew Research Center reveals that 41% of American shoppers report that none of their weekly purchases are paid in cash. This percentage has seen a major increase from 29% in 2018 and 24% in 2015.
If you want to succeed in this competitive market, you must make the payment process as quick as possible for your customers. And if you want fast payments, you'll need to work with a merchant services provider.
Merchant services providers help businesses accept and manage customer payments electronically. Generally, a merchant account offers solutions that can help you maximize sales and reduce costs.
Need some help finding a provider? This guide breaks down the benefits of merchant services and how they can help you succeed in today's economy.
What Are Merchant Services?
The term “merchant services” refers to a range of financial services and technologies used to accept and process customer payments. This includes processing credit and debit card payments, gift and loyalty programs, and online payment gateways. They serve as a valuable tool for streamlining financial processes.
Benefits of Merchant Services
Merchant services are a great opportunity for businesses to drive growth and improve the overall customer experience.
Let's explore some key benefits they offer businesses:
Reach more customers easily
By accepting a variety of payment options, you can meet the specific payment preferences of a wider customer base.
This is especially important because cashless transactions are growing in popularity. A merchant services provider will help you accept contactless payments or Apple Pay, for example. This provides you with a competitive edge and decreases the chance of losing customers.
You might have the best bagel shop on the block, but if you are a cash-only business, you are more likely to lose out to another spot that offers more
payment options.
Handle money more efficiently
A merchant services account helps you save time.
Merchant services offer the convenience of seeing all your data on a single platform. That means no time is wasted on manually updating your transaction information daily.
You can also say goodbye to traditional methods like checks. With electric payments, funds are deposited directly into the account within a few business days. You improve cash flow and reduce the wait for funds after a sale.
Also, by automating the process of recurring billing and invoicing, you and your staff have more time to attend to other important tasks.
Grow your business smoothly
Online payment gateways are a crucial element for ecommerce businesses. They allow secure online transactions and make it effortless for you to sell through your website. They play a major role in boosting online sales and expanding your business to a larger customer base.
Save money while making more
Merchant services offer automated billing and invoice generation, reducing manual processing costs.
Meanwhile, electronic transactions result in shorter waiting times and increased customer satisfaction. Their convenience encourages repeat business and drives sales growth.
Provide various options for managing your business effectively
Most providers will typically offer reporting and analytics tools to give your business the chance to track and examine payment data. This can help you gain important insight into aspects like sales trends and inventory levels to help you make well-informed business decisions.
Key Factors to Consider When Selecting Merchant Services
When selecting the right merchant services provider, it is important to consider a few important factors:
Security and fraud protection
One of the most important keys to maintaining your business's reputation and the trust of customers is having strong security and fraud protection in place.
Make sure that the provider is Payment Card Industry (PCI) compliant. It is crucial that they have security measures in place to protect the sensitive data of customers from being accessed or misused without authorization.
Most providers offer advanced security measures to prevent fraud and chargebacks. They include sophisticated fraud detection algorithms that analyze transactions in real-time before they are processed and quickly identify any suspicious activity.
Versatile payment options
Having various payment options in place provides flexibility, and therefore, attracts a larger customer base. Search for a provider that covers all major card networks (like Visa and Mastercard). You can go beyond traditional card payments and consider options like contactless payments, mobile wallets, and online payments.
Boosted customer happiness and higher sales
As mentioned, when you provide a diverse set of payment options that includes the likes of mobile wallets and online payments, it allows for a speedier checkout experience, resulting in overall satisfaction with your business. When payments can be made quickly, shoppers are more likely to continue doing business with you.
You can also offer gift cards to customers and have them be part of a loyalty program. This gives your customers the opportunity to deepen their connection with your brand. As a result, you attract new customers, retain existing ones, increase sales, and foster enduring relationships.
Faster collections and lower fees
When it comes to a payment gateway, find a merchant services provider that provides fast authorization and settlement times. It is important to have access to features such as real-time transactions and immediate deposits.
When doing research on providers, be sure to compare transaction fees. These fees can include charges based on a percentage, flat fees, or monthly fees. Seek out providers that offer competitive rates and watch out for any hidden costs as well!
Wrapping Up
It is no question that merchant services provide a wide variety of benefits to any business, regardless of its size or industry. From secure and efficient payment processing to increased customer satisfaction and streamlined financial management, the benefits are undeniable.
With merchant services, your business can stay competitive in today's ever-evolving marketplace and achieve the growth and success you are seeking. Right now is the time to embrace the power of merchant services; your business will thank you for it.
