In a world in which 18 billion payment cards are being used worldwide, having a business merchant account is a must for your Organisation. Why? Because merchant accounts allow you to process electronic payments (as opposed to just cash). With access to a business merchant account, your customers can pay online using their preferred payment method. Once the transaction has been authorised, the funds are then deposited into your merchant account first, then transferred to your business’ bank account. This gives you access to better security, more payment methods and streamlined cash flow. Not a bad thing to have.

 

As businesses expand, though, they often opt to multiply their business merchant accounts. Make no mistake: Some financial gurus advise that you add accounts and spread the risk, as if you were buying stocks. But is this really a wise payment solution? Read on for why we think having one business merchant account is easier than having many.

 

Lowers Your Business’ Risk

Setting up more than one business merchant account protects you from being hacked or shut down. If you lose one account, you can always access the others. More accounts means more savings, backup, reserves, and better security. The major downside here is that merchant accounts come with fees, and each merchant provider bills a different way. (You probably already feel the headache coming on.)

 

Plus, when businesses open merchant accounts, they often sign non-compete clauses. That means if a processor finds out your business is using multiple merchant accounts, the processor could deem your business “high-risk” and even shut down the account being provided. In turn, that means frozen cash flow, halted billing cycles, and a veritable migraine of uncomfortable customer relations calls.

 

Get Access to Insights for Planning Growth

Another benefit of collecting payments through one processor is that you can take in your revenue flow with one glance. (Opposed to contacting a range of vendors for summaries of their payment data.) A single big-picture view allows for credible and concise reporting on your company’s profitability, as well as what needs to change to boost that profitability.

 

Simplify the Payment Experience

The basic strategy behind consolidating to a single business merchant account is streamlining efficiency. Businesses have the option of plugging their merchant account of choice into an electronic gateway with many debit or credit channels so customers can pay how the want. That way, your business contracts with a single third party while helping customers process payments with minimal hassle.

 

Multiple processing accounts may seem like a way to slash risk, but the complications can quickly add up, until a sizable chunk of your overhead turns into essentially paying someone else to collect your payments. Don’t do that. Keep it simple. Downsize your payment apparatus. Entice your customers to come back with transparency and convenience. That headache you felt coming on? Consider it gone.