If you have a business, you need to decide how you are going to accept payments from your customers. You should understand that providing a convenient payment solution is crucial for your business success; however, you may encounter a range of obstacles on your way, including problems with setting up a merchant account. It is possible to solve this problem out using different solutions and today we are going to talk about a third party merchant account and its pros and cons.
A merchant account is the best solution for businesses to ensure the smoothness of payment processes as well as to allow your customers to make payments using credit/debits cards and other payments systems. However, getting one may be problematic for lots of reasons. Domestic financial institutions do everything possible in order to avoid risky agreements, and if there is something that they do not like about your business, your application will be rejected or you will be offered to pay very high fees for such services.
The following are some of the reasons why you may find it difficult to open your merchant account in a bank:
In reality, many business owners, including those with a perfect credit history and excellent reputation, struggle to open a merchant account, which makes them look for reliable solutions, and one of them is opting for a third party merchant account.
You have probably heard that it is possible to accept credit/debit cards payments even without opening your own merchant account, but it is not totally correct. The thing is that there is always a merchant account required for making credit cards payments, but in some cases, it is not yours. If you use services like PayPal, your customers’ payments will go to an account where payments from other merchants go as well. On the Internet, you can find lots of articles praising third party merchant accounts, but it is important to know their pros and cons.
You should know the pros and cons of using a third party merchant account, and below you will find them:
Setting up a merchant account might be a good solution for startups as well as new businesses but it is not really the best option for those aiming at establishing a reputable, ongoing business. You should understand that if there is something that your customers do not like about the payment solutions that they are offered to use, they will go away.
For instance, the fact that your business name will not be shown on a credit card statement may be a reason for chargebacks. In case of an issue that you have to sort out urgently will you able to count on the customer and tech support? PayPal, for example, does not have a great reputation for a quick service that you can use via a range of contact options.
Your account will be at a higher risk of being suspended or terminated at any time because the service provider does not conduct throughout check initially. All in all, if you are serious about launching and developing your business, you should opt for your own merchant account, but how can you do it if it might be difficult to open in domestic financial institutions?
If you decide on setting up your own merchant account, PaySpace will help you to do it quickly, conveniently and without asking unnecessary questions. We have everything in order to provide you and your customers with the best experience related to making/accepting payments. The following are some of the features and services that you will be provided by us:
We work with different business types and sizes and we have several integration options and a wide range of features. In order to choose which options are the best for you, we need to know some information about your business. Please contact us using one of the contact methods provided in the “Contact Info” section, and we will provide you with detailed information about our services and how you can benefit from using them.