7 Merchant Service Company Benefits for New Businesses
When your business is new, you probably want to minimize costs as much as possible. While this move is understandable, you must recognize the benefits of a merchant service company. A feasibility analysis will tell you that partnering with a merchant service company for payment transactions yields higher returns than costs. Here are seven merchant service company benefits for your new business.
In 2019, the collective number of card payment transactions from 6 major card companies (i.e., Visa, UnionPay, MasterCard, Amex, JCB, and Discover) reached 441 billion worldwide. Based on this record, one can conclude that setting up a card payment system is more of a necessity than a luxury.
In an industry where the switching cost is low, it is only logical for your new business to invest in a card payment system to answer the customer’s needs. Customers prefer multiple payment options, and failure to provide so will lead them to switch to competitors. A merchant service company will help your business avoid these revenue losses and even increase sales.
Expanded Customer Base
For your business to gain customer traction, you will need a fast and reliable card payment system. Customers, who are regular card users, will prefer to transact with your store over other stores without card payment systems. The majority of customers today receive their income through cards, and to them, card purchases are convenient, especially during emergencies.
Some industries need a payment system with advanced features, such as free cancellations, automatic crediting, and hassle-free refunds. Such innovative merchant service solutions are advantageous to hotels and backpackers. Customers treat these conveniences as excellent services and will likely go back to your store for more purchases. Choose a merchant service company with a multi-industry presence and 24/7 customer service.
Safer and More Cost-Efficient Transactions
Cash transactions are not only time consuming but also prone to errors. You can miscalculate the change because you are busy entertaining another customer. You can lose cash on your way to the bank. You can miss deadlines as you have to wait for bank clearing before seeing an updated statement. Bank transactions are not even available during weekends.
Having a card payment system does not mean you reject cash transactions. You are only reducing the number of cash transactions for a safer and more cost-efficient way of handling your finances. 2020 has seen an unprecedented increase in cashless transactions. The present number is expected to soar even higher, so install your card payment system today with a reliable merchant service provider.
With the present card payment solutions, it can integrate other business systems. For instance, your card machine can be connected to a desktop and programmed with an inventory management software or accounting software. By the end of the day, the store manager can check sales and compare it against the inventory in just one sitting. Since the reports are real-time, other departments like accounting and purchasing can monitor and act upon inventory discrepancies and shortages as timely as possible.
Improved Operations and Easy Expansions
With fast and accurate reporting, it keeps increasing business efficiencies. You save staff hours and reduce backlogs by automating processes. Thanks to an integrated payment system courtesy of your merchant service provider. You can then take on challenges, like expanding your business geographically or diversifying into another industry.
Possibly, you may also want to open your online store or facilitate website booking because eCommerce nowadays is a growing trend. Businesses, big or small, are likely to employ a dual-channel system. They have both online and offline stores. Whatever you intend to pursue next, you have the peace of mind knowing that your merchant service company will help you with your card payment system, especially for your inevitable eCommerce store.
Imagine heading to a convenience store and being rejected by the personnel because they do not have a card payment system. Or imagine going on a trip without cash and buying essentials, only to be declined by the store because their card machine encountered an error. This situation will be very frustrating for anyone. You will probably associate your bad experience with the overall brand. Brand associations are challenging in in-service industries.
Do not compromise your business reputation. Partner with a credible merchant service partner to ensure your business encounters minimal errors, and when errors do occur, the company can provide quick repairs and contingency plans. Good branding and good service do bring a host of benefits for new businesses.