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5 Things you should know about funding merchant accounts
Every entrepreneur knows that cash flow is the lifeline to their business. Without consistent cash flow, it would be impossible for the business to meet its operational needs. Unfortunately, sometimes cash flow problems arise due to factors that are beyond a business’s control. One such problem is that of credit card processing lag times. Luckily, advances in technology have eliminated this problem with solutions such as funding merchant accounts. To help you get a better grip on these accounts and how they can positively impact your business, here are 5 things you should know about funding merchant accounts.
1. They facilitate communication between PoS devices and your bank account
Part of the reason why credit card processing takes time is the slow process of communication, between your business point-of-sale device and your bank account. Merchant accounts deal with this problem by automatically facilitating communication between your POS device and your bank account. By doing this, the merchant account can cut credit card processing times to less than 24-hours.
2. They cut on card processing times from 5 days to under 24-hours
As mentioned above, funding merchant accounts automatically facilitate communication, in order to cut on payment processing times. Just to appreciate how big of a deal this is, under normal circumstances, card processing can take up to 5 days. However, with a funding merchant account, you would have your money in under 24-hours. That’s a big deal considering that it is almost impossible for any business to run for 5-days without proper cash flows. Such a situation would create inefficiencies that would ultimately hurt the business’s profitability.
3. They are cost effective
You are probably thinking that such an efficient service is costly and may add to your operational costs, right? Well, the good news is that these accounts are very cost-effective. In fact, a next day funding merchant account from a company like Payment Savvy is designed with all kinds of businesses in mind. Whether you are running a startup or a top company, a payment savvy merchant account caters for your cash flow needs without adding any substantial costs to your business overheads.
4. They are credit card agnostic
Merchant accounts don’t have any affiliations to specific credit card companies. These systems are designed in such a way that they can accept all kinds of credit cards. This is a big deal considering that customers have all kinds of credit cards, and no business wants to discriminate on the credit cards they accept. As long as customers swipe a valid credit card at your business, you can be sure that you will receive the money in 24-hours when using a merchant account.
5. They have in-built risk mitigation measures
One of the biggest risks that businesses face when accepting credit cards is that of chargebacks. This can be a huge loss especially when the goods sold are of high value. Merchant accounts, such as those offered by Payment Savvy, factor in this risk and protect the business owner from fraudulent chargebacks.
