What is diversification is merchant account?
Diversification is something that shows us varieties and multiple options in anything we choose and have a dire need of. When it comes to merchant account, it gains wide importance as more than one merchant account is helpful for both the merchant who owns a business and his customers and clients. If you are doing an online business where there is no option of ‘swiping a card’ then the high risk merchant account would be likely to occur. To save your business from a particular decline due to poor bank management, you must need more than one bank account. While choosing the multiple merchant accounts, it should be noted that the provider banks should be different. It’s just like, for your ease, if one acquiring bank shuts off its sponsorship with your business, then your second merchant account, acquiring the credit card services from another bank would be in operation simultaneously.
Top five benefits of multiple merchant accounts:
To solve out the matter for high risk merchant account in terms of issues like payment processing and various interruptions, diversification in merchant accounts will be advantageous. Following are some of the major beneficial aspects of choosing more than one merchant account that would help you in your e-commerce business.
- Save your money through multiple merchant accounts:
Most commonly known, the two types of merchant accounts are
- Card present
- Card not present
In such case, if you are processing the payments from card not present merchant account by using your card present merchant account then you will ultimately pay more surcharge fee for your bookings. If you have heavy transactions of both card-present and card-not-present then multiple merchant account is the most suitable option for you. Therefore, to sort out this problem, it is recommended to use more than one account from different acquiring bank.
- Increased options for processing payments:
If you own a single merchant account, it is likely to accept the payments in certain few currencies for example in US dollars, Euro and Chinese yen. But you want to increase the options for your customers and for that you need the acceptance of all other types of credits card transactions including Visa credit cards and Master card in several other currencies too. For all these issues, you must have to increase your payment options by acquiring more than one merchant account from different banks to avail the various services and to double you income as well.
- Useful for multiple websites:
Using more than one merchant account is also beneficial for you if you own more than one websites to run multiple businesses. For an instance, if you own two or three websites at a time, you cannot use just one merchant account as it would decrease your payment’s strength. Also each acquiring bank gives just one single account per website to avoid the risk and complications. Hence, choosing the option of multiple merchant accounts must be considered to avail the opportunity of separate credit cards per website.
- Helps to avoid the risk of loss:
If you go for more than one merchant account using different banks then it is most likely to minimize the effects of profit and loss when a certain bank faces downfall. As the rules and regulations of each acquiring bank would be different so you can use the credit card of the bank that seems to be suitable for your business to avoid the risk of loss in payments. In this way, more than one merchant account will be beneficial for you if in case a specific related bank blocks your transactions.
- Diffuse out your monthly transactions:
A certain acquiring bank, while monitoring the latest transactions of your high risk merchant account will at least consider one hundred thousand dollars as a matter of high risk. With the help of more merchant accounts, you can minimize the high risk factor by dispersing your total monthly sales over different bank accounts.
For more information, contact us online to get multiple merchant accounts.