While there’s a lot of information accessible on how to choose the right payment gateway and also about the benefits of high risk merchant accounts however there is very little information on why you may need to use multiple Merchant Accounts. That is the reason we conducted deep analysis of a large number of transactions to perceive any reason why multiple payment gateways can be a strategic advantage to your business.
The predominant opinion is that a single gateway is sufficient. In any case, e-commerce keeps on developing: $1.9 trillion of every 2016 with twofold digit development expected through 2020, when sales will top $4 trillion. With this development comes new and creative approaches to make money online. Huge numbers of these models require working with multiple gateways.
So while most online merchants haven’t completely thought about the need to utilize more than one gateway, this is evolving. The following are a few convincing reasons to use multiple payment gateways; Reasons that enhance your business as well as boost your bottom line.
Being high risk payment processing specialists, we endeavor to enable our merchants to process credit cards at least cost and with least intrusions. One way to accomplish consistent credit card processing is by opening more than one merchant account. Without a doubt, this may seem like it costs all the more, however it could save you money in the long run. Here are our top six benefits of using multiple merchant accounts.
There are two essential types of merchant accounts: card-present and card-not-present. In case you’re processing card-not-present transactions through your card-present merchant account, you’ll be paying excessive surcharge fees. It may not be a major deal if you’re using it this way occasionally. However, in the event that you process several card-present and card-not-present transactions, multiple merchant accounts can spare you money by utilizing the right type of account.
Suppose that your acquiring bank only processes Visa transactions in US dollars, euros, and yen. Despite the fact that you need to acknowledge Visa credit cards in those three currencies, you likewise need to acknowledge MasterCard transactions in Australian dollars and Indian rupees, yet your bank cannot support that. You can receive more payment processing alternatives for your e-commerce business or your Travel Business as in travel businesses it will be good for your business income when you have multiple merchant accounts as it enables you to carry transactions across the globe.
For merchants with in excess of one website, multiple merchant accounts are a need. While it would be less complex for all parties to utilize one processor for various websites, the nature of an online business and the way it works guarantees that multiple merchant accounts for multiple websites is fundamental.As Payment processors and acquiring banks only like to provide one merchant account for every URL due to the risk factor—the more websites per merchant account, the more chargebacks to that account it might get. But, with in excess of one merchant account, you will have the chance to process credit cards for all of your websites.
Businesses can also avoid significant profit losses if an acquiring bank or processor encounters any downtime. With multiple merchant accounts (utilizing distinctive processors), just a single brand will be influenced by downtime rather than an entire business. Along these lines, losses are minimized.
When banks evaluate your business to decide your risk factor, they check your month to month deals volume. Banks consider anything more than $100,000 every month as high risk. With multiple accounts, you can spread out your month to month deals volume and lower your risk factor.
If you work in an e-commerce business industry with possibly high chargebacks-like travel, MOTO, call centers, online pharmacy, online gaming and subscription-based services– multiple merchant accounts might be an extraordinary arrangement. Like dispersing your monthly sales volume, you can disperse your chargebacks as well. Maintaining a low chargeback ratio is key to maintaining a healthy merchant account. When chargebacks exceed card brand maximums, your merchant account is at risk of being shut down. so Instead of having 75 chargebacks to one merchant account, they can spread out among your multiple accounts.
To find out more about IPAYTOTAL’s merchant services, Give us a call at +44 800 776 5988 or get in touch with us through our website. Even if you’re not a customer of ours, we want to help you understand the process so you can make the best decisions for your business. We believe transparency and proactive education is the best policy.