Nowadays it is crucial for companies in Canada, no matter whether it is a newly registered business or an established company. Among such tools, there is necessary to mention Canadian merchant accounts as the key instrument for processing both offline and online payments. To apply this knowledge to starting up or diversifying your business venture it is important to grasp the concept of a merchant account and the benefits it can provide in terms of improving transaction management.
What is a Merchant Account?
A Canadian merchant account is a sort of a bank account that is used by businesses and companies to accept debit/credit card payments. The merchant account plays a middleman role every time a subscriber buys merchandise or a service from your business. It enables the movement of cash between the customer’s bank account and the merchant’s account making it easy for a business to get paid for products and services in real-time.
How Does a Canadian Merchant Account Work?
It is also important to know that when you open a merchant account it forms a part of the payment processing system. During a transaction the customer either swipes, taps or key’s in their card details. The bank that the customer belongs to approves the transaction and the payment processor relay this approval to the merchant account provider. The merchant account simply holds the collected amount for certain period before transferring it to the business’s current account.
Why Do Canadian Businesses Need a Merchant Account?
Especially in today’s society where cash payments are diminishing and more customers are raiding digital and card payments, the merchant account will enable the business to accept these kinds of payments. This results in simpler and faster transactions taking place. If you have a merchant account provider, which should be well established in accepting cards, it gives your business credibility. Consumers will be more likely to continue doing business with the owner of the website if they accept recognizable payment options.
Key Features of Canadian Merchant Accounts
Most of the Canadian merchant account providers work under fee per transaction, in that they ask for a percentage of the total value of transactions processed. Both these fees and choosing the right provider for your business are very important. Chargeback is a process by which the customer claiming that they were ripped off a particular amount, is given back the money in full. Some of the merchant accounts have protections on chargeback and companies can use them to deal with these incidents.
Conclusion
This article reveal that effectiveness of account for Canadian merchant necessary for acceptance of payment and competitiveness to the modern market. As a retailer, online entrepreneur or a service provider, knowing how the merchant accounts facilitates payment for goods and services and selecting the right provider will go along way in facilitating increased sale and improved customer satisfaction.