Multiple Merchant Accounts Payment Processing

The Benefits of Utilizing Multiple Merchant Accounts

One of the many challenges facing business owners accepting credit card payments today are fees. Any credit card transaction made with an online or retail business today will involve some sort of percentage rate, transaction fee and/or monthly fee. Such fees can come from various sources. These usually include the associations, sponsoring banks as well as the merchant service providers and payment processors. In addition to fees, merchants are now faced with other challenges. Due to the current business climate, it’s a good idea to think outside of the box. Putting your trust in one particular payment processor is no longer sufficient. Learn how running multiple merchant accounts, (Multiple MID’s) can help you reduce fees. It can also help you mitigate risk on many different levels. Streamline your business operations with multiple merchant account payment processing & intelligent transaction routing with SecureGlobalPay.

In fact processing online payments using credit cards like Visa or American Express is fraught with charges. Therefor, it is extremely important to understand these charges, especially with more modern alternate payment services such as Google Pay or Apple Pay. Similarly, the challenge of processing a large volume of credit card transactions brings problems of its own.

An excellent way to avoid a great many such problems is by operating multiple merchant accounts, (Multiple MID’s). Although it may sound more complicated, operating multiple merchant accounts has a great many benefits. Multiple Merchant Accounts payments processing is a must when you are operating a High Risk Business.

Benefits of Multiple Merchant Accounts Payment Processing

Merchants who choose to utilize multiple merchant account (Multiple MID’s) payment processing options accrue numerous benefits.

• Save on Surcharge Fees. Merchant accounts are of two types: (1) card present (2) card not present. Processing one type of account through another will accrue excessive downgrade fees. Keeping one account for each different type will allow you to streamline processing and reduce costs.
• More Processing Options. Some banks have restrictions on processing credit card payments involving certain types of currency. For example, your bank may support Visa transactions in rupees. But you wish to process Australian dollars through MasterCard. Having multiple accounts enables more payment processing options.
• Multiple Websites. Most merchant services will only open one account per website URL. In the event your business operates multiple websites, having multiple accounts will enable you to process payments through different URLs.
• Profit Losses. Multiple accounts allow you to maintain ties with multiple banks and multiple service providers. This will enable you to minimize profit loss in the event either one or both experiences downtime.
• Dispersed Monthly Sales Volume. Some MSPs view accounts with high monthly sales volumes as high-risk. By dispersing your profits among accounts, you can avoid any attendant fees or penalties.
• Dispersed Chargebacks. If your business begins to encounter a high volume of chargebacks, distributing these among numerous merchant accounts is one option. This can help you avoid the penalties that can come with excessive chargebacks to a single account.

Additional Benefits of Multiple Merchant Account Payment Processing

Multiple Merchant Account (Multiple MID’s) Payment Processing allows businesses a flexibility they might not otherwise enjoy.

The “Doing Business As” (or, DBA) designation is increasingly popular. But customers may balk at doing business with a merchant if the line item on their credit card statement doesn’t match the name of the firm from which they made a purchase. Multiple merchant accounts (Multiple MID’s) enable you to clearly label all players and components of your online business.

Another benefit is mitigation of risk. Some banks and service providers will label a business with an unusually high volume of monthly transactions “high-risk.” This comes with additional fees and penalties. 

By operating multiple merchant accounts, you can spread transactions and revenues across multiple accounts. This will lessen the likelihood of a “high-risk” designation.

Finally, businesses can negotiate separate processing rates for different accounts. Depending on type and volume of business, this can be an excellent way to mitigate risk. It will enable you to negotiate better prices for their low-risk operations.

Exercising Caution

Having multiple accounts allows merchants to mitigate risk, streamline transactions and cut costs. But maintaining multiple accounts comes with some risk.

Having more accounts involves more work. There are simply more customers and transactions to keep track of, so vigilance is a must. 

Having more accounts means usually more payment gateways unless you are processing with SecureGlobal and our Multi MID platform. Running transactions through merchant accounts simultaneously also means monitoring multiple accounts for fraud and chargebacks. Make sure you have the right infrastructure and tools in place to do this.

Similarly, having multiple accounts does not necessarily protect a merchant from the consequences of a negative MATCH or TMF report. Processors may learn of a negative MATCH report on your other accounts. They may choose to upgrade their terms with you or even terminate the relationship.

The Solution

SecureGlobalPay has the expertise to guide merchants through the process of establishing and monitoring merchant accounts. Whether you choose to go with a single account or multiple, select a service that will offer you both efficiency and proper oversight.

At SecureGlobalPay, we will take time to listen to you. The more we learn about your business and understand your needs, the better we can assist you. Whether or not you are a high risk merchant, we can help you manage card processing and control chargeback ratios. Help us help you: choose SecureGlobalPay.