It is commonly known that having a solid payment processing gateway is essential to running any sort of online business. But what is becoming increasingly clear as both the internet and the current business climate evolve is that having multiple merchant accounts can be equally as important. Learn the benefits of multiple merchant transaction routing and intelligently route your transactions to the payment processor of your choice with our award winning secure payment gateway.
Research has shown that this solution methodology is increasingly popular. According to research from Business Insider, the number of merchants adding multiple payment processors to their online businesses rose by 38% in the past year. This is made possible by the sheer number of merchant service providers currently working in the industry. No one provider yet has a monopoly on service and there are still many options to choose from.
Benefits of Multiple Merchant Accounts
“Utilizing multiple merchant transaction routing yields many benefits for online businesses.“
- International business. Having multiple merchant accounts enables merchants to streamline payments from different countries and in multiple currencies. Research by CSA reveals that 76% of customers prefer to conduct transactions in their own language and currency. The same research shows that 30% of customers will abandon a purchase if the product description is solely in English and priced only in US dollars. Multiple payment providers can help merchants avoid this problem.
- Reduce technical problems. Multiple merchant transaction routing ensures that you can continue processing payments when one of your merchant accounts gets shut down or their service becomes unavailable. Intelligently routing transactions to a second or third position payment provider will increase your chances of maximizing commerce while reducing technical problems or possible brand related issues.
- Reduce declined payments. Not every merchant service provider yields the same percentage of success with regards to accepting payments. Declined payments, a common problem facing subscription businesses, can negatively impact revenue, especially when doing cross border transactions. Research conducted by Recurly’s Data Science team reveals the benefits of multiple payment providers for diversification and redundancy. Having multiple acquiring relationships increases your chances of avoiding declined payments when processing your transactions.
Multiple Merchant Transaction Routing
Just as having multiple merchant accounts facilitates handling of international currencies, so too do they assist in payment routine. Having multiple payment processing options optimizes the success rate of payments. This applies both to regular and high risk merchants. The question is: how?
Having a multiple merchant payment gateway enables merchants to route each transaction to the most efficient acquirer. For example, merchants can separate domestic transactions from accounts dedicated to local currency. This can also be applied to the risks associated with individual transactions based on their ticket sizes or country of origin.
Having multiple Merchant IDs enables you to classify and route individual transactions based on criteria of your own choosing. Here are some of the basic categories below:
- Domestic transactions
- Foreign transactions
- Debit card transactions
- Credit card transactions
- Combination of debit/credit card payment transactions
- First time vs. known shopper transactions
- Transaction size/amount
Classifying and routing transactions intelligently can also enable you to better manage your chargeback ratios. It can also minimize the likelihood of a declined transaction or possible dispute. These are just a few of the routing options available with multiple merchant accounts. Speak to your payment processor about combining or expanding any of the categories above.
Communicate and Customize
A good payment gateway provider understands the benefits of multiple merchant transaction routing. SecureGlobalPay has excellent customer service and decades of experience providing custom payment services and gateway solutions to both retail and online merchants. Complete our online application form today for a consultation with one of our business solutions specialists.