A merchant account is a type of bank account that allows a company to accept credit or debit card payments. Online or e-commerce businesses are the ones to benefit most from this type of account as their sales volumes will be directly linked to the ability to provide fast and reliable payment methods to their clients.
We look at some of the main advantages of merchant accounts for your e-commerce business and how this multiple payment option can be profitable regardless of the jurisdiction where the company is based.
The benefits of direct merchant accounts for businesses
Giving the customers the option to select from different payment methods is likely to increase the online sales volume. This is an important advantage to take into consideration when deciding to set up a merchant account for an online business.
A business based in China can easily accept international payments if using a merchant account. This can be particularly useful for small business owners or those who are just establishing their shop in an online version.
The merchant account is essentially an agreement between the business (the seller) and the bank where the account is opened. The actual payment transactions are handled via a payment processor. Stability, security, and expeditiousness are other features of a merchant account.
It is recommended to choose a reliable and secure merchant account solution. This may mean that you will have to explore several options offered by payment services providers. Business owners in the UK who wish to know more about the banking regulations and how to avoid fraud litigation can solicit legal assistance from a solicitor.
Access to worldwide customers
Perhaps the most important advantage of opening a merchant account for an e-commerce business or for any online business, be it small or large, is that it significantly expands the client base.
Opening a company and a merchant account in a tax haven like Seychelles can be advantageous for a number of reasons, including ones related to taxation. Nevertheless, investors will not be constrained to a small client base if they set up a merchant account for their e-commerce business.
A good recommendation for foreign investors who want to start a business in another country is to take into consideration the local banking regulations. Opening a corporate bank account, followed by a merchant account, will be pretty straightforward in all countries, especially those that have branches of international banks.
However, it is recommended to talk to a local lawyer to understand the applicable laws for banking and foreign investments. Entrepreneurs who wish to start a business in Asia can choose between several attractive jurisdictions, among which Malaysia, Singapore or Hong Kong. Talking to a local attorney or company formation specialist can streamline the entire company formation process.
Opening an e-commerce business can be a real opportunity for investors worldwide. Having a merchant account will offer the possibility of expanding the client base and at the same time improve customer satisfaction.