Is it Possible To Accept Card Payments Without Merchant Account?
Usually, small merchants, sole proprietors, the retail business owner looks for an alternative way to accept credit card payments. All the business owner or merchants knows how essential it is to accept credit/debit cards payment for their business. The cash payment system is replacing with digital payments. In a report by CNBC, the Digital payments expected to hit 726 billion by 2020. Digital payments are on the rise, and if a business fails to adopt it, it fails to stand out in the competitive market. The one solution to accept card payments is a Merchant Account. It helps to accept credit/debit cards payments. It also helps to accept ACH payments or other digital payments. But is there any way to Accept Card Payments Without Merchant Account? Some businesses avoid the merchant account just because of the miles of paperwork and time involved in approving it. The processes are convoluted that can stall a company straight out of their primary productivity and business. So we have an alternative to merchant accounts. Yes, you heard it right! You can accept card payments without a merchant account. To accept payments, a merchant needs to work with a third-party payment service provider. They help businesses to accept card payments without setting up a merchant account with processors or banks.
Third-party Payment Provider To Accept Card Payments Without Merchant Account.
Third-party payment providers or payment service providers are also known as a payment facilitator or processing aggregator. They help merchants to accept credit/debit card payments without setting up a merchant account under their name. The third-party payment provider has a Master Merchant Account which represents several sub-merchant accounts. There are several merchants registered under the same merchant account. The payment aggregator collects funds on behalf of several businesses and splits the fund into the sub-merchant account.
Any industry, whether B2B, B2C, the enterprise can take advantage of third-party payment service providers. This can be an easy way to help small businesses or enterprises to get off the ground quicker.
Why Businesses Choose Third-Party Payment Provider To Accept Card Payments
- Cost-Effective: Payment Aggregator provides a cost-effective solution and it’s good for businesses with a large number of small transactions. Usually, aggregators charge on a flat fee basis which makes it easy for merchants or small businesses to estimate their budget easily.
- Smooth And Simple Application Process: The application process is simple and requires very little paperwork. It is suitable for the merchants who worry about convoluted processes and documentation involved. Setting up a third party account is easy and smooth.
- Instant Approval: The process is easy and fast. All a merchant has to do is to signup with a third party payment provider and upload KYC documents. A merchant can enjoy the service as soon as he signs-up. Everything is quick and instant.
- No Long Term Contract: Usually, a payment aggregator doesn’t require a long term contract. No contract means a merchant is free to choose an alternative whenever he finds something best and featured-rich.
Conclusion – How long Is It Good To Have A Third-Party Payment Service Provider.
To be very true and straightforward, a third-party payment service provider is good to go for small businesses or start-ups. It helps the businesses to get off the ground quicker. And one of the most advantageous is that a merchant can switch whenever he wants. But for the long run, a merchant account is better. It comes with higher transaction limits and features. A merchant can have a large number of payment acceptance methods. Nevertheless, if you are a small business looking for an alternative to a merchant account, apply today with Quadrapay.
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