What Is Multi Merchant Processing?
Multi merchant processing may be a new term for many of us, but in reality, it is used widely across many retail stores in different parts of the world. As the name suggests, multi merchant processing gives the capability to multiple entrepreneurs to process credit card transactions by using a single point of sale terminal or EDC machine. After knowing about this kind of Credit card processing solution, you may ask these two questions.
- What is the need for such a credit card swiping machine?
- Who would care to use these machines?
Well as mentioned above there are tons of retail locations that are already using these solutions. There are massive advantages associated with this mode of payment acceptance. In this extensive article, you will understand various benefits and features related to this option.
Who Needs Multi Merchant Processing?
For every entrepreneur, it is vital to cut down on the operations cost. When you start accepting credit cards at your retail location then you invite different fees. Some of these charges are Merchant Discount Rate(MDR), Per Transaction fee, Monthly Maintenance Fee, Account Setup Charges, Settlement charges and Initial Device Fee. For small entrepreneurs paying a massive amount of money for these fees can be a challenge. Multi Merchant Processing can be beneficial in reducing a huge number of charges. Salons, Food Courts, and Exhibitors are perfect examples of enterprises that can effectively use multi merchant processing options. These entrepreneurs split the equipment cost as well as the monthly maintenance cost. Individual entrepreneurs are responsible for the transaction fees related to their orders. Please keep in mind that the merchant acquiring bank or the payment service provider will require the KYC documents of each merchant who wishes to utilize the point of sales terminal.
What Are The Advantages Of Multi Merchant Processing?
There are multiple advantages of using multi merchant processing. We will try to elaborate a few of these advantages and features. Based on our understanding it can be a practical solution for businesses that are startups and do not have enough funds to invest in the initial terminal cost.
- Low or No Investment On The Device Cost.
Credit card terminals can be expensive. The reason they are expensive is that the technology in the Credit Card processing industry is evolving very fast. The traditional credit cards had magnetic strips with card number printed on them. These days there are NFC cards that allow the buyers to make the transaction without handing over the credit card to the merchant. To incorporate the changes recommended by credit card schemes processors have to invest a tremendous amount of money in developing new products. Eventually, the cost comes on the merchant as the merchant is frequently requested to upgrade to a new device or accept a higher liability for disputes and chargebacks. When multiple merchants use the same credit card terminal for processing card transactions, they can split the initial setup cost. It directly helps merchants in reducing their initial investment. Some processing companies may also offer free terminals to merchants that qualify for the same.
- Overall Reduction In Credit Card Processing Charges.
As the merchant majorly pays the credit card processing company for the transaction fees he saves a lot of money on additional charges that include Monthly maintenance cost, Annual maintenance cost, and Setup charges. Entrepreneurs can utilize the savings to invest in the marketing of business activities.
- Better Image Of The Startup.
Most of the time the customers are not aware that the Salon or the food court works as a business center. In simple terms when independent contractors or independent barbers use the shared credit card terminal, it creates a high level of branding experience in the minds of the customers. Customers get to see the descriptor on the billing statement that is assigned by the processor to the specific merchant. Customers consider these independent entrepreneurs to be professional as they offer a reliable mode of credit card acceptance.
- Money Gets Settled In Specific Account.
Transactions get settled in the account of individual merchants. Merchant A transactions will only be paid in the bank account of Merchant A, and it will not land in the bank account of Merchant B. Most of the credit card terminals automatically settle transactions at the end of the day. It reduces the requirement of individual merchants to settle transactions manually at the end of the day.
There can be multiple reasons for using this kind of Credit Card processing terminal. A common cause can be when various entrepreneurs utilize the same working space. Even if you are using a shared terminal, you will be generating your credit card processing history which will finally help you in building a more significant impact on processing companies in future when you apply for individual terminals. A processing history of three to six month can assist businesses in finding better MDR and also can sometimes help them in getting merchant cash advance for business expansion.
How To Apply For Multi Merchant Processing?
Please keep in mind that every credit card processing company does not offer multi merchant processing solutions. Still many of them provide these options. Any entrepreneur from the group can request a processing company to provide a credit card terminal. At the time of application, the entrepreneur must inform the processing company that the terminal should have the capability of adding multiple merchants on the same credit card swiping machine. If this option is available on the device and the processor is comfortable, then additional entrepreneurs can further submit the KYC documents to the processing companies and get the individual merchant IDs. Quadrapay proudly works with various payment processing companies. These companies offer multiple mode of payment acceptance. The most common services that our merchants apply for are Multi Merchant Processing, ACH Payment Processing, Chargeback Alerts and Online card processing. Send us an email on [email protected]