Multiple Merchant Accounts

Multiple Merchant Accounts by Quadrapay

Overview Of Multiple Merchant Accounts

Businesses in high risk industries prefer to search for multiple merchant accounts. They continually search for additional modes of payment processing to maintain proper cash flow. Companies search for numerous merchant accounts primarily because they do not want their credit card processing account to be terminated without having a backup. It is essential to understand the various benefits and disadvantages of using multiple merchant accounts. In this article, we will know about the top reasons that will encourage a merchant to sign up with various payment processing companies. We will also evaluate the risk factors that come with additional merchant accounts.

Why You Should Use Multiple Merchant Accounts.

  • Fear Of The Unknown.

In the world of online Credit Card processing merchants depend a lot on their payment processors. Payment processing companies have to follow the guidelines and regulations of card schemes as well as government organizations. Merchants from specific Industries like Online dating, Paraphernalia, Adult, Immigration Consultancy, Online marketplaces face high account termination ratio in comparison with merchants from low risk industries. There may be multiple reasons behind the closure of online merchant accounts. It creates a critical challenge for the business as they may not have the ability to accept transactions from buyers that are interested in making payments. To reduce the possibility of not having a credit card processor businesses prefer to use multiple merchant accounts.

  • Extend Monthly Sales Volume Capping

Underwriters evaluate the merchant account application and the KYC document to analyze the exposure of credit risk. If underwriters identify that the merchant may attract high credit risk, then they may offer a small monthly sales volume limit. It may be perfect for startup entrepreneurs, but it may not work for established organizations. These established organization may look forward to signing up with various payment processing companies to get separate merchant accounts. With multiple processing channels, businesses can accept a higher monthly transaction volume. Businesses operating in high risk Industries usually prefer to get Multiple Merchant Accounts from Domestic as well as Offshore payment service providers.

  • Different MIDs For Different Websites.

Quadrapay works with merchants from various industries. Based on our internal analysis we can conclude that some sectors may require additional merchant accounts. An example of an industry that uses multiple credit card processors can be online dating. There are many online dating companies with hundreds of websites. These companies develop separate sites for each country or language. These entrepreneurs wish to target customers locally from specific nations. To offer an easy way of payment experience to the members of the online dating website merchants may require to sign up with local processing companies in various jurisdictions. Apart from online dating, Immigration consultants and professional service consultants also prefer to use different merchant accounts to increase their sales ratio.

  • Reduce Chargeback To Sales Ratio.

Payment gateway companies like offers the facility to add multiple merchant accounts to the same payment gateway. Businesses can add various processors to the same payment gateway. By carefully monitoring the chargeback to sales ratio on each processing channel businesses can effectively reduce their CB ratio. This can help entrepreneurs in extending the life of their Credit Card processing account. If the website uses well known Shopping Cart like WordPress, Opencart, Magento, Joomla, and PrestaShop, then they can easily integrate multiple merchant accounts by using CMS plugins.

  • Accept Cards Of Various Brands With Multiple Merchant Accounts

There are thousands of processing companies and card brands. A processing company can only allow a merchant to accept a specific card brand transaction if the processing company has a relationship with the card brand. Not every processor gives the ability to take credit and debit cards of all brands. Global businesses that generate sales from over 100 countries require the capability of accepting alternate mode of payment as well as local cards. Companies prefer to sign up with more than one credit card processor to increase the number of car brand acceptance. It helps organizations in establishing their brand locally in each nation.

  • Get Various Processing Channels

When a startup merchant applies for a processing account, then there may be a huge possibility that he may not get a virtual terminal. Since startups attract higher credit risk PSPs often only offer API and pay by email link facility. Once the startup entrepreneur generates an attractive processing history of over six months, then he may apply with another merchant acquiring bank. This time the acquiring institution may offer a virtual terminal to the business as the business is no longer a startup. Entrepreneurs prefer to get additional payment gateways and merchant account to increase the processing channels like a virtual terminal.

  • Multiple Merchant Accounts To Reduce Transaction Fees and MDR.

The payment processing industry depends a lot on the forecasting provided by merchants. For startup merchants, sales prediction can be a challenge as they are usually not sure how much sales they will be generating. Still domestic and Offshore payment gateway companies offer merchant ID to startups. Startups may be subject to high transaction fees on their first account, but after generating a reasonable and attractive Credit Card processing history, they may approach other merchant account acquiring banks. This time the merchant may negotiate to get better merchant discount rate (MDR) as he has a processing history to prove his professionalism.

It is a wise approach to offer various payment modes to clients. We have seen many websites offering multiple options to the customers. These options help business owners to accept maximum transactions. Some websites also offer ach direct payment gateway for USA orders. With ACH customers USA customers can quickly initiate payments from their bank accounts.

Risk Factors Associated With Multiple Merchant Accounts.

Let ‘s look at the grey area. Disadvantages of using the various merchant accounts. We all know that acquiring Institution and payment service providers sometimes terminate merchant accounts. They cease accounts because of multiple reasons. If an account gets terminated for reasons that include Fraudulent transactions, Extremely high chargeback ratio, Transaction laundering, Money Laundering, Miscoding or Forged documents, etc. then the processing company in most of the cases will report the merchant to the global match list. It can create a negative impact on all other merchant accounts as processing companies verify the merchant’s reputation by accessing this comprehensive database of registered merchants. If you look forward to using more than one credit card processor for your website, then you should ensure that you maintain all these accounts in good standing.

How To Get Multiple Merchant Accounts

Quadrapay works with various processors across multiple nations. Our team can assist you in finding reliable processing companies for your business. If you are already accepting credit cards on your website and are interested in adding one or two additional channels to your site, then send us an email on [email protected]. Our merchant services team will be happy to evaluate the possibilities of helping you with multiple merchant accounts. Apart from helping you with credit card processing our team can also assist you in finding reliable and cost-effective ACH processors from the United States of America.

Recommended readings from Yahoo. Using multiple merchant account processors


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