Why Businesses Should Open Multiple Merchant Accounts

Why Businesses Should Open Multiple Merchant Accounts

One of the main complaints I hear from merchants who are processing at high volumes is that their acquiring bank tends to limit their monthly processing amounts. How can you grow your business when your acquiring bank puts a cap on the amount of money you can process? Our success depends on your success so we want to help you process in higher volumes and watch your business grow.

Multiple Merchant Accounts: Distributing Volume and Risk

With offshore acquiring banks, you do not need to worry about monthly volume caps preventing you from expanding your business. When a merchant processes more than $50,000 per month, I strongly suggest opening multiple merchant accounts. By opening two merchant accounts (or even three or four!) with more than one acquiring bank, not only will you spread out your processing volume, but you will also spread out your risk.

Multiple merchant accounts will also help you keep your chargeback ratio low. As all merchants know, if your chargeback ratio is too high, then you are at risk of losing your merchant account. (Read about chargeback prevention here.) When you process credit cards with two or three merchant accounts, you are distributing your chargeback transactions and essentially reducing your chargeback ratio, which is incredibly helpful when you are processing at a high volume.

Avoiding Credit Card Processing Problems

If your merchant account is unable to process credit cards for even one day, your business will suffer great losses. Acquiring banks can terminate merchant accounts for many reasons, so it is smart to protect yourself with one or two backups. If your acquiring bank stops processing for your business industry, you will always have your additional merchant accounts to fall back on to avoid any credit card processing problems.

Alternative Credit Card Processing Solutions

Different acquiring banks offer different merchant account solutions, which means you are unlikely to find one merchant account that meets all of your business’s needs. With multiple merchant accounts, you can obtain alternative credit card processing solutions. Perhaps one merchant account allows you to accept Visa credit card transactions in US dollars, British pounds, and Australian dollars, while your second merchant account allows you to accept MasterCard transactions in US dollars, euros, and yen. The more options you have, the more customers you can serve.

Consolidating to One Payment Gateway with Instabill

An added bonus of opening multiple merchant accounts with Instabill is that you can manage them all through our PCI-compliant payment gateway. Since we work with more than 15 different acquiring banks worldwide, we can help you establish one, two, three, or even four different merchants accounts and eliminate the need for multiple payment platforms. By working with one merchant service provider, you will save money by cutting out multiple monthly service charges.

A Smart Merchant Makes for Happy Customers

By giving yourself more options, you will also give your customers more options—and a smart merchant makes for happy customers. If one merchant account declines your customer’s credit card, then you can try running it through one of your other accounts. Contact us online or call us toll-free at 1-800-318-2713 today to learn more about how you can multiple merchant accounts with Instabill.

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