Every business aims to establish a secure position, to do this a business must have multiple merchant accounts. Unfortunately, not all businesses have this, and what’smore worrisome is that those who mostly need multiple merchant accounts often have just one. Businesses with only one merchant account face the problem of fraud and chargebacks; these can jeopardize a business’ ability to process payments especially if there is only one merchant account. Not convinced yet? Here are some more reasons on why a business needs to go beyond a single merchant account and who are those who needed them most:

Those Who Needs Multiple Accounts

  • You have to protect yourself and your business, this goes for those with multiple products or payments, those that have trial offers, continuity payment, memberships or cross sells. Having multiple merchant accounts can protect you from possible drawbacks you would experience from the different modes of payments.
  • Biz who Advertise through Radio or TV- Those with DRTV or DR radio, whether short term or long term must have multiple merchant accounts that can handle spikes when successful spots emerge.
  • Sales Driven by Affiliate Markets- having multiple merchant accounts can help protect your business from bad affiliate traffic. In this type of market, refunds or chargebacks can often happen especially if consumers don’t win the prize they were once enticed to.

Why The Need for Multiple Accounts?

  • Multiple Merchant Accounts let you achieve a higher processing volume. Companies can acquire multiple accounts by leveraging the money that they have in their business bank. Once this is achieved, processes for every sale would go smoothly or without any obstacles from banking policies. It also allows company owners to identify where a problematic traffic roots from.
  • Accuracy in Billings. What’s good about multiple merchant accounts is it allows you to have billing descriptors that are accurate, which in turn is reflected clearly on your customer’s credit card statements. This avoids confusion, chargebacks and retrievals from you customers.
  • Influences by Banking Institutions- A bank can in fact ask an business to leave their institution, this is what happened to skincare merchants, nutraceutical, educational merchants and other marketers that were shut down leaving them unable to process the payments. Most of them were even terminated without any notice or  proper time to open another account.


Must Know: How, When and Where to Implement

  • A technical Infrastructure

If a merchant plants to open multiple merchant accounts that are to run simultaneously, it must be anchored to a good technical infrastructure. The technical infrastructure must have a gateway, which would assume a load balancing function, it must also have an in-house or an outsourced service which includes technical support and quality customer care service, a team that has an experience in E-commerce is also a plus.

  • Don’t wait until you have a chargeback trouble for you to open another account. Most merchants do this and by the time the trouble is in, no bank will want to transact with you or chances are they would charge you with higher processing rates.

This loan article was written by Hans Meredith, author of several finance related articles at highriskpay.com.