Do you really need multiple merchant accounts? This may not be the first thought on the mind of many entrepreneurs, but the meteoric rise of e-commerce makes it clear that times are changing, and so are the needs of online business owners. Many high-risk merchants, especially those in the early stages of their business, face payment processing limits that stifle potential growth. When those limits are reached, sales grind down to a halt and cash flow is significantly reduced.

Securing additional merchant accounts is a tactical decision. It helps your business secure more monthly processing volume and can prevent potential operational bottlenecks. Additionally, new businesses can add more orders and scale-up, monthly sales caps become less troublesome, and risk is spread out across your accounts.

While it may seem like a higher initial investment, securing multiple merchant accounts will save you valuable time, money, and effort. Here are five key benefits of having multiple merchant accounts:

1 No Processing Downtime

Even the best payment processors suffer from downtime. With a second processing account, you can continue to transact during a processor blackout. And banks can be unpredictable. They can close your account without warning or change their internal policies overnight and decide that your industry is not within their acceptable risk standards. With no merchant account, your business will hit a dead stop. By using multiple merchant accounts, you can lessen this risk and limit the damage of a terminated account. Be prepared for any downtime and prevent losing sales and customers by always having a backup payment channel.

2 Reduce Surcharge Fees

Do you own a brick-and-mortar in addition to an online store? If so, you may be racking up unnecessary surcharge fees by processing card-present (CP) and card-not-present (CNP) transactions under the same account. This is because card-not-present transactions are considered high-risk. Using merchant accounts which are set up for each type of payment can save you money when you use them for their corresponding payments.

3 Offer More Currency Options

Are you selling your products and services to international markets? With more accepted currencies, the likelihood of sales increases. Additionally, if one front of your business deals internationally, while another side deals locally, securing multiple merchant accounts can help satisfy the specific needs of each market, and avoid cross-border exchange fees. Providing additional payment options means that your e-commerce business is accessible to more customers, boosting the likelihood of checkout conversions and creating higher revenue for your business.

4 Isolate Chargeback Risk

Higher-risk merchants in the e-commerce world often suffer from higher chargeback rates, which can increase costs with payment processing providers. Those selling subscriptions and nutraceuticals are especially vulnerable to this case. By having multiple merchant accounts, you can lessen the risk presented to your business by chargebacks and fraud. For example, customers are more likely to provoke chargebacks for foreign transactions, however, the chances of a dispute would be lower if you were a local merchant in your customer’s market.

In addition, having multiple merchant accounts can allow you to isolate the expected chargebacks to your more accommodating processor, minimizing holdbacks and reducing the risk of account closure.

5 Gain Processing for Several Websites

Many banks allow only one URL (or location) per merchant account. This helps them manage risk, as more websites increase the chances of chargebacks. With multiple merchant accounts, you can process payments across several websites. Additionally, for merchants with several product lines who would like their revenue separated, using multiple merchant accounts can help clearly identify revenue for each business line without the need for difficult and timely audits.

In Summary

The benefits of having multiple merchant accounts are often overlooked by business owners and e-commerce entrepreneurs. However, these benefits become obvious when considering the fact that businesses have various demands that need to be met. For high-risk merchants looking to get the most out of their payment processing, visit us at https://openpath.io/ to learn more about how multiple merchant accounts can benefit your business.