Question: What are some of the advantages of merchant processing, compared with a third-party solution like PayPal?
Answer: This is a question we receive often, and we’re happy to address it in this month’s Q&A section.
Many business owners don’t understand the advantages of having their own merchant processing accounts, but there are several—not only to businesses, but also to customers.
The first advantage of a merchant account, which is important to you and your customers, is that your customers stay on your company’s site for the entire order process. If you use a third-party payment processor, customers have to leave your site to finalize their purchases. Out of frustration, many customers may leave the transaction at that point—causing you to lose sales. When you have your own merchant processing account, your customers can process their orders securely on your site and feel comfortable about the purchases they make.
Some other advantages of having your own merchant account vs. a third-party solution are that you will receive your money more quickly. With NewtPay, The Small Business Authority’s payment gateway, you receive your money in 1-2 business days vs. 3-5 business days with PayPal Express or Google Checkout. Your money is also more secure. With NewtPay, all of your funds are FDIC insured, which is not always the case with third-party solutions.
For more information, please visit our merchant processing page.