An individual merchant account dedicated to each branch, brand, or client provides advantages in serving the client, reducing risk, and reducing surcharges.
Multiple merchant accounts are ideal for companies with multiple branches or brands, as well as companies who work and bill on behalf of clients.
Using multiple merchant accounts, with an individual merchant account dedicated to each branch, brand, or client, provides advantages in serving the client, reducing risk in the eyes of acquiring banks, and reducing surcharges.
With its 2018-Q2 release, EssentOne™ now supports multiple merchant accounts for PayPal. It’s particularly useful for companies that manage ecommerce websites for multiple clients, which is common in the promotional products industry.
Here are some of the advantages of using multiple merchant accounts.
Multiple dedicated merchant accounts helps promotional products companies who manage ecommerce websites for multiple clients.
Multiple merchant accounts are ideal for companies that manage ecommerce websites for multiple clients.
Promotional products companies routinely manage company stores, branded merchandise online stores, and other ecommerce websites for multiple clients. And that involves billing on behalf of the clients.
Multiple merchant accounts allow an individual merchant account to be associated with each branch, brand, client or website, so the end buyers sees the correct billing and branding – the client’s, and not a DBA (Doing Business As) or other different representation.
Aside from missing a branding opportunity for the client, buyers have heightened alert when they buy from ABC Company yet on their payment card statement see a charge from ZYZ Company. It may raise the chance of disputed transactions that raise rates from the acquiring bank.
Additionally some buyers may be confused. And your client also might not want it revealed that the purchase is ultimately from a third party and not directly from them (which is why dropshipment is prevalent in third-party transactions).
A company with a dedicated merchant account for each client can have a customized name that matches the client and avoids these problems.
Almost every merchant account will experience chargebacks, disputed transactions. Multiple merchant accounts distribute the chargebacks so that no one account absorbs them all.
Almost every merchant account will have chargebacks. The disputed transactions are not just fraud situations; it’s inevitable that some buyers will sometimes be dissatisfied with products – it’s impossible to satisfy everyone.
When chargebacks do happen, it’s best that the disputed transactions don’t happen all on one merchant account, which invites scrutiny, and possibly higher rates or shutdown, from the acquiring bank.
With multiple merchant accounts, the chargebacks that are bound to happen are spread out among multiple accounts so that no single account suffers the brunt of all of them.
A single merchant account for multiple businesses carries the sales volume of all of the businesses, escalating its risk in the eyes of the acquiring bank.
Acquiring banks automatically consider higher sales volume to represent higher risk: The more that’s being sold, and the more transactions, the greater the risk of something going wrong.
A single merchant account for multiple businesses carries the sales volume of all of the businesses, escalating its risk in the eyes of the acquiring bank and possibly leading to greater charges by the acquiring bank.
Using multiple merchant accounts, one for each client, distributes the sales volume accordingly so that no one merchant account is assigned undue risk.
Using one merchant account per branch, brand, or client, makes it easier to track activity for each branch, brand, or client.
With one merchant account per branch or client, it’s easier to track sales and transactions.
Funneling the transactions from multiple branches or clients into one merchant account makes it difficult to distinguish, on the merchant account level, what happened in each account.
With multiple merchant accounts, especially on a basis of one merchant account to one branch, brand or client, each merchant account represents an individual set of transactions rather than grouping many sets of transactions together.
As of the 2018-Q2 release, EssentOne supports multiple merchant accounts for PayPal. EssentOne users can set up an individual PayPal account for each branch, brand, or client, providing the benefits of multiple merchant accounts through the familiarity and ease of use of PayPal.
While each merchant account typically carries a small monthly investment, the investment represents pennies per transaction and the return is better-served clients, reduced surcharges, reduced scrutiny from acquiring banks, and better sales tracking.
Get in touch with Essent to get started on implementing multiple merchant accounts for your business.
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Essent is the leading provider of fully-integrated business management software solutions and services for process-intensive industries and the largest trading network for the promotional products industry. The Essent family of fully-integrated products and services combines best practices, business processes, software automation, and network communications to deliver unparalleled, unified business management solutions. Since 1980, Essent has offered the systems, service, software, and support critical to success in today's highly-competitive marketplace.