A payment gateway for multiple merchant accounts is software allowing you to connect more than one merchant accounts you have at different service providers and acquiring banks to accept and process online transactions.
Once set up, such a payment gateway provides the business with a single access point to all merchant accounts, transaction details, and history. On the contrary, without a multi-merchant account payment gateway, the business should be logged in to multiple dashboards and track all its transactions separately.
A merchant account is a business bank account that a company gets at an acquiring bank to accept money from customers using credit cards or debit cards.
Depending on the industry the business operates in, its location, turnover volume, card processing history and many other factors, an acquiring bank evaluates its risk level. Commonly, there are three levels: low, medium, and high. The risk level set by the acquirer affects the conditions, limitations, and fees of a merchant account, and the scope of the information a business is required to file along with its merchant account application.
There are some types of business that could benefit the most from the multiple merchant accounts approach, as well as some for which it’s the only way to operate.
First, it’s worth noting that banks providing merchant accounts often set a turnover volume limit, not allowing to process any transaction exceeding the limit or processing the overrun at a higher cost. For example, if a limit on your merchant account is $70,000, but your expected sales volume is $100,000, you’ll need a second merchant account to avoid such a situation.
Another reason to consider opening additional merchant accounts is running a high-risk business. Such companies tend to suffer from unexpected merchant account bans. For such cases, it’s good to have a backup option. It’s also an excellent way to distribute risks. For instance, lower your chargebacks rate by dispersing your cash flow across multiple accounts.
And last but not least, the more merchant accounts you have, the more payment processing capabilities, features and methods are available to you and your customers, which is extremely valuable for large and international businesses.
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Whether dealing with multiple banks is a must for you or your choice, such an approach bears certain benefits and disadvantages to business. Let’s get to know which ones.
All these cons will create severe obstacles for efficient payment handling if you don’t know how to avoid them. Good news: we do know and are ready to share!
You can release your business from facing all the cons mentioned above and enjoy the benefits by finding a payment gateway or platform that supports multi-merchant accounts payment setup. Such solutions make payment tracking and managing across multiple vendors a piece of cake. After a single API integration, you’ll have only one dashboard with all your transactional data gathered and unified and all the tools presented for you to use.
But don’t rush to work with the first platform you encounter. By taking your time and researching the market, you’ll be able to uncover a true gem offering value-added payment services. At Corefy, we offer robust technical infrastructure for payments and payouts, with special features like intelligent routing, cascading, multicurrency support, dynamic currency conversion, reporting and analytics, etc. Besides providing our clients with all the payment tech they might need, we share our industry expertise, helping them optimise and grow their business. Don’t hesitate to book a demo with us to learn more about how we can facilitate your growth and solve your payment pains.
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