Today the market scenario is completely different as compared to before. Today, in any business the dominating party is the buyer. Whatever we do is for the buyer and market is dominated by he buyers. Hence it is called the Buyers Market and not the sellers market. The reason being the buyers today have a lot of options to choose from. The sellers are more as compared to the buyers. There is immense competition.
The Small businesses here face a lot of problem to survive in the market. The small businesses face competition not only from big businesses but also from other small businesses. In such a scenario, the small businesses face a rough time and have to come up strongly to survive in the market. This is where it shows that the small businesses need merchant account more desperately as they have to cope up. If they do not provide buyers with an option to make a payment by credit card or debit card, then the buyer might go to another seller. More than 80% of the purchases are on credit. It is essential here for the small business to make credit available to the buyer. For this they need to have 2 things;
1) Small Business Merchant Account and
2) A method / mode that can process these credit card transactions
Once both of these are in place, then it becomes easier for small businesses to trade. These small business merchant accounts work in a similar fashion as any other merchant account. The buyer has to provide the credit card number if it is an online transaction which is submitted thru the payment gateway to the credit card company which will accept or reject the payment on the basis of which a sale is completed.
Hence if these small business merchant accounts are used, it becomes convenient for the small businesses to survive and hence grow as well as gets convenient for the buyers.