Cost-Saving Opportunities in Your Merchant Account
When we start working with a new merchant partner, one of the first things we look for is ways to simplify their payment process. Besides saving you money by reducing your processing fees, we can set you up for cost-reducing opportunities in the future. These opportunities include consolidating your accounts, streamlining payments, and reducing the workload for your team. We focus on building an intuitive process, so it’s not only easier for the CFO and ownership but also for the controller and accounting team. There are optimization opportunities everywhere. Your hardware and software solutions, integrations, and even analyzing how funds are deposited into your merchant account can save your business time and money.
Gross vs. Net Funds Deposits: Which One Is Best for Your Business?
Your merchant account receives funds from your processor through an automatic deposit schedule. From these funds, you have to pay your payment processor. There are two distinct ways they collect their merchant processing fees from you: net deposits and gross deposits. Both are dependent on how you deposit your funds.
For net deposits, your merchant processing fees are withheld before your funds are deposited into your merchant account. This is useful because it’s one less thing to worry about. You won’t receive a bill every month for processing fees.
For gross deposits, you receive the total amount your customers paid you in your merchant account. This method is handy for reporting and accounting in some cases because the fees and deposited funds are entirely separate – just don’t forget to pay your merchant processing bill every month! Depending on your merchant processor, you may not have a choice between gross and net deposits. Contact their customer support to find out your options if this interests you, as switching could be an efficient alternative for your business.
Consolidate Your Merchant Accounts Under One MID
Some merchants choose to have multiple MIDs to accommodate an advanced accounting process. Others choose this pathway because they found the best rates for different lines of their business at various merchant processors. Although this may seem like a good idea, having more than one MID is often more hassle than a benefit. Every MID costs you money to maintain and will bill your business accordingly, forcing your employees to juggle multiple bills from different processors. In some instances, it makes sense for merchants to have multiple merchant accounts depending on their business activities. The good news is that you can still have more than one merchant account under the same MID.
Take a Strategic Approach to Your Payments
Although we can commonly save our merchants money in the short term by focusing on their payment processing contract and credit card rates, the most sustainable results come from a strategic approach to your entire payment process. By looking at your process holistically and strategically, we can identify optimization opportunities at every level, simplify your accounting system, and uncover hidden features or free services that you didn’t know you had access to as a merchant.
Identifying incongruous elements of your process and eliminating unnecessary pain points regarding your payments is something that we pride ourselves on, even though the savings from these efforts don’t always show up on your monthly statements. Something as simple as minimizing the number of software logins and accounts to optimize can make a big difference. Making our merchants’ lives a little easier is our goal as advocates and partners, and we’ll always go the extra mile to make sure that happens. If this is something that interests you, get in touch with our team and tell us about your situation. We’re always just a phone call away.