Whether you want to sign up with an MSP that offers a designated merchant account for your business or with one that doesn’t, simply depends on your business needs and personal preferences. There are pros and cons to each option.
Selecting an MSP that doesn’t offer a full-service merchant account is usually faster to sign up with at the beginning, since they don’t generally do any underwriting or credit checks upfront. But not having your own merchant account comes with some drawbacks that you should consider.
One of these drawbacks is the potential for holds to be placed on your funds. If a provider doesn’t adequately scope out your business during the application process, the provider is more likely to freeze your account as soon as it sees something out of the ordinary. You can be at the mercy of your payment provider when this happens, and it may take weeks to receive funds.
If you have a merchant account, an incident like this can usually be solved with a simple phone call. The MSP might even proactively reach out to you to confirm transaction details and resolve concerns before they become an issue for your business.
Payment providers that offer merchants their own merchant accounts are typically more directly involved with their merchants, and offer dedicated customer support services whenever their merchants need it. Unfortunately when it comes to payment providers that don’t offer merchant accounts, the opposite is usually true, and merchants can have a hard time getting in touch with an actual person.
In short, it may require slightly more information upfront or costs overall to have your own dedicated merchant account, but your business will benefit from its verified status.