Traditionally, batik sarongs are sold by merchant traders in shops. Cash exchange for goods sold are the payment method. This type of method for payment still exist as it is the most convenience way of trading batik. Along with the development of payment technology, merchant business service is also applicable to the batik industry nowadays.
Merchant services refers to credit card payments processing from the customers to the sellers. It is a special account tied to a credit card processor that works with the customer's bank to help route payments into the seller's bank account.
Merchant service providers or independent sales organizations are the provider of merchant services . These specialized companies offer services of so-called payment processing. Another source for setting up merchant accounts are financial institutions.
Depending on the the business situation, determining the best type of company that is the most suitable for a small business owner varies. Due to the nature of business, which could be less established, a bank may turned down application from a home-based business owner. As an option, merchant service providers and independent sales organizations which can be more flexible, could be best to refer to for those who own a home base business. While one person may feel comfortable dealing with their local bank, another might prefer a credit card processor who offers low rates. What is important is to put high priority on the business instead of self satisfaction.
A merchant account is not required to accept credit cards. There is an option to contract with companies providing payment processing on the seller's behalf. Though, their prices are higher from taking a larger percentage of the ticket price. Normally, all credit card providers charge a percentage of each credit card payment received for small businesses. Therefore, the best available solution for batik sellers who are considering selling on the Internet, a merchant account provides a better professional image. The reason being, with a merchant account, business can expect to receive those payment funds in less than three days from the time of the transaction compared to two or three times a month, which the limiting cash flow, if a third party company is allowed to process the payments for the business.
In the sense of business image, providing options for payment facilties to the customers make them more comfortable to shop for batik online. In a bigger business perspective, it gives unlimited potential for the batik business to expand, for example, potential customers in London would not need to look where to buy batik in London as they can always buy batik from the internet, even if the batik sellers are located in Kelantan, Malaysia. In short, merchant business service do give better possiblities for the batik seller to reach their customers from all over the world and hence, helping the local batik manufacturers and the batik industry as a whole to expand.