Merchant services involve the creation of a business account to process credit transactions. Any business wanting to offer this payment method to customers has to have this account available. Accounts may be designed for internet, telephone, mail, retail, and high risk situations. All have their advantages. The one your business applies for greatly depends on the collection process of the business. An internet account is of no assistance to companies wanting transaction processing at their retail store. A little research will help your business determine what type of account is needed. The next step involves finding a reliable processing service. Select a service with a great reputation, reasonable fees, and services that will benefit your business. These accounts have to be applied for through a merchant account provider.
Every service provider requires general information. The type of information can vary depending on the type of account. Typical documentation includes an application, financial statements, business details, and information regarding the strength of the business. The approval process is actually more complicated than finding a provider. Banks offering the service evaluate the business thoroughly. Many documents may need to be submitted that contain sensitive information about the applicant and their business. They are trying to determine if your business can sustain these forms of payment. Banks want proof that enough business will be processed to cover fees. They have specific conditions that must be met to receive this type of account.
Documents Typically Needed to Apply for a Credit Card Merchant Account
A business has decided to submit an application for creating a credit card merchant account. First they must obtain the application form from the provider. This form requests information regarding the nature of the business, along with applicant details. Basic business data such as phone numbers are part of the form. Social security numbers, business specifics, and bank account data may be required. Financial documents are the next chunk of paperwork. They can be personal statements from the bank or tax returns. These documents show the bank how previous loans and transactions were managed by the business. Bankruptcies or loan issues are detected by these documents. Account providers are less likely to approve the application if these issues exist.
Length of time doing business is also taken into consideration. A previous account that shows good maintenance looks good with the application. Terminated accounts with high numbers of chargebacks negatively impact the application process. A better economic background increases the likelihood of approval. Account providers cannot always cover every location or type of product. Businesses sometimes have to apply for these services with a different provider who has the necessary capabilities. Monthly volumes, transaction sizes, return policies, and the company’s overall business plan affect the chances of approval. An application will not be approved if this information is not provided. A merchant provider may see something that implies too high of a risk, even when all the right paperwork has been submitted. Do not get discouraged if the account is not approved. High risk providers may be able to assist with processing.
