How To Open A Merchant Account for Your Business
It is in a merchant’s best interest to create a merchant account. Even brick-and-mortar retailer consumers only sometimes carry cash. Business owners need merchant account credit card processing. It is even more critical for online business payment processing.
Getting an account is lengthy, but this article walks you through the process. When choosing a merchant services provider, there are many things to consider. The most attractive conditions and best rates depend on the type of business, size, processing history, turnover, and other details. The most critical things are listed below.
Choosing a Credit Card Brand
The starting point of the journey is choosing a credit card brand. Begin by analyzing the credit card brands vital to you. It will depend on your target audience demographics. You may only need MasterCard and Visa.
If your customers come from other countries with a credit card brand of their own, you want to ensure the bank you choose for your merchant account offers the opportunity for credit card processing of those brands. While American Express is the most popular in China and the United States, and MasterCard is most prevalent in Canada and Brazil, Visa is the number one choice in over 120 countries.
Deciding on a Payment Processing Model
You may offer customers one-time payments and recurring billing. Be sure the bank supports both payment processing models for your business. Choose the bank that provides the most acceptable rates.
The turnover of your business plays a role in the rate a bank offers. You must be prepared to provide the bank with essential documents displaying your card turnover and financial status for the last year or more.
Look for a Local Merchant Service Provider
It is recommended businesses open merchant accounts with local merchant service providers. They offer the best traffic performance and rates. You should aim for Nationwide Payment Systems where they can help find the right merchant services for your business. It increases a smooth process and ensures better rates.
They can use assistance from Nationwide Payment Systems. Other businesses that should use merchant services provided by Nationwide Payment Systems are
· Companies that have been in business for under two years
· Firms with no processing history
· Businesses in need of high risk merchant service
The chances of getting a merchant account increase, and many business risks associated with payment processing are eliminated.
Prepare a Website
Online businesses need a website to obtain a merchant account. It must comply with MasterCard and Visa requirements. Checkout needs to be secure, with clear product and delivery options descriptions. A website needs a unique domain and website hosting of its own.
The next step is to gather documents and submit them to the bank. Documents vary from one bank to another, but all will ask for
· An itemized list of activities to be conducted
· A voided check for a bank account
· Tax returns
Submit an Application
The bank will look at the documents listed above and your application form to decide. The merchant is charged a setup fee. There will also be monthly fees, decline fees, and chargeback and refund fees after the account is set up. You can begin credit card processing as soon as the account is set up.
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