How to Apply for a Merchant Account

Applying for a merchant account is exciting. It is essential to have this in place to accept credit or debit card payments. The right merchant account will ensure smooth and efficient transactions for customers. It also includes low fees and excellent customer service. Not all merchant providers are the same so take your time to find the best match.

Saving money while getting the best security, equipment, and support makes a difference. Your customers don’t want hassles or delays with their credit and debit card payments. They don’t want risks because you don’t have security in place. The merchant account should ask for additional identifiers such as the three-digit code on the back of the card for online purchases.

IDENTIFY YOUR NEEDS

Access your needs to help you gain the most value from a merchant account. If your business sells large ticket items, a flat rate for transactions is recommended. It can be cheaper than paying a percentage of each transaction. The types of equipment you need to complete credit and debit card payments depend on where your business operates.

You may have a traditional business or only online. You may travel to trade shows and other events to sell your products or services. Your merchant account needs to compliment what you offer and be a good fit. If it isn’t, you will struggle and that makes it hard to complete those transactions. It also stresses your employees because they have a hard time completing what they need.

If your business offers memberships or other high-risk concepts, you may have a harder time securing a merchant account. There are providers out there but they do charge more. This is because of the risk they take by providing such an account to your business. If you fall into that category, don’t get discouraged. You still have some good options available to you.

EVALUATE POTENTIAL PROVIDERS

While you want easy processing and low fees, you also want an excellent provider you can work with. Take a look at their background before you apply with them. Don’t waste your time sending them documents if they don’t have a strong reputation with merchant accounts. If they lack great reviews for customer service, don’t work with them!

If you have questions, reach out to potential providers before you apply. Never assume anything, get clarification on the details. Make a list of specific questions you have. The answers to them could determine where you apply for a merchant account. The goal is to get a great provider you can count on. Don’t randomly apply for such help and hope for the best!

How soon will you get your money from the provider? The best providers release the funds the following business day. If the provider takes several days, that can create a cash flow problem within the business for you. How do they report the information to you? Are their reports easy to read? Understanding how much you earned and what they took out for fees and other agreed upon costs is important.

MATCH PROVIDERS AND CRITERIA WITH YOUR QUALIFICATIONS AND NEEDS

Identify the best providers with your requirements. Next, find out what it takes for them to approve a merchant account. It doesn’t make sense to apply with a provider that can’t offer what you need. It also doesn’t make sense to apply with a provider when you know from the start you don’t meet their established guidelines for approval.

Relying on your merchant account helps your business succeed. If you have lots of problems though it can be upsetting. It can cost you money and leave your customers feeling less than thrilled to buy from you again. If you tend to get lots of returns, it can affect the type of merchant provider willing to work with you. Take an honest assessment of your business to help you find a provider you can count on.

COMPLETE APPLICATION

When you find the ideal merchant account provider, complete the application. Fill it out completely to prevent delays or the application being rejected. If you have questions, contact the provider for clarification. They can help you provide the correct information on the application. Double-check you have submitted the required documents with your application. If you don’t have what they request, obtain such information before you submit the application.

The provider will review your information to determine eligibility. They will verify the business is legitimate. This is why they may ask for your EIN information, bank account information for the business, and other important details. Sometimes, the personal credit of the owner will play a role in the determination. This is more likely to be requested for a new business than one with an established history.

For a new business, it can take time for the application to be reviewed and approved. The merchant account needs to be established before you can accept credit or debit card payments. Don’t leave this part of your business operations until the last minute. Get it secured early on so it doesn’t hold up the launch of your business. For an established business, applying for a merchant account now may be a way for you to get out from under a relationship that isn’t working for you.

REVIEW TERMS OF THE EXTENDED OFFER

All of the terms and conditions with a merchant account provider need to be disclosed. While you evaluated them before you applied, take the time to read the offer. Make sure you understand what they offer, the fees involved, when you will get paid, and other important details. If you need to buy or lease equipment, what is required and how much does it cost? All of this plays a role in the overhead for the merchant account.

WORK WITH THE PROVIDER TO SET IT UP

Once your merchant account is approved, work with the provider to set it up. They can guide you through that process. They can help you test the equipment and teach your employees how to use it. With everything properly in place, you can continue to work with that provider. The ability to accept credit and debit card payments can help your business grow!