Merchant Services: Requirements for the Account Application

Even if merchant accounts have been the process by how online transactions are being dealt with today, there still remains a large amount of entrepreneurs that have never felt the need to acquire their services. This is, of course, nothing to be embarrassed about. Businesses who have been around even before the arrival of the merchant account craze are excused in this regard. In addition, small businesses that feel that they do not really need to accept credit cards remain apprehensive. This can be understood, of course, as there has been a negative atmosphere surrounding this industry. Hidden fees may surface long after the papers have been signed, the security of the card information remains an issue, and some business owners may still find the entire process to be troublesome.

While some of these negative rumors have only a grain of truth, the outcome remains: merchant accounts will do wonders for a business. One reason for some businesses to remain small is because of its minute user base, something that can be expanded by using this type of account. Newer businesses, especially those that are established on the Internet, are required to provide these services. Why? Because credit cards are quickly replacing cash as the mode of payment in e-commerce, and businesses should be quick to jump on this trend. As proof, statistics have shown that about one half of sales are paid for with a credit or debit card. Choosing not to accept cards will not only prompt the business to lose out on sales, customers are also limited from shopping as much as they want in your store as well.

ONLINE APPLICATION

A merchant account is an account that enables a business to accept credit cards for payment. What it does is it transfers funds from the customer's card to your bank account. Like any other account, these have to be applied for and approved, depending on the business' ability to transact and the owner's credit history. To prove your worth as an entrepreneur, the providers will ask for the following information about you and your business:

First, you need to create the outline of your business plan. This includes details of your previous cash flow and how you plan to market the business for a more regulated income once the application is approved.

Second, you will have to provide the basics regarding the business: your website, the price range of the products you offer, the details of your supplier, and the way the products and services will be able to reach the end user through delivery.

Third, you have to provide the expected amount of online transaction in the following months, as well as your estimated number of credit and debit card processes.

Fourth, you have to ensure the provider that your customers' information will be secure through the server your business will use.

Fifth, information about your trading history will be needed along with the authority of the bank, allowing them to carry out a check with the credit reference agencies.

Finally, information about the partners and directors should be given, along with their full contact details. They may be consulted for an interview to prove your credibility as an entrepreneur.

Once these have been provided, the decision will now rest on the hands of the merchant provider. Once approved, your business has to prove its worth and deliver to maintain the account.

Merchant Services: Requirements for the Account Application

ONLINE APPLICATION