MERCHANT ACCOUNT

The general confusion that prevails in people’s mind is that a merchant account is nothing but the processing of a credit card. However, merchant accounts are special accounts which act as a base for business in order to process after accepting the orders place through a credit card. After a client’s credit card is processed, the transaction will do through several complex stages. The cash that gets transferred through a merchant account gets deposited in the checking account of a business in a period of 2 or 3 days.

Having the knowledge of vital information will only help in getting through the application process for a merchant account in the right manner.

The following are the requirements in order to get a merchant account:

-      Checking account – Some merchant account providers offer a checking but most of the providers require the merchant to have a checking account already. A sole proprietor usually uses a “personal checking account” while a Corporation or LLC will require a “business checking account”.

-      A voided check copy – This is required if a personal checking account is used for depositing the funds.

-      Articles of reseller licence, incorporation or business licence – these may be required if applicable. The main purpose for these requirements is to provide legitimate business.

-      Pictures of the office set-up and business location – This is required only is the business is considered high risk. Otherwise, this requirement will not be needed during the application process.

-      Having a web site – if real-time internet processing is required, then it is necessary to have a web site. If it is not online business, it isn’t necessary to have a web site.

-      Information about return policy – Even if there is a “no refunds” policy, the merchant account provider should know about it.

-      Trade reference may be needed in case of high risk accounts.

-      The latest tax returns photocopy might be required in case of high risk accounts only. However, depending on the volume of the monthly sales expected via the merchant account, this field could or could not be required.

-      Photocopy of the merchant’s business licence – This is required only of the sole proprietor does not possess business licence.

There are a number of benefits for a trader to have a merchant account. The credit cards are accepted quickly and easily. Once a merchant account is obtained, the trader may have to toil with different software applications. However, this factor depends upon the supplier. These software applications will be used along with the existing website. While opening a merchant account, several obligations must be fulfilled before the account is accepted for enrolment. After these obligations are satisfied, a businessman will get his own merchant account.

The various other advantages for having merchant accounts are that safety and security while processing payments are usually taken care of. The global expansion of business is also possible since factors such as multi-currency and credit card acceptance are offered by most merchant account providers.