Requirements for ECIG merchant account application

The application process for a merchant account involves a detailed examination about the applicant’s business and the principles followed by the business. There are several requirements that should be met. Hence, it is essential to realise why this procedure is so stringent. Hence, a trader should be clear what he/she is applying for. Merchant accounts are special types of accounts that are extended by merchant banks to an applicant. When a transaction is accepted, it is acquired by the merchant bank and the payment account is automatically deposited into the merchant’s bank account after the interchange fee is subtracted. Simultaneously, a payment request will be submitted to the card holder’s bank. Even before receiving the funds from the card holder’s issuing bank, the trader will receive the amount. This is the main reason behind having an application procedure which is designed to ascertain the credit value of the applicant’s business. Following is a requirement list that needs to be met –

-       Merchant account application – This is a form in which traders need to enter details about themselves and their business, including the personal and business address, SSN, fax and phone numbers, website address, e-mail address, bank account information, etc.

-       Personal guarantee – This is not applicable for non-profit businesses. All the new as well as established businesses need to provide personal guarantee before they acquire a merchant account.

-       Articles of Incorporation – All the entities that are incorporated are obliged to give one copy of all their “Articles of Incorporation”. The DBA names or Doing Business As names need to be provided by traders who are sole proprietors of the business. An individual cannot acquire merchant accounts.

-       Business License – If a business is actively regulated and needs a permit or a licence from either the state or the federal, then a copy of the licence or permit needs to be provided.

-       Financial statements of the business – Traders need to provide financial statements if it was set-up long ago. However, new business owners will not be asked to give business financial statements.

-       Personal financial statements – This is typically asked instead of business financial statements and could also be asked along with a business financial statement. Personal tax-returns of the previous two years will be sufficient.

-       Processing statements – If a trader is currently processing payments made by credit cards and is looking for another service, he/she will have to produce 3 most recent processing statements.

-       Voided check – Traders will be asked to provide a copy of a voided check for the account the money needs to be deposited to. It is also necessary to have the legal or DBA name printed on the voided check. If checks haven’t been received by the trader, a signed letter from the bank should be provided which states the account details.

If the required paperwork is provided and if a trader has had a good credit history, there are high chances that the application for this type of account will be approved. Contact one of our helpful account representatives to assist you in the setup of a high risk merchant account or offshore merchant account for a high risk merchant.