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. |