Breaking down the process of obtaining a merchant account

As an online merchant, you should have a payment mechanism in place that allows you to accept different modes of payments, especially credit card payments. However, the process of obtaining a credit card processing account (or a merchant account) is not as straightforward as applying for a checking account. It is filled with complexities and industry jargon that can seem overwhelming if you are not prepared.

In this article, we will try to give you some insight into the process of securing your credit card processing account. Hopefully, this would help you get your account set up smoothly.

1. First order of business is to find a merchant service provider to work with.

With virtually thousands of merchant account service providers to choose from, how do you pick the right one for your business? Your first instinct may be to partner with the service provider who quotes the lowest rate. Big mistake!

Throwing rates that you will be happy with is easy for a merchant account services provider, but it will never be accurate. It could be the best-case scenario, but never an exact quote.

Instead of a cheap service provider, you should go for a service provider that can offer you excellent customer care. They should respond to your questions or concerns efficiently. Reputation also goes a long way in ensuring you partner with the right service provider. Find out what other businesses (their past customers) are saying about them.

While you are it, also make sure that they have worked with businesses like yours. For example, if you own a high-risk business, you are going to find a service provider that can help you get a high-risk merchant account.

1. Once you have found the right merchant services provider, it is time to apply for your merchant account. When it comes to your application form, be sure to fill it out in its entirety; don’t leave any field blank. If any field does not apply to you, write N/A for non-applicable.
2. Next, you will be required to submit supporting documents for underwriting purposes. These may include scanned and signed merchant applications, your passport copy, company incorporation papers, current utility bill, current credit card processing history, and current bank statements.
3. You may have to pay a processing fee to absorb the cost to process your merchant account application for approval.
4. If the bank rejects your application, your merchant service provider can resubmit it with another bank for another attempt at approval. If your business is a special case (i.e., if your business needs a high-risk merchant account), expect to go through the approval process a couple of times.

Keep in mind that some merchant service providers have an extensive network of banks, processors, and direct relationships to meet any merchant’s needs. If you find one such service provider to partner with, they will be able to match your application to several banks that will ultimately result in approval. These merchant service providers may even be able to connect you with offshore banking service providers, helping you achieve approval to accept credit cards overseas.

There you have it!

Everything you need to know about the process of applying for a merchant account. Armed with this knowledge, you can tackle the (often stringent) process more efficiently

Liberty Enterprises offers a wide array of offshore and US domestic credit card and Ach/E-check merchant solutions.For more visit www.confidentialbanking.com