With a merchant account, businesses can offer their customers the opportunity to pay with debit and credit card. This will help improve the purchasing experience of the customer. To clarify what you need to know, we’ve carefully gathered a simple step-by-step guide as you wade through setting up a merchant account for credit card processing. However, before you set up a merchant account, you need to know what it is and how it functions. Understanding the complete process is imperative, and as such, your business can be better equipped to select the right merchant account provider.
What Really is a Merchant Account?
A merchant account is a particular account type that allows the merchant process and accept payments from credit cards after purchase. Basically, a merchant account serves as a bank account that allows payment acceptance. Having an efficient merchant account is one of the significant components of a modern business.
Steps on How to Set Up a Merchant Account for Credit Card Processing
Understand the need for a merchant account
It is essential to understand your business needs and if you are convinced that you need to accept credit card and eCommerce payment. Then, it would be best if you talked to a merchant account provider. At this point, you’ll need to connect with a reliable provider and can equip your business with what it needs. For instance, custom integration, invoice and receipt flexibility and types of the payment terminal.
Most businesses need a license before they begin operation, and the government is issuing such permit at the federal or state levels. The license is part of the criteria needed to set up a merchant account that can process credit cards payment. Underwriters will review the license you provide on behalf of your business, and it will help validate your business’ existence and structure.
Compare & select a reliable merchant account provider
There are a couple of merchant account providers you can choose, but before you take such action, you’ll need to consider their fees and other associated charges. Analyze the cost offered by individual merchant account provider and analyze your previous sales volume and future projections. It is better to know about high fees at the set-up stage than to get an unexpected notification after the contract has been signed.
Carefully examine the cost involved
When you are setting up your merchant accounts for credit card processing, know that it comes with an imposed cost. Merchant account providers often attached fee such as cancellation fee, batch and statement fee, monthly minimum fee, etc. If this fee appears to be on the high side, you should re-think before you enter into such partnership.
Submit the application
After you fill out the form for the merchant account opening, it is expected that you check for errors before you hit the submit button. Ensure you attach the required documents, then the merchant account provider or bank will look into your application and make a final decision.