Things to Know When Apply For a Small Business Merchant Account

Are you a small business merchant, who is also looking forward to resolve your long payment processes done on paper, follow-ups and through cash etc.

Here is the answer to all your worries, with the help of Merchant Account facilitating for small business.

What is a Merchant Account?

A special type of account that helps you in holding funds captured through credit and debit card sales.

Currently this process is done in two ways one is through having a Merchant Account from where the money is transferred to a normal bank account. Second is through an aggregator, a company that process transaction through their own merchant accounts.

Payment Gateway: They act as a channel between the customer and business and customer bank by processing the information and cross checking the funds limits when a card is swiped on a machine.

Things to know while opening Small Business Merchant Account:

• Open a Business Bank Account: A business bank account needs to be opened for all type of companies. This account is the source account where all your merchant account money will be stored. This account will have a processing fee or charges as applicable on transactions. The only requirement is license number of business like TIN/EIN number or PAN number etc.
• Underwriting of the merchant bank account for business is an important thing for all payment processors as it involves a lot of risk. Since it involves costing of every transaction as a charge back and risk of fraudulent activities.
• The Underwriting application can be made online which makes the process of opening merchant account way more simple.
• Different types of payment may require different set of merchant accounts example for accepting ACH/credit card payments you may have a type of account but for other type you may have another account.

What it takes to Apply for a Merchant Bank Account?

Now you know what it is about merchant banking and what it helps you in. Let’s look at the set of things you need to collect while applying for merchant banking account.

• Financial Statements: This shows the credibility of your business and when the file is underwritten. This is the basic thing that goes under scrutiny as the kind of stability your business has the fair chances of getting approved, the application process turns out to be.

The merchant banking underwriting team will not process an account request for companies whose credit worth is not stable as it’s a risky factor.

• Take an account of your processing history: Processing statements always shows the credibility of the business in terms of transaction numbers, volume, refunds, with less or moderate payback charges etc.
• Paper work on industry type is always recommended as it gives a fair idea on to what level of risk factor the transactions may involve when you have a merchant account.

If you keep a note of all these basic checks there will be in no time you have your account being opened.