STEP 16 HOW TO SETUP A MERCHANT ACCOUNT FOR YOUR NEW BUSINESS
The merchant account is enabling the owner of a small business to accept major credit cards, hence expanding the business opportunity reach out to a larger number of customers. Whether the business has its brick and mortar office or it operates through the web, the owner can benefit from setting up a merchant account. To setup a merchant account is quite simple and it only requires some time, planning and research.
In getting started with setting up a merchant account, the following steps should be followed:
First of all, the business owner should look for merchant account options and these can be found from the banks. The easiest option to do it is to visit your local bank.
The bank would know you as a customer and this will definitely make the whole process easier for you. In other cases, although, the costs of the transaction from the bank you have chosen might be higher as compared to those of another bank, so it will worth the cost and time to speak with other banks also. You should take note that when you set a merchant account in another bank, you’ll have to create a checking account in that bank as well so all the transactions will go in your account.
Now, you can send your application for a merchant account by providing all the important pieces of information and documentation. You would have to send a voided check for your checking account wherein the transactions will be directed. Aside from that, you would have to give a bank with a proof of your identification which can be any government identification cards and your SS number or your employer identification number when your business comes with it.
Submit the detailed list of those business activities and processes that you conduct. The bank will have to see what you are doing with your business to determine that you are running a legal business. Aside from that, the bank would also ask you to present tax returns as well as the financial statements concerning your business in order to complete and also to approve the application.
Show a proof of the website to the bank when you conduct and operate your business online. Your website has to be a website designed for your business that shows its hosting & domain information which is absent to a personal site like a blog.
Apart from that, you would have to demonstrate that your site comes with clear details concerning the product deliveries and purchases and also a secure checkout. There are companies out there that offer secure checkout so do your research to learn more about their services.
You pay for the application and any other needed upfront fees to be paid so that your merchant account will be created. In other cases, the bank would be eager to waive the application fee so you should be sure that you will ask them. Also, you need to be prepared to pay for any ongoing usage charges every month in keeping the account open. You may also be required to pay for the annual fee.
explain what a merchant account is, why you need one, what to look out for when getting a merchant account etc. Recommend a few services like the ones below and how they differ from one another.