Are you thinking about how to get a merchant account to accept credit cards? If yes, then this article will guide you with all related things about merchant account processing.

A merchant account is a special kind of bank account that allows companies to accept electronic payments by debit and credit cards from their customers.

It basically works as a link between a company and the customer’s payment method for successful credit/debit card transactions. And thus make sure that all kinds of the transaction are safely processed and withdrawn.

What Are The Things That A Provider Checks Before Approving An Account?

Generally, the merchant service provider uses a series of criteria to determine whether or not to approve an application of a merchant account.

And the reason behind this is to diminish the risk level that comes with approving a high-risk business. Otherwise, the provider may have to land in big trouble later on.

However, it doesn’t mean having a high-risk business will get your application rejected. Instead, the vendor may demand a higher transaction at the initial stage or other charges to compensate for the risk.

And if the company becomes well established with time, then you can renegotiate for lessening the costs any time you deem it right.

The things that they are most likely to check after getting your merchant account application are:

• How long have you been in the industry?
• Category of the business: high-risk business or low-risk business, credit card fraudulence or any kind of previous return issues
• Business history record: any sign of bankruptcy or not, etc.
• Did you have owned any merchant accounts in the past?
• How do you identify and make plans to mitigate that possible risk?
• Personal credit history of the company owner
• How do you recognize and reduce fraudulence?
• Is there any specific measurement you have taken for decreasing scams?
• Do you know how to manage your credit card acceptance?

They basically do these things to see how well you understand business works and do you have what it takes to run a successful business.

Now that you know what the merchant accounts provider looks for in a business, let’s know about the procedure.

How To Get A Merchant Account To Accept Credit Cards?

Accepting credit card payments from customers is one of the crucial parts of running a business. And in case you run your business online, then you must still find a payment processor to sign up with.

Once you find your desired merchant service provider, you need to take several steps.

Although the process is almost similar, it can still slightly differ from one provider to provider. Without further delay, have a quick look at the steps. So you can follow and get into action right away for getting a merchant account to accept credit cards.

Worry not!!!

All the steps are quite simple, and following them as instructed will surely bring you a positive outcome if all the other things are correct.

Choose Credit Card Networks

Your 1st job is to analyze which credit card brands are important for your business and then partner up with them. It generally depends on your location and target audience.

You may require a Visa and MasterCard while your customer uses another card that you don’t allow. That’s why make sure that your credit card networks have the facility to handle these cases.

Select Payment Mode

As a merchant, offering customers various kinds of payment options is one of the crucial things you must give your client. Otherwise, chances are high they will move to another source that offers them these services.

Whether it be regular billing or one-time payments, check out if they support all the payment methods or not. After then see the expenses and select the payment method that suits you the most.

Evaluate Your Business Assets

After choosing the payment method, your next job is to make a proper estimation of your business. So when they query about anything, you can provide them with all the details and required documents.

Such as they may want a statement about your current financial condition and card income within the past year or more.

Get Your Website Ready

If you run an online business, you must prepare your site with a unique domain and hosting to align with your merchant account. So it can comply with all the Visa and MasterCard requirements.

However, if you have a payment service provider, they can help you around at this phase. If they don’t, then it’s your responsibility to check and ensure that all the processing is safe and secure.

Collect Necessary Documents And Submit The Application

After setting the website, the next step is collecting all the required documents and then submitting them. These may include a detailed list of the companies overall actions, annulled checks, tax returns, etc.

However, before submission, double-check things carefully to avoid missing any crucial points.

What Happens After The Approval For A Merchant Account?

After completing all the above steps, your application will be headed to the payment processors team for review. Once the inspection is completed, and you meet all the criteria, comes the negotiation part regarding the payment methods.

Finally, after all these works, you will be all set to go. And thus, from now on, you can successfully accept credit card payments from your customers via your merchant account.

Caution Note:

One important thing you must note while getting a merchant account is to set up the account properly with the exact Standard Industrial Classification (SIC) or Merchant Card Codes (MCC). Along with the method you process credit cards. If needed, do double-check so there is no scope for any mistakes.

To Sum Up

Merchant accounts are those accounts that will undoubtedly open the door for any small company by making the overall payment system simple and secure. It is also the fastest method for small companies to accept both debit and credit cards.

Whether increasing sales rate, driving customers, saving time, improving payment security, or generating sales reports, a merchant account has its own perks. Hence, if you still don’t have a merchant account for your business, then get one immediately to get all the benefits it offers.

See more: Setting Up Merchant Account for Credit Card Processing