How to Open a Merchant Account

cashier taking payment

Ready to start accepting credit cards? Unfortunately, setting up a merchant account takes a lot of research and work, but it can pay off big time if you’re committed to providing your customers the best experience possible. Do your homework – find the most cost-effective solution that offers you exactly what you’re looking for.

Luckily, we can help you get started.

Credit Card Processing

Credit card processing is what happens when money is transferred from your customer’s bank to your business merchant account. In the past, credit card processing was a more cumbersome paper system, but now money can be transferred automatically and electronically, making purchases easier than ever. The whole process begins the second a credit card is swiped. With an established merchant account, you’ll soon receive direct payment.

Opening a Merchant Account

Opening a merchant account is the first step! Before moving forward, make sure you have a business checking account, employer identification number (federal tax ID) and active physical or virtual storefront.

Gather all the information required for the application process. This may include your driver’s license, business checking account numbers, licenses and permits, business financial statements and any other documentation that proves you own a fully operational business.

Click here to compare merchant accounts. You may be qualified to open a merchant account with the same financial institution where your business currently banks, but that may not be the best option. In most cases, you have to meet many more requirements to be approved through your bank, and they don’t always provide the most affordable choice. Compare bank merchant accounts, as well as those offered through Merchant Service Providers (MSPs). Ask about any fees associated with merchant accounts in order to discern which provider best meets the needs of your business.

Finally, open your merchant account. Once you have compared and considered all of your options, applied and received approval, you can begin to accept credit card payments for products or services provided by your business.

While there are fees associated with accepting credit cards, businesses that accept credit cards usually see a decent rise in sales as a result. If you do your homework and select the right merchant account, the cost of credit card processing is outweighed by the increased revenue your business will begin to receive.

Get started!

Posted on Wednesday, July 21st, 2010