Startup business tips provide helpful information that entrepreneurs can use to move forward. Although, some financial details may be overlooked or improperly explained by some merchant account providers. Valued Merchant Services has outlined the items that are needed to open a merchant account.
About Merchant Accounts for Small Businesses
A new business owner might start out with a policy to accept checks and cash-only payments.
However, to avoid losing sales because a large percent of customers prefer to pay for goods and services via an electronic payment method, a store owner may realize that a merchant account is needed to accept credit cards.
Additionally, a merchant account that uses software to obtain an authorization for a payment made with a check could prevent certain instances of fraud and returned items that are due to insufficient funds in the customer’s bank account.
A merchant account is a special account that is used to facilitate financial transactions that occur between a customer and a business.
Without a merchant account, a business owner would have difficulty collecting payments that are made via credit cards, debit cards or gift cards.
Generally, the funds that are processed from the customer’s bank account will arrive into a store owner’s business banking account within one to three business days.
Items That Are Needed to Open a Merchant Account
Many new business owners prefer cash-only payments until the demand from customers forces them to inquire about accepting credit card payments.
Part of the delay might be because the process might seem complicated or too difficult to setup electronic payment methods.
The above is particularly true for mobile business owners who are largely unaware of merchant services for entrepreneurs who are constantly on the go.
Shown below are the standard items that may be required to open a merchant account. Depending on a number of risk factors some of the items may not be required.
- Completed merchant account application
- Business license and/or Articles of Incorporation
- Employer Identification Number / Tax ID Number
- Business checking account (Voided Check or Bank Verification Letter)
- Bank Statements, Previous Processing Statements and/or Financial statements
- Annual PCI compliance scan and questionnaire completion
- Owner’s Social security number
- Owner’s Photo ID, Drivers License or Passport
- Estimated number of transactions
- Average transaction size
- Highest transaction size
A corporation or a limited liability company (LLC) will need to provide proof of existence and registration with their respective state.
Sole proprietors may be able to open a merchant account with some companies that allow business owners to apply via their social security number.
In most cases, a credit check will be performed prior to opening a merchant account, as an applicant with bad credit might be excluded from certain programs.
While many of the items to open a merchant account are shown above, some merchant account companies may have additional requirements.
Work With a Trusted Merchant Services Firm
Business owners are encouraged to work with a credible merchant services company that delivers reliable customer support.
Reputable firms will keep customers up to date with the latest credit card processing standards and PCI compliance.
Apply for A Merchant Account
Getting an appointment at a local bank to discuss setting up a merchant account could be incredibly time consuming.
Also, the merchant processing fees will vary among local banks.
A prospective customer can apply for a merchant account from a comfortable setting at home or from her office by phone, online or by having a local agent visit their establishment.
Valued Merchant Services offers extremely competitive rates for business owners who want to open a merchant account.
When the items shown above to open a merchant account are submitted, an applicant will receive a prompt decision from us.
We offer nationwide support for business owners who need affordable credit card processing services and low-rate debit card processing services.
Speaking with an experienced account representative about opening a new merchant account is a great way to obtain more information.
Contact Valued Merchant Services today to discuss additional payment processing solutions.