Setting up a merchant account is not as simple as just getting the appropriate gear and equipment. If you want to set up your own business so that you can offer your services to others, it would be good for you if you know how important it is to have a merchant account, especially if you are going to deal with credit card transactions. Most of the time, merchants who offer payment in cash or check do not need official merchant accounts.
Setting up a merchant account is not as simple as just getting the appropriate gear and equipment. If you want to set up your own business so that you can offer your services to others, it would be good for you if you know how important it is to have a merchant account, especially if you are going to deal with credit card transactions. Most of the time, merchants who offer payment in cash or check do not need official merchant accounts.
What Is A Merchant Account?
A merchant account is basically an essential part of your business because this will allow you to process different types of transactions electronically, which you can’t do if you don’t have an appropriate merchant account. This is where people are going to pay for the services or products offered by your business.
Having a merchant account means that you are able to process credit card payments easily and quickly so that you won’t have any problems dealing with your customers who prefer using their cards to pay for your services or products.
How To Set Up A Merchant Account?
Basically, there are three things you have to consider if you want to set up a merchant account. These are:
1) getting an appropriate merchant account with the right features that suit your business needs;
2) choosing the company that will provide you with the said merchant account; and
3) having a plan on how to use the services offered by your chosen merchant account provider.
Step One: Getting an Appropriate Merchant Account
If you want to set up your own business, one of the first things you need to consider is getting an appropriate merchant account that will help you with your business.
In order to get the appropriate merchant account that suits all of your needs, you have to do a thorough research first on different types of merchant accounts available in the market today. Check out all of their features and benefits, terms and conditions, pricing plan, etc. Once you have found an appropriate merchant account company for your business, it’s time to move on to step two.
Step Two: Choosing the Company That Will Provide You With A Merchant Account
Once you have found out about different types of merchant accounts available for your business, it is now time to choose the company that will actually provide you with one. When choosing a merchant account provider, make sure that you will only deal with a reputable merchant account provider. Here are some important factors to consider:
a) Pricing Plan:
Do your research on different pricing plans offered by different providers. Make sure that the one you choose offers affordable and competitive pricing plan so that you will be able to save more money in the long run. Some of the most popular pricing plans offered by merchant account providers are flat rate, tiered rates and interchange plus
b) No Contract:
The first factor you have to consider when coosing a merchant account provider is whether or not they require an application contract with their customers. You do not want to deal with a company that will lock you up in a contract.
c) Experience:
You should also consider the experience of your merchant account provider because this will affect the overall quality and service you will receive from them. Look for a merchant account company that has been in the business for years and has already served thousands of customers worldwide.
d) Services:
Check whether or not the company you are dealing with offers a wide range of services aside from processing credit card transactions. You should also make sure that they offer solutions to problems you may encounter once you start using their services.
Step Three: Making the Most Out of Your Merchant Account
After clarifying the three things discussed above, it is now time for you to make a strategic decision on how you will use your merchant account to help you succeed in your business.
You should determine what kind of product or service you are going to offer and whether or not you need an internet merchant account, mobile, virtual terminal, recurring billing/subscription management tools, etc.
Once you have established the major features of your merchant account, it is time for you to create a solid plan on how you will make the most out of your merchant account. You should start by choosing an appropriate payment gateway. After that, determine if you want to offer recurring billing services or implement incentives like free shipping, cash back rebate and discount coupon offers.
After setting up a solid plan on how to make the most out of your merchant account, it is time for you to move on to step four.
Step Four: Setting Up Your Merchant Account
Once your business starts growing and you want to introduce credit card processing in your system, it is important that you set up your own merchant account. Here are the basic things you have to consider when setting up a merchant account:
Company Name:
Before you start with your application, you have to make sure that the company information is accurate and complete. You should provide all of the required information in order for them to verify your identity and for faster processing.
Contact Information:
You should provide as much information as possible about your business. Providing as much information as you can will help the merchant account provider to serve you better and to develop a long term relationship with your company.
Financial Information:
Before the provider finalizes the application, they will require some financial documents from you so that they can perform a credit check. Here are some of the most common financial documents required by merchant account providers:
a) Bank Statements:
This is one of the most important things that a provider will need from you before establishing your merchant account. Providing them with accurate and complete bank statements will help them verify your identity and make sure that all transactions coming from your account are valid.
b) Tax Documentation:
Before establishing your account, the merchant account provider will require you to submit all necessary tax documents. This is required by law so that they can determine the risks involved with dealing with your business.
c)Articles of Incorporation:
If you own a corporation or any other type of business entity, the merchant account provider will need to see your articles of incorporation and other legal documents. This is very important because you can only establish an account if you are a business entity.
4. Security Measures:
Aside from providing accurate and complete information, it is also necessary that you take proper security measures when dealing with your merchant account provider.
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