When you get into major league trading and selling, someday someone will come up to you and ask whether do you accept credit card payments or not. Consequently, you’d stay far behind your competitors that accept credit cards. That’s when having a merchant account can really help your business. Along with revealing all your business insights, the system further enables you to track expenses as well as profits.
All the big names and even multiple small businesses are using the merchant account to better handle their transactions while ensuring a steady cash flow all around the year. If you’re new to all this and wondering how this works, we’ve got you covered on pretty much everything you need to know by turning a merchant account as my payment savvy.
Merchant Account and How to Have One
Let’s familiarize ourselves with what exactly a merchant account is according to the layman’s terms. It is a cash management and storage gateway that manages, validates and stores all your transactions made through credit or debit cards including mobile payments. The process is handled by a gateway connecting the payment service provider requesting payment to the acquiring bank. The bank in return sends the information to the issuing bank that dispatches an authorization notification confirming a successful transaction.
The gateway is the most vital part of the entire chain. Since this is where the long list of validations is processed multiple times. It is to ensure complete safety of any credit card payment, thus eliminating the chances of any fraud. Transactions can be tracked online with ease. The hassle of physical accounting is slightly relaxed. The service providers for merchant accounts will manage everything for you by deducting a small fee to compensate for their time. Considering this chain, you could move to other methods of payment carried out over telephone, online, mobile or using credit cards.
Things that Qualify You for a Merchant Account
It depends entirely on the category of business you have. Based on that, the method of payment is adjusted. If yours is a departmental store or a mall you could accept credit cards, mobile payment or cash. As for over the phone sales, charging customers by using mobile payment is also possible these days. Different methods come with their own set of limitations and flexibilities by consulting with your bank or “my payment savvy”.
Who Opens a Merchant Account for You?
Choosing the right service provider for your merchant account is vital. Yes, it might be a tad bit longer considering the time it takes for you to conduct thorough research and find the right people. Since there is an overwhelming number of merchant account providers today. But you need to visit your trusted bank and ask them for advice. The bank will either offer you a very lucrative deal or show you multiple options to choose from. This is where the “compare and contrast” mission begins. It is recommended that you weigh all options with utmost scrutiny to make sure you get the best deal.
Service providers might be serviced in a similar niche, however, their fees differ due to hidden fees associated with your income. It would be disappointing to have 25% of all your earnings be taken away as fees. But yes, there are lenient options at your disposal if you look through. There are schemes that you need to compare like transaction fees, monthly minimum fees, and early cancellation fees.
Once you’ve chosen the right service provider after having gone through their reputation experience, customer support, and account management, you can move to the next step. Contact the providers to further assess their services. My payment savvy offers payment gateways to let you withdraw money directly. Lastly, watch out for deceptive ISO’s in the merchant account trading.
Documents Required for Opening a Merchant Account
The next thing to do is applying for their services. For this step, you’ll need to ensure you have the right documentation in hand before you apply. These documentations include:
- Your Financial Statements
- Bank Statements
- Processing History
- Most importantly to keep in check, your Credit Score.
Most of these can be provided to you by your bank and the rest are the documents of your business. The providers will check for the legitimacy of your business along with the income to give you the best viable options.
With every necessary documentation in hand, you’ll be made to fill out a form to successfully apply for the services. The form is a vital part and you need to make sure you provide the right information needed as well as going through the terms and conditions thoroughly. Yes, the most important part is reading the terms and conditions that you cannot overlook.
The end part of the entire process is to speak to the providers to address any additional issues for further assessment. For this, you may have to include an enclosure in the form of a cover letter. After having successfully completed registration for a merchant account, the providers will come and sort out the necessary steps of delivering the service to you. This can be in the form of providing machinery or installing software.
The whole process is to be done carefully to avoid errors. Since it can cost your business a significant sum of money, and of course, beware of scammers too.