Steps to open a merchant business account

Merchant who want to accept credit card payments must have a credit card merchant account. If you are applying for a business line of credit to accept credit card at your business you must get prior approval by a financial institution. Applying for a merchant account involves a lengthy and time consuming process especially if you are not prepared in advance.  So before opening an account it is essential to know the basics of the merchant and how to open the account.  The goal of this topic is to educate the merchant business how to open such account in an ease and comfortable manner and to speed up everyone with the latest terminology available.

Basic requirements for a merchant business account

Here are the basic requirements for opening a merchant account and it depends on the size and the product that you sell: Your business bank account number and routing number, a copy of Articles of Association, identification that you are the enlisted titleholder of that business, your business license or permit.

You also have to provide your personal information including identification card and your driver’s license.

Business registration

The most significant aspect while opening a credit card merchant account is that the business must comply with all the bank’s requirements. For opening a merchant account you had to register your business, which you have to done when you start operating your business. While registering your business you need to obtain any local business permits and occupational licenses that are required to operate your business. All these are necessary as the merchant business will be asked to provide proof of proper registration when applying for a merchant business account.

Open a bank account

After processing your credit card you need a bank account as the funds will be routed to a business checking account within a couple of days. Be sure that the bank you are committing is reliable and trust worthy and the name of your bank account should match the business name that you list on the application form of merchant account. It may help to speed up the application process and qualify you for promotional rates on credit card processing fee if you open a bank account that also offers merchant services.

Business financial information

There are certain requirements when we apply for a merchant account that is similar to an application for business credit. It requires revenue, net income, assets, liabilities and trade references and so in order to make the application process smoother and to increase your chances of getting quick approval you need to organize and prepare your financial statements. Some other financial documents such as profit and loss statement, balance sheet, prior year’s tax returns, bank statements and a copy of your recent processing account statement are also required.

Fixed and variable fees

Opening a merchant account charges fixed fees and variable fees that varies to the size of the business. Fixed fees refer to the application cost; the monthly and annual cost of the merchant account and variable fees depends on how much your usage of the service is for every month. You have to pay all such charges to get approved to accept credit cards at your business

By complying with all these procedures your application process will be made simple and done with after 24 hours. Thus opening a merchant account is one step of getting closer to accept credit card payments and the flourishing improvements of your professional image which every entrepreneur dreams of.