The "What's" & "How's" for a Merchant Account

Nov. 25, 2009 - PRLog -- Many merchants experience a sense of trepidation when searching for a merchant account. Questions regarding credit history, types of merchant solutions needed, and estimated credit card sales; make a singular objective evolve into a gauntlet of hurdles. Hopefully this article will help clarify what is a merchant account and how to obtain one.

   A merchant account is an account that enables a merchant to fulfill the act of processing credit card orders.  The act of processing credit card orders is a tedious process between the patron’s credit card company, the machine/gateway used, and the credit card processor (while funds are ultimately deposited in a merchant’s account). The time frame of funds deposited is normally a 2-3 business day event (depending on the merchant’s bank).
The typical facts required from a merchant service provider are as follows:

(1)   A voided check – a processing company must know where to deposit funds. A sole proprietor can use a personal check. However, for all others, a business check is needed. (Note: if a permanent check is not available, a bank letter stating merchant name, account number and routing number will suffice).

(2)   Verification of address – for all retail shops (including home based) proof of a physical address is needed. This can be provided with a utility bill, or third party mailing to support the name and address. Post office boxes are not accepted and generally frowned upon as a physical address.

(3)   A copy of a picture i.d. – whether a driver’s license, passport, or any government issued license, this is necessary to confirm the merchant’s signature.

(4)   A copy of promotional material – this is normally the case for home based or e-commerce merchants. This can be either a business card, flier, or (for e-commerce merchants) the first page of the website. Note: For e-commerce merchants, refund policy and contact information has to be visible on the site.

   A very important note: High risk/high volume merchant accounts usually demand additional information (ie: 6 months bank statements, 2 year tax returns, and articles of incorporation). A listing of examples of high risk merchants is at        http://accountmerchant.us/High_Risk.html
   Once a merchant decides how he or she will process credit cards, the next step is to pick a terminal. Though there are some companies that provide free terminals, there are a “slim few” that provide free terminals for merchants with challenged credit.
The reason is simple. Once a machine is provided, who is to say it would be returned if a merchant closes his doors?
   As for merchant service providers, sometimes free is not the best alternative. There is currently a growing trend among MSP’s where antiquated and out dated equipment is given for free. In addition many companies are providing free equipment only to merchants who process in excess of $5,000/a month in credit card sales. The end result, you may get a machine that has to be replaced within 6 months or you are not eligible for a free terminal if you are a “start up” or you have less than perfect credit. A reference link to resolve these issues can be found at http://accountmerchant.us/Free_Terminals.html

   In the meantime, keep your eyes peeled for future articles about high risk merchant services and pricing your accounts. I hope this was helpful for you. Until next time, I pray we’ll meet again.

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Merchant Account & Terminals Free. Rates as low as 1.19%. 98% Approval for all retail shops regardless of credit history.