Things to know before starting a merchant accounts
Accepting cash and paper check has become nowadays. Credit card payments are booming and customers around the world are finding it simple and dependable. Even small scale businessmen are also started to accept payment from card which also increase their standard of the business. It is also a better choice for those who are sick of paper invoices and employ snail mail to get the payments from the customers. But it is mandatory to own merchant accounts when have plans to accept credit card payments. Once you have decided to get a merchant account for your business, there are few things you need to know about it. They are listed as follows.
- Business bank account is mandatory for merchant account:
The basic need for merchant account is business bank account. Even if you are a sole proprietorship, it is mandatory to own one. Opening a business bank account takes not more than 30 minutes in a bank for which you need business license, employer identification number etc. Try to maintain good balance in the bank account which can cover if any processing fee is applied and monthly software fee etc.
- Business license for merchant account:
Every business owner has business license on some sort and it should be provided when opening a merchant account. Make sure you have one when applying for merchant account.
- Application for merchant account:
When you have decided to procure merchant account, you have applied them properly. Most of the people used to apply over online which reduces the efforts and also saves time. With the short span of time, anyone can complete filing the application.
- Documents you need for merchant account:
You know maximum amount transacted on your account. when you are intended to transact greater amount, underwriter usually needs more documentations with your application. But, you only transact few thousands every month, and then there is no longer necessary to worry about submitting more documents.
- Faster way to get merchant account:
The faster you submit your entire document, the sooner you get the account. When you submit all the documents precisely, you can even get the merchant account at the end of the day. This is why people are advised to be precise while submitting their entire document.
Trying out the online method of applying merchant account is more helpful for you as they are simple and faster than the traditional method.
- Processing fees and funding:
Processing fees are generally depends on type of payments that you are generally processing and which method are you using to process the payments. The e-check processor and credit card fees may vary. Usually, e-check processor has a limit and until you exceed the limit, it only charge flat transaction rate whereas credit card processor charges additional percentage fee along with flat rate.
Once you get the account, simplify the way collect your payments from your customers and ease all the intimidating works.