Are you new to the business world? Do you have a well-established business? In the digital world, every business owner needs to have a merchant account. Having a merchant account will enable you to offer different types of payment services to the customers.
All business owners have one thing in common — they want to ensure 100% customer satisfaction. One of the best and most effective ways to have 100% customer satisfaction is to provide convenience in the payment modes. Offering customers the choice to make payments through different mediums, such as credit cards, debit cards, or cash, makes it convenient for them to purchase from your small business. Online payment systems are better than accepting checks. The transactions happen instantly and are very secure. Providing multiple options for customers increases their trust in your business. Customers will find your services reliable and authentic.
If you have decided to accept credit cards and debit cards payments, it’s time you get a merchant account for your small business. There are a few crucial points that you should know before opening a merchant account.
#1 The Account Opening Process Is A Short Period
When you apply for a merchant account, it will take a few days for the account to be set up. There are a few setup procedures that take place for opening a merchant account for small businesses. These processes are carried out within a day or two. The merchant account providers will complete all the documentation and setting up with no delay.
#2 Merchant Account Setting Up Requires Different Process Time Frames
While setting up the merchant account, they will give you a choice between different time-frames. If you want a quick payment processing system from your merchant account service provider, you need to choose a specific merchant account of a particular time frame. It will also depend on the monthly volume of the customers and the payments you are expecting.
#3 Provide The Business License Before You Open A Merchant Account
For business owners, it is necessary to have a valid business license. It shows that you are authorized to provide products and services to the customers. You can apply for a merchant account only when you have a business license. The business license is an important document that is offered to you by the state government. They provide it to you when you register the company with the government.
#4 You Require An Underwriting Process For Opening A Merchant Account
Underwriting is one of the essential processes of setting up business-specific merchant accounts. In this process, the financial institution’s managers and account processors will ensure that the business is authentic, and the businessperson is authorized to provide the services/products. The underwriting process for the merchant account will secure the payment transactions and eliminate the risks involved.
#5 You Will Be Able To Receive Plastic And ACH Payments
Sometimes, business owners opt for having two different business accounts. They require two accounts to fulfill the different needs of the businesses. One merchant account handles all the credit cards and debit cards payments. The other merchant account will handle all the ACH payments. These types of payments take place directly from bank to bank.
#6 Before You Opt For Merchant Accounts, Make Sure It Is PCI Compliant
Often, business owners try to get a merchant account without PCI compliance. It is not an authentic way to get a merchant account. You may have to face legal issues, eventually. It is always better to have PCI compliance while applying for a merchant account.
PCI compliance will display that your business is authentic and protect the business from hacks, frauds, and data breaches.
#7 Your Online And Offline Business Can Use Same Merchant Account
One of the best aspects of having a merchant account is to use it for online business and physical stores.
#8 Merchant Account Will Verify The Business Sales
Before you start using the merchant account, ensure that you provide authentic and accurate data to the platform. The slightest error may lead to suspension or termination of the merchant account.
#9 You Can Apply For A Merchant Account Online
Yes, it is now possible to apply for opening a merchant account through an online service. It is convenient and easy for business owners.
#10 For Having A Merchant Account, You Need A Business Bank Account
You must have a business bank account before you apply for a merchant account. It is necessary, as your request for a business account will not be approved if you do not have a business bank account.
For every business owner, having a merchant account will offer a lot of advantages. Before you apply for a merchant account, you must know all the points discussed above.