Opening a Merchant Bank Account

Opening a Merchant Bank Account – 7 Things You Should Know 

So you’ve started a business and you intend to take credit or debit card payments. One of the things you’d have to look into is how to open a merchant bank account. This is an account that holds funds paid by the cardholder’s bank for transactions made with the card before it is sent to your regular business account.

To navigate the process of opening a merchant bank account and getting great deals from the best providers you can find, here are some of the things you should know about opening a merchant bank account.

1. You will need a business bank account:

   your business account will be the final destination of funds sent in from your merchant account. Therefore, before a merchant bank account can be opened for you, you’ll need to open a business bank account if you don’t have one already. This is an essential requirement no matter the type of business you run.

2. Your business must be registered:

   Merchant account operators are concerned about the legitimacy of businesses that open accounts with them and a license will be needed to validate your business as legitimate. Before a merchant account can be opened for you, your business must have a license of some sort. This can be anything from a name statement for a sole proprietor to the articles of incorporation for an LLC.

3. You may need separate merchant accounts for different payment types:

   The underwriting procedures for taking credit card payments is different from that of eCheck or ACH transaction. Therefore, you may need separate merchant accounts with two different payment processors for each payment method you choose.

4. There is a maximum processing volume:

   Your application procedure will depend on the volume of transactions that your business needs to process per month. The transaction volume will also determine how much documentation you will be required to do during the application process. After opening your account, your processor will still keep an eye on the account to ensure that the maximum transaction volume is not exceeded.

5. Understand the associated fees:

   It is crucial that you know how much you will be paying to open and operate your merchant bank account. Setup and processing fees may vary from one merchant account provider to the other. While some processors charge a flat rate for transactions, others take a percentage on every transaction. Cost may also vary from one card type or the other.

6. Confirm additional fees before you sign up:

   It is common to find small business owners complain of hidden fees on the merchant account transactions. Some providers may charge extra fees for customer support, security compliance, and so on. So even when you seem to be getting a good deal from your merchant account provider, be sure to confirm all the charges that will be associated with your transactions before signing up.

7. Support is important:

   In choosing a merchant account provider, you need to consider how much support you will be getting from your provider should you ever need help or have questions about their services. Be sure to check user reviews and confirm with the Better Business reviews to ascertain the quality of service and customer support you will get.

For more information about how to open a merchant bank account, feel free to contact us directly at our toll-free number at +1 (844) 671-0724 or email us [email protected] or visit our website.