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Opening a Merchant Account

The first step to be able to accept credit cards as payment is to apply for a merchant account. Banks and merchant account companies offer credit card payment systems for both small and large businesses. However, before you sign up for their service, make sure to research and check the exact terms and conditions of your chosen merchant account provider.

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When comparing merchant account service providers don’t forget to check the pricing. How much would each card transaction cost? How much would the setup charge cost you? What kind of support does the company provide to their customers? What about the reputation and track record of the company? What do present clients have to say about their service? These are important questions to consider when choosing a merchant account company.

Does My Business Qualify?

If you’re running a home based business or a small business, what are the requirements to get approved for a merchant account status? Of course, your business’s financial standing would be reviewed. Banks or merchant account companies would be interested to learn exactly how much you earn from your sales each month. If your business has a stable history of sales and income, you should have no problem getting approved for a merchant account.

Another factor that would affect your lender’s decision would be the status of your business credit history. Have you already established a business credit? Usually, a business needs to be at least 2 years in operations to get approved for a merchant account. In 2 years, you should have already established a solid business credit history as well. Needless to say, if you have a problem with your business credit, it would be difficult to get an approval. To be sure, check your business credit report at least 6 months in advance and do the necessary steps to improve your rating before applying for a merchant account.

On the other hand, having a good to excellent business credit history would surely win you a quick approval. If you can prove that your business has been running smoothly for a considerable period of time, and that you have a good business partnership with your suppliers, achieving a merchant status wouldn’t be difficult at all.

Accepting Credit Card Payments

Once approved, you’re now ready to accept credit card payments. See to it that you clearly understand how the processing of credit card payments work. Your merchant account provider should give you all the assistance and support you need to make sure that unnecessary problems would be avoided.

As the owner, you should also be aware on how you can protect your business from the risk of identity theft and credit card fraud. Before accepting credit card payments, you should be ready to handle your incoming credit card transactions.

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