If you decided to apply for a merchant account you should meet a number of requirements. Sure, these requirements vary from company to company but there is a list of universal requirements set by most merchant account providers.
What is a merchant account? This is a company that connects your business with the bank that accepts credit card payments. Just like credit lines merchant accounts have certain limits and different rates. Of course, different companies have different terms and provisions.
These are key requirements set by most merchant account providers.
1) You should present your merchant account provider with your business plan with details of your services of products. Business plan should include web address of your site.
2) If you have suppliers you should provide your merchant account provider with their contact details and description.
3) Describe your delivery method for the product or service
4) You must provide your merchant account company with cash flow details, your estimate of monthly income and number of transactions
5) You should give detail of the Internet server you use
6) if you have any partners and sponsors in your business you should give a complete list of them
There are numerous cases of frauds with processing credit cards online. Thus, security issues are important both for businessmen and customers. You credit rating will matter much for your merchant account provider. The longer your business operates the less risky your business is considered by merchant account provider. You should assure your bank that you are familiar with the threats of online fraud and has undertaken certain measures to prevent it.
You merchant account provider may consider your business to be a high risk business. High risk businesses are required to pay more fees. Thus, the company makes a reserve fund which will be used to make up costs of charge backs. Usually such reserves are made up by withholding certain percentage from each transaction being processed.
Much depends on location of your business. You can apply for a merchant account in the US if you have US mailing address and account in the US bank. Besides, your web site server must be also situated in the US.
You merchant account may impose additional requirements. For example your company must be a US corporation or you may need a person or a business which will be your guarantor.
Thus, you should not be in a hurry and choose the best deal for you.
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