The Merchant Services Application Process

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If you own a business today, you can’t afford not to accept credit cards as a form of payment for your goods or services. Some business owners, particularly with very small companies, feel overwhelmed by the prospect of establishing a merchant account. But the entire process is far simpler and straightforward than many business owners realize. Not only is the process simple, but it’s an integral component of growing your business. In fact, studies show businesses that accept credit cards are significantly more profitable and have greater rates of growth and stability, even during shaky economic periods, than those that do not accept credit cards.

To accept credit cards you need to have a merchant account. A merchant account aids in the processing of credit card transactions, ensuring they are validated and authorized by the card issuer, and transferring the funds from the card issuer to your own business bank account. A good merchant account services provider also helps your company fight fraud and deal with credit card charge disputes.

Obtaining a merchant account is a relatively simple process that begins with finding the account provider that’s right for you and your business. There are hundreds of merchant account providers available today, so be ready to take some time to research your options to find the one that works best for you. Some general guidelines to follow during your search process:

choose an account provider that’s experienced in handling your type of business
choose an account provider that is experienced in handling the way you do business – online, retail, mail order, telephone, or mobile sales
choose an account provider that is experienced in working with small businesses, as they know where to find the best fees and rates that will suit your budget
choose an account provider with a good track record and a history of courteous, timely, and helpful customer service

Once you’ve decided on an account provider that’s right for you, the next step is to fill out the application. Most merchant account application procedures are fairly similar, and request the same information. Of course, now that you’ve spent a while researching and selecting your account provider, you’re probably anxious to have your account approved and opened so that you can begin to accept credit card payments as soon as possible. And while the account approval process is streamlined and fairly predictable, there are a few tips and tricks you can use to ensure your account is approved speedily and without delay.

If you don’t have a business license, apply for one. You’ll need one for your account, so if you don’t already have a license, start the license application process before you begin your search for a merchant account provider.
Open a business bank account if you don’t already have one. Your business bank account will be linked to your merchant account, and will receive the proceeds of your credit card transactions.
Gather your information ahead of time. Most applications require the following information before being submitted: your name and address; the name and address of your business; business license information; business bank account information; your tax ID number or social security number; business financial information; and other data about your business, including the type of goods or services you provide, and the type of account you need (retail, Internet, mobile, or mail order/telephone order, also called a MOTO account). By getting together your business and personal documents prior to the application process, you can ensure your application is filled out completely and quickly.
Fill out the application carefully, and reread it once you’re done, rechecking any account numbers, phone numbers, and email addresses to eliminate errors that could delay your approval.
Make sure to remain available during the application review process. Don’t submit an application and then go on vacation. If the merchant account provider has questions, they want to be able to contact you – and you want to be able to give them the answers they need as quickly as possible, to avoid delaying the approval of your application. If you apply for an account online, be sure to check your email regularly, in case any concerns or questions have been sent to you.

A merchant account is an essential part of any growing business that wants to continue to grow and remain profitable by accepting credit cards for payment. Opening an account is a simple process that relies on an accurate and complete application. These guidelines will help make sure the application process moves quickly, so that you can begin accepting credit cards and increasing your business’ bottom line as soon as possible.