Applying for A Merchant Account
The process of applying for a new merchant account is intimidating. There’s a lot of information everywhere, and most merchants don’t have time to investigate most of it before actually applying for a merchant account.
Applying for a merchant account is undoubtedly important, so make the time to learn about them. The market for new merchant accounts is competitive, and providers will bend over backwards to get your business. Use this competition to your advantage and get merchant account quotes from at least three different providers. Processing rates and fees aren’t always non-negotiable. Providers will try to best their competition. Let each provider know what the competition is offering when applying for a merchant account.
Technically, all merchant accounts have a contract – including the term and the cancellation fee that you should be cautious of when applying for a merchant account. The contract term is the period in which if you cancel a merchant account, you will have to pay a cancellation fee. Month-to-month merchant accounts without a term can be cancelled at any time without a fee, so take this into consideration when applying for a merchant account.
Despite misunderstanding, merchant accounts don’t have hidden fees, but they might have often overlooked fees. Merchant account providers can’t charge you anything that you haven’t agreed to in the merchant service agreement that you sign when applying for a merchant account.
When you’re applying for a merchant account, the provider will give you a few documents to review. The first document is the merchant service agreement – around twenty pages long. The second is the schedule of fees – just a couple pages. Review both of these documents carefully when applying for a merchant account. While it may not be captivating, it will be one of the most important documents you’ve read. If you’re unsure of certain details while you’re applying for a merchant account, ask the provider for clarification.
You’ll also need some numbers in the process of applying for a merchant account: you’ll put down a monthly processing volume and an average ticket. Processing volume refers to the gross credit card sales in a monthly period; average ticket refers to the average dollar value of a credit card sale. The merchant account provider uses these two figures to access the risks related to your new account, so if you give inaccurate data when applying for a merchant account, it may be frozen or terminated when discovered.