What to Know When You Apply for A Merchant Account
As a business owner, it is extremely important to understand what you’re doing when you make the decision to apply for a merchant account. It’s crucial to know the difference between business bank accounts and merchant accounts. Business bank accounts fund the opening of a business, while merchant accounts handle only processing credit and debit card transactions. It is imperative to understand that because so few businesses these days are able to operate only by cash, owners absolutely need a merchant account to accept different forms of payments.
There are different types of merchant accounts available to businesses. A retail account is specifically designed for brick-and-mortar businesses. Mail order and telephone order accounts (MOTO) allow merchants to accept payments for transactions via mail or telephone orders. A business that conducts online sales must find an acquiring bank that processes online payments.
Ask Questions Before You Apply for a Merchant Account
Before you apply, make sure that you ask plenty of questions. Because there are so many accounts, you need to understand that each type of account has fees that apply. Most processing providers charge an application or set-up fee, equipment rental fees, and sometimes a chargeback fee. Understand the fee structure before proceeding to application for a merchant account.
It can be hard to start the merchant account application processes when you first start up your business. When your business applies for a merchant account, you are essentially trying to acquire an unsecured line of credit, so it is important to keep your credit rating decent.
When your business sets up your application for a merchant account with a provider, it’s very similar to applying for a credit card. When you complete an application; the bank will assess the information you provide and then let you know whether you are approved.
Before applying for a merchant account, seek one that lets you accept all major cards; this offers your customers more convenience. Most merchant services providers allow you to open a single account that enables you to accept different types of credit cards.
It is important that you do your research and compare different providers. The fees banks and other merchant account providers charge to process credit cards vary, sometimes with limited processing volumes.
If you would like to apply for a merchant account with Vision Payment Solutions, give us a call at the number above; one of our extremely friendly representatives will get you started with everything you need to apply for a merchant account today.