How to Apply for Bank Merchant Services
With bank merchant services, you can begin accepting credit cards from your customers. This will increase your earnings substantially because most consumers want to use their credit cards when shopping either online or offline. Applying for a merchant bank account is not difficult once you find the direct merchant bank that you wish to use. Here are some tips when applying for a bank merchant account.
Step 1 - Find a Bank or a Provider
The first step in setting up a merchant account is to find a direct merchant bank or merchant account provider. These companies can be traditional banks or web-based service providers. If you have been in business for a while and have a lot of sales to show, you can usually approach a direct merchant bank to get an account. Small business owners, however, usually have more success with online payment account providers, as they require fewer financial records and resources. An online merchant bank is an excellent choice for business owners who are operating their businesses online, as these companies are easy to get in contact with if there were problems.Keep in mind that you will pay for your merchant account. There is usually a setup fee that you will be responsible for at the outset of your relationship with the merchant account provider. Also, you will pay charges on a regular basis, such as annual fees, for having the account. On top of this, you will be charged a processing fee when you make a credit card charge. Look for a merchant account provider or bank that charges a low percentage of the purchase price for this transaction processing fee.
Step 2 - Choose the Type of Merchant Account
Depending on the merchant account provider you have chosen and the way you run your business, you may have a choice of merchant account types. If you have a brick-and-mortar location for your business, you will want to use a "card present" merchant account. This requires you to swipe your customer's card through a terminal at your store. This does not work for those whose businesses are online. Also, most online merchant bank services do not offer card present bank merchant services.The other type of credit card processing is known as a "card not present" merchant account. These do not require the card to be swiped. The consumer who is making the purchase simply enters the credit card information into a form, usually an online form, and makes the order. This is the type of credit card processing used by online businesses.
Step 3 -Apply and Set up the Account
Once you have chosen a bank or account provider and know the type of account you need, it is time to apply. If you are applying with a direct merchant bank, contact the bank to find out what information you need to bring with you. Financial statements for your business and your photo I.D. are usually required. Gather these documents and then head to the bank's location to fill out the application. You will likely have to wait a few days to find out if you are approved. If you are approved, the bank will help you set up the necessary equipment to begin taking credit card payments.If you are using an online merchant bank or account provider, head to the provider's website where you will find an online application. Make sure it is secure before you begin filling it out. Enter the required information truthfully. Often you can have approval for your merchant bank account within a day when applying online. Be sure that you read all of the user agreements when filling out the online application, as these can be binding once you have agreed to them.
If you are approved for an online merchant bank account, the company will help you install the necessary software and user interfaces onto your website so that customers can begin to make payments with their credit cards. Now you are ready to see the sales come pouring in. Do not be surprised if your sales increase dramatically when your customers realize that they can now pay with their credit cards. Chances are they have been waiting for this opportunity!
Before you fill out any applications, make sure you have done your homework. The cost for bank merchant services varies greatly from company to company. A direct merchant bank may charge quite a bit more than an online merchant bank, or visa versa. Pursue all of your options before applying to ensure that you are getting the best rates on your new bank merchant account.
