Secure a Merchant Account in 7 Simple Steps

Tuesday, August 9th, 2022

 If you’re running a business and looking to secure a merchant account, you might want to consider the best way to go about it. The first thing that usually comes to mind is that this will involve going through the entire application process. 

However, you may be surprised to learn you can compress everything into seven simple steps!

7 Steps to Secure a Merchant Account 

1. Preparing the Necessary Documents

The first step you do need to accomplish to get a merchant account is to prepare the necessary documents. If you’re starting a new business, you may need to complete additional paperwork and provide additional information, such as proof of your identity and address. 

The merchant service may also ask you to provide financial statements, tax returns, or other documents that prove your company’s stability and ability to pay its debts.

2. Decide on the type of merchant account you want. 

There are several types of merchant accounts, and each one is designed for a different type of business. For example, if your industry or business model is risky, you’ll have to open a high-risk merchant account. 

3. Compare services and rates. 

Compare the rates different merchant account providers offer before deciding which type of account is best for your company. 

Service providers charge fees based on many factors, e.g., your revenue, whether you’re high-risk, etc., so you must understand each account before deciding what works best for your business.

4. Be PCI Compliant

As part of the application process, merchant account providers will want to know if your business is PCI compliant. 

If you do not have a secure payment processing solution in place, they will likely turn down your application. You can do this by filling out an online form the merchant account provider provides or contacting them directly.

5. Apply for the merchant account

Spotting the right merchant service can be an uphill task, but everything else should go smoothly once you find one.

When ready, fill in your preferred service provider’s application form, and provide all the documents to improve your chances.

6. Review the contract

Your merchant account provider will provide you with terms of service and fee structure when you sign up for an account. 

These policies should outline what fees are charged for each transaction processed through your site and explain how these fees are calculated and applied so that there are no surprises later on.

7. Get ready for underwriting. 

Underwriting is verifying your creditworthiness, understanding your business, and evaluating its risk. Banks underwrite to determine whether you are financially stable enough to be able to repay any debts that may arise from accepting payments.

Underwriting is a relatively lengthy process, but staying on top of it is crucial. Even if you have been doing business for years, banks will still want to run tests and check records to ensure that you are trustworthy and have good management skills.

What Now?

Once you’ve applied, work closely with a representative from your service provider to see that your request goes through.

If this application fails, ask why and whether you can re-apply. This info will prove helpful in your subsequent request, even if you can’t re-apply with the same account provider.