There are many steps that you must follow to set up a merchant account. You must get all the paperwork in order and verify your business’s legitimacy before submitting the application. In addition to that, you must be approved by a bank or payments provider. However, the process is fairly straightforward, depending on your provider.
First, you must get a business license. This will depend on the state you live in and your industry. The Secretary of State has a website where you can apply. If you’re a high-risk business, you may be required to submit additional documents.
Next, you’ll need to provide financial statements and tax ID numbers, as well as the name and address of your business. Your processor will also check your personal credit history. They may require you to submit inventory reports or a business plan. Additionally, you may have to provide a cover letter explaining why you want a merchant account.
Once you’ve received approval, your payment provider will send an authorization request to your bank. Depending on your processor, you can expect your funds to be transferred to your business bank account within a few days. On the other hand, if you’re processing a lot of credit card transactions online or by phone, you might have to wait longer.
You can save on monthly fees by choosing a subscription-based processor. Another option is Square, a third-party payment service. It’s popular with e-commerce businesses. Signing up with Square will require you to provide a valid EIN and business bank account.
After you’ve been approved, your payment provider will transfer funds from your sales to your business bank account. Some companies are able to do this within a few days, while others might need two to three weeks. Whether you’re using a traditional credit card processor or an online service, you’ll want to compare quotes before signing a contract.
To avoid any delays, choose a payment processor that gives you all the information you need. Ideally, your processor will provide you with a detailed explanation of the underwriting and approval processes. Besides, they should offer you the best rates for processing.
Aside from the underwriting and application process, you should also review the fees and other requirements for setting up a merchant account. The length of the process will vary from provider to provider, and it can take several months. While the initial cost can be a bit steep, it’s worth it to have an account that accepts electronic payments and allows you to grow your business.
In the end, you’ll need to compare merchant account providers and choose one that provides you with the most competitive fees, customer support and equipment. Remember that the more reliable a company is, the faster they can help you start processing credit cards. Getting a merchant account is an essential part of running a modern business. And if you find a provider with great support and high-quality services, you’ll be able to work from home and grow your business with confidence.