How To Get A Merchant Account
How to get a merchant account includes finding the right provider that has competitive rates on monthly fees, discount fees, and chargeback fees. An application for an account can be accessed with many providers online. Most providers are financial institutions or banks. However, there are some companies that work between the financial institution and the client. Important things to know when setting up a merchant account include fraud protection, the capability of accepting international transactions, fixed fees, and limits on deposits. Normally funds transfer from the merchants account to the client's within two to four business days from the transaction date. All business transactions should be done in honesty and with integrity. "Use honest scales and honest weights, an honest ephah and an honest hin. I am the LORD your God, who brought you out of Egypt." (Leviticus 19:36)
Businesses online that offer a way to accept credit cards usually ask that the business owner fill out an application. Know what the needs are of the business before asking how to get merchant account. One important thing to know is if your company will need processing equipment. The bank or account holder will want to know how much the owner estimates on monthly charges and what the average amount of a charge will be. Accepting charge cards is possible at a retail store, through a website, by phone, and through the mail. Before setting up a merchant account a business owner will need to know exactly what will be needed in order to successfully process credit card information from customers. The bank will also need to know the business name, what type of products and services are sold, the state of physical location, a contact name and email address, and any extenuating circumstances that might apply such as multiple locations.
Online processing with credit cards starts with the customer shopping on a website. The customer inputs card information on a secure site and then waits for an approval from the bank who issued the card that is being used. When the payment is approved an approval code is sent back to the merchant and within seconds a customer receives that the transaction was approved. The bank then deposits the money into the merchants account within two to four business days of the transaction date. Setting up a merchant account is extremely important for a business online because most web shoppers use credit cards for payment.
When setting up an online credit card processing center for the first time a merchant needs to understand some of the important issues in how to get a merchant account. Purchasing the right software is important in taking credit card purchases. Find out what the online processing fees are going to be before making a commitment with a bank. An average quote for an online processing fee would probably start around 2% per transaction based upon the total amount charged. Purchasing a terminal might be something to consider for any customers who wish to call in their card number over the phone. Never consider leasing because doing so will probably include a long-term agreement. Signing a contract with a processor could mean staying with them for a very long time even though you may not be happy with their service and canceling early could mean paying a high termination fee.
Compare discount rates between various providers but consider that a processor that has low discount rates may have other types of fees that make up for the difference. A discount rate is what the processor charges for processing the credit card transactions and they are usually based upon a percentage of the total purchase amount. Setting up a merchant account will mean paying discount rates no matter what provider is used so they are inevitable. Some types of cards may have higher discount rates than others. This is something that should be found out when looking for a provider. Discount rates can vary based upon the client's credit score, business type, monthly volume and the average sales ticket, how long the merchant has been in business, and return policies. Other usual fees charged by providers include transaction and authorization fees. These are charged to the merchant for every transaction that takes place even on declined transactions.
A provider offering a merchant account will normally also allow the client to offer their customers an opportunity to use their debit cards or opt to have an electronic transfer straight from their bank besides taking all types of credit cards. Checking out all of the options available is the best way to find out how to get a merchant account. Many online providers provide software, processing equipment if needed, along with free shopping cart and checkout. Some have the capability to interface with accounting software so the merchant can have the information integrated into their own system. In addition, many offer safe and secure transaction processing so customers do not have to be concerned about identity theft or other security issues.
Providers may also offer electronic check services for those customers who prefer mailing in a check for online purchases or for purchases made at a retail establishment. When a customer writes a check the information is entered into the system where payment is automatically transferred from the customer's bank to the merchant's bank. The check entered electronically has to be in the customer's personal name or be from his or her business account. For more information on how to get a merchant account a person can do a search online to find out the many options available and find a reputable provider.
High Risk Merchant AccountA high risk merchant account was an absolute necessity for the recent graduate of the "Get Your Man School for Private Detectives" outside the little town of Don't Know Where I Am, Nevada. It was a little school that only graduated about 1 1/2 gumshoes a year, but this guy was the real deal. Trench coat, fedora and an upper lip that curled when the guy talked, the man had learned his lessons well at this little Nevada school, and now was the time to set up shop somewhere in California. The private eye had found a little storefront office in one of the most desolate towns in northern California, and as the man proudly placed the newly won diploma behind a broken down desk, the shock of this guy's life was about to take place. Knowing that most of America does business with credit or debit cards, the PI called a local bank to set up a business account, including the ability to take credit card business at the office. Instead, the bank sneered at him and called his chosen line of work a bad credit merchant account and no deal thank you very much.
Shocked, angered and a mite bit peeved, the PI began hunting down information. This would be the first investigation the guy had done since graduating from Get Your Man School for Private Detectives because the PI needed to know about being a high risk merchant account. Come to find out, there was a whole bucket full of businesses considered as having a . Auto rental businesses, bail bondsmen, cellular phone merchants, hair restoration businesses, used auto sales (surprise!), water purifiers, time share merchants, coin shops, sports card shops, detective agencies and about fifty other "don't touch this business" businesses that are considered a bad credit merchant account. Used car lots are not hard to understand, but hair restoration? So the reality is that if these risky businesses attempt to create an account with a bank to take credit cards, there is no way it will ever happen!
But thanks to business men, who love to take risks, there are places a time share merchant or the owner of a sports card shop or a detective agency or any high risk merchant account can go to establish plastic card acceptance capability. In addition, businesses that help high risk merchant accounts obtain a merchant account to process credit cards and bank cards can also help our private eye accept checks over the phone standing behind the payment of any check it approves. The gumshoe knew that the business of detective work would not get off the ground if there was no ability to take debit cards and checks. Having a bad credit merchant account is not about the character or the credit history of the owner of the business. The moniker is given to types of businesses that have the reputation of coming and going very quickly and not having deep roots in a community. In some cases the designation may have to do with the way some of these service providers have completed or not completed transactions with their customers, or in how they have paid their bills. "For we know that, if our earthly house of this tabernacle were dissolved, we have a building of God, an house not made with hands, eternal in the heavens." (II Corinthians 5:1)
The companies providing risky businesses with a merchant account make their money with higher than normal transaction fees. Low risk merchant accounts include would include such businesses as retail establishments offering in person credit card swipes, restaurants, hotels and motels and home based businesses. All of these types of commerce have had long track records of not packing up and leaving overnight. They historically receive lower interest rates and lower processing fees for credit card and debit transactions. I guess our private eye will just have to get with the program and sign up for one of the credit card processing systems that will give our high risk merchant account detective agency swiping rights. Not for stealing but for credit cards!
The PI was able to overcome the stigma of being called a no trust worthy person and developed a good reputation in that little California town. Unfortunately the graduate of that great and honored detective school didn't stay in the business long. He really wearied of having so many people not trust each other and having to dig up dirt on good people. He went to the State Police Academy and became a motorcycle cop and worked himself up to, you guessed it, a detective. But a lot of people never recover from being labeled in a negative way.
It's one thing to be a bad credit merchant account in business, but it's another when a teacher or a parent or a spouse constantly sends signals that someone is trouble or no good, or rotten and not worth loving. Then the labels start hurting and the doubts start coming about one's worth and value. And before long the walls go up and no one can get near and dying feels like maybe a good option because life is really a pain. There is good real news and it isn't from some bad credit merchant account credit card processing service that wants to take hard earned money. God really loves you and really wants to be your friend and your partner in life. Talk to Him today and tell Him about your hurt. God loves to listen.