These days, an overwhelming number of consumers prefer an electronic form of payment, especially credit cards or debit cards, to purchase products or services. You may fail to give your consumers an experience marked by convenience and security if you have not yet set up a merchant account for your small business.
As you are busy establishing your business, it is likely that you may not know how to set up a small business merchant account. Integrating a merchant account into your business is a simple process; however, there are certain key factors to consider when you are undertaking that process. Let’s find out how you can set up a small merchant account that will enable you to receive credit cards and debit cards for payment.
Factors to Determine Before Applying For Merchant Account
The main objective of setting up a merchant account is to accept payment by credit cards; therefore, you must first identify the kind of cards you are willing to accept – Visa, Mastercard, American Express, or other cards as well. After you have done that, the next factor you must determine is what kind of payments would you allow – payment via your website, virtual terminal, mobile payment, or through other ways.
Find Right Merchant Account Provider
You cannot randomly pick a merchant account provider. Do some research before zeroing on a merchant account provider that not only meets all your business needs but also assuages all your concerns.
Here are some details you must find out before applying.
- Find out the merchant account providers’ track record. You can easily find that by contacting their previous or present account holders. You can also take the help of Better Business Bureau.
- Find out the transaction fees, and whether the providers will charge you a flat fee based on each credit card payment, or whether they will charge you some percentage of the total amount of the credit card payment. Make sure that there are no hidden charges.
- Find out about other fees like startup and cancellation fees, monthly minimum fees, annual fees, statement fees, and customer service fees. It is important that you understand all the fees and the service terms.
- Find out whether they have any caps on transaction volume. It is better to choose a merchant account provider that does not have any caps on volume.
- Find out whether they have the software and the payment options that match your business
- Find out whether they provide good customer support or poor.
Applying for Merchant Account
Once you have found the right merchant account provider, it is time to apply to get a merchant account. You will have to fill out an application form and submit the necessary documents. In the application form, you have to provide your business details and information on processing type, transaction, type of credit cards, bank data, and more related information.
Until now in this article on how to set up a small business merchant account, we have considered the factors from your perspective, here are the factors that the providers may consider to decide whether to approve your application or not.
- Type of your business, and your business history.
- Personal credit history of the small business owner.
- Business classified as high risk or not.
- Blacklisted or not due to fraud or bankruptcy
- Chargeback volume.
You have to allow consumers to pay in the way that they prefer the most. A merchant account enables you to do that. Setting up a small business merchant account is easy if you provide all the details and the necessary documents during the application process.