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Merchant Account Requirements

2004-07-26
 

A merchant account is required for your business to accept credit cards online if you don't use services of credit card processors. As your business growth you'll likely to want to have your own merchant account. You can apply a merchant account at your commercial bank or at an online credit card processors. A merchant bank is a bank that sponsors a business as a qualified merchant to accept credit cards. Commercial banks usually have a higher rejection rate than credit card processing companies in handling merchant account applications.

Requirements for merchant accounts vary from bank to bank. Some merchant banks don't disclose our requirements while providing general guidelines. There're general acceptable requirements for merchant account applications.

1. Business Bank Account You must have a Business Checking Bank Account so that funds from your Merchant Account can be deposited into.

2. Business Registration Merchant account is for business, not for individual. Merchant banks require a copy of your business license, seller's permit, articles of incorporation, or vendor's license. The merchant must have a registered business address. This cannot be a P.O. Box address.

3. Business Phone Number The merchant must have a business phone number in order to open a merchant account.

4. Limit on Monthly Transaction Some merchant banks impose a limit on amount of monthly transaction on certain types of merchant accounts. For instance, Monthly transaction amount may not exceed US$10,000.

5. Restriction on Business Categories Some merchant banks or credit card processors don't open accounts for sex businesses, adult businesses or Internet gambling businesses.



Related Topics
Choosing Online Payment Options
Online Credit Card Processing - How It Works
Online Merchant Account - Basics, Costs and Alternatives
Third Party Merchant Account - Benefits and Risks
Free Merchant Accounts - Alternatives for Regular Merchant Account

 

 
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