The 4Significant Factors TotoConsiderBefore Opening Your Merchant Account

Fora typicalAmerican's convenient financial living, the credit card is an indispensable entity, where,according to the data released by Experian on June 2015, each American, who held an average of 2.09 cards in 2013went on to increase their usage to2.24 cards in the year 2015, thus, indicating theirdesire to hold more than one credit card for their sophisticated and convenient financial purposeslike the payment, shopping etc.,moving forward. This also conveys a significant message for every business operating or willing to operate in the American soil, which is, to improve the feasibility and profitability of thebusiness,accepting the card payments is very important andthat to happen effortlessly,opening the merchant account with a reliable and a favorable provider is critically important, beyond any doubt!

What is a merchant account?

If you are a new business trying to establish yourself in this competitive, yet, advantageous American soil, then, understand the importance of opening an merchant account, which is very much important to effectuate the smooth payment processing ofyour business because an merchant account is an agreement between the business, payment processor and the merchant bank for the efficient settlement of the business-related card transactions, including both the creditcard and the debit card. Since,most of the payment is made using the plastic cards in theAmerica,America;every business isin need of an efficient merchant account,without which the viability of the business is a big question mark high risk merchant account providers

What do you need to know?As there are a number of reliable merchant services available these days, although opening a merchantaccountonewould not be too difficult when you understand the important technicalities involved, you could make a better choice like the type of the merchant accountrequired, the features to consider, choosing the efficient service provider and so on that can make the payment processing of your significant business, always trouble-free.

Your business type

Not every business is the same and so the payments made to utilize their respective services and hence, this demands the need for the suitable merchant account type to facilitate the acceptance of the card payments, accordingly and effortlessly. For example, the retail merchants who operate on the land,capture the card payment process physically as their customers use the point-of-sale system to swipe their cards and make the relevant payment. 

Therefore, such business requires the 'Swiped' or 'Card Present' merchant account to process the card-related payments made towards their business.

On the other hand, an online or the e-commerce business collects the card payment information indirectly and processes it using the virtual terminal or the secured gateway and hence, requires the 'Keyed' or 'Card Not Present' merchant account for their business.

A part from this generic business divisions, there are few businesses that are categorized as high-risk ones owing to either the nature of the business like,adult-related business, specific drug-related businessetc.and/or their financial reputationthat demands the usage of high-risk merchant account offered by certain reliable high risk merchant account providersto carry out the significant card-related payment transactions of their high-risk business, effortlessly!!


Thus, understanding your business purpose and the category it falls under will help you choose the right merchant account that anytime helpsyou to carry out the payment processes conveniently!.

A business bank account is important

Before approaching the specific merchant account service provider, get a business bank account opened and ready as the card payments made by your customers will be credited in this business bank account and, also the relevant transaction fees for the process will be debited from the very same account,making it one of the indispensable requirement to have a hassle-free payment processing, all the time!.

Get your business registered

None of the merchant account service providers would be willing to associate with an unlicensed business and therefore, before approaching one, get your new venture aka the business registered as the license would be scrutinized by the merchant account service providers to validate your business' ranking. 


The payment acceptance type mattersAlong with accepting credit card and debit card via payments for your business, if you are also willing to accept other payment types like the ACH payments or the e-check payments then, you might require separate underwriting procedures and separate merchant accounts, which you have to clearly communicate to your merchant account service provider so that they couldeffectively and thoroughly cater to your requirements.