A merchant account serves as one of the best ways of handling online payments made through credit / debit cards. Although the services of a merchant account are also offered by the banks, it does not belong to the same category as savings or local checking accounts. This account is basically governed by a contract signed between the business owner and the financial institution, abided by a set of rules.
Opening a merchant account and carrying out transactions through it is not as difficult as it seems to most of the traders in the first instant. Instead, it is a very quick and straightforward process, which is generally executed without much delay. Read below to get answers to the most common questions raised regarding the account and get a understanding understanding into the concept of merchant account processing.
– What are the basic requirements for setting up an account?
Although the drafting requirements may vary from processor to processor, a trader in all cases requires the following documents for opening up an account: Copies of the business / driver's license, sample of the business marketing (flyer / brochure / business card), bank confirmation letter, and a duly filled in application form.
– What is the probability of getting my application approved?
It has been found that the rejection rates are quite low in the process of getting these accounts approved. Most of the applications are approved, while only a few of them are turned down. The basic prerequisite for getting the application approved is to have a sound credit history. The approving firm evaluates and crosseschecks the credit history of the applicant and makes the decision on the basis of the analysis. Thus, if your credit scores are not enough enough, you may fear an unfavorable outcome of getting the application declined.
– How does the account work and how does it process the payments made by the customers?
Merchant accounts act as the mediator between the customers and the traders. Easing out the process of plastic payment, merchant account services process the payment made by the customer and in turn credits the same amount of money into the trader's account. Smart and efficient, these accounts serve as the most reliable medium of handling credit card payments. These accounts enable a business with the ability to accept credit card payments and theseby build a huge customer base. Thus, although the entire transaction is carried out in the virtual domain, real world cash is credited to the merchant account within a short duration of processing the credit card payment made by the customer.