Small Business Resource

It pretty much goes without saying that running a successful small business in today’s tenuous economic climate is a difficult task in the least. Many business owners are finding that one of the key factors to business success is through offering customers expanded payment options. Consumer preference for using credit cards when paying for purchases is growing across all markets and segments. Online businesses and bricks-and-mortar operations alike are viewing credit card processing as a viable way to better serve loyal customers and reach new ones to grow business.

So how does one get a merchant account? Many of the large merchant services providers like North American Bancard and others allow you to file an application via online. The application is typically free of cost and all you need to do is simply fill out the requested information and submit. Vendors consider a number of factors when looking over your application. One of the primary things that they require is that the applicant have a running website (if seeking an internet merchant account), voided check, active checking account, and proof of ownership. If your business is new and therefore has no financial history, the provider will most likely ask for your tax returns and other personal financial information.

A common misconception is that if you own a high-risk business that you want be able to get a merchant account. However, this is not the case. While it’s true that it may be more of a challenge to set up an account if you run a high-risk business, you won’t be completely barred from getting one. Instead, you’ll just have to undergo a more rigorous evaluation process. Merchant account providers will closely evaluate how long you’ve been in business as well as look at previous merchant accounts with other processors, if any. Additional items like photos and trade references may also be requested. For those with bad or suspect credit, be advised that vendors will often pull applicants credit reports and/or the credit history associated with their business.

Many merchant account providers reduce fraud by using use address verification systems (AVS) to by ensuring that all addresses given match that associated with the card. However, retail merchant accounts sometimes don’t have this feature enabled, as cardholder addresses typically aren’t required in a “cardholder present transaction”. A lot of the larger merchant account providers also have “bundled” services, in which they offer multiple methods of credit card payment acceptance. This service has become particularly popular with businesses that have online stores in addition to physical brick-and-mortar locations.

A merchant account is a great way to reach consumers in today’s credit card driven marketplace. If your business isn’t yet accepting credit cards at your business, contact a merchant services provider today to find out some options that are right for you.