- November 20, 2017
- Posted by: Affiligate Selling Software And Affiliates Network Online
- Category: How to set up a Merchant Account, How To Set Up An Online Merchant Account For Small Business, merchant account requirements, Payment Gateway
How To Set Up An Online Merchant Account For Small Business
Merchant Account Setup And The Benefits Of Online Payment Solutions
A merchant account is a form of bank account which allows internet-based companies to process credit and debit card payments. It facilitates the buying and selling of goods and services through a payment gateway which is obtained through an acquiring bank. When looking to acquire a merchant account, it is advised to enlist the assistance and guidance of a professional firm that specializes in the opening and administration.
Benefits of Establishing Online Payment Solutions
Setting up the merchant account enables the company to improve the payment solutions which they offer to clients, allowing them to cater to a much larger audience worldwide. Other benefits include:
1. Fast and efficient payments
Online payment transactions are completed at a much faster pace. In addition, the payment transaction is instant and the money is credited to the company’s bank account.
2. Secure transactions
Payments are made through a secure online portal which is authorized by the acquiring bank. As a result, sale increase as customers is crediting your website trustworthy.
3. Global audience
It enables businesses to offer online and global payment solutions. With an increased target audience, products and services can be offered across the continents, dealing with an array of currencies.
with no restriction on operating hours of your online business, customers are able to go to the website and make payments 24/7. This essentially benefits businesses greatly as it attracts business worldwide.
As mentioned above, online payment solutions offer clients a flexible and wide range of methods to make their payments. This includes credit card, debit card, e-checks and mobile payment transactions. As a result of offering a variety of payment methods, the company is able to accommodate to a much larger client base.
Requirements to obtain a Merchant Account
The requirements of obtaining vary for each company and the jurisdiction the company is registered in. Banks tend to be more stringent with their rules in terms of opening, whereas a third party such as an independent sales organization (ISO) can liaise on behalf of the company to open a merchant account.
The fundamental requirements of opening an account are as follows:
- Submitting relevant documents detailing company license, name, permits, and articles of incorporation.
- Acquiring an internet gateway in order to process transactions and connect with the merchant account.
- Paying relevant fees in order to support and maintain all card types.
How to set up a Merchant Account
Obtaining a merchant account is vital if the company wishes to provide its clients with flexible payment solutions such as e-checks and card payments. This procedure is relatively long and complex thus it is important to seek the advice of a professional firm which has highly skilled individuals which specialize in this industry.
>> See more: Best Online Payment Solutions Services For Merchant
In order to obtain one, it is essential to own a registered company and bank account in the same jurisdiction. The next step is to select an acquiring bank; this is a crucial step in establishing your account. Most banks have stringent rules and criteria which need to be met, especially in the case of newly formed or small businesses.
Once your company has fulfilled the requirements of the acquiring bank and the application has been accepted to be processed, you have to demonstrate to the bank that your company has the relevant gateway to support and connect to the merchant account.
After meeting the bank’s conditions the account is approved and issued to your company, and then it has to be integrated into the company’s website. This is the final stage of acquiring a merchant account and after this; your company can begin accepting online payments from the website.