Steps to Take When Applying for a Merchant Account

You know that it’s important to have a merchant account for your business so that you’ll be able to process and accept credit card payments. Chances are good that you also know that it’s better to apply for a merchant account than to go with one of the online payment processing solutions. However, there’s a possibility that you are not yet sure of what it’s going to take to apply for a merchant account.

Specifically, many merchants are unfamiliar with what information they will need to supply to the merchant account provider and what criteria they will need to meet in order to apply and be approved for a merchant account. The following list will help to ensure that you know what to expect.

• You will need to complete a merchant account application.
  When you are ready to apply for a merchant account, you’ll have to fill out a form provided by the merchant bank that asks for details about your business and for information about yourself (specifically if you have not been in business for an extended period of time). This information will include but not be limited to your address, your business address, your Social Security number and your Federal Tax ID (if they are different), phone numbers and other basic information.
• You will need to provide copies of your Articles of Incorporation if you have incorporated your business or your DBA (doing business as) if your business is a sole proprietorship.
  This is because merchant accounts are not available to individuals, only to businesses.
• You will need to provide a copy of your business license.
  If your state or city requires that you have a business license or permit in order to operate, merchant account providers will require documentation that your business is registered.
• You will need to provide financial statements.
  If you have been in business for more than two years, you will be asked to provide business financial statements. If your business is newer or if you have not been as successful as you could have been, you may be asked to provide personal financial statements in the form of tax returns as well.
• You will need to provide a voided check or a statement from the bank that includes your business information.
  In order for processed credit card payments to be deposited into your bank account, you are going to need to be able to verify your bank account information.

The above are the key elements of what you will need in order to set up a merchant account. In some cases, you may find that there are other requirements as well such as the need to establish a personal guarantee for your business.