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Tips On Merchant Account Opening Formalities

If you are running a business and want to have a proper control of your payment services, then you have to open a merchant account in order to accept card payments from your customers. You can generate reports whenever you want to check the payment details and also it a very easy and convenient payment method compared to the traditional method of using physical invoices and vouchers for billing.  A merchant account is necessary to accept the card payments and it will boost your sales significantly. Read on to find all the latest business-related news below. According to business2community.com, there are plenty of benefits of opening a merchant account for your business developments.

Bank Account for Business

A business bank account is must for running a business even if it is a small enterprise or a proprietorship firm. It is a very easy process and an account can be opened instantly if you have all the relevant papers such as a valid business license and your employee identification documents. You have to route all your business related transactions such as debit, credit, and charges to this account to have proper control of your business position. You can even open a separate account for debit and credits for easy reconciliation.

Business License

A valid business license is required for all business enterprises other than sole proprietorship if you are planning to expand your business outside the country of your business location. You have to include this clause in the articles of incorporation and you also have to mention the reason while applying for the license

Online Application

You can open a merchant account online just by filling the application with the correct details and also you have to sign the application form online. Check all the underwriting details before submitting the forms to know about the terms and conditions. Online submission is an easy method than filling the physical form, printing, scanning and submitting directly. You have to provide all your business details including your personal, banking account details, approximate business value, authorized signer of the account, business start date and contract numbers.

Different Merchant accounts

You have to open a separate merchant account in case you want to accept the different types of payment methods which are not listed in your original merchant account and not supported by your first service provider

Other formalities

If your transaction level is very high, then you will have to submit some additional documents to open a merchant account. You can maintain one merchant account for your retail and online trading services if the payment processing method is same for easy handling of accounts.

Risk Factor

The participating bank and the payment processing units are taking some a risk while providing the merchant accounts for business firms. At the time of swiping your card, your account will be debited in real time, but the merchant account will be funded in a scheduled payment settlement method. In the case of a refund request initiated by the customer for non-delivery of the goods and services due to various reasons, the bank has to refund their customers account before they receive the funds from the merchant.

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