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Things to be remembered while processing merchant account

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The process of opening merchant account is simple if you get the right partner by your side. You should have the basic idea of the process of applying for a merchant account. – PowerPoint PPT presentation

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Title: Things to be remembered while processing merchant account


1
Merchant Account Opening Process
2
About Merchant
Account
  • Every ecommerce merchant requires merchant
    account. This simply enables him to accept credit
    card payments for what customers are purchasing
    from him. It can be either and both of products
    and services. The process of opening merchant
    account is simple if you get the right partner by
    your side. You should have the basic idea of the
    process of applying for a merchant account. This
    starts with credit check in order to determine
    whether you qualify for a merchant account or
    not. Also, it also evaluates how much of payment
    you can process every month.

3
  • There are many possibilities of getting the
    chargebacks and refunds from customers. The
    businesses that happen to be more risky in terms
    of chargebacks and volumes are referred to as
    high risk businesses. For them, high risk
    merchant accounts are required. When a customer
    disputes the activity on his credit or debit
    card, this comes back to merchant service
    provider and the partner bank in form of
    liability.

4
FOR CORPORATIONS LLCs

Once the above sited things are in place, the
application process can be started in consent
with the merchant service provider. Sole
proprietors do not require any of these and can
directly sign up with their names, social
security number and personal bank account.
LEGAL ENTITY
EIN Number
Business Checking Account
5
THINGS THAT CAN PROVE TO BE UNFAVORABLE FOR
GETTING AN APPROVAL FOR MERCHANT ACCOUNT
There are certain factors considered by merchant
service provider and the partner banks before
they approve or disapprove the application for a
merchant account. The challenging factors are
listed below for your perusal
6
  1. BAD CREDIT
  • This is the most common reason for denial of a
    merchant account application. However, there are
    third party merchants that work with high risk
    applicants at a nominal fee.
  • 2. STARTUPS
  • New entrants in any industry are always at high
    risk. Established companies may always throw them
    out of existence.

7
3. NATURE OF INDUSTRY
  • The nature and type of business you are in is
    largely responsible for the non-acceptance of
    your merchant account application by the service
    providers. The previous experience with business
    of same kind can get your application a red flag.
    Types of industries that obtain merchant account
    with great efforts and much difficulty are as
    follows
  • Online gambling
  • Multi-level marketing companies
  • Affiliate marketing companies
  • Guns and ammunition
  • Gym memberships
  • Dietary supplements and more.

8
  • 4. EXPECTED BUSINESS VOLUMES
  • You will be asked to anticipate the business
    volumes you are expecting every month. If you
    give indications for high level of processing
    volume, your chances of getting the application
    approved will be greatly reduced. The more is the
    volume the more are the chances of charge backs
    and in turn the merchant service provider will be
    exposed to more of risks. It is advised to be
    conservative and ask for the minimum you need. As
    you are always having option to raise the volume
    later if the initial volume picks up.

9
  • 5. AVERAGE TICKET SIZE
  • The average ticket size is the average
    transaction price your business will have.
    Typically, merchant service provider will relate
    higher ticket size to higher risk and higher
    charge back cost. It will again be riskier for
    merchant service providers and partner bank to
    approve the application.

10
Contact
  • Having a good merchant account is beneficial for
    your business in long term. If you are finding it
    hard to get your application for merchant account
    approved, tell the experts to assist.

1-800-982-1372 support_at_paycron.com http//www.p
aycron.com/
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