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6 Steps in Applying for a Merchant Account

Posted by Alex Neir on Wed, January 18, 2012 @ 02:09 PM
Applying for a Merchant Account

Are you considering applying for a merchant account? If the answer is yes then this post is for you. I will explain the process and give you specific direction on how to secure the very best rates available.

When applying for a merchant account there is a specific order in which you should approach the process. Below are the 6 steps when applying for a merchant account:

  1. Review the different pricing option available and understand how your business is affected by each
  2. Review some questions to ask when shopping for a merchant account
  3. Shop at least 3 different providers
  4. What to expect with the merchant account application
  5. What will be required for merchant account support documents
  6. Generally, how long do it take to set up a merchant account

A detailed understanding of the different merchant account pricing structures will help you when speaking to merchant service providers. Some providers will pitch you a pricing model that is more advantageous for them and one that is not the best fit for your business. Additionally, it is important to know how your business transactions affect your costs with respect to frequency and size.

When shopping for a provider it is helpful to know what to ask. We have compiled a set of questions that will get you headed in the right direction.

Always shop at least 3 providers. This will allow you to get a feel for multiple providers and will strengthen your chances of finding a good fit for your business.

Once you decide on a provider the next step is the application. The typical application is quick and easy to fill out. Most providers will gather the requirements on the phone and are able to consult you on ambiguous questions. Important pieces to pay attention to are the merchant account soft limits. You will want to make sure you give your account enough room to grow as the business expamds.

Along with the application you will be required to provide support materials related to the applicant and business applying for the account. A short list of support materials can be found here.

The length of time it takes to get an account set up depends upon your type of business, industry, requested volume and financials. The process can take from 24 hours up to 2 weeks.

If you found this post to be helpful and would like to inquire into and account with Maxx Merchants please give us your contact information and a representative will be in touch shortly.

Tags: Merchant Account Soft Limit, Applying For a Merchant Account, Support Documentation, Merchant Account Pricing

Merchant Account Support Documents – What’s Needed

Posted by Alex Neir on Thu, June 23, 2011 @ 07:43 AM
Merchant Account Support Documents

Merchant Account Support Documents – What’s Needed

When applying for a merchant account your business will be required to fill out a merchant account application. The application is typically standard across most merchant service providers with regard to the information collected on the application. Please NOTE: the terms can very greatly from provider to provider so be sure to read the service agreement that outlines the terms of service.

In addition to the application your business will be required to provide support materials as they relate to the business and owners. Required merchant account support documents are as follows:

  • Business organization documentation
    • Business articles of incorporation
    • Or Non-Profit documentation 
    • Or Sole Proprietor documentation 
  • Applicant(s) driver’s license
  • Voided business check
  • Business or applicant financial documentation
    • Previous processing statements
    • Or business banking statements
    • Or owner(s) personal banking statements

Business organization documentation

Organizational documentation is needed to ensure the business is organized in the US and is in good standing.

Applicant(s) driver’s license

A copy of the applicant(s) driver’s license in necessary to verify the information on the application has been recorded accurately and will be used to perform a credit check on all listed applicants. 

Voided business check

A copy of a voided business check is required to prove that the account associated to the merchant account has been established. This is the account that the funds received from credit card sales will be deposited into.

Business or Owner financial documentation

Financials are needed to illustrate the financial strength of the business and or applicants. Typically if the business has had a merchant account in the past all that needs to be provided are 3 of the most recent processing statements from the previous provider. If no previous merchant account is available, the next requirement would be the 3 most recent business bank statements. If the business is new and there is no banking history associated with the business then 3 of the most recent personal bank statements for the applicants will be required.

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Tags: Merchant Account Education, Applying For a Merchant Account, Support Documentation