A merchant account allows a business to accept payment for goods and service via credit card. It offers business owners the opportunity to take advantage of lower processing rates as well as access to a variety of POS system integrations and terminals. The difference between a true merchant account and services offered by third party companies like Paypal or Square, is a unique MID (Merchant ID Number). When you qualify for a merchant account you will be issued with a unique MID to identify you to the processing service company and the upstream banking institutions in charge of authorizing sales transactions and releasing funds into your bank account. How to get a Merchant Account?
Technically, a Merchant ID is issued to a business by an acquiring bank that will back the dollars being processed through the account. Merchant identification numbers are issued once the business has been verified by documentation containing the names of the principal owners of the business and the Taxpayer ID number. ISOs (Independent Sales Organizations) are typically the go-between between the merchant and the acquiring bank as they are heavily involved in acquiring the requisite criteria for MID acquisition. Read about How Hard Is It To Make Organic Hair Oil At Home?
To acquire a merchant account you will have to enter into agreement in one of two ways:
Option one is with a member bank that has a processing relationship with Master and Visa cards.
Option two is with a member bank’s authorized agent such as an ISO or MSP (Member Service Provider).
The agreement basically states that the business will abide by the credit card’s operating regulations.
There are four steps involved in getting a merchant account:
1. Determine which credit cards you would like to work with. Some key questions to consider are:
– The brand of credit card you would like to accept. While Master and Visa cards are fairly standard, you may wish to accept American Express or other brands.
– The method of accepting payments such as website, mobile phone, virtual terminal, or API integration into an existing system you have.
– Will you require recurring billing facilities
– Will all your sales be conducted by credit card or combined with other methods of payment? If you will be switching between cash and credit card payments it is important for a merchant account provider to be given some idea of the volume of payments that will be done through credit card.
2. Compare account providers and the services they offer. What are their fees? Do they provide software? Are there payment acceptance options? Will customer payment account data be safely stored? Etc.
3. Go through a comprehensive review process for approval supplying a lot of information about your business.
4. Once you have qualified a merchant account will be set up for credit card payments. Transactions can be as simple as logging into the software product provided, entering customer information and pressing a button to have the transaction processed and funds directly deposited to your bank account. Also know How To Cure Your Bad Hair Days With Essential Oils .
To increase your eligibility follow these tips:
– Ensure that you have a positive rating before applying for a merchant account.
– Honestly disclose information about bankruptcies, judgements, liens, and previous merchant accounts.
– Be prepared to accommodate particular account requirements and accept higher fees.
You don’t need to opt for the first and most obvious service provider, shop around for a processing company that best suits the specific needs of your business. For more information click at Thesoutherninstitute.com/cbd-merchant-services .