Everything you need to know about getting a high risk merchant account
If you’re into establishing a typical SaaS enterprise, you’ll definitely need a merchant account to process debit and credit card payments.
Growing a business is the foremost goal of every business and using more and more technology is the first step to grow. So, if you’ve put in the step towards growing your business, or tired of using snail mail and paper invoices for all the payment procedures, you need a merchant account to fulfill the purpose.
But, before you get started, it’d be better if you know what to expect when applying for a merchant account. Check it out here.
- You need a Business Bank Account: Whether you’re a sole proprietor or run a full-fledged business, it’s a MUST to have a business bank account before opening a merchant account. With this, you can open your merchant account in just 15minutes at a local branch near you. You’d just need a business license number and EIN (employer identification number).
Since, your business account will be the default destination for all your transacted funds, it’s important to keep a large balance in this account to cover any processing fees and other additional fee, if any.
- Processing fees and funding times may vary: Processing fees may vary depending on the type of payments you’re processing and through which methods. For instance, the charges for your ACH/echeck processor and your credit card processor may vary greatly. It is important to keep in mind the varying fees when you have multiple payment options. Even the funding times also depends on the payment type. So, be sure to go through the Terms and Conditions on your application well to fully understand these differences.
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- Keep on Radar the PCI Compliance: PCI DSS Compliance is a necessity today. It’s a set of rules and regulations established by the credit card companies to guarantee that the merchants are securely processing their customers’ payments.
- Provide ample information:
To open a merchant account, you’ll probably need ample of information. The more information your provide about your business, the easier it’d be for you to build tryst and set an account quickly and easily.
A Quick Glance
- You can get the underwriting assistance easily through software companies, which are free sometimes!
- Make sure to have necessary business licenses, tax IDs (EINs), or bank accounts set up before starting the actual process.
- Be prepared to provide good information about your business, including projected sales volumes.
- Consider the Terms and Conditions on your merchant account application, including different processing fees.
- Start thinking about the PCI Data Security Standard (DSS) so you are ready to fulfill on the approval of your account.
