Baby steps toward starting a merchant account

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Small businesses desperately need to start expanding and the only way to do this is to begin accepting credit card payment. By accepting electronic payment in your shop, not only will you encourage your customers to buy more, but sparing them the trouble of standing in line will also be beneficial to the overall profit of the business. Many small businesses have not yet purchased a credit card payment processor and this is because the belief is that the expenses are high. However, with some detective work anyone can find a good deal on merchant accounts.

What is a merchant account?

In order to be able to accept electronic payment, the business owner has to set up a merchant account through a bank or other forms of financial institutions. The merchant account represents the bank, meaning the financial entity that transfers the amount of money gained from the sales into the business owner’ account. In order to set up such a service, the owner has to establish an agreement with the acceptor and a merchant acquiring bank. Once the application has been approved, then the entrepreneur has to get the necessary equipment, in other words to purchase a card reader.

Which one to choose?

The easy way to set up an account is to go straight to the bank. The only disadvantage is the fact that a bank can perceive hire fees than any other financial institution. It is important to be careful due to the fact that all the future transactions will be done through the intermediary of the financial institution. In addition to this, the bank has the power to impose different charges and even up-front payment. You can negotiate with the bank in order to get a better deal due to the fact that it is interested in acquiring profit from the business and it thus willing to be more malleable.

How much does it take?

In order to apply for the account, you will have to submit necessary paperwork and provide a detailed description of the activities that you are engaged in. this is done so as to assure the bank that the business that you are running is legit. Setting up the account can take from a couple of days to a few months. If you are not one of those businesses who have faithful clients or if you happen to be at the beginning of the journey, now is the time to start a merchant account.

In conclusion, in order to operate a successful business, any owner must be able to reach out to clients and get their personal merchant account. While many banks ban resort to tricks so as to charge you more, there are lots of other merchant services that facilitate the process of accepting electronic transactions in the advantage of the client.