We are far from cashless, but most people have stopped carrying cash and their checkbooks. Businesses that accept debit and credit card payments increase their revenue and retain customers. 

To be able to take credit and debit cards payments for your business, you need to establish a relationship with a merchant services provider. Then, you will need to obtain what is called a merchant account. 

Do you want an E-commerce solution that is tailored to your specific needs? Balanced Processing Partners we specializes in online transaction processing and credit card data processing. Our cutting-edge technology and partners enable the process to be quick and simple while also assuring protection. All of this under one roof, thanks to a unique approach. Call BPP at 800-354 6256 or [email protected] 

After opening your merchant account, you can start taking payments from customers who purchase a product or service with their credit cards. How can merchant accounts be integrated with your company and what distinguishes them from other credit card processing companies? 

Let’s take a look at merchant accounts and how they work. And why so many companies use them for cashless payments. 

What is a Merchant Account?

Merchant accounts are bank accounts that can be used for business purposes. They allow payments to be made and received.  Merchant accounts allow businesses to accept credit cards and other forms of electronic payments.  Merchant accounts are available for a fee and can offer a range of services in addition to accepting payments. 

Credit card networks such as MasterCard and Visa are the first step in this process. The card processor will transmit the transaction to their card network within minutes after a consumer has purchased a product or service online. 

A credit card processor can transmit customer transaction data to its network. This allows the company to route the transaction directly to the issuing bank. The issuing bank then authorizes and allows funds to move from the cardholder’s account through its network to be deposited into merchant accounts. 

Once payment funds have been received by a merchant account, they are transferred to a company account. The merchant’s credit card processor transfers money from the merchant account to a bank account. After that, the merchant can use their money. 

It can take up to seven days for money to transfer from a merchant account into a company’s bank account. This can take anywhere from 2 to 14 days. 

How to Get a Merchant Account

Your needs and company will dictate whether you are eligible for a merchant account. Merchant services contracts can be lengthy so make sure you find a merchant service provider to help you negotiate an agreement that will allow you to access the most secure payment acceptance technology as well as the information you need to accept electronic payments. 

Here are some things to consider when looking for the best provider

• Processing volume:  Take into account your entire company’s revenue and how you split that money among different types of credit cards. Once you have the sum calculated, you can use it to calculate your growth projections and estimate how much you will spend on merchant account providers in six months or five years. 
• Hardware:  Take an in-depth look at your hardware requirements. Mobile readers, POS systems and standard payment terminals could all be what you are looking for. It doesn’t matter if you need mobile readers, but it is important to think about your hardware needs when searching for a supplier. 
• Some account providers offer tailored integrations or loyalty benefits. You should ensure that you are receiving the payment amenities you desire, such as eCommerce, QR codes, digital wallets, and other services, before signing a contract. Before you make a decision, check to see if the prospective provider offers loyalty programs and tailored POS connections. 

When comparing merchant account providers, make sure to consider your needs. It is important to understand the pricing model, including interchange, tiered pricing and flat pricing. As well as any other fees such as statement costs, cancellation charges, batch charges and charges for uploading, receiving and settling statements. 

Fill out the online application form and submit it. The underwriting process will begin once you submit the application online. The underwriters will conduct a thorough examination of your personal and company finances, as well as a credit check to make sure you are a good candidate for the merchant account. It’s important to choose a provider who will give your application the attention it deserves. 

6 Things Every Merchant account Application Requires

Here’s what you need to do to register your merchant account with a provider: 

1. Routing Information & Bank Account: Before applying for a merchant bank account, it is important to separate your personal and business finances. This shows your bank that you take the distinction between personal money and business money seriously. It also allows them to minimize potential liability.
2. Financial Statements:  A bank statement and/or processing statement can be used to show an account provider that your financial stability and accountability are high. To show the average number of transactions each week, it is common for companies to give processing statements to account providers.
3. Business ID: The EIN (or Employer Identification Number) is your company’s social insurance number. This number is what you need to use when filing tax returns for your company. It’s often a unique identifier that appears in your tax documents.
4. License: Certain businesses might require multiple business licenses such as a sales tax registration license or a specialized trade/professional license. To determine if merchant account applicants must meet certain licensing requirements, check with potential merchant account providers.
5. PCI Compliance: PCI compliance guarantees that customers’ payment information is safe. Merchants and payment processors must comply with PCI compliance in order to take appropriate security measures when handling customer card data.
6. Additional supporting documents: Marketing materials and a business plan are all possible requirements. Shipping policies, inventory reports, and return policies for your company are also required. Different documentation requirements are required by merchant account providers depending on the industry and risk. Talk to your merchant account provider for details. 

Merchant Account Fees – How Much Should You Pay?

Merchants often have to pay setup fees as the first expense. To open a merchant account, setup fees must be paid upfront. These fees can be avoided by negotiating with your merchant account provider to avoid them. 

Most merchant processing companies charge monthly fees to their customers. Monthly maintenance fees range from $10 to $30. These monthly fees are charged to your account provider for services rendered. They are also known as a merchant account statement, or monthly fee. 

Payment processing companies typically charge 1.3% to 3.5% per card transaction. Your payment network, card types processed, and your merchant category code determine the fee. 

The following are typical credit card processing fees and expenses for merchant accounts providers: 

• Interchange fees:  This is the bank that processes credit card transactions. It also bundles cashless and card fee payments. 

• Payment Processing Fees:  A fee is charged by the payment company to route payment transaction data into a bank. The payment processing company will charge a different fee for processing payments. One type of payment processing cost is the per-transaction fee. Other forms of payment processing costs include monthly service fees, hardware and equipment expenses, and transaction processing costs. 
• Assessment Fees:  Every time a transaction takes place, the card network charges an amount (called “assessment fee”). Mastercard, for example, would be charged assessment fees on transactions made with a Mastercard credit cards. 

Is A Merchant Account Right For Your Business?

For companies that want tight control over cashless and card payments, a merchant account is the best choice. A merchant account will allow you to expand your ability to accept card payments. 

Many businesses, large and small alike, are keen to accept credit card payments. It’s worth at least considering opening a merchant account for your business. The inability to accept card payments is an obstacle to company growth that cannot be ignored. 

Compare merchant account providers and take the time to research them to determine which one offers the best balance of simplicity, cost, and range of services for you. You should ensure that you get what you pay for, and that the process isn’t too complicated or time-consuming. 

Balanced Payment Processing is the best choice if you are looking for an innovative, easy way to process your payment card data. You can be sure of security and time savings with their tailored ecommerce solutions. 800-354 6256 or email us at [email protected]