Merchant Account Opening Process

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Merchant Account Opening Process
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About Merchant
Account

• Every ecommerce merchant requires merchant
  account. This simply enables him to accept credit
  card payments for what customers are purchasing
  from him. It can be either and both of products
  and services. The process of opening merchant
  account is simple if you get the right partner by
  your side. You should have the basic idea of the
  process of applying for a merchant account. This
  starts with credit check in order to determine
  whether you qualify for a merchant account or
  not. Also, it also evaluates how much of payment
  you can process every month.

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• There are many possibilities of getting the
  chargebacks and refunds from customers. The
  businesses that happen to be more risky in terms
  of chargebacks and volumes are referred to as
  high risk businesses. For them, high risk
  merchant accounts are required. When a customer
  disputes the activity on his credit or debit
  card, this comes back to merchant service
  provider and the partner bank in form of
  liability.

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FOR CORPORATIONS LLCs

Once the above sited things are in place, the
application process can be started in consent
with the merchant service provider. Sole
proprietors do not require any of these and can
directly sign up with their names, social
security number and personal bank account.
LEGAL ENTITY
EIN Number
Business Checking Account
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THINGS THAT CAN PROVE TO BE UNFAVORABLE FOR
GETTING AN APPROVAL FOR MERCHANT ACCOUNT
There are certain factors considered by merchant
service provider and the partner banks before
they approve or disapprove the application for a
merchant account. The challenging factors are
listed below for your perusal
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1. BAD CREDIT

• This is the most common reason for denial of a
  merchant account application. However, there are
  third party merchants that work with high risk
  applicants at a nominal fee.

• 2. STARTUPS

• New entrants in any industry are always at high
  risk. Established companies may always throw them
  out of existence.

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3. NATURE OF INDUSTRY

• The nature and type of business you are in is
  largely responsible for the non-acceptance of
  your merchant account application by the service
  providers. The previous experience with business
  of same kind can get your application a red flag.
  Types of industries that obtain merchant account
  with great efforts and much difficulty are as
  follows
• Online gambling
• Multi-level marketing companies
• Affiliate marketing companies
• Guns and ammunition
• Gym memberships
• Dietary supplements and more.

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• 4. EXPECTED BUSINESS VOLUMES

• You will be asked to anticipate the business
  volumes you are expecting every month. If you
  give indications for high level of processing
  volume, your chances of getting the application
  approved will be greatly reduced. The more is the
  volume the more are the chances of charge backs
  and in turn the merchant service provider will be
  exposed to more of risks. It is advised to be
  conservative and ask for the minimum you need. As
  you are always having option to raise the volume
  later if the initial volume picks up.

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• 5. AVERAGE TICKET SIZE

• The average ticket size is the average
  transaction price your business will have.
  Typically, merchant service provider will relate
  higher ticket size to higher risk and higher
  charge back cost. It will again be riskier for
  merchant service providers and partner bank to
  approve the application.

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Contact

• Having a good merchant account is beneficial for
  your business in long term. If you are finding it
  hard to get your application for merchant account
  approved, tell the experts to assist.

1-800-982-1372 support_at_paycron.com http//www.p
aycron.com/