HOW DO I SET UP A CREDIT CARD MERCHANT ACCOUNT? Credit Debit | Echeck | ACH | Chargeback Alert | Merchant Cash Advance | Prepaid Card | POS
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Q. How do I set up a credit card merchant account? Setting up a credit card merchant account in today's world is not a luxury but a necessity. Organizations cannot think of growth without utilizing the most advanced mode of payment processing in this technologically growing world. That's right we are talking about card payments also known as credit card payments. In this article you will understand how you can quickly set up a merchant account for your specific business model. We all know that the organizations that offer merchant accounts are financial institutions and that is why they will ensure that they collect all the required documents before offering you a payment processing solution. In other words to apply for merchant account you must send a completely filled application along with the KYC documents also known as KYM (Know Your Merchant) documents to the merchant account acquiring Bank. The application and the KYC documents are analyzed by the risk compliance and underwriting team. These teams inspect and evaluate every aspect of the application and classify the account of under any of these categories: Low risk merchant account Mid risk merchant account High risk merchant account Very high risk merchant account
If your application is considered to be low or mid risk, then most of the acquiring banks for payment service providers will say yes to you. In case if your evaluation of your application and business model is considered as a High risk or a very high risk, you may have to find a high risk merchant account provider. After the risk analysis the team will decide whether to offer a solution to the merchant or not. If everything goes well then the merchant receive a merchant agreement from the acquiring organization. This merchant account agreement is an extensive document and before signing a merchant must really understand all the clauses. If the business owners realize few of the clauses should be amended then the request for the same should be sent to the acquiring organization. Once the agreement along with the terms and conditions is signed, both the parties must abide by the rules and regulations mentioned. After signing the agreement, the merchant needs to integrate payment processing solution into the website. This is done by using information provided by the payment service provider. Merchants may also request for readymade plugins from payment service providers. The tech support and training team help merchants to integrate the ‘buy now’ icon plugin and guides to manage the process. Once the integration is done then the merchant can perform a test transaction. This transaction should always be done by utilizing credit card number. After the test transaction, merchant must verify if it is properly working or not. After the confirmation merchants can accept live transactions from the customers. Depending upon the terms of settlement merchants get paid from the merchant account acquirers.
This is variable in case of domestic and offshore merchant account providers. Domestic merchant account providers and acquirers don’t charge much and the arrear period is also less than offshore ones. On the other hand, though offshore merchant account providers readily onboard high risk merchants yet the processing fees and charges are quite higher than domestic ones. Even the arrear period is quite longer from 1 to 3 weeks.
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Credit Debit | Echeck | ACH Solutions | Chargeback Alert Services | Merchant Cash Advance | Prepaid Card | POS