Sunday, January 3, 2010

What is a Merchant Account?

Many people wonder just what is a merchant account? How can I obtain one? A Merchant Account is an agreement between a retailer, a payment processor for the settlement of credit card and/or debit card transactions. You don't have to open a special type of bank account with the processor to get started. You can use a personal bank account if you are a sole proprietor and if you are a corporation or LLC you must have a business account. In order to open up a merchant account and start accepting credit cards as a form of payment you can only use a checking account. Savings accounts won't work. There is usually a verification process in order to prove your existence to the bank ( not all that different from a loan application requirement). Many processors will require some of the following documents:

  1. Driver's license (proof of signature)
  2. Business License or Sales Tax ID ( sole prop could use a utility bill etc.)
  3. Printed voided check ( or bank verification letter)
  4. Marketing materials (i.e. website, brochures, business cards etc.)

No comments:

Post a Comment