There are several steps to follow on how to set up a merchants account for your small business. Most businesses need a merchants account to receive non-cash payments. Merchants sign an agreement with a preferred bank, who will process and accept credit card transactions or alternative options. As a business owner, signing the agreement means you abide to operating regulations enforced by top credit card companies. Moreover, you can reach a higher number of customers by accepting multiple payment options. Follow the steps below to set up a merchants account for your small business.
Determine How Cards Will Impact Your Business
First, determine how credit cards will impact your business when setting up a merchants account. Start by discovering what credit cards you will accept, how you will accept them and how it will affect your sales volume. There are various credit card companies you can integrate into your business. Of course, include the standard options such as Visa and Mastercard. However, consider adding other brands such as American Express. Then, confirm how you will accept payments. You can accept them through online transactions, mobile devices or a virtual terminal. Finally, decide if you will accept other payment options such as cash. For example, if you own a gas station, you can decide if you would accept cash and credit cards for gas. Certainly determine how cards will impact your business when setting up a merchants account.
Collect Your Financial Statements
Secondly, collect your financial statements to set up your business merchants account. Most merchant account providers require proof of your business’s financial competence. Generally, they request at least 2 years, if possible, of financial statements and banking information. Definitely, provide all routing numbers to track fund deposits from transactions. On the other hand, some providers may ask for processing statements to review how much you usually process. Additionally, you may have to give personal statements. Merchant account provides want to ensure all business elements are dependable. Of course, collect your financial statements as providers want to know if you are financially reliable or will be a high-risk credit card processing liability when setting up a business merchant account.
Choose An Account Type
Next, choose a merchant account type for your small business. Depending on your business, you may need a retail, an internet or a mobile merchant account. Retail accounts work best if you do business in a physical location with a card reader. You’ll be able to inspect cards and even request identification. Or, you can get an internet merchant account. This is popular for internet businesses who accept payments online. Your provider will be able to track business and fees from using an internet account. Additionally, you could access a mobile account for mobile device ran businesses. Businesses who should use mobile merchant accounts include food trucks and kiosks. Definitely choose a merchant account type that will work for your small business.
Furthermore, consider fees when setting up a merchant account for your business. Different accounts have different fees. However, they are not always outlined in the merchant/provider agreement contracts. Communicate with your provider about application fees, set up fees and monthly usage fees. You may also be charged a per-transaction fee, a cross-border fee and a rental fee for credit card processors. Moreover, added fees can escalate total fees per transaction by over 3%. In fact, some providers secure their contracts with a minimum term that cannot be cancelled without receiving a penalty. Certainly consider fees and review contracts when setting up business merchant accounts.
Submit Your Application
Finally, submit your application to set up a merchant account for your small business. Most providers will allow you to fill out your application online or through mobile devices. Access your preferred merchant provider’s site. Submit general information including contact info, your employer identification number, business license and articles of incorporation. Additionally, provide the financial information you’ve collected including bank statements, credit card records and balance sheets. Then, you may have to add other documents such as a business plan, forecasts, marketing materials and voided checks. Once you have the application filled out, you can submit it and wait for approval. This could take a few minutes to several business days. Definitely, submit your application to finish setting up a business merchant account.
There are various steps to follow when setting up a merchants account for your small business. First, determine how credit cards will impact your business including which cards you will accept, how they’ll be accepted and how they will affect your sales volume. Secondly, collect your financial statements as providers will likely want to review banking, processing and personal statements. Next, choose a merchant account type that works for your business such as retail accounts, internet accounts or mobile accounts. Furthermore, consider fees and review your contract because there may be hidden costs such as per-transaction fees or a minimum term clause. Finally, submit your application with the required information and documents to finish setting up your merchant account. Follow these steps to set up a merchants account for your small business.