Merchant Accounts

What are merchant accounts?

Merchant accounts are special financial services that are created between your business and a sponsoring merchant account provider - typically a bank, credit union or other type of financial institution. The terms and such of the merchant accounts are established with a written contractual agreement, that is read thoroughly by and signed by both parties involved (the business itself, and the sponsoring merchant account provider). Merchant accounts enable your business to accept credit cards as a payment method from clients or customers. In addition, some types of merchant accounts allow you to accept debit/ATM cards, personal checks and gift cards.

What advantages do merchant accounts offer?

The prime advantage of merchant accounts is enabling your business to accept credit cards and debit cards as payment methods for transactions. Every day millions of people use their credit cards to pay for all sorts of purchases, from high end items, vacations, shopping sprees and new wardrobes, to the everyday, mundane tasks like buying groceries, filling up the gas tank or picking up dinner at a pizza shop. Merchant accounts offer businesses an easy, secure way to accept the most convenient method of payment from their customers. Businesses who accept credit cards are more likely to have their sales rank 30%-100% higher than those businesses who do not accept credit cards!

How do I apply for merchant accounts?

There are four ways that merchant accounts can be applied for. The first and easiest way to apply for merchant accounts is to find a merchant account provider that accepts online applications. The second way is to get a hold of the application form and documentation requirements and "snail" mail or fax the information to the merchant account provider. The third way to apply for merchant accounts and related services is to call the merchant account provider. The fourth method, while not as convenient as the other three, but often preferred, is to speak in person with a representative from a bank or merchant account provider, and fill out the form with them, one on one.

How long does it take to be approved for merchant accounts?

The industry standard for turnaround time on an application for merchant accounts is seven to ten days. However, individual circumstances can require extra time for application processing, or business verification, or the need for additional paperwork, documentation or even security deposits. Many merchant account providers promise to get you up and running "instantly", but what they really mean is that your application may be put through a pre-screening process instantly. The actual setup of your merchant accounts and services can take at east seven business days. You may wish to check with your merchant account provider for a more accurate time frame.