What documents are required to open a Merchant Account?

What Documents are Required to Open a Merchant Account?

What is a Merchant Account?

A merchant account is a particular category of business bank account that merchants use to accept electronic payments, most often debit or credit card payments. It serves as a holding account for money deducted from client accounts until the settlement date, when it is transferred to the merchant's specified business account or disbursed through checks.

You need a high risk merchant account to take electronic payments, whether you operate an internet store or a brick-and-mortar store with POS terminals.

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1 ) Business Bank Account

An essential prerequisite for opening a merchant account is a bank account. Credit card sales revenue will be transferred into this bank account. In addition, your provider will take money out of this account for their costs.

Make sure you have enough money in your account to pay the costs associated with your merchant account provider. During the underwriting process, a negative or low-balance account could make your company appear riskier.

You will need your business licence and EIN to open a bank account.

2 ) Voided Check

A voided check must include the precise name of the business. Additionally, it attests to the existence of a legitimate business checking account.

3 ) Other Documents May Include

The quantity of paperwork needed to apply for your merchant account depends on various criteria.

  • The history of your business
  • The dimensions of your company
  • The quantity of data you'll be processing
  • The degree of risk you represent

You might only need your contact information, a bank account to put money into, and However, the supporting bank and payment processor may require more proof of your identity if you represent even a higher risk.

4 ) Complete the Online Application Form

The application form for your offline or online business must be completed as the final step in opening a merchant account. You must submit your application and the necessary paperwork to be accepted.

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