Merchant accounts are similar to bank accounts. With merchant account, businesses can accept payments made through credit cards and debit cards. There are two kinds of merchant accounts: over the counter merchant accounts and money order merchant accounts.
Some people think that getting an approval when applying for a merchant account is difficult. Accepting credit card payments is nor a costly, since there willl only be a small amount deducted when processing a credit card or a transaction. Normally, merchant account application can be processed within four hours. Some business owners, based on their experience, advise that if the processing of the application form last for more than two weeks, then it would be better to change to a new service provider.
Remember, that there are banks that requires the business owners who would like to have the service, fulfill a number of obligations before opening the account. Some merchant service providers require that applicants have a checking account. Sometimes, business licenses and certificates are also checked.
Additional requirements can also be demanded and checked by the account supplier. For example, for corporations, the federal tax identification number is required. While for a sole proprietor business owner, social security number is required.
If ever the merchant or business owner claimed to be bankrupt, the claim must be at least 90 days old before a merchant will be accepted for some merchant accounts. Also, all of the merchants or business owners must at least 18 years of age.
First, the payment is received by the merchant through the customers’ card. This can be done with physical swipe process at the credit card terminal. The customer can also enter the credit card number when finishing or making a transaction through online payment software.