How to Apply for a Merchant Account

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By MerchantGuide

If you are just about ready to apply for a merchant account, follow the three steps outlined in this article to make sure you get the best merchant account for your needs.

1. Find the right provider

Before you start the application process, you will want to do a bit of homework first.

And trust me on this one, it will pay huge dividends for you down the road.

Why is that?

For starters there are some issues to consider BEFORE you start the application process.

For example...

  1. Do you have any credit issues?
  2. Do you need any credit card processing equipment, like a terminal, POS system, or integrated cash register?
  3. Will you accept payments online?
  4. Do you need a recurring billing system to automatically charge your customers each month?

Not every merchant account provider can help you if you have some credit issues, or your business is classified as "high risk." In this case you would need to find a company that specializes in high risk merchant services.

You can still get a merchant account, but you will have to talk with a specialist. The process may take longer than outlined here, and you may have to provide bank statements and other support documentation.

For more information check out my other article "What to Ask High Risk Merchant Account Providers... Before You Sign Up."

Additionally, some merchant account providers specialize in retail, with free equipment programs to minimize your start up costs.

Other providers focus on online merchant accounts.

So based on your specific situation it does make a difference who you ultimately choose for your merchant account.

2. Get it in writing

In my opinion (based on years of experience) the number one reason why people fail to get the best merchant account is because they didn't do any (or enough) research before they signed up with a provider.

But don't just take my word for it.

Here is a sample of an email I received from Marie who read one of my articles and decided to share her experience with me about 3 weeks ago...

"After signing with this new merchant account company, and being with them for only less than 1 month, I am already in a difficult situation with the sales rep....

I am already out about $100 that the sales rep was to reimburse for charges that were not to be billed me, which has not occurred as yet. In addition, my original documents were changed after I signed them.

Although, I have had several scheduled meetings with the rep at his office to resolve these issues, he never showed for the appointments. So, to say the least, this has turned out be very frustrating and taking much time to resolve and end my association with this company.

Unfortunately, I did not research before I signed a new contract..."

Sadly, her story is not that surprising, as this sort of thing happens more than you would care to imagine.

So how can you protect yourself?

Ask questions (more on this later, as I'll outline 10 key questions to ask any merchant services provider BEFORE you sign up), get it in writing, and make sure there is no early termination fee should you decide to cancel down the road.

3. What you need to apply for a merchant account

At this point I hope I got you thinking a bit more about the application process and what to watch out for.

That's my goal for writing this article.

I've included two lists below that should help you as you apply for a merchant account: the 10 questions mentioned above, and a list of items you will need along with a completed application.

10 Key Questions to Ask

  1. Is there an application fee or set up fee?
  2. Are there any early termination fees?
  3. Are my quoted rates guaranteed?
  4. If so, for how long?
  5. Do you offer free equipment programs?
  6. Will you be personally available if/when I have a problem?
  7. Do you work with (of have you worked with) a business like mine before?
  8. Do you have any references that you can provide to me?
  9. How long have you been in this business?
  10. Can you offer me any personal guarantees that what you say is true?

That's a pretty good list to get you started.

By no means is it perfect, so feel free to add to this list as you come up with your own questions that are important to YOU.

And if you don't mind, leave me a comment to share your additional questions and I'll add to the list...

Keep a checklist handy as you talk with other providers after you get free merchant account quotes.

Make sure you print it out so you can write down their answers.

Then you can make a side-by-side comparison for yourself.

How cool is that.

Okay, once you are ready to move forward with an application, you will need some supporting documentation.

I've put together a list of items that you will most likely need along with you completed and signed application.

Depending on your particular situation you may need more (or less) than what is outlined below. However, the list gives you a good idea of what to expect.

Standard Requirements for Applying for a Merchant Account

  1. VOID check for the account you want to receive the deposits
  2. One form of personal ID, such as a copy of your driver's license (Patriot Act)
  3. Business "ID" such as a Sales Tax ID, lease agreement, Articles of Incorporation, utility bill made out to the business along with a physical address (no PO boxes)
  4. Form of marketing, such as website, ads, business card (for internet accounts only)
  5. Proof of the physical address of your business
  6. Signed and dated application

So that about covers what you'll need to check out before you apply for a merchant account.

And what you'll need once you make your decision.

Does that help you out?

The easiest way to find the best merchant account is by clicking on the link to request free rate quotes from qualified providers that are matched to your specific needs.

If you have some credit issues, or your business is classified as "high risk" then you would need to find a company that specializes in high risk merchant services in order to get an approval.

That's because most providers do not want to handle this type of merchant account.

If you follow these steps you should have no problem finding the best solution.

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    Other Merchant Account Set Up Tips...

    There's more to accepting credit cards -- whether you have multiple locations or you own a "mom and pop" business.

    In fact, believe it or not asking "what's your rate?" over the phone is the LAST thing you should be thinking about, because there are multiple rates, fees and other charges depending on your type of business and how you want to accept credit cards.

    Not to mention that quoted rates over the phone are often misleading, or only apply to your business 20% of the time.

    The key?

    To get the best merchant account you need to talk with a solutions provider. You can learn more about merchant processing services by checking out some articles below:

    working