Due to the necessity for a merchant account in order to process credit cards and the complexity of the payment processing itself, accepting payments may prove to be a difficult task. A merchant account can’t be created unless the business owner initiates contact with a merchant services provider. A merchant services provider has everything a business needs to accept and process credit and debit cards.
A dedicated account manager will be given to you, and they will be in charge of maintaining your account’s links to the various payment processing components. Your account manager will handle tracing the cause of any issues so that you don’t have to spend time calling around to different departments. At the time of starting a payment processing company you need to be specific there.
So that you are not left in the dark about the process, we have explained the five basic steps that need to be followed in order to set up a merchant account for your business.
Make Sure Everything Is in Order with Your Business
Companies are the only legal entities allowed to hold merchant accounts. Because of this, the application procedure requires you to demonstrate that your business really exists. There are three primary steps you must take to establish the legitimacy of your business. If you haven’t already, please do these things before submitting an application. If, on the other hand, you have previously completed the three tasks that follow, then all that is left to do is double check your paperwork.
Get an EIN and set up a business structure
Which of these three basic geometric shapes best describes your business’s structure? Your organization’s structure should essentially answer this question. First things first: choose your company’s legal structure. There are a number of business structures from which to pick, including sole proprietorship, partnership, limited liability company, and corporation. For further details on these categories, as well as the legal necessities associated with each category, see our guide on forming your business structure.
Once you’ve decided on a business structure, the following step is to register for an EIN. The IRS gives each business this number in order to track their financial transactions and file tax returns.
Get a permit to open your shop
The nature of the business licences you need will depend on the industry in which you operate as well as the state in where your company is based. For information on how to register your company with the Secretary of State in your state, check out their website. This can help you determine which laws and regulations you must follow and, therefore, which permits you need to get.
The underwriters of your merchant account application will review a mountain of documents before reaching a decision. If the state has a good connection with the corporation, your request may be approved more quickly. To become a payment processor you need to be smart here.
Conclusion
A merchant account cannot be set up until a business checking account has been established. The reason for this is that accepting credit card payments is an integral part of running a successful company. You should look at many different banks and the services they provide your business before deciding where to open a business checking account.
