How to start small business merchant accounts?

A merchant account allows a small business owner to accept credit card payments. Setting up a small business merchant account is a great way to expand business opportunities and tap into a wider customer base. It doesn’t matter if the business in online or has a physical location, small business merchant account is a great benefit to any business owner including small businesses.

Here are five simple steps of how to start a small business merchant account.

Step #1. With a little research, and planning your small business merchant account will be simple to start and set up. You can begin by seeing what your current bank has to offer, then comparison shop from there. If you decide to go with another bank you will need to open a business checking account with that bank in order to conduct credit card transactions.

Step #2. In order for the business transactions to go into your account, you will need to apply for a merchant account at the bank you selected to have your small business merchant account with. You will need to provide the following to get started:

• A voided check for the checking account into which transactions will go.
• Proof of identification in the form of a driver’s license or ID card.
• Your Social Security Number or EIN (Employer Identification Number) if your business has one and any other documents or information required by the bank.

Step #3. Give a complete report on the types of business transactions your business will be conducting. This is mainly for security reasons. The bank needs to know the type of transactions they will be involved with. The banks may also request financial statements and tax returns in order for your application to be approved.

Step #4. If your business is online, you will need to give the bank your website information, including the business domain name and web hosting provider. The website cannot be a blog. Your small business website has to be an official business website that is separate from any personal website, showing product purchases, secure checkout, and deliveries.

Step #5. Pay all applicable fees for setting up a small business merchant account. In some cases, the bank may wave your application fees, so you may want to look into that. There might also be a monthly service fee as well as a yearly fee for having a merchant account. Talk to the bank to see what fees are waved and what you need to pay to keep your small business merchant account activated.

How to start small business merchant accounts is fairly simple. With just a few simple steps, you will be on your way to expanding your business opportunities and servicing a wider customer base.