Opening a merchant account is not as difficult as many traders initially think. In fact, merchant-processing services are fairly quick and easy. Especially, if you know the answers to the following common questions about gaining credit card processing power for your business:-
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P1. What do I need to create a merchant account?
A1. Although the signature requirements vary from processor to processor, you usually need the following supporting documents: a copy of the driver's license and a business license or articles of association, examples of marketing methods such as a flyer, brochure, or business card bank confirmation confirming the bank account with the account and route number. Of course, you also have to fill out and submit your application.
P2. If my application is approved and/or conditions are required, eg. a cellular backup?
A2. It is interesting to note that many processors claim to accept 98% + candidates. This is more of a marketing ploy than reality. Even though this approval rate is too high, the majority of merchant applicants will get approved.
The insurance company evaluates the application and considers criteria such as the applicant's creditworthiness, type of business, company operating time, applicant processing effort and many more. The insurance company makes their decision and notifies you if any conditions apply.
P3. What if my credit rating isn't good? Will my application be automatically rejected?
A3. Insurers can see creditworthiness as the most important criterion and thus an unfavorable result can lead to an unfavorable outcome. However, you may be able to create a merchant account if other criteria are deemed favorable – especially if you want to swipe your customers' credit cards.