If you’re just starting out as a business owner, you might delay opening a merchant account because you think it might be difficult. From researching and performing due diligence, it can be tough to make the right decision. However, there are quite a few websites that give proper information that can assist you with this and help you make the best decision. In this article, Royal Debit aims to ensure that you know exactly why you should open up a merchant account, and what you should and shouldn’t do when doing so.
What is a Merchant Account?
For those who are super new to the world of business, you might be wondering what exactly a merchant account is. In short, those that accept credit and debit should always have a merchant account. It’s an agreement that’s made between the bank that the business is going through, and the merchant. Payments providers that you accept, and the bank will settle transactions with this type of account.
There are indefinite fees that come along with such a service, and they come in the form of monthly fees, Mastercard and Visa rates, as well as leasing fees. While they’ll vary by the processing provider, you’ll definitely want to take them into account before making the best decision for your business.
Ways You Can Open A Merchant Account
There are a handful of steps that go into opening up a merchant account. Let’s take a look:
Step 1: The first thing you should always do before looking into any sort of payment service is to research. Research the major banks in Canada, and then branch out and look at those that are independent. Looking towards ones that specialize in what you need (payment processing) will allow you to get the most out of your money. When they specialize in payment processing, you can be sure you’re getting exactly what your business needs. Just because a bank is large, and everyone knows their name, doesn’t mean their rates are that great. Independent payment processors may have more competitive rates for you to take advantage of.
Step 2: Once you’ve chosen which ISO you’re wanting to partner with, you’ll want to then apply for the merchant account that’s going to help you excel. You’ll need to take a voided cheque to submit so that you’ve locked in the account you want to use. You’ll also need your bank statements, a phone bill, tax returns, a lease agreement or a type of utility bill to prove that you’re the person you say you are.
Step 3: When you go through the application process as a business owner, you’ll need to submit the activities and services you offer as a business to your potential payment processor. This is to ensure that you’re opening a legal business. Financial statements from your business may be required.
Step 4: Those that run their business online will have to show a working website to the potential payment processor. You need to have domain information and an actual hosting service running your website. You cannot be running your business on a blog or info website. Being able to enable payments and purchases is an absolute must. Furthermore, your checkout needs to be secure or else a payment processor can reject you.
Step 5: The last step is to verify virtually everything you’ve given as information to the payment processor. There is an application fee usually, but this can sometimes be waived. After this, you’ll be alerted of any monthly or annual fees that will be charged to you regularly.
It’s important to gather your thoughts and what verification papers before seeking out a payment processor. Having your eggs in a basket can speed along the setup process for payment processing and allow your business to thrive quickly. If you’re in search of a fantastic payment processor, Royal Debit may be just what you’re looking for.