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How To Apply For Credit Card Merchant Account

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Using traditional, conventional, or mobile payment processing solutions allows you to:

  • Increase your sales.
  • Become more efficient in processing payments.
  • Expand your business operations to include more avenues of delivery.
  • Deliver a better customer experience through multiple payment methods.

If you are on the fence about signing up for merchant services, then this will be the time to make a decision. Move forward with easily integrating modern payment solutions in your day-to-day business operations.

At Stax, we take pride in offering easy-to-use yet highly efficient payment solutions to our clients. From conventional POS support to online merchant account services, we can fulfill all your merchant account needs and help you scale your operations to the next level.

To understand how our Stax payment solutions can improve your business operations, feel free to contact us for a consultation.

How A Business Processes Credit Cards

Most companies now rely heavily on card processing to generate revenue and profits. Its a form of transaction processing in which data about transactions are captured electronically on computer systems for authorization, clearance and settlement purposes. The credit card issuer authorizes a purchase at a business by verifying that the purchaser has sufficient funds to cover it. The credit card processor captures the information from the credit card, including virtual credit cards, and withholds payment from the merchants account for what was sold. The settlement phase involves transferring funds from the bank to the businesss bank account for what was sold.

To process card payments, a business needs to have a merchant account with a company that can process them. These companies will charge businesses for the service and there may be monthly fees as well as transaction fees. The business may also need an account with the bank that they prefer to do business with and they will need a terminal or point of sale device and software to be able to accept credit card payments or cash. This can be done through an online application process for free.

What Is The Cheapest Way To Receive Credit Card Payments

The cheapest way to accept credit card payments for your company depends on the kind of business you run and how your customers pay. Payment processing companies use various pricing structures for their services. For most small businesses, a payment service provider is your simplest and cheapest option. Youll pay a small fee per transaction but wont have to worry about subscription fees or working with multiple service providers. Higher-volume businesses will probably benefit from a more complex payment processing system.

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How To Enter Merchant Fees Per Transaction

If you use PayPal, Square, or a similar payment processor, you are charged a certain percentage for each transaction you process. For example, PayPal charges 2.9% +$0.30/per transaction. Believe it or not, entering this information into QuickBooks Pro is actually fairly simple.

Before you begin, make sure you have created a designated expense account called Merchant Fees. If youre not sure how to do this, follow the steps in our How To Enter Credit Card Charges In QuickBooks Pro post .

Then, go to Customers> Receive Payments or find the Receive Payments icon on the home screen.

How An Online Credit Card Merchant Account Works

Did I get Approved for a New Chase Credit Card? Just Log ...

Accepting credit cards online is a necessity for a business. Heres a refresher on how an online works. The steps are simple and happen in mere seconds.

  • Your customer enters his credit card information into your secure website to purchase an item or service.
  • When the customer submits the order, your website sends a transaction request from your server to your acquiring banks payment gateway, an online application accessible from any Web browser with an Internet connection. The payment gateway enables you to accept and process credit card transactions online the same way a POS terminal enables in-store .
  • The payment gateway forwards your customers transaction request to his credit card issuing bank. The issuing bank returns the results to both you and your customer.
    • If approved, the issuing bank notifies you and your customer and transfers the approved funds to your credit card merchant account.
    • If , the issuing bank will notify you and your customer, provides your customer with an explanation, and you will not receive any funds to your credit card merchant account.

    The final steps of the process are settlement and payout. Once settled, your acquiring bank will send you the approved funds to the bank account of your choice. Alternatively, your acquiring bank may send Instabill the approved funds, which we will then send to you.

    Regardless of who sends you your payout, you will receive it on time, every time, based on the payout schedule provided by your acquiring bank.

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    What Are The Qualification Criteria For Business Credit Cards

    Business credit card applicants must have good to excellent credit to qualify for most cards. That means a FICO® score of 670 or up. Those with a lower credit score may qualify for a card with a smaller credit line or a secured business credit card that requires you to make a cash deposit upfront that will be used as a security deposit.

    Other Details To Consider

    • Some companies require a contract, and canceling before the contract is up can be costly. Other companies offer month-by-month subscriptions that you can end at any time.

    • More complex payment products, especially POS systems that allow highly customized menus, might require installation, setup or training, all of which can cost extra.

    • Customer service varies. If there’s a problem, will you want to speak to a person immediately?

    • Some companies share pricing details openly while others offer custom quotes to each prospective client.

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    What Do You Need To Accept Online Payments

    Payment gateway: This is a digital interface that allows customers to enter their card information securely. Companies like Stripe and Braintree offer online payment gateways. Many in-person POS systems also allow merchants to accept payments online, either directly or through an integration with an e-commerce system.

    Payment processor: Like it does with in-person payments, a payment processor initiates and completes online transactions with credit card companies and banks. Payment processors charge a transaction fee for every payment accepted. Many payment gateways also include payment processing services.

    Check Your Credit Score

    9 Merchant Account Requirements You Need To Process Credit Card Payments

    Before you apply, check your credit score. If its not where it should be, you can request a copy of your credit report to understand the factors that have affected your score. If you have a poor credit score, you may have a harder time getting approved for a card. But we can help you make a plan and take proactive steps to bring your score up.

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    How To Accept Credit Card Payments: A Guide To Credit Card Processing

    Our own 2020 QuickBooks State of Payments report found that one in five small businesses around the globe dont accept credit cards.

    Heres the thing: Its time for that to change. When it comes to accepting payments, credit cards have become an expectation of consumers. Small businesses that fail to keep up risk damaging their customer relationships and even losing out on sales.

    But even so, many business owners think of credit card payments as a daunting task. The good news is it doesnt need to be! Were sharing everything you need to know about credit card processing.

    Choose A Payment Processing System

    When a customer gives you their credit card to pay, theres more to it than simply swiping or inserting the card. The customers card and account details have to be reviewed and processed electronically so that the payment to you can be authorized. All of this happens digitally behind the scenes in a matter of seconds, but you need to hire a payment processor to make it all work.

    If you want to accept credit card payments, you can do it one of two ways: merchant accounts or payment service providers. A merchant account is an account that you open with a bank to accept credit card payments. Payment service providers are companies that allow you to accept credit card payments without setting up a merchant account.

    Of the two, a payment service provider may charge lower processing and transaction fees. So it may work well for you if you have a newer business or relatively small credit card payment volumes. But if you do a large volume of sales from credit cards, then a merchant account could be an easier way to manage your credit card payments.

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    Go Through The Underwriting Process

    Once your information is submitted, the provider will review and analyze your application to ensure accuracy and evaluate risk. Known as the underwriting process, this step is necessary to determine your eligibility for a merchant account.

    This step can take a few minutes to several business days depending on your provider, your industry, and the type of business you have. High-risk merchants may take longer to underwrite.

    Compare Different Merchant Services

    FREE 11+ Sample Credit Application Templates in PDF

    Since you can accept debit and credit card payments through multiple avenues, it is essential to choose an acquiring bank or payment solutions provider that supports all your needs.

    For instance, if you need all avenues of credit card processing at hand in the form of conventional, mobile, and online merchant account services, then your selected payment processor must support all of these methods of payment.

    Doing so helps you manage all your finances in one location. In most cases, it also saves you from paying additional setup costs or higher equipment fees.

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    Requirements For The Applicant

    Any business is eligible, with some obvious exclusion, such as high-risk businesses. What this means is that the benefits of a merchant account may be available, but under different rates and fees. Some high-risk businesses include adult entertainment, custom carpeting, check cashing, hair loss products, and water purifiers.

    There are several other prerequisites for applicants, but they are simple. Although a good personal and business credit history will ensure approval for Merchant Account.

    Finding a qualified merchant account provider can make the difference between success and failure when your company is ready to open a merchant services account.

    What Is A Card Processing Service

    A credit card processing service is a financial institution that processes the numbers and codes on a credit card. A card processing service does not charge a fee to process a customers payment, but instead charges a merchant a small percentage of the transaction amount.

    Consumers often worry about the security of their credit card information when providing it to companies. However, the fact is that most major banks and credit card processors use encryption to protect data as it travels over the internet. Credit card processing services securely stores credit card data and manages the paperwork involved in accepting a card as a form of payment. These services typically include some extra features, such as fraud protection and customer management.

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    How A Credit Card Merchant Account Works

  • A customer decides to make a purchase on your site and enters his payment credentials.
  • A payment system integrated into your site transfers the payment request to the merchants acquiring bank.
  • The acquiring bank sends the payment request to the clients issuing bank.
  • The issuing bank processes and validates the request and immediately sends the answer back.
  • In case the issuing bank gives green light to the transaction, both the merchant and the customer receive a notification about a successful transaction, and money will be transferred to a credit card merchant account.
  • If the issuing bank doesnt approve the transaction, the parties will receive a notification about a failed request.
  • What Should I Be Paying For Credit Card Processing

    Quickbooks Credit Card Payments – How To account Merchant fees

    Credit card processing can be costly, but it doesnt have to be. There are a variety of factors that can affect the cost of processing credit cards, including the type of business you have, the type of cards you accept, the volume of transactions and more. To better understand how much you should be spending and calculate your card processing fees, ask yourself these questions

    • What types of cards do they accept?
    • Does the company offer you a discount on your processing fees every time you sign up for a monthly billing service?

    Understanding the card processing fee is essential for any business owner. The card processing fee consists of two parts: a percentage, which is paid to the merchant account provider, usually 2%-3% of each purchase, and a flat fee that is usually $0.0015 or less per transaction. Understanding your needs for your card processing fees will help you determine the best way to go about choosing a credit card processor.

    The bottom line? There are a lot of options out there, and everyone has different needs amid the digital revolution. Whether youre an individual or running a business, the right credit card processing company for you is out there.

    • 1009 Lenox Drive, Suite 101Lawrenceville, New Jersey 08648

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    What Information Do I Need To Apply

    Applying for a credit card with us is easy, but youll need to provide some important details first:

    • Full legal name and date of birth
    • Home address, phone number and email address
    • Current and previous employers
    • Social Insurance Number
    • Information on other credit cards you hold

    Missing these details could delay the approval process or result in a denial. If youre unsure of how to answer a question on your application, call us at .

    What Is Credit Card Processing

    is the entire sequence of steps involved in accepting credit card payments from your customers.

    The process seems pretty simple on the surface: you swipe the card or enter the card details and then you get your money. But theres actually quite a bit of complexity involved in credit card transactions. Heres the gist of how it works:

    • The card or payment information is entered
    • That information is sent to the payment processor for authorization
    • The payment processor sends the information to the customers bank
    • The customers bank either approves or denies the paymentIf the payment is denied, the card is declined
    • If the payment is approved, its sent back to the payment processor
    • The payment processor sends the approval back to you
    • You complete the transaction, and the money is deposited into your merchant account

    See? Theres a lot going on under the surfaceand all of this happens in a matter of seconds.

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    What Is A Payment Service Provider

    In recent years, a number of new players like Square, PayPal, and Stripe have entered the market to disrupt the market. These PSPs aggregate their users into something similar to a single, large, merchant account.

    These services are probably best suited to businesses that do a relatively smaller volume of transactions and typically operate on a pay-as-you go basis without long-term contracts or commitments. Smaller businesses that dont require all the services offered with a more traditional merchant account, may find the PSP model does a better job to meet their needs.

    Here Are A List Of Items You Will Generally Need In Order To Open A Merchant Account:

    Accept Credit Card

    Corporations and LLCs:

    • A legal entity You will need to have a legal entity set up for your business. This can be an LLC, C-Corp and so on.
    • EIN number An EIN number stands for Employer Identification Number and is what the IRS uses to identify your company with.
    • Business checking account This will allow the merchant service company to deposit transactions directly into your business checking account.

    Once you have these three things, you can then start the merchant application process that your chosen merchant services provider requires. Sole proprietors do not need these things, and instead can sign up using their personal name, Social Security Number, and personal bank account. The next sections will talk about the underwriting process.

    Sole Proprietors:

    Sole proprietors do not need the three items listed above for Corporations and LLCs and can open a merchant account under their personal name, can use a Social Security Number as their tax ID number, and can also use a personal checking account to receive deposits.

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    Easy Approval Merchant Accounts To Get Started

    • Summa Office Supplies

    Products offered: Office supplies such as paper, folders, envelopes, labels etc.

    Reports to: Experian and Equifax

    Worth noting: Summa Office Supplies is eager to work with small businesses, and their stated goal is to provide the human touch. They offer credit for both new and well-established businesses and will provide written trade credit references upon request. As you establish a positive payment history, you can request larger credit lines.

    Open a Summa Office Supplies account now. Use code SOSNAV at checkout.

    How Do I Know Which Type Of Account Is Right For My Business

    Broadly speaking, there are two types of accounts: a Variable Account and a Flat-Fee Account. Additionally, there are two flavors of each type of account: Card Present and Card Not Present.

    With either Account type, you must figure out, what percentage of your dollar volume is card present vs. what percentage is card not present. When more than 80% of your credit card transactions are card present, chances are a card present account will be best for you and will provide you the lowest rates. If you do not process 80% or so of your transactions with the card present, then the Card Not Present Account will most likely be the wise choice again, to minimize cost.

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