Opening a merchant account is a relatively easy process, in fact all you have to do is simply provide the right information and documentation to your processor. Most processors will require that you have a business in place in order for them to open an account for you. Some might even ask you to complete a credit check before opening your account, but this is not always required.
The first thing you will need to do is contact your chosen processors and request more information on their requirements for opening an account, if they require a credit check or not, etc. You can also visit the Federal Deposit Insurance Corporation's (FDIC) website which offers resources on how to open up an account at different types of financial institutions.
Once you have received all your information, the next step will be to fill out and send in the required documents. Generally, these include:
- Detailed statement of business activities . Your processor might ask for some type of document that explains how you are going to go about processing credit cards. This can be a simple two or three page document detailing your business structure, how you plan to handle the cards, and your business history.
- Business license . This will be a government issued document that verifies that your business is in good standing with local authorities.
- Proof of identity . You will need to present at least two forms of identification from the following list: Drivers license Passport Other government issued photo ID Business license Social security card. This is typically required if you are not opening the account in your name, for example if you are opening it under your corporation's name
- Proof of address . Some processors will require a utility bill or bank statement as proof of residence.
- Income information . If you want to open an account with your credit or debit card, you will need to provide your average monthly income amount (ex: $2,500/mo). You can estimate your income by looking at what you earned last year.
- Business banking information . If you don't already have a business bank account, this is the time to get one. This way you can link your current checking account to your merchant account once it is opened. Once you have set this up, you will need to provide the following information: Business name Account number Bank routing number SWIFT code
- Sales tax information . If you are required to charge sales tax in your area, then you will be required to fill out any additional paperwork that your processor might require. This is not always necessary so it's best to check with your processor first.
Once you have your application filled out, you will need to mail everything in or fax it to the processor of choice. Be sure that all documents are clear and easy to read, especially business licenses, utility bills, etc. If they can't easily be read, then it will create a delay in opening your account.
Documents you might need to open merchant account
Opening a merchant account is usually quite an easy process, but there are some documents that you might need for this. These factors depend on the kind of business you have and the processor you decide to work with. Following are some of the most common documents that you will need as you apply for a merchant account:
- Business license
- Income verification
- Bank statements
- Ripple or SWIFT code
- Sales tax certificate, where applicable. This is not necessary if your business does not charge sales tax on your services/products.
- Proof of residence (utility bill)
- Detailed business plan
These documents are usually required, but different processors might have different requirements. It is best to check with your processor for more details before applying for a merchant account.
