Signing up for a mobile credit card processing account may seem tedious for many small business owners, especially if they are just starting out. It is actually easy to set up a merchant account. In this article, we are going to answer related questions in setting up this type of account.
Requirements vary among processing companies, but most of them would need your driver’s license copy, articles of incorporation, flyers as an example of marketing method, business cards, brochures, and a bank confirmation, obtained when you verify your account with a bank, complete with routing numbers and other details. The next step involves submitting your application. Small business owners, however, may be asked for a billing statement instead of a driver’s license copy.
Will an application be approved or a rolling reserve be required?
Most providers approve 98% of applicants, under any circumstances. The underwriter evaluates the application form and uses criteria such as the business owner’s credit standing, length of the business, and its nature. The merchant account processing company will determine and inform you of conditions that must be implemented. It is, however, rare to have a reserve implemented by a full service account provider. On the contrary, a third party company such as PayPal may now impose a rolling reserve to a majority of their clients.
Will the application get rejected if the credit score is low?
The credit score is the most essential standard most underwriters require, and thus, a bad one may result in rejection. You may, however, still have this account if your customer’s credit card will be swiped. Applications are all evaluated based on individual cases, and if your credit standing is low, you may still secure a co-signer with good credit reputation to allow your application to be accepted. It’s worth a try.
Is it tedious to fill out the application form?
Most application forms are easy to fill out, but it may not be for some business owners. Remember that questions are self-explanatory, and you are only going to provide yours and your business’ information. However, you also need to give your bank account details in order for the processor to know where funds are deposited and claimed.
How long will it take the merchant account processing to be set up?
It will take 1-2 days before the account provider will either accept or reject your credit card processing account application. Once approved, it will take about one day for the technical staff to set up needed back end files. Any necessary card machines will be shipped to your business. For internet business owners, they will get an activation link to setup their payment gateway.
Familiarizing yourself with the processing of a merchant account application and what comes with it will build your confidence in having your credit card processing capability.