In the last few years, the interest in merchant accounts has reached record high levels. In case you don’t know, a merchant account represents a bank account that allows the account holder to accept credit cards from clients who want to pay for the goods or services. Today, the vast majority of small businesses accept credit card payments. The same goes for big businesses. In addition, having an e-commerce merchant account is practically a must because this is the most popular method of payment online.
There are many people that own startup companies who believe that they cannot get a merchant account because their business is relatively new. This is not true because getting a startup merchant account is almost as easy as getting an ordinary merchant account. However, there are some things that merchant account provider usually require in order to approve these accounts. If you want to increase the odds of approval, new businesses and startups should do everything they can to appear as well-established organizations. This means that whenever you are applying for a merchant account, try to include documents like a business plan, copies of customer contracts, supplier contracts, invoices, sales scripts etc. All these things will make your business look legitimate and real as it is.
The importance of choosing the right account supplier for your startup
There are many different merchant account solutions available in the market. But, not all of them are equal. If you select the right one, you can expect to witness the many benefits of having a merchant account for your startup.
First of all, you will be able to boost revenue and sales. The more payment options your clients have the better. As we said before, this is especially true when it comes to online startups and new small businesses. We all know that it is impossible to use cash when you are shopping online.
Accepting credit cards will allow your startup to avoid bad checks. Bounced checks and the fees associated with them can definitely hurt your business operations. In addition, a merchant account may be able to help you allow recurring payments. It’s also worth mentioning that merchant account holders were able to improve money management, boost productivity and improve customer satisfaction. All these things are important for new businesses and startups.
Finding the right merchant account provider
To start with, you should learn more about merchant account fees. Almost every merchant account provider is offering different fees and in some cases, the volume of sales affects these fees. Compare their fees to other popular providers.
Next, you should think about the frequency of use. In case you are not planning on using this type of service for your startup regularly, it’s probably not a smart move to get a monthly fee package. It’s also good to check how long you have to wait to get the funds on your account once the transaction is completed. Finally, check some online reviews and ask your colleagues and business partners for advice.
See also:
Is Open Payment the Future of Payments?
