Nuances of opening a merchant account for payment processing
A merchant account is an account at an acquiring bank. Funds from customers who make payments remotely are transferred to it using a payment gateway. Opening such an account can be quite complicated. To open a merchant account for processing payments, contact our specialists at IT-OFFSHORE.
Opening a merchant account in 2021 is registering a business account for a company with a banking organization to accept payments that have been made by credit card. Without opening a merchant account, the existence of a business online is impossible.
A merchant account for payment processing makes it possible to receive funds from customers from different states, regardless of the length of time the bank has been open. Customers can deposit money at night or on weekends, and the payment will arrive promptly either way.
You can create a merchant account only if you have a company’s current account. There are some peculiarities of the functioning of a merchant account. When a customer deposits money for a purchase, it will be transferred to it. If all the rules are followed, the funds will be transferred to the merchant account of the company that sells the goods or services.
Opening an account is necessary so that funds that have been withdrawn from the card can be refunded to the purchaser, if necessary. Every consumer of products or services has the ability to get their money back if it was withdrawn illegally or the seller failed to keep a promise. This encourages merchants to improve the quality of their service and products.
Pros of using an account are the following:
- One can transact finances promptly.
- It is possible to trade around the clock.
- Customers from other countries can order goods and pay for them.
If a financial institution has multi-currency processing, there is no conversion when receiving funds from another country, and there is no need to pay commissions.
Terms of account opening
Most foreign banks have strict requirements for their potential clients. To open a merchant account, a checking account of the company is required, into which funds are supposed to be transferred.
It is necessary to collect detailed information about the beneficiaries, and to provide constituent documents, certified at the notary's office. If the company exists long enough, it must have a positive credit history.
An excellent business development plan is required, which includes financial information. One must explain one's attitude toward repayments, and provide the financial soundness of the business.
Nuances of opening a merchant account
There are a total of two main types of merchant account. It can be a high or low risk. If the account is high risk, more time is needed to open it and a lot of documents are required. You would need to spend a fairly large amount of money to maintain such an account.
To open an account, you will need to prepare a number of documents and data. You need to provide the address of the resource on the network, data on processing for the last six months, and information on the average bill.
Many banks require the business owner to come to the institution to negotiate in person, but in some financial institutions, it is possible to create an account remotely. Foreign banks often reject applications from companies that are engaged in currency conversion and cryptocurrency business. Applications from companies that conduct illegal business are rejected.