Any business that intends to accept electronic payments, whether they are completed in-store or online, requires a merchant account. This account is designed to receive funds transferred from a customer’s credit or bank account after they make a purchase from your business. But how to get approved for a merchant account? Without a merchant account provided by either your bank or a merchant processing company, you will be unable to accept any electronic payments, which will make it hard to conduct business at all. Before you can get a merchant account for your business, you will need to apply one either to your financial institution or with a private merchant processing company like Millennium Bankcard.
Just like applying for a bank loan, there are a number of details about your financial history that must be examined before you can get approval to open a merchant account. These accounts cost money for financial institutions to maintain, which is why they need to be owned and operated by companies or individuals with a positive financial record. On this basis, not everyone may be approved to open a merchant account with a bank, but there are many other institutions that will create and manage a merchant account for your business. Even so-called “high risk businesses” can obtain a merchant account. The key is knowing what steps to take in order to ensure your business will be approved.
Update your Credit Report
Most financial institutions and merchant processing services will look at your personal credit history before anything else to determine whether or not they should provide you with a merchant account. If you have a history of bad credit, late payments or liens that appear on your credit report, it is a good idea to remove these before applying for a merchant account. If you have since made the proper payments, and your credit is currently good, you should contact a credit report agency to have these previous infractions removed from your record. If this is not possible at this time, you may also consider adding a cosigner associated with your business and with good credit to your application. With good credit history, you will get approved for a merchant account.
Expand your Search
There are lots of merchant processing companies out there that will be willing to offer you a merchant account when the banks won’t. It is important that you take the time to find the right one for your business’ needs. The best way to accomplish this is to be ready with a number of pertinent questions concerning your specific needs. Ask the sales representative about things like transaction fees and additional charges like reserve fees that may apply to your business. Any merchant processor worth working with will be able to quickly and clearly answer you. If not, it is likely that this company is not the best choice, even if they are ready to approve your merchant account application. You can try Millenium Bankcard to get approved for a merchant account.
Accept Special Requirements
The importance of a merchant account to your business cannot be overstated, which is why you should be open to paying a higher fee if your options for merchant account providers are slim. Sometimes high-risk businesses have a hard time getting started with a merchant account, which is why certain fees may be applied by merchant processors. This should not discourage you since the amount of money you stand to make by offering your customers multiple payment methods will significantly outweigh any additional fees if your business is successful.
Although there is no guarantee that your new business will be eligible for a merchant account, there are steps you can take to ensure you have the best chance to get the ideal merchant account service for your company. To learn more about setting up a merchant account with Millennium Bankcard, be sure to contact one of our friendly customer service representatives today!