Card payments have already taken an upper hand over cash transactions today. No wonder, online stores that accept credit/debit card payments command a better edge over cash-only stores. So, if you too are planning to setup an online store, make sure to sign up for online merchant accounts. These are a form of bank account that enables stores to accept credit/debit card payments. However, a few things are to be remembered before you finally march to fill up your online merchant account.
Be flexible to accept all kinds of credit & debit cards
Some stores only focus 1-2 major cards when it comes to card payments from customers. But such a temperament is really limiting for a store- especially when it aspires to reach up to the masses. So, your focus should be on an online merchant account that allows stores to accept all kinds of credit and debit cards.
It’s better to have a great credit history
Most of the online merchant account providers go through extreme vetting before approving the merchant account. A great credit history goes a long way is securing the approval for your account.
Documents you will need
You are most likely to require the following documents for securing approval of your online merchant account-
There are various fees associated with online merchant accounts. Added to the two main fees- transaction & discount fees- you also have minimum monthly charges, batch processing, chargeback, termination fees and so on. Now, all such fees won’t be applicable to all account holders. It’s better you talk to an accountant or a financial advisor beforehand to understand about the exact range of fees applicable in your case. This way, you can clearly point out to the account provider the specific fees to be removed from your profile.
Steer clear of tax issues
As mentioned earlier, an online merchant account provider will check your tax returns and any tax issue may spoil your chance of approval here. So, before you head out to apply for online merchant account, make sure to resolve all your tax issues.
Points to check while choosing account provider
There are several points to check while choosing your account provider-
Finally, don’t rush to the first account provider you come across. Make a shortlist of minimum 4-5 potential names and get a comparative study on them before the final sign up.