24 Jan Length of Time to Get a Merchant Account
How long takes to get a Merchant Account depends on several factors. Among the factors financial institutions will look at include the length of time you have been in business, your credit rating, whether or not you sell high risk products and if you have previously or currently have a merchant account. Depending on your circumstances it could take from a few days to a week or longer to get approved.
Length of Time in Business
The financial risks are considerably lessened when a business has a history of successful transactions. That history is also a display of a solid customer base and skillful marketing strategies. New businesses don’t have that advantage so banks and other financial institutions with the capabilities to set up merchant accounts have to ensure repayment by thoroughly researching the product or service.
In essence, a merchant account is an unsecured line of credit. The financial institution covers the amount of the customer’s transaction and then receives reimbursement from the business owner. Plus, customers have 90 days for any dispute or refund request on the merchandise. A credit check verifies the financial integrity of the business owner.
High Risk Products
High risk products do not usually encompass interest to a large amount of people. The clientele may be limited, such as customers who buy electronic cigarettes. A select demographic has a demand for electronic cigarettes; therefore making them a high risk. When marketing attracts a small group the financial risks are larger. Research into the viability of backing high risk sales may take longer than more established products that reach a greater number of people.
Previous or Current Merchant Account
If you already have a merchant account but are looking to change for a better rate or better service, your track record is already established. Business owners who have had previous merchant accounts have also proven their ability to fund transactions. Transferring an existing merchant account to a new provider should only take a few days.
You can help speed up the process of launching your merchant account by making sure your application is completely filled out. Double check for accuracy of your entries and to make sure nothing has been omitted. If additional verification paperwork is required, obtain copies as soon as possible for the financial institution. These actions deliver more than required paper; they also display your effectiveness which is a good sign to merchant account holders.