Merchants that seek to expand their operations should consider accepting credit cards from customers. Being able to accept credit cards from customers opens up a significant niche in the market. The application process can take anywhere from 48 hours to a few months to complete, so it is important to be familiar with the process. Here the steps that merchants can expect from the application process.
1. Gather All Banking Statements
First, a merchant should organize all of his or her business records from previous months. Banks will want to learn about the profit-ratio of a company and the cash-flow of the business. Having organized statements on hand will make it easier to provide this information. It is also wise for merchants to start the application process early so that they have time to provide additional information as requested by a bank.
2. Do a Credit Check
Merchants should also take care to check out their credit card history. It will be important to make sure that any issues are resolved on a credit card account. Merchants should make sure that any credit report that contains inaccurate information are resolved prior to the application process. If there are any outstanding debts on a merchant’s account, then he or she should try to resolve this issue before starting the merchant application process.
3. Apply to Multiple Banks
Certain banks may deny one’s application, especially if a merchant is new in the business world. Applying to multiple banks will ensure that a merchant is able to qualify for a new merchant account.
4. Provide Personal Information
There will be parts of a merchant application that call for personal information. These parts of the application will require a merchant to provide information like his or her name, physical address, Social Security number and title within the company.
5. Provide References
In the merchant application process, merchants will then need to provide a list of references. Ideally, merchants should communicate with these references prior to the start of the merchant application process. It is important to list those references that a merchant feels confident will speak in a positive manner on behalf of the company.
6. Wait for a Response
After submitting information to the bank, a merchant will need to wait for an acceptance through email or snail mail.
Following these tips can ensure that the merchant account application process is as smooth as possible for a merchant.