For businesses that want to start taking card payments, the first step is to set up a merchant account. This guide will take you through the process of setting up a merchant account, from deciding which provider to go with to completing the necessary paperwork.
- Decide what type of merchant account you need
There are three types of merchant accounts:
- Virtual Terminal – a virtual terminal allows you to key in card details by hand. This is a simple solution for small businesses with low transaction volumes or those that sell very inexpensive items online. There are no monthly fees, but the rate per transaction will be higher than other types of account.
- A virtual terminal allows you to key in card details by hand. This is a simple solution for small businesses with low transaction volumes or those that sell very inexpensive items online. There are no monthly fees, but the rate per transaction will be higher than other types of account Chip and PIN – this type of account uses a chip and PIN machine to accept payments. It’s ideal for small businesses that don’t do a lot of card processing, as there are no monthly fees. However the rate per transaction will be higher than other types
- This type of account uses a chip and PIN machine to accept payments. It’s ideal for small businesses that don’t do a lot of card processing, as there are no monthly fees. However the rate per transaction will be higher than other types Online – this type of account is perfect for businesses that sell products or services online. There is usually a monthly fee, but the rate per transaction is lower than the other two types of account
- Choose a merchant account provider
There are a number of different merchant account providers to choose from, so it’s important to do your research and find the best provider for your needs. Factors to consider include:
- The cost of setting up and running the account
- The rates per transaction
- Additional fees, such as monthly fees or chargeback fees
- The provider’s reputation and level of customer service
- Complete the application form
Once you’ve decided on a provider, complete an application form and send it off to the company. The application process usually takes around 7 days, but can take up to 10.
- Set up your account and get ready to start processing payments
When receiving approval for the account and after all necessary paperwork has been completed, your merchant account provider will set up your merchant account and send you login details. Once you have these, you can start processing payments.
The process of setting up a merchant account can seem daunting, but by following these simple steps you’ll be ready to take card payments in no time.
