Obtaining a Merchant Account
There are various things that will be taken into consideration as part of the application process:
- The type of products or services the merchant offers
- The sales method (such as in-person, online, phone order, etc.)
- The payment method (such as recurring billing, free trial offers, single sale, etc.)
- Past processing history (or personal credit history if there is a lack of processing history)
- Perceived risk (usually determined by analyzing chargeback activity)
- Number of processing applications the merchant has previously submitted or are pending
Not all merchant accounts are the same, and not all banks provide merchant accounts. Some merchants will need a high-risk merchant account.
Merchant accounts come with pre-determined limitations, such as sales volume and transaction volume. As a business grows, more merchant accounts will be needed to accommodate the increase in sales and volume.