In opening a free merchant account, you have to prepare requirements such as merchant account application and agreement; valid identification documents; financial statements; business documents; Website; and payment gateway.
A free merchant account is the perfect solution for most merchants who like to start accepting credit card payments. Acquiring a free merchant account is very easy as long as you meet all the requirements the bank or merchant account provider wanted.
Merchant account application and agreement
The foremost requirement in opening a free merchant account is to submit an accomplished application form. This paper contains your personal data such as name, place of residence, contact numbers and business data. You also have to attach pictures of yourself. A tax identification number and SSS are also required for proper identification as the business proprietor. Application forms differ on each merchant bank. You have to fill them up according to their satisfaction and the checking of the establishment.
Valid identification documents
Be equipped with any valid identification documents such as passport, driver’s license, voter’s ID and such. This is to ensure that no fraud is taking place.
Just like you are, companies that provide merchant accounts need to ensure the validity of each application. So, they will ask for your business’ financial statements. This will confirm that you are capable of paying the fees on due time and that you are in good terms with your bank or any financial institute. If your business is going on for a few years now, you have to provide the business financial statement after at least two years of service. If not then, your personal financial statement and personal tax will do. Moreover, you have to present the cash flow details, the probable average online transaction rates and the estimated conversion value.
Documents such as your business license, seller’s permit, tax seller’s permit, and documents of incorporation are needed to open a merchant account. You must also present a voided copy of a bank account check where your money is set down. This check must have the “Doing Business As” (DBA). You also have to provide the business phone number and registered business address. This mustn’t be a P.O. Box address.
Since a merchant account is applicable for online businesses, you have to give the company a URL of your valid and active website. Make sure that your website is professional-looking and has the vital policies of deliver, and secured checkout system and other fees. Verify if the domain you have is legal and accessible and it must be registered with you as the legal owner.
Before applying for a merchant account, you must already have a payment gateway for your business. This is the main objective of acquiring a merchant account as it will provide assistance in the transactions done between the customer and you. It will make it easier for you to trace the due payments from your customers and clients.
The most essential qualification for opening a credit card merchant account is to meet the requirements of the bank you are applying to. There are industries called processors that help in this task. You may choose from personally going to the bank or the gate processor.