1. What is a “Merchant Account?”
A merchant account allows a business to accept electronic payment for services or products, via their customers’ Credit cards (Visa/MC/Discover/American Express/JCB/Diners), Debit cards (Visa/Solo/Electron/Delta/Maestro), Gift Cards, or Checking accounts (ACH/eCheck/Demand Draft).
2. What risks am I taking by accepting credit cards?
There are several risks that a merchant takes when accepting credit cards.
The customer has 6 months to issue a chargeback on any purchase. Most of the time, you are dealing with legitimate customers. However, there are customers who know how to “abuse” the chargeback system, and attempt to issue a chargeback, even if they received the product/service.
• Credit card fraud….the possibility of a customer making an order with a stolen credit card is higher than you would think. We will help train you to prevent these types of fraudulent transactions.
• Obviously these are two large risks; however, they are offset by the fact that accepting credit cards can usually increase your sales by 50% to 400%. We are not trying to scare you, but would prefer that you understand how to keep your profit margins safe.
3. What documents will I need to open a merchant account?
Normally we will require the following (additional documents will be required in some circumstances):
1) Clear copy of the principal’s drivers license or passport
2) Void business check or bank reference letter to confirm the account for deposits
Show Less3) Proof of business: Depending on the business type, we’ll need the DBA registration, business license, or articles of incorporation or articles of organization (sole proprietors do not require any of the above)
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