How to Apply for a Merchant Account

To qualify to apply for a merchant account, a business must have verifiable processing history of at least 3 months with a minimum processing volume of $50,000 per month. No start-up companies are accepted as clients.

If a company simply wants to confirm whether or not a merchant account will be approved, a short pre-approval form can be submitted to the acquiring banks. Pre-approval for a merchant account takes 24-48 hours.

For merchants who decide to move forward, a completed application is submitted along with supporting documentation. Formal approval of the accounts takes 3-5 business days.

Merchants often ask if a corporation needs to be setup in the country in which the acquiring bank is located. For direct accounts with international acquiring banks, incorporation is required before the start of payment processing. However, merchants can wait until accounts are approved before incorporating.

Direct merchant payment processing agreements are established with top-tier financial institutions. Companies can expect secure merchant account payment processing relationships that will safeguard money, protect business interests and provide long lasting peace-of-mind.

Most international merchant banks will not have limits on processing volumes. Banks are pleased with steady increases in processing volume. If the business is planning an advertising campaign or otherwise expects volumes to grow much more quickly than anticipated, it’s courteous to notify the merchant bank in advance.

Different banks have different due diligence requirements. All banks will ask for payment processing history, business bank statements, scanned copy of a drivers’ license or passport and company information. High volume merchant accounts may be asked for financials (P&L and balance sheet) or other documents. If the bank requests more documentation, send it as quickly as possible. Otherwise, the account will be pended until the information is received.

When the merchant account is approved, the merchant will receive a payment processing agreement from the merchant acquiring bank. The agreement will confirm all applicable terms and conditions of the account.

The bank issues a merchant identification number (MID). The MID is the signal that the merchant can begin using the account for processing.

Companies can establish merchant accounts in multiple jurisdictions to mitigate risk. Multiple merchant accounts allow companies to load balance among payment processors. The results are higher processing volumes to enable growth. And lower risk of high chargebacks for any single account, thereby protecting payment processing accounts.

Businesses with payment processing power gain a completive edge in the global marketplace. Establishment and diversification of new merchant accounts is strategically important to protect the business interests of any growing company.