Getting a Merchant Account in America
Getting a merchant account in America is a must if you operate any kind of business. America constitutes less than 20% of the world population. And yet Americans generate and earn more than 20% of the world’s income according to studies by the US government. America is the world’s largest national economy and leading global trader.
Whether your business is headquartered in America or not, you will want to access this dynamic and growing market.
The importance of the internet
The great equalizer in the global merchant economy is the internet. Harnessing the most advanced communication technology known to Man has been a boom for business.
Long term trending indicates that e-commerce will continue to be the wave of the future well into the next century. According to census data from the US government, 2019 e-commerce estimates increased 12.4 percent from the first quarter of 2018. During the same period, total retail sales increased 2.0 percent. According to Digital Commerce 360, Millennials now do 60% of their shopping online.
Migrating to an online business model is your best chance for succeeding in the emerging global economy.
Doing business online
Developing an online component to your business is essential for success.
The variety of management and communication tools available to retail professionals via the Internet is impressive.
A website allows you to present a digital storefront to the world.
Databases enable you to manage customer and supplier information via the cloud.
Conducting business via e-mail enables you to do a number of things. You can bill, arrange for shipping and stay in touch with business partners and clients alike at all hours of the day
But the most essential component of your online business is your ability to process credit card payments.
Because of the privacy concerns and high dollars involved, there are a variety of safeguards necessary to enable financial transactions online. These involve features such as transaction and security filters. The solution to this has been to develop specialized internet based merchant accounts known as ‘online payment processing accounts.’
Online payment processing accounts
Credit cards are, by far, the easiest and most convenient way to pay for purchases online. Online payment processing accounts represent the shortest path between your customer base and your business’ bank account.
These merchant accounts are provided by payment processors that specialize in furnishing merchant accounts to organizations that wish to do business online. Online payment processing firms are the vital links between banks, credit card companies and online merchants.
Effective online payment service providers have expertise in supporting clients of various types across the spectrum of industries. These payment service providers can scale the services they provide up or down to meet the specific requirements of that particular business vertical.
Brick-and-mortar businesses must receive authorization to process credit card purchases. So too must online businesses pass a vetting process in order to obtain an online payment processing account.
Applying for an online merchant account
Apply online with SecureGlobalPay for a merchant account today. Be prepared to submit the following items for review:
- A valid, government issued photo ID (e.g., driver’s license, state/provincial ID, etc.)
- A bank attestation or void check
- Bank statements (3 months worth)
- Processing statements (3 months worth)
- SSN (Social Security Number) or EIN (Employer Identification Number)
- The URL to your secure, fully operational website
Please note that your history of chargeback ratios must be less than 2%.
E-commerce businesses must have a secure, fully operational website.
The merchant account application process
The underwriter must ensure the applicant in question is running a legitimate business that operates within the law. This helps assess the level of potential risk individual merchants pose to credit card processors.
Underwriters consider a variety of factors when assessing risk. Businesses with a history of high chargebacks – or, credit card transaction disputes – pose a risk. So do businesses with negative bank account balances, unpaid bills, a history of late payments or questionable credit scores.
Online businesses that fail to post clear refund and privacy policies on their websites can also be considered high risk.
Merchants can take several steps to maximize the likelihood of an approved application:
- Pay all outstanding debts and bills
- Provide proof that you have some capital in the form of bank savings
- Ensure a principal in the business has a sound credit history and nominate them to apply for the merchant account
Underwriters seek to ensure that merchants do not have a history of suspicious or questionable activity. The goal is to ensure that risk is not passed on to the credit card processor. Resolving any such outstanding issues prior to application will increase the likelihood that your business will receive approval.
Merchant NAICS AND SIC categories
There is a classification system known as NAICS. (the Northern American Classification System). It iis a list of six-digit codes used by federal agencies to classify businesses. The classification system aims to gather, analyze, and publish statistical information about these businesses and their impact on the U.S. economy.
There are Four-digit numeric codes known as Standard Industrial Classification. (SIC) codes are used in the US and elsewhere for identifying businesses and their primary purposes.
SecureGlobalPay can provide a merchant account tailored to your business model. Recoup money lost by using processors like PayPal. Our easy online application process can set you on the right road today!
- No Application Fees
- Competitive rates
- No VISA/MasterCard Required
- Multiple Secure Payment Gateway Options
- LOW Rates and Fees
- No extensive credit checks