Securing a merchant account is a crucial step for businesses that want to accept credit card payments from their customers. The process of getting approved for a merchant account requires the submission of various documents that serve as proof of your business identity, financial stability, and compliance with industry standards.
Not all payment processors provide a dedicated merchant account. A business can join and aggregator like Paypal or Square to share a merchant account with other businesses. The benefit of this is that there is very little application process. However, it comes with less control and certainty. You can read about the difference between a merchant account and an aggregator.
In this article, we’ll take a look at the most common documents and information required for a merchant account.
Incorporation documentation and tax number: A business license is a legal document that certifies that your business is registered and operating. You may need to provide your tax number, articles of incorporation, or other incorporation documents.
Personal ID and information: You will need to provide copies of your ID such as a driver’s license or passport and social security number (Canada) or social insurance number (USA). You will also need to provide personal information such as your home address.
Previous processing statements: If you have an existing merchant account, you might need to provide processing statements from the previous three to six months. Processing statements show the volume of transactions processed through your account, as well as any chargebacks or disputes.
Website information: If you have an online business, you’ll need to provide information about your website, including its URL and a brief description of your products or services. Your website should be well-designed, secure, and easy to navigate.
Financials: You might need to have annual financials or your company tax return from your previous year. This is not always required, but it is good to have on hand just in case you need them.
Signatures: You will need to sign the agreement. For most processors, anyone who owns more that 25% of the company will need to sign.
Getting approved for a merchant account requires the submission of various documents that serve as proof of your business identity, financial stability, and compliance with industry standards. By having all the necessary documents ready and ensuring that they are accurate and up-to-date, you can increase your chances of getting approved for a merchant account and start processing card transactions quickly and efficiently.