Receiving payments from your customers is one of the primary yet sensitive areas of any business, particularly in the initial stages of starting a company. Once you have set up a business account, it is important to set up an online merchant account as well. Wondering why? Well, in today’s world of growing technology, customers hardly carry around cash or cheque books in their wallets. Presently, debit and credit cards are the go-to forms of payment. 

But what is a merchant account? Let’s read further to learn everything about merchant accounts. 

What is a Merchant Account?

A merchant account works as the middleman that allows your business to accept debit and credit card payments both in person and online. Once a payment processing solution sets up a merchant account for your business, you can begin accepting credit and debit card payments in no time.  

A merchant account is a bank account wherein the payments from credit and debit card transactions are deposited. Further, your merchant account provider transfers the funds to your business bank account within 3 to 5 working days. Some payment solution providers have come up with the same-day transfer of funds. 

Payment solution for your business

How to Get a Merchant Account?

Follow these 6 steps to start accepting payments on your merchant account. 

1. Get Hold of a Business License

To open a merchant account, it is important to prove that your business is legitimate. Therefore, the first step toward opening a merchant account is to get a business license.  

2. Open a Business Account 

After getting a valid business license, the next step is to obtain a business bank account. Your business bank account will be where your merchant account provider will deposit the funds from your credit and debit card sales and withdraw their fees.  

3. Assess Your Needs 

Before thinking of opening a merchant account, it is important to evaluate your business needs. For instance, you are required to decide which credit and debit cards you need to process. Do you want to accept American Express, or will Visa and Mastercard do? Before getting a merchant account, map out everything you need for your business. 

4. Compare Merchant Account Providers 

Now that you are thorough with your needs, you can use that information and start researching different merchant account providers to find the best suited for your business. Let’s look at a few features to keep in mind while looking for a merchant account provider.

  • Strong Security 

As a merchant, it is your responsibility to protect your customers’ sensitive credit and debit card information. We understand that it might sometimes feel like a burden. But you can release some of that burden by choosing a PCI-compliant merchant account provider.  

  • Flexible Customer Service 

Look for a provider that has 24/7 in-house customer service free of cost to solve your issues, if any occur.  

  • Instant Funding 

Some merchant account providers like Razorpay provide next-day funding services so you can get the fund in your account faster. 

  • Transparent Pricing Models 

Credit card processing fees can prove to be confusing. So, if your merchant account provider is unclear about the fee, it might be a sign to shift to another.

5. Fill Out the Application 

After selecting a provider, you will be required to fill in an application that will require detailed information about your business. Documents you are likely to provide: 

  • Contact information 
  • Authorized signer information 
  • Bank account number 
  • Tax ID

6. Start Processing After Getting Your Merchant Account Approved 

Opening a merchant account will take somewhere between one business day to a week, depending on your provider. Once approved, you can start accepting credit and debit card payments right away. 

 If you are looking for a payment processing brand to set up your merchant account easily, check out Razorpay, which offers exemplary services to suit your business’s needs the best. Step into the future of accepting payments with Razorpay.

Payment Options for your Customers

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    Author Giri Sandeep

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