Merchant Account Criteria

The things you need to know are the criteria for providing merchant accounts to Internet businesses. Basic requirements that you may or may not (depending on the provider) need to fulfill in order to obtain your merchant account include: credit history, length of time in business, business type, types of products or services, price of products or services offered, the market segment in which you operate, business financial information, average order size, average monthly amount, the processing method in which products and services are being sold and delivered (manual or real-time), refund policies, other sources of income, business location (It is difficult to get a US merchant account if you are not located in the US.)

In many cases, the length of time you have been in business will influence the number of transactions you have on your site and the level of your transaction fees. For instance, some banks require a minimum number of transactions per month. If you do not meet this minimum, you could be required to pay additional fees. Some banks will ask you to estimate the number of transactions you expect on your site. If you are a new business, estimate conservatively.

Once your merchant account is approved - which usually does not take more than two business days - you will be able to accept cards the very next business day. Within a few hours time, your account will be operational. With a quick and easy merchant account set up, you will soon realize that a merchant account really is the best way to handle your company's finances. It is an easy and organized way to manage your business.

The products and services you sell will determine the transaction fees you can afford to pay. For instance, if your products are small, inexpensive and sold in high volumes then it is beneficial to choose a provider that offers low transaction fees, which usually range between $0.20 and $0.70. Otherwise, the fees will chew into your profits.

To sum up, the more aware and knowledgeable you are on merchant accounting, the secured you will feel in your transactions.