Merchant Account Requirements

By SylverTek [ Reprint Info ]

Are there requirements to apply for a merchant account for a Web site? What do I need?

The following requirements may have to be met to apply for a merchant account:

• Your website must be published to the Internet ("live")
• Your website must clearly post information including your return/refund policy, shipping policy, privacy policy, business name and contact information
• List your products and prices on your Web site
• Your shopping cart must be working and secure
• Depending on your business structure, you may be required to have a business checking account

Depending on the bank and the type of account you are applying for, other steps may be required. Some banks will actually send a representative to your place of business to confirm your assertions as to company size, location, and length of time in business at that location. A credit check may be required. Business references may be required and may be contacted.

The application process may require submission of the following information:

• If currently processing, previous 3 months statements
• Monthly total transaction amount
• Transaction amounts
• Type of transactions and amount of security/verification required

The application process may require submission of the following information:

• Copy of drivers license
• Copy of a voided check from the business account
• If currently processing, the past 3 months' statements
• Copy of business license or articles of incorporation

Your business model can influence what banks will accept your business and the rates you will pay. Doing business over the Internet is inherently more risky than brick-and-mortar, and therefore the bank will charge a higher per-transaction fee than for face-to-face transactions. In addition, if the product you are selling is "intangible", such as a website membership, access to content or experience, or downloaded files such as software or videos, that will put your business into a higher rate category as well.

Finally, the nature of the business is also taken into consideration. The following are some of the business types that are considered high risk: gambling, online casinos, software downloads or other "intangible" goods, adult material of any kind, cellphone plans or minutes, mortgage services, furniture sales.