There are countless resources online to help you (as a merchant) find the right payment processor for your business. You can easily research what to look for and how to whittle down a pool of candidates into a more manageable list.
Though how exactly do payment processors decide which businesses they want to work with? What do they look for — and equally important — what types of clients do they avoid?
First, it helps to understand the basic process by which you apply for a merchant account. The individual steps may vary from processor to processor, but in most cases:
- You submit an application.
- The system matches your employer identification number (EIN) and business name with whatever the IRS has on file. This is to prevent backup withholding.
- Your application details are then sent to data processing and the underwriting department.
- Once approved, you'll be able to begin accepting credit and debit cards within your business. Retailers will need POS terminals, and online merchants will need a payment gateway.
Simple enough, but what do payment processors look for throughout the above steps?
Payment Processing Approval: Behind the Scenes
The approval process isn't nearly as exhaustive as what you might go through when applying for a loan but is very similar. After all, the acquiring bank is depositing funds into your commercial bank account within 24-48 hours while they wait to get paid from the card issuer.
Even though the application process is easy, establishing a merchant account still requires time and money in the form of:
- Contract negotiations
- Terminal purchases, leases, and gateway configurations
- Due diligence and background checks
Lastly, payment processors are on the lookout for companies that have experienced security breaches in the past — especially if those issues haven't been addressed yet. A reputable payment processor should be able to educate business owners on best practices to reduce security-related vulnerabilities, PCI scope, and costs.
Ready to Set up Your Merchant Account?
The application process may sound daunting, but it really is straightforward. If you've already gone through the trouble of creating a business, applying for an EIN, and finding customers, then setting up a merchant account will be like a walk in the park.
To learn more about BluePay's payment processing solutions and the application process, contact us today for a free consultation.