Opening an e-Commerce merchant account can be challenging if you’ve been rejected by the bank. Unfortunately, banks view everyone in the e-Commerce space as high risk due to excessive chargebacks and the risk of fraud. Luckily, there are merchant services providers who work with e-Commerce and other high-risk businesses to help them accept credit card payments from their customers.
Before you can begin accepting online credit card payments, you’ll need to apply with a merchant services provider. Here are the things you’ll need in order to open an account.
Most businesses will either choose to be a limited liability company or a corporation. Once you establish your business entity, you will need to get a copy of your certificate of incorporation. You will also likely need a copy of your articles of incorporation.
Getting a Tax Identification Number (TIN) can be done quickly and easily on the Internal Revenue Services website. You’ll need to answer a few questions about yourself and your business, along with providing your address and other information. Once you do that, you’ll be given a nine-digit TIN number printed on a letter. This letter is commonly referred to as the SS-4.
Once you have your certificate of incorporation, articles of incorporation, and IRS letter, you’ll need to find a bank that has experience with your business type. The process of opening a business account at your local bank is straightforward, and their associates will be able to help you every step of the way. In addition to the previous documentation, you’ll also need:
Of course, in order to open an e-commerce merchant account, you’ll need a website where you sell your products or services. If you’re in the process of setting up a merchant account, you should already have your website prepared. Make sure to update your terms and conditions, privacy policy, and any information necessary to reflect the name of your legal business entity. You’ll also need to provide proof of domain ownership.
Now that you have all of your paperwork completed, you’ll have to start the application process for your merchant account. Because e-Commerce businesses are high-risk, you should apply for a high-risk merchant account with your merchant services provider. This application asks for basic information to learn more about your business, including
The rest of the information you’ll need to provide on the application is about the business owner. This includes name, date of birth, social security number, home address, phone number, email address, and more.
Once you’ve completed and signed the application and included your supporting documents, you’re ready to submit your application. After this, it will go thro ugh an underwriting process to review compliance and verify your information. You may receive a request for additional information, but in most cases, you should hear back from your merchant services provider within just a few days.
Are you ready to start the e-Commerce merchant account application process? Apply online now.
