Not so long ago, it was possible to conduct business solely through cash, checks, and money orders. Today, credit cards are people's primary method of payment.
Checks are all but obsolete and money gets transferred wirelessly. Even cash is being used less frequently! In order to accept credit card payments, you will need to set up a U.S. Merchant Account. There are three ways that you can do this.
1. Apply for your own merchant account at your bank
2. Work with a financial intermediary to set up a merchant account with a brokerage or other bank
3. Use a third party service to act as your merchant account
Apply for a US Merchant Account through Your Bank
The most sensible option is to apply for a merchant account at the bank through which you have your business bank account. In fact, many banks will give you merchant account information when you set up the business account.
The only problem is that many of the major and national banks are hesitant to allow start up businesses, sole proprietors, or small businesses to use them for merchant services. Some banks will ask for a year long audit of your account before allowing you to have a merchant account.
Intermediary Merchant Accounts
Using an intermediary might be the way to go if you do not wish to allow the bank a year to decide whether or not to allow you to have a US merchant account. An Intermediary will act as the go between for you and your bank or brokerage firm.
Intermediaries understand the banking business and will know how to
best pitch your business to the bank to make it look like a worthy merchant account investment. When you work with an intermediary, you will want to make your business look as low risk as possible.
Using a Third Party Service for a Merchant Account
The easiest way, by far, to obtain and set up a US Merchant Account is to use a third party service. Third party services often require little more than your name, address, and bank account information for you. They act as the second step in card processing.
When a sale is made through their service, they verify that the account making the payment is valid and has the funds available. Then when the funds have cleared the account, they forward the funds to you.
The most popular third party processor out there right now is PayPal. Clickbank is a close second. The problem with third party services is that they usually charge high fees for use of their merchant services.
The Most Reliable US Merchant Accounts Out There
The most reliable way to set up a US Merchant Account is to apply through your bank. While banks are picky, they are the most financially secure and will usually offer you the best deals on merchant accounts.
Of course, if you are denied a US Merchant Account through your bank, you do have other options available to you. An intermediary can re-pitch your business to the bank, or you can take advantage of a third party processor while you prove your stability and worth.
Author Resource:-
Scott Letourneau is the CEO of NCP,Inc. and an authority in helping people form entities,grow their business,and protect the assets of that business. For more info contact: Scott Letourneau at 702-367-7373 or www.nvinc.com
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