How to open an account so that a business can receive payments by credit card

Accepting any means of payment is one of the main characteristics that a small or medium-sized company must have. Even more so when it is a service company, an e-commerce or a neighborhood store. Think that, in this way, you will be able to offer your clients the opportunity to pay with alternative means to cashlike the popular Credit cards and market debit. To do this, you will have to open an account to receive payments by credit card.

In other words, you must have a commercial account that extends this service as part of its catalog. This is the option that will allow you to successfully set up plastic card payment processing and, of course, accept mobile payments. But, how necessary is this payment alternative? Is it worth it? Of course yes! And it is that, although you could only accept cash and checks, this would limit your sales and create some discomfort for your clientele.

Even if your company is small, opting to extend your payment options will help you grow, even more so if you have a physical store or direct contact with the public. Even home and online-only businesses need a platform that allows them to accept debit or credit payments. Opening an account to receive credit card payments will undoubtedly mark a before and after in your business.

What is the meaning and importance of business services?

Commercial services are nothing more than a financial catalog used by companies to complete different transactions with their customers, specifically, with credit and debit cards. These services may be offered by the bank, by merchant service companies, or by independent providers that specialize in payment processing. Generally, if you choose a commercial service provider you will have access to more services than any bank in the market would offer you.

Having this clear, we have one question to answer: How to choose the best business service provider? Well, it will be enough for you to analyze certain factors before opting for any option. For example, It would be desirable for your new service provider to provide you with a broad and versatile payment structure. The second factor is the price of the services and the fees and commissions associated with the transactions.

What else should you consider? The ease of use of the systemif it adapts perfectly to your charging devices and the software you work with and, of course, the intrinsic characteristics of the processorlike connectivity with the point of sale, for example.

How to open an account so that a business can receive payments by credit card

What is a business or merchant account and how to get one?

Business accounts are similar to a checking account. The difference is that they are reserved for large companies and SMEs, and have a much broader portfolio of services. Thanks to them, you can accept payments in credit and debit cards in your store or business. Often, these accounts also include a payment processor that will allow you to complete transactions with a POS or POS, and some even incorporate certain options for online payment.

Small businesses that still make their living in a corner of the home do not usually opt for this option because they have the idea that the bank does not have an alternative that fits their cost structure. However, it’s not always like that. You could try visiting the bank where you have your accounts to find out if they have alternatives designed for SMEs or entrepreneurs.

Yes indeed: Please note that in order to open a business account, your business needs to be in business for six months or more. The only downside to business accounts is that the bank will reject your application if the company has bad credit or if, if not because it is too new, the owners or partners do not have a desirable credit rating.

What is the best service for mobile payments?

If you want to expand your customer base and modernize the services you offer in your company (no matter how small), you could consider working with mobile payment methods, such as Amazon Pay. This online payment system eliminates all barriers associated with payment processes because your customers will be able to pay for their purchases using their Amazon account. What does this mean? That they will not have to use their credit card or enter their personal data in any form.

The best? With Amazon Pay, customers can complete their purchases by voice using Alexa skills. Because of Amazon’s reputation, having an option like these at your disposal will increase the trust people have in your business.

Note: Do you prefer to use another mobile payment service? Check other similar companies! GooglePay Y PayPalPay they work great.

Can I hire an independent company to process credit card payments?

Yes actually, it is a fantastic option in case you cannot open a business account in the bank. Independent companies work with all types of businesses, even those that are high risk or those that do not have the best credit rating from the country. Yes indeed: keep in mind that this option could be subject to much higher fees and commissions than those of a bankbut if you don’t have access to a bank account you might be able to bear the cost, at least temporarily.

Recommendation: If your business is 100% online, then you need an online business account. These types of accounts are designed to process online payments with credit and/or debit cards safely and quickly. Most independent businesses offer both business accounts for brick-and-mortar stores and business accounts for e-commerce and online stores.

Note: Before hiring any service to receive credit card payments to your account, be sure to study the conditions of the catalog and the cost and fee structure of the company. If you can, also check the comments of other clients and compare all the options with each other to find the one that best suits your needs and your company’s budget.

How to open an account to receive credit card payments?

If you want to open your account to receive credit card payments either physically or through the Internet, you will need:

  1. Gather all your financial information. This includes your company’s financial statements, bank statements, if you have them, and balance sheets, including income statements and cash flow statements for the last year. If your business is very new and hasn’t been in business for a year, gather as many documents as you can.
  2. Choose the cards you want to accept. Visa is one of the most popular card platforms, but there are others such as MasterCard and American Express. The best thing would be to choose these three, which are the main ones. Remember to ask about the fees and costs associated with processing payments with these debit and credit cards.
  3. Choose the payment processor. Here you have several options. The first is to go to the bank, be it a small or local one, or a large commercial bank. The second would be to opt for an independent payment processor.
  4. Complete the application and forms. Regardless of the option you choose, you will need to complete an application form and attach documents that support the operations and legality of your company. Take into account that some banks may also request a cover letter from your company.

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