Growing Your Small Business: A Look At Merchant Accounts
Tuesday, January 19, 2010 10:08
It goes without saying that being a successful small business owner in today’s economic climate is a difficult task. However, with the right equipment, a lot of hard work, and just a little bit of luck your business can be profitably. A critical component in many of today’s successful small businesses are merchant accounts. Having a merchant account can help your business both expand its customer base and maximize sales by allowing it to accept and process credit card orders.
Merchant services providers, also commonly referred to as ISO’s (independent service organizations), can help you set up a merchant account for your business. Your accountant will be established with a partnering financial institution of the ISO. The transaction process is as follows: 1. A customer’s credit card is processed and is either accepted or declined, 2. the customer’s funds are transferred to your merchant account, 3. the funds are deposited into your business’s checking account within two to three days.
Currently, there are many types of merchant accounts available that are specifically designed to meet the needs of retail businesses. Known as retail merchant accounts or RMA’s, these have very low fees but require that a high percentage of credit card sales be swiped transactions. RMA’s are a very good resource for small restaurants, grocery stores, hotels or any other small business that doesn’t wish to conduct sales via mail or the internet.
Applying for a merchant account can be very simple if you gather and organize your information ahead of time. When processing your application, a service provider may ask for the following information:
• your checking account number
• a copy of a voided check
• articles of incorporation
• a business or reseller license
• photos of the business office and location
• copies of recent tax returns
• a copy of your driver’s license (only if you are sole proprietor and you do not have a business license)
Related posts:
- Fast Growing River Cruising Business
In the recent year, river cruising has become one of... - Fast Growing Hair and Salon Business
These days, more and more people are paying attention to... - Funding High Risk Merchant Account
In a flurry of events including the bankruptcies of Lehman... - Fast Growing Nursing Business
In the modern times, health care provision is one of... - Introduce Your Business with a Quality Business Card
During a formal introductions, a business card of high quality...
