Is a Business Name a Prerequisite in Establishing a Merchant Account

A registered business is one of the requirements when applying for a merchant account. However, this is not an absolute requirement that would result to a declined application. While not all providers ask for the same set of requirements; some would for some obvious reasons like:

Not for personal use

A merchant account is definitely not for personal use. Obviously, there should be a valid business that is legally operating before one can be granted a credit line by the bank.

Greater chance of approval

As much as possible, merchant account providers grant merchant account only to those qualified and legitimate business companies with good credit standing for security purposes. Approval can also be granted to those unregistered businesses, but would be categorized under high risk merchant accounts.

Fast approval time

A merchant account application that has been legally set-up and has passed all the basic requirements set by the provider will get a faster approval compared to those unregistered ones. Most of the reputable companies have financial sheets to show the financial strength of the company. A proven track record will serve as a strong supporting document when applying for an account.

Pays lesser fees

Recognized companies registered by law that have been operating for at least a year or two are considered low risk and stable businesses; therefore, pay lesser fees than the high risk businesses. New companies and illegally operating businesses are categorized as high risk businesses because they are more susceptible to fraud, prone to delinquency, and even subject to bankruptcy.

To have a greater chance of getting an approved merchant account, one needs to have an established and operational business. Aside from a registered business, account providers require the following other requirements: business license, tax returns for the last 2 years, valid ID (driver's license), voided check, latest 3 months bank statements, business phone number and website if there's any.

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Benefits of a Free Merchant Account

Benefits of a free merchant account include less to zero setup fee, hassle free application, open to all types of business, accepts any type of credit cards, welcomes international customers, allows business to open for 24 hours, increases sales, low to zero monthly fees, and it has secure and reliable services.

Many businesses nowadays are into accepting credit or debit cards especially when it undoubtedly has huge benefits to the business and to the customers and it also has become one of the most common forms of payment.

People have found out that setting up a merchant account through your local account providers is a bit costly and with little chances of approval , especially to new and small businesses. That is why more and more credit card processing companies today are offering what they call 'free merchant account' that all business owners can practically acquire. It doesn't mean, though, that it is 'free' literally. But, it has a number of great benefits and they are the following:

Less or zero set up fee

Setting up a merchant (paid) account may cost a bit and it would be hard for new, small and thriving businesses to have one. A free merchant account may be the right solution for them because setting up one is very affordable and some providers may even give you that for free.

Hassle free application

In setting up a paid account, applicants usually worry about lots of requirement. But, in a free merchant account, the merchant need not worry about them. It usually has hassle-free applications with an average of 98% approval rate. So, any business will most likely have bigger chances of having one.

Open to all types of business

A free merchant account is open to any type of business. It could be small or large, low risk or high risk.

It may be impossible for some merchant account providers to give you an account due to the nature and classification of your business. But in a free account, rules are more relaxed and more flexible to any business.

Accepts any type of major credit cards

With a free merchant account, your business can process any type of credit cards. Thus, your business will become more flexible in terms of your customer's payment options.

Welcomes international customers

A free account is accessible even through the Internet. Your business can gain even international customers. And, if they are interested in your products or services, they can avail them whenever or wherever they are.

Allows business to open for 24 hours

A free account permits you to do business round the clock. Because with a free merchant account there is less supervision and less paper works.

Increases sales

Due to the fact that having a free merchant account allows your business to accept credit cards as payments, more and more customers undoubtedly will be more attracted to your business because of the convenience that you give them when paying. The more customers you have, the more sales and profit you will gain.

Low to zero monthly fees

Free account providers offer very low rates including monthly fees. This is to lure more merchants to sign up with them.

Secure and reliable services

Free merchant accounts are legitimate and transactions made by them are well secured.

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Are Merchant Account Providers Safe From Hackers Or Not?

Can hackers penetrate merchant account providers? Find out how to avoid accounts from being hacked.

No single merchant account provider is absolutely safe from hackers and other "e-criminals". However, they may be less susceptible compared to other business entities due to their optimum security management. Account providers should have security protection through the following safety precautions: put security as the first priority, provide anti-hacking system, and implement mandatory encryption.

Hackers are those who gain access on computer security whose motive is of stealing money from other people. Even merchant providers with the most advanced and tight computer security protection are not spared from hackers and scammers. To avoid the possibility of being hacked, they should follow certain security measures like:

Put security as the first priority

Make sure your account provider considers security as its first priority by having all necessary software tools to detect fraud and the security protection. A quality service provider must have Payment Card Industry (PCI) Data Security Standards to efficiently protect sensitive information like the credit card number. Another thing to consider when choosing an account provider is the expertise and experience it has in dealing with all kinds of fraud.

Provide anti-hacking system and safety measures

Beware of software that try to mimic human actions. Never install software you are unfamiliar with since some of them may contain spywares from unscrupulous users. A good service provider must possess fraud detector to avoid huge loss of money. Spyware detectors should be installed into their system to monitor suspicious activities of "e-criminals".

Implement mandatory encryption

Encryption is a process of transforming plain text into unreadable information, which is commonly used by account providers for security measures. With mandatory encryption, customers' credit card details are concealed so that hackers will have no way to steal them.

While account providers consistently update and strengthen the protection of their clients, computer hackers are also doing their part to successfully penetrate and take full control over the service providers' finances. Hackers are working so hard to come up with some techniques to get through the merchants' accounts and copy confidential information. This leaves the account providers no chance to relax and take things lightly since hackers may intrude at a time you least expect them.

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