Why do you need a merchant account?
Merchant account registration involves a specialized account opening, which offers a possibility to receive payments for goods and services directly on a company’s website, eliminating the need to use third-party facilities. The company, which opens the merchant account, receives a unique identification number.
ID number is strictly individual, it is used to mark the firm to which it was assigned among other business facilities on the global market. Identification number figures in each money transmission, which is conducted through the company’s website.
After a merchant account opening, the received ID code is bound to a settlement account of the company. This way business can commit direct transactions from clients without having a recourse from financial third-party organizations, which serve as intermediaries between consumers and manufacturers (or distributors).
What does the term “merchant payment gateway” mean?
Under the term “merchant payment gateway” a special software is implied, which is installed on a company’s Internet page (a company should have previously opened a merchant account). A payment gateway is used for an incoming payments control, as well as for a mitigation of financial skulduggery risks, associated with a fraudulent activity.
Operating principle of the program is an implementation of the following actions:
Bank card activity check.
Encryption of information about a purchase of goods or services.
Transfer of the encoded data to the requested place.
Decode of the received data.
Transfer of the decoded data back to the website.
Reception of the transaction permission/forbiddance.
A presence of the payment gateway is the best guarantee of the security of conducted transactions. Money transmission can be blocked in some cases, which include, for example, low bank card activity, reveal of inaccurate owner’s personal information, or any significant problem of another kind.
What should be kept in mind when choosing an organization for a merchant account opening?
Due to operation’s complexity, it’s important to carefully choose the processing company or the financial organization which will be registering the account. A center or a bank a client have addressed to for a merchant account opening is going to intently review key points of his (client’s) business plan, simultaneously highlighting its key aspects. The final decision, which will define whether or not such account will be created, will be based on these factors.
The main nuances processing companies and banking facilities take into consideration are:
A character of services/type of production the requesting company offers to customers. Alcohol- or tobacco-related businesses, firms which sell SIM cards, or companies, which offer goods/services on a prepayment principle are more likely to receive refusal due to high risks of failing. The same struggles face travel agencies, pharmaceutical companies, and organizations related to gambling.
A volume of transactions the requesting company is planning to close.
An average company’s profit.
Countries, on which territory a maximum number of deals is planned to be carried out.
A currency, on which the transactions would conduct.
Accordance of the company’s website to the demands of the biggest worldwide e-payments systems.
Nowadays, the global market of the financial services is being overflowed by companies, which specialize in a registration of merchant accounts. Due to the high rivalry, clients often take the bait of seemingly appealing offers, like low commissions for the merchant account’s maintenance, as well as other loud promises of an economy.
To avoid being fooled by fraudulent organizations, it’s highly recommended to get acquainted with the ratings of the banking facilities and the processing firms before making the final choice. Yet, all the safety measures won’t eliminate risks completely – the only solution to this problem is to resort to the professional lawyers, who have years of merchant accounts registration experience. Experts in jurisprudence, these are the people who will help you to avoid the pitfalls of swindlers and to open up a merchant account on the most beneficial conditions.
What actions are needed in order to open up a merchant account?
To register an account a claimant has to provide the bank or the processing company with the list of the following documents:
The company’s constituent documents.
Information about the shareholders, the company’s managerial team, the secretaries.
A document, which indicates the status of the organization. To receive this information, the organization has to be founded at least one year before the submission of the application for the merchant account registration.
A document containing the statutory information (special certificate).
A document with the detailed description of the Chargeback conditions.
The company’s ledgers (notarized copies).
Apart from the listed corporate papers, to register a merchant account the personal data about the managerial team is necessarily required. The claimant has to bring forward:
A notarized copy of the passport of one of the company’s managerial team members (or any other identity document).
A certificate of permanent residence.
A letter of recommendation from the banking establishment.
If even one of the documents from the list will be lacking, it will become a reason to receive a refusal of a merchant account opening. Exposure with the processing company/bank will guarantee the claimant an approval of the submitted application – the more information about the firm and the managerial team will be provided, the higher would be the chances of the positive outcome.
After receiving a set of documents, the banking facility will authenticate the information from them. In addition, the processing company/bank will inspect the legitimacy of the company’s activities.
The lack of experience in the individual merchant account registration is the most valid reason to contact the professional lawyers. A help from the specialists will eliminate the risks to be scammed by dishonest organizations, which offer services of merchant accounts openings.
Hadjivangeli & Partners LLC will help you to open up a merchant account in a bank or a processing company registered in any country in the world. Our clients receive the consultations from the experts in jurisprudence, as well as the maintenance through the whole process of merchant account opening at all stages of progress.