Eternity Law International News Why do you need a merchant account?

Why do you need a merchant account?

April 20, 2017

A merchant account is a specific account that allows you to make payments for goods and services directly on the website of the company. The organization that has registered the merchant receives its own identification code, which helps to allocate it among a huge number of enterprises on the entire planet. This code is present in all transactions conducted through the Internet website of the company. After registration, it is bound to the company bank account, this brings the payment from the customer directly to you.

What is a payment gateway?

A payment gateway is a specific software installed on the website of the merchant owner. It allows you to monitor the transaction while minimizing the risk of fraud. Its mechanism of action is as follows:

  • checking card`s activity;
  • encoding of information on buying;
  • transferring the information in the required place;
  • decoding information;
  • returning of information to the site;
  • confirmation/denial of the transaction.

Thus, the payment gateway performs a vital function in monitoring the security of the transaction. If an inactive card or invalid user data or other problems are detected, the payment will be denied.

How to choose a company to open a merchant account?

The choice of the financial institution or processing center to register a merchant is not an easy task. After sending the application the bank or the center concerns it, highlighting important nuances that will become the reasons for satisfaction or refusal of registration. In particular, financial institutions and processing companies pay attention to the following nuances:

  • offered products and services. Organizations that offer to open the merchants can refuse the procedure if we are talking about high-risk areas. In particular, banks and payment processors often refuse to register companies that are engaged in the sale of alcoholic beverages, tobacco, SIM cards, operating on a prepaid basis. Also, they are extremely reluctant to open accounts for organizations working in the fields of tourism, pharmaceuticals, gambling;
  • estimated volume of sales;
  • the average check;
  • the state in which the most transactions will be held and the currency in which the calculations are made;
  • availability of the Internet resource that satisfies the requirements of international payment systems.

To date, there are many services which offer to open a merchant, however, do not choose the first of them. In this area, there is a very high risk of fraud, so it is recommended to carefully study the ratings of processors and banks. An even better solution is to go to the professionals because they will help to register the account in the audited bank or processing center.

What will you need to register a merchant?

In order to register a merchant account, you will need to submit certain documents. They include the following papers:

  • founding documents of the organization;
  • information about the board of directors, shareholders, secretary;
  • information on the status of the company (reception is possible in the case when the registration was performed not earlier than 12 months before the application);
  • certificate information about the company;
  • information on the return payment policy;
  • photocopies of bank statement of the enterprise.

This list includes only corporate documents, but opening the merchant will be impossible without personal documents of the managing parties. In this case, you will need:

  • photocopy of identity card (notarized);
  • proof of residence;
  • recommendation from the bank.

To open a merchant you will need all documents from the given list. The financial institution or the payment processor where you intend to apply for registration of the account should take maximum information about you and the company. In the future, the data will be checked for authenticity and legality.

If you haven’t opened a merchant earlier, you may face a number of challenges that can take a lot of time. In this case, better go to the professionals with experience in such operations. Our experts are ready to register the merchant in a bank or processing center in any part of the world. We will provide expert advice for any questions and will accompany the registration process from beginning to the end.

Eternity Law International specialists will provide you with expert advice on opening a merchant account in a suitable jurisdiction.
If you have any questions or need advice on opening a bank or merchant account, call us at the numbers on the website or write in the CRM form at the bottom of the page.

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