Today it is of high importance to accept credit card payments on a website which want to sell their products and services online.
Many still relay on Wire Transfers or check processing and ask their customers to pay by these methods; however they will lose orders and money in this way.
The risk of accepting credit card payments on your website in regards to fraud is existent and you will face customers which will try to dispute a charge even if they have received what you sold them, this is a annoying situation to be in but you will, if you have the proper documentation in place be able to fight such fraudsters.
Compared to PayPal which always is on the site of the buyer then you will have better options to fight a dispute and even a chargeback if you have your own Merchant Account.
A Merchant Account is similar to a bank account with the exception that you don’t have direct access to it and you can’t withdraw or insert money on that account or use it for day to day transactions. The Merchant account is opened by a Acquiring Bank which holds your moneys and once a week and sometimes every day pay out the funds on your Merchant Account to your bank account.
However, to become a Merchant Account with a Bank you will need to be approved a an Acquiring bank or processor.
The approval process and time varies from case to case and bank to bank. In general it speeds up the approval process dramatically if you have the following already in place:
- 1. Web site need to be compliant, which includes:
- a. Visa and MasterCard Logo
- b. Terms and conditions
- c. Return policy
- d. A fully working website from ordering a product or service to the final checkout page
- e. All products and services are online
- 2. A English translation of a utility bill, phone bill or bank statement
- 3. Passport copy
- 4. If you apply in Europe, then a European Company (for instant Cyprus Company)
- 5. Processing history from either PayPal or former processor
- 6. A good description of your business and why you want to accept credit card payments.
Once you submit your application to a merchant account broker or directly with a payment processor then it is easy for you to submit above at the same time, this speed up the process and they don’t need to request each of it one by one.
