As a collection agency, finding the right merchant account can offer a more painless experience for both yourself and the customer when it comes to making bill payments. With electronic bill payment processing becoming the most popular option nowadays, you’ll want to find a good merchant services account for your collection agency that can provide a seamless experience for all involved.
What to expect when applying for a Merchant Account
Banks that offer merchant accounts will take into account your industry’s reputation when considering your application, and due to previous negative experiences, this is one of the most common reasons for applications being declined. The CFPB and FDCPA heavily regulate this industry to ensure policies are adhered to and to ensure charges and payments are collected. You’ll also want to keep the number of chargebacks as low as possible before applying, as this is one of the factors reviewed by banks. When it comes to choosing a merchant account, you’ll want to ensure you find one that accepts payments straight from your website and that fits your company’s needs. While you may have a preferred company you want to use for your next merchant account, banks have a lot of concerns about offering this type of account. Therefore, you should expect the process to be challenging or lengthy at times, depending on the history of your small business or e-commerce site.
Completing your Merchant Account Application
Using a reliable company such as Omnipayusa, can help to simplify this process and take the hassle out of your application. Expect to be required to submit a fair amount of documentation upon applying for a merchant account. This will include recent reserve bank statements, personal ID for everyone on the application, a voided business check, your business license, and your company’s EIN number. Before your application, try to keep chargebacks at under one percent, otherwise this may be flagged up during your application. You can now apply for your merchant account online with many banks and receive an update within 24 hours of your application. However, keep in mind when completing the application that there is always a chance for your application to be denied, primarily due to the reasons listed earlier.
When your application is received, your level of risk to the financial institution will be assessed, and this is one of the most common reasons for rejection. They’ll check you are a reputable business, obeying all of the regulations in your industry.
Expect your website to be checked, as well as your business model and personal credit score. You should also ensure you have the required licenses for your business and a good processing history to increase your chances of success.
Applying through a financial institution for a merchant account can be a challenging task for even the most established businesses. Depending on your industry, this process can be more frustrating for some people than others. By following the steps above and applying through a reliable institution such as Omnipayusa, you can set yourself up for the best chance of success when applying for your merchant account.