How do I apply for a MasterCard merchant account
In the United States, merchant service providers are licensed by MasterCard and Visa. Electronic payment processing services are provided by the merchant account providers with certain requirements, conditions and specific standards.
The banks that are affiliated with MasterCard merchants accounts are expected to follow strict regulations as well and with the high standards met MasterCard merchant accounts are among the most trusted and valuable merchant accounts around the world.
The purpose of the requirements is designed to ensure the best arrangements for the merchant seeking the account, for the provider and MasterCard. The nature of the MasterCard merchant account is essentially a line of credit that is extended to the merchant by a processing bank. Every application for a MasterCard merchant account is treated as a credit application. Below are the most significant requirements that a merchant should be ready to meet; however, each service provider may have different approval criteria and requirements may vary.
* Credit History. The business’ credit worthiness is reviewed upon applying for a merchant account. The financial statement and records for the business over the past two years will typically be requested. The business’ principals will additionally be examined and often the business is required to provide the tax returns for the last two to five years. In addition the credit file for the business will be reviewed as well as the personal credit files. When the business has not existed for a significant length of time the personal information will be used to determine the credit worthiness. Personal bankruptcies are often significantly taken into account when an application decision is being made even if the business has a positive credit history.
* Business Type. The merchant account applicant will often be asked to provide a detailed description of the type of business, details of the product or service they sell as well as appropriate marketing materials used. The types of product or service sold as well as the way in which it is sold are important factors in determining the rates that the applicant will receive for payment processing. Characteristically, transaction that involve high-ticket items that is sold online or over the phone or mail are processed at higher rates than the smaller-ticket items as well as items sold in a personal environment.
* Information Security. Adequate measures to ensure the personal account information is protected are a requirement of the merchant. Special emphasis is given to web-based business’ data security procedures; additionally, the websites are thoroughly examined. A Privacy Statement, Terms and Conditions policy statement and the payment acceptance form will all need to be SSL-secured to meet the requirements.
* Site Inspections. A site inspection of the merchant office may be conducted by the merchant account processor to ensure the business is legitimate. A merchant service provider representative may call the business impersonating a customer to evaluate the customer service provided.
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