Individuals and companies that wish to offer online payment solutions to their customers are required to set up a merchant account with an acquiring bank. The process of opening a merchant account with an acquiring bank is often difficult and complex, therefore, many companies choose to go through a third party processor or professional consultancy firm to establish their merchant account.
Establishing a merchant account with an acquiring bank
Retailers and companies that wish to open a merchant account must establish a working relationship with an acquiring bank. An acquiring bank is usually a bank or financial institution that processes card payments on behalf of the merchant. The acquiring bank plays a primary role in overall payment processing for a merchant.
The majority of acquiring banks have stringent riles and criteria that must be met to gain the approval for a merchant account. These regulations tend to be far stricter for newly established businesses. The acquiring bank tends to perform extensive background checks to ensure that the company is a valid business entity. In addition, the merchant has to demonstrate they have the relevant gateway and software to support their merchant account and online payment solutions.
Typically, the acquiring bank is dependent on the location, rates and type of merchant account required. A large number of acquiring banks do not accept merchant accounts that have a high risk, therefore it is important to determine the most suitable financial institution or bank to acquire your merchant account from.
When determining the settings of a merchant account, it is imperative to choose the most appropriate acquiring bank that meets the specific payment processing requirements of the merchant. To locate the most suitable acquiring bank, it is advised to seek the assistance of a professional consultancy firm that has strong working relationships with a range of credible acquiring banks.