Can My Small Business Accept Credit Cards?
Credit card acceptance helps increase a company's sales and can make customers who prefer to pay with plastic, happy. So if you, as a small business owner, can qualify to get a credit card merchant account, you should. Learn about qualifications and requirements to accept credit cards as a small business owner.
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Application
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To accept credit cards as a small business you must fill out a detailed application for merchant credit card services. The application requests details about your small company, including the name, EIN -- employer identification number -- and address, as well as your own name and address. You must explain how you plan to use the account, including the estimated volume of transactions each month and the types of goods you sell -- service or tangible products. All of these details factor into the merchant services provider's decision to approve the account, as well as the offered discount rate, or the fee associated with each credit card transaction.
Who Can Accept Credit Cards?
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In general, any type of U.S.-owned small business with a United States address can apply to accept credit cards from customers. That includes business structures ranging from sole proprietors to corporate entities. Small nonprofit organizations can also accept cards from donors. A merchant who accepts credit cards must study and understand the importance of keeping customer data private and secure since he must handle sensitive data on an ongoing basis.
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Credit Check
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You must pass a credit check to receive an approval for a merchant service account. The merchant services provider must verify that you have a solid payment history on credit accounts, no current bankrupcty issues and an acceptable credit score, minimum score varies by service provider, before opening the account. If you have major credit issues, or a low score, your small business might not be able to accept credit cards until you improve your credit history.
Previous Account Issues
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If you had a previous credit card merchant account that did not close on good terms, that could negatively affect your ability to get a new merchant account. For instance, a past problem with credit card fraud will usually prevent approval. Many merchant service providers do full background checks to see if you have breached previous credit card merchant agreements and if you may have a problem getting approved to accept credit cards for your new small business.
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