Merchant Account Consulting
What Is a Merchant Account?
A merchant account is a type of business bank account that allows a business to accept and process electronic payment card transactions. Merchant accounts require a business to partner with a merchant acquiring bank who facilitates all communications in an electronic payment transaction.
Merchant acquiring banks and businesses establish merchant accounts through a detailed merchant account agreement that outlines all of the terms involved with the relationship.
How Merchant Accounts Work
Merchant accounts are a key aspect of business operations for most merchants. Merchants have a variety of options when choosing the best business bank for a merchant account, with transaction costs being a key component in the decision. Merchant accounts are provided by merchant acquirers which partner with merchants to facilitate electronic payments.
INTERNATIONAL MERCHANT ACCOUNTS
An international merchant account is a specific type of bank account that allows merchants to accept payments. Typically, a merchant account is used for credit card processing and eCheck processing but can be used for a variety of payment processing needs. To get a merchant account, one must submit an application with a merchant account provider.
These merchant account providers work with acquiring banks to provide merchant accounts to businesses looking to process credit card payments.
There are multiple types of merchant accounts depending on how the bank categorizes the industry of the merchant. If the merchant account is used for card not present (CNP) or ecommerce transactions then it must be integrated with an online payment gateway. Otherwise, a physical terminal is required to capture payment information.
WHO AAJPGLOBAL works with
AAJPGLOBAL works with all kinds of merchants, including, what the banks call, “high risk” merchants. These merchants happen to be in an industry that the banks label as high risk which means that they have a higher likelihood of chargebacks, disputes and fraud. The most common reason for this is card not present transactions which presents a higher risk of fraud. These merchants can have a particularly hard time finding a high risk merchant account because a lot of payment processors refuse to participate in high risk processing. Even if these merchants find a “high risk payment processor” they can still frequently deal with holds or freezes on their money and shut down merchant accounts. This is where AAJPGLOBAL saves the day by finding them a high risk merchant account provider that wants to work with their business and providing them with all the resources to meet their high risk credit card processing needs.
What AAJPGLOBAL Provides: INTERNATIONAL MERCHANT ACCOUNTS
AAJPGLOBAL partners provides merchant accounts specifically tailored to a merchant’s industry. We do this by leveraging our banking relationships to apply for merchant accounts on your behalf. However, we do not just apply for any merchant account, we use providers who want to work with your business model and underwrite their merchants. This is important because it lays out all the cards on the table and ensures that a provider gets to know who you are and your business model before working with you. That way they know what to expect moving forward. This strategy guarantees that we find a international merchant account provider that wants to work with you, making the likelihood of holds, freezes and shut downs, much less and providing a stable credit card processing.
Another benefit to this is you get to avoid the nightmare that applying for merchant accounts can be. Not only do most merchant account providers do very little underwriting, but it can take many applications before you find a merchant account that is good for you. Each application that you send out hurts your chances of getting approved for the next because multiple applications make you look desperate to a provider which they perceive as high risk.
After Your International Merchant Account is Set Up
After we get you set up with your first merchant account, we recommend getting you an additional merchant account if you have over $ 2,250,000 in sales volume a year. This is to ensure stable payment processing. Even though AAJPGLOBAL takes all the precautions to prevent you from experiencing a hold, freeze or shutdown, we can never know how banks might act in the future. If they hire someone new or implement a new algorithm, your account could have action taken against it. In the event of this, if you have a second merchant account that is already up, running and processing payments, you can pivot your revenue stream to this account and avoid holds, freezes, and shut downs all together.
Now all of this may seem complicated and a lot of work, and it would be if you were doing this on your own. However, if you are working with AAJP GLOBAL, we manage all of this for you making your role in all of this very easy. We even assign you your very own Certified Payment Specialist (CPS), who will monitor your merchant accounts for you, giving you one point of contact for all of your merchant processing needs.
Choose the right Merchant Account for your business:
- High Risk
- CBD & Hemp
- Enterprise
- Retail
- Mobile
- Online Gateway
AAJPGLOBAL Client Experience
At AAJPGLOBAL your journey will begin with your application which we use to collect information about you and your business to match you with the right merchant account provider. From there you will be connected with your very own New Client Specialist (NCS) who will help you complete this application and will be your contact to answer all of your questions.
Once we have the necessary information and have assessed your business model, you will be classified as a Gold, Platinum or Diamond merchant based on your unique payment processing needs. After this you will be introduced to your Certified Payment Specialist (CPS) who will be your one point of contact for all of your payment processing needs. This ensures that when you call, you are talking to someone that you know and who knows you and your business. We will apply for merchant accounts on your behalf and help you set up your new merchant accounts and your payment gateway.
Merchant Acquiring Bank Services
A merchant must establish a merchant account with a merchant acquiring bank if they plan to offer electronic payment options for their goods or services. Merchant acquiring banks play a key role in the electronic payment process and are essential for the efficient processing and settlement of payment transactions.
Transaction Processing
In an electronic payment transaction, a business sends card communications through an electronic terminal to the merchant acquiring bank. The merchant acquiring bank then contacts the branded card processor who contacts the card issuer. The card issuer authenticates the transaction through various approvals that include fund availability checks and security checks.
Once authenticated, the approval is sent to the merchant acquiring bank through the network processor. If approved, the merchant acquiring bank authorizes the transaction and begins settlement of the funds in the merchant’s account.
All of the card communications occur within a matter of minutes and incur various fees for the merchant which are deducted from the merchant account. The merchant acquiring bank charges the merchant a per-transaction fee. The network processor also charges the merchant a per-transaction fee. These fees can range from 0.5% to 5.0% of the transaction amount plus $0.20 to $0.30 per transaction.
Merchant acquiring banks also charge merchants monthly fees as well as any special situation fees. The monthly fee on a merchant account is paid to the merchant acquiring bank for covering certain electronic payment card risks that might arise from a transaction as well as for the service of settling transaction funds.
Requirements for a Merchant Account
In order to open a merchant account, you’ll need to have a registered business. Some banks may require that you also have a business checking account with that bank.
Typically, you’ll need to provide:
- Company name
- Company tax ID or employer identification number (EIN)
- Contact information for your business
- Proof of Address of your business
- Detail of Company Directors and Shareholders
- Detail of your Company structures
- Detailed brief about your businesses and services you provided
You may also be asked to provide details about your business and the goods or services it offers, as well as your own name and Social Security number. Merchant acquiring banks perform underwriting as part of approving a merchant account, so they may run a credit check.
The acquiring bank may also require supporting documentation that shows your business’s registration and possibly also financial information, such as transaction records or tax returns.
How Is a Merchant Account Different From a Payment Processor?
A merchant account is an account designed to accept funds from customers in online transactions, whereas a payment processor is a business that facilitates the acceptance of credit and debit card payments.
Do I Need a Merchant Account?
Generally, you’ll need a merchant account if you want to be able to accept credit card and debit card payments for your business. Merchant accounts are important for retail stores, restaurants, mobile businesses (such as food trucks), and e-commerce sites. But businesses of all sizes that want to accept card payments, whether they’re service-based, healthcare-related, or even non-profit, will most likely need a merchant account.
Businesses that are ready to expand worldwide need international merchant accounts.
An international merchant account allows businesses to accept credit cards and other forms of cashless payments in many different currencies. They can process checks, credit and debit cards, and online and mobile payments, including payments from apps such as Google Wallet.
Merchant accounts keep track of payments digitally, and can automatically convert currency. All this makes accounting much easier.
Merchant account providers can set businesses up with physical equipment if needed, including Advanced and Latest POS systems and credit card terminals. They can also connect businesses with virtual Advanced terminals and/or an integrated payment gateway for payments through their websites.
Any business that accepts online or card-not-present payments is considered high risk by financial institutions.
International businesses that accept payments in multiple currencies are at a higher risk for chargebacks, disputed payments, and fraud. The right merchant account services provider will allow the international business owner to expand their business across the globe, all while keeping their customers’ data secure.
Not every merchant account will accept high risk businesses, and those that do may not have extensive experience with international businesses.
AAJPGLOBAL works with merchant account provider that works with high risk businesses, including international enterprises.
We offer payment processing for all your cashless payments in multiple currencies and countries.
How Do I Get a Merchant Account?
First, identify the merchant acquiring bank you’d like to work with, whether that’s the bank that already holds your business checking account or another bank. Gather your business’s documentation and fill out the account application, being sure to submit any necessary paperwork. The bank will then conduct its underwriting; when it is complete, it will notify you whether your account has been approved.
EU Payment processing and merchant accounts built to help you scale
As a business accepting credit cards online, you need a truly reliable merchant account.
EU Payment processing and merchant accounts
With AAJPGLOBAL, you can stop worrying about account holds, reserves, frozen funds, or worse… Total account shutdowns.
We have a quick, specialized process for merchant accounts in the EU and will set you up with the best account for your needs.
Get high-tech tools like transaction routing, chargeback mitigation, decline recovery and much more, so you can scale your business faster without issue.
The Bottom Line
With a merchant account for your business, you can accept credit and debit card payments, providing customers an additional payment option. Merchant accounts also enable you to operate your business online, where it is impossible to accept cash payments. Although merchant accounts require approval from a merchant acquiring bank and can take some time to set up, they can streamline your business’s operations, expand your payment options, and provide more security than cash or paper checks.
HOW TO GET AN INTERNATIONAL MERCHANT ACCOUNT
The first step on your path to a new merchant account is starting the AAJPGLOBAL application or if you would rather chat with someone to find out more, call us at (+230)4909334 or email us on offshorebanking@aajpglobal.com . We can get you set up in as little as 2 WEEKS******!
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