A merchant account enables a commercial entity to accept debit cards, gift cards, credit cards, and other types of payment cards from the customers or clients. A merchant account is also called credit card processing or payment processing.

How a merchant account can be obtained?

Merchants or business proprietors must apply for a merchant account to be able to receive credit card payments for their goods or services. Typically, business proprietors apply for a merchant account through a merchant bank or merchant service provider (MSP). There are several factors on which the merchant account usually bases before one can have his or her account established. It gets difficult for the merchants with poor or no credit to get a merchant account through conventional routes.

What documents are needed to apply for a merchant account?

The following documents are required to apply for a merchant account:

• Your business’s information such as social security number or a tax ID as well as the location information.
• The Bank Account and Routing Numbers of the Checking Account used for your business.
• The social security number, Driver's License Number, and contact information of the principals of your business.

What is the best way to get a merchant account established for a small business?

If yours is a home-based business, it is very likely that a bank will turn your application down since home-based businesses are considered less established. You should file your application with merchant service providers and independent sales organizations, which are more flexible as compared to a bank.