How to Open an Internet Merchant Account?

So you have planned to leave the traditional way of conducting business and want to set up an online business or e-commerce. But do you know what all it takes to start an online business?.

Well, the online business would require you to conduct each and every activity over the internet. Therefore, you would also need to process business transactions online. Online payment processing needs the valuable support of Internet Merchant Account

The term “Internet Merchant Account” may seem daunting, it can be easily understood given that you want to learn about it.

Before we get into the nitty-gritty of how to open an Internet Merchant Account, it is a better idea to have a general understanding of Internet Merchant Account.

What is an Internet Merchant Account?

Internet Merchant Account is an account that holds the payment proceeds of online payment, before sending it to the business bank account. This account is almost similar to any usual merchant account. However, the only thing that distinguishes the two is the high fee charged to open an Internet Merchant Account. The difference is understandable because the risk associated with online payment is far more than that associated with a payment made using a POS terminal.

Internet Merchant Account involves the participation of an issuing bank and an acquiring bank. To better understand the working of the Internet Merchant Account, one should first understand the roles played by the issuing bank and an acquiring bank.

Issuing Bank

An issuing bank is a bank or financial institution that is responsible for issuing payment cards on the behalf of the card association to the customers. Examples of some renowned card associations are Visa, Mastercard, and American Express.

Acquiring Bank

An acquiring company is the one that is also known as Merchant’s bank. It holds the bank account of the merchant and manages all the online business transactions of the merchant.

Opening an Internet Merchant Account.

Regardless of the kind of merchant account that needs to be opened, merchants face many hurdles in opening a merchant account. The same is true for opening an Internet Merchant Account. Just to make sure you don’t face the same issues we have simplified the process of application of an Internet Merchant Account.

Go through the step-by-step process to understand how to apply for an internet merchant account.

What all to look for in an internet merchant account?

The things or features that you need to look at in an ideal Internet Merchant Account are subjected to the individual requirements of a business. However, there are few features that everyone should consider before finalizing an internet merchant account.

• Payment gateway included
• Multiple payment methods
• 24/7 customer service
• Developer tools
• Recurring billing
• Global payment support

Documentation

Here comes the most important part of the application process of Internet Merchant Account.

Once you fill in the details of your business in the application form you would be required to attach important documents along with the application form.

You may require:

• Certificate of Incorporation
• Certificate of incumbency
• Any other document as per company jurisdiction which displays company directors and owners
• Utility bill, Bank statement, or Rental agreement under corporate names to verify company’s location
• Valid ID copies for all company directors and owners.