Will my new/startup business be approved for a merchant account?

Yes. We assist merchants in all corners of the world with getting their businesses set up to take payment. Twenty years ago, we were a startup as well, so we understand the challenges that startups face. We discuss all options and focus on the best way to proceed with payment options utilizing our vast network of banks and processors around the globe.

Merchants should take note that new businesses are scrutinized more arduously in merchant account underwriting, so they need to be prepared to present additional documentation. This may include more extensive company bank statements, personal bank statements and sometimes even the last 2 years of tax returns. Also, merchants may want to be sure they have some capital in their bank accounts as well as a completed website before presenting to a processor. This gives them the best chance for approval. Startup merchants may also be subjected to a higher rate, a reserve fund and longer funding delays. While these terms may improve over time, merchants should take note that their first year might include more strains on cash flow.

As for other types of payment such as eCheck, ACH or crypto, a startup merchant usually does not have a harder time getting an account set up. Documentation requirements are traditionally the same as an established merchant. Pricing may be slightly higher, but overall we feel check processing should be one of the first payment options you offer to your clients.

Our experience as a high risk payment processing solutions company makes us a great asset for startups and new businesses. Over many years we have worked with banks and processors that actively want to do business with new organizations and offer excellent processing services at reasonable fees. While accepting eChecks (or even paper checks) has many advantages over cash-only, most customers assume they can use credit cards in-store, and even more so for online ordering. Having the ability to accept credit cards means you won’t have to turn away any potential new customer. Plus, simply having a credit card payment option gives your startup credibility that makes customers more confident to order, no matter how they choose to pay.

If you venture out on your own to apply for a merchant account, be careful. Be sure to understand everything that you’re going to get in terms of service and data security, and also be sure the company explains all of its terms, fees and charges. Reputable processors are always very transparent about transaction fees, setup charges, cancellation fees, minimum processing fees, etc. Be aware that some processors also have charges for customer service, annual fees, high monthly volume surcharges and other extras that can significantly drive up your cost of credit card processing.

No one wants to be surprised by additional charges after signing a merchant account contract. If you’ve never gone through this before, or like many startups have 1,001 other issues to take care of, we can be of assistance and make sure your merchant account is the best all-around fit for your payment needs.

Return to FAQ