If it’s time to set up a merchant account for your small business, PaySimple can help. But before you sign up, it’s good to brush up on a few basics. Here’s a quick guide to the ins and outs of merchant accounts for small businesses. 

What are merchant accounts for small businesses?

If you’re accepting anything beyond cash payments, then you probably need a merchant account for your small business. A merchant account is a type of bank account that:

  1. Gives you a secure payment gateway so you can accept credit cards, debit cards, and other electronic payments (like ACH) in person or online.
  2. Processes and then deposits authorized payments into your bank account.
  3. Provides some measure of protection from fraud and failed customer payments.

Merchant accounts for small businesses give you the freedom to make sales and accept customer payments without worrying about all the little details. With a great merchant service provider like PaySimple, you can be confident knowing that payments you accept from customers will be processed smoothly and securely before being sent to your bank account.

What do you need to open a merchant account for your small business?

Opening a merchant account is straightforward, but there are a few basics you will need:

  • A merchant account application. This application will ask for basics like your tax ID, bank account information, and estimated sales volume. PaySimple’s merchant account application takes just a few minutes to complete.
  • Underwriting. Your payment processor (and their bank) accepts some risk when they offer you a merchant account. That’s because if, for example, a customer requests a chargeback, the bank has to issue it before they even recoup the funds from you. That’s why your business will be evaluated to determine your risk for chargebacks or fraud.
  • A business license. You probably already have a business license, unless you are a sole proprietor and are exempt. Underwriters will use this license to confirm that your business is in good standing.
  • A business bank account. This is where your transactions will be deposited. If you don’t already have it, you can open a business account by going to your local bank and showing them your business license and employee identification number (EIN). (If you don’t have an EIN and don’t have any employees, a social security number is enough).

How are you accepting payments?

Learn all the ways to accept online payments
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If you have all of this information on hand and ready to go, you can often complete an application and be approved for a merchant account within a day, if not within a few hours. If you’d like additional info on how to set up a business merchant account, we’ll walk you through the steps.

What do you get with PaySimple’s merchant accounts for small businesses? 

There are many types of merchant accounts out there, but choosing PaySimple comes with a few important benefits. With PaySimple, you get:

  • A dedicated merchant account that’s not shared with other businesses (some payment processors only provide “aggregate merchant accounts,” so be careful!).
  • The best available rates. PaySimple works to help you secure the best rates for your business.
  • Complete transparency. With PaySimple, you always know the exact rate you pay for each transaction.
  • Flexibility and control. You can set up recurring billing for credit card, debit card, and ACH payments for even greater control of your cash flow and revenue stream.
  • Tools to help you accept payments, including a state-of-the-art POS system, credit card swiper, and mobile app.

We’d love to show you how PaySimple can make your business, well, more simple! When it comes to merchant accounts for small businesses, we’ve found the formula that gives our customers the exact combination of services and support to help their businesses thrive. Let us show you what’s possible with PaySimple.

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