How To Set Up A Merchant Account

To accept credit card payments online, you need three things: a form to capture the buyer's credit card information, a payment processing system that will authorize and post transactions, and a merchant account.

A merchant account is a bank account that acts as a clearing account for credit card transactions. It allows credit card payments to be directly deposited into your business account.

Here is what happens when someone makes an online purchase with their credit card:

1. The credit card information is entered into a form usually on the checkout page.

2. The information goes to a credit card processor which is either a real time processing system or a payment gateway.

3. The buyer's information is checked for fraud, usually by verifying the billing address.

4. An approval or denial message is sent to the bank that provided the merchant account and customer information.

5. The customer completes the transaction and the money is held in the merchant account.

6. The money is transferred into the business or personal account either immediately or within 48 hours.


How to Set Up a Merchant Account

Some of the requirements for a merchant account are: proof of address, valid SSN, Federal tax ID, an active website, registered domain name, and a website with a secure checkout system. To set up this account you will need to supply the following information:

1. Your personal or business account details, usually in the form of a voided check.

2. Copy of your ID: a driver's license or other government-issued ID.

3. A list of the products and services offered on your website with prices, refund policy, delivery method, and customer service telephone numbers.

4. If your business is incorporated, you will need a copy of the Articles of Incorporation.

5. Business or personal tax returns and business financial statements.

You may choose a third party merchant account through an Independent Sales Organization (ISO) like PayPal or ProPay. The ISO will hold a merchant account at the bank and provide the software to accept payment. The fees associated with ISO's will normally be higher than bank fees.

Costs of Setting Up a Merchant Account

Costs of setting up this account will vary by provider. Fixed fees may be an application fee and a fixed monthly fee or a fixed yearly fee. Usually a bank wants a time commitment, so a cancellation fee may be applied if you cancel within the time allotted.

Variable fees may be a commission charged for each transaction that is a percentage of the sale which usually has a fixed minimum. Some banks will charge a fixed fee per transaction, usually between 20 and 30 cents. There may also be a batch transaction fee which is charged daily for all the transactions.


Summary: A merchant account is a bank account that will allow you to accept credit cards on your site. To set it up, you will need to provide information about yourself and your business. 3dcart shopping cart software is integrated with more 3rd party merchant providers than any other eCommerce software company. Learn more at 3dcartreviews.com