Set up a merchant account
What is merchant account opening?
Advantages of merchant account opening with fintecharbor.com
Steps to register a merchant account
No, these are two different accounts. The corporate account has an IBAN number. To send money to it, you usually need an invoice indicating all the details or a contract. The payer (legal entity) fills in the payment order for the transfer of funds. After that, the bank checks the legitimacy of the transaction and makes the posting. Usually, standard bank payment can take 2-3 business days. Banks process payments only during business hours.
In contrast, the merchant account operates 24/7. A customer may shop online late at night or on weekends. In this case, the client does not need to know your bank details, such as IBAN or SWIFT code. All he needs to do is enter credit or debit card details. The system will check the availability of funds, and if everything is in order, it will debit the money from the client’s card account and credit it to the merchant account. After that, the account holder can transfer funds to the corporate account and dispose of them for the benefit of the company.
The price of opening, service fees, including bank statements and payment processing, depend on the chosen bank or payment processor. It is necessary to compare prices, taking into account the following parameters:
- Commission for each payment: usually a fixed price + % (for example, 0.20USD + 2%);
- Commission for withdrawing funds to a corporate account;
Commission for accepting specific payment methods or currencies;
- Monthly/annual payment – not everyone has it, but you need to clarify;
- The amount of the return processing fee – this is where scary numbers sometimes lie.
- Processing a single refund to a customer can cost $25 even if the item cost $5;
- Statement fee;
- Cancellation fee – in some institutions, the contract is concluded for several years at once, and in case of premature termination of the agreement, you will have to pay a penalty.
Always look for a table with fees on the bank’s website or contact us. Based on your requests, the expert will offer you specific solutions that will suit you.