Merchant account application checklist (low-risk & high-risk)
Low-Risk (under $10k volume per month) - Items a bank / processor will look for in addition to your submitted application:
Your web site must be done or nearing completion for banks & processors to approve you for a merchant account. They MUST review your web site before saying "yes" or "no". If you operate a mail-order or telephone order business, you MUST submit your marketing and promotional materials.
- A copy of your DBA, LLC or INC certificate or license.
- A voided check from your business checking account with your company name on it.
- Return/Refund policy must be posted on your web site / in writing for banks to review.
- Shipping policy must be posted / in writing for banks to review (if physical products are sold).
- Your company name, DBA name (if different), address, phone, fax (if applicable) and email address must be posted on your web site.
High-Risk Merchants / High-Volume Merchants / Low-Risk (over $10k per month) - If you are a high-risk or high-volume business (or a low-risk business requiring over $10,000 per month in transaction volume), more information will probably be required in addition to the above list. If a bank / processor is going to accept you for these types of accounts, they expect a background on you and your business.
- Past processing statements (6 – 12 months) with chargeback %'s.
- Photo copies of your driver's license & passport
- Past business financials (1 or 2 years)
- Past tax filings (1 or 2 years)
- Current business financials
- Management backgrounds & biographies
- Business plan and/or financial projections
- Misc. information based on your particular business
NOTE: All processors will make it a point to examine your chargeback percentages and figures. Depending on whether you are low-risk, high-risk or high-volume, 2% is usually pushing the limits. If you can keep your chargebacks under 1%, you are fine and well-below the acceptable limits.
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