So, what do you need to sign up for an eCommerce merchant account? It's
not just like signing on the dotted line. This is what you'll need to get
that account up and running:
Option 1) The ownership will have to have strong personal credit. Credit
checks are done on the owners of businesses when an application is
submitted. For online business, especially high risk ones, it's a huge
factor. If the ownership has strong personal credit, you've overcome a
big hurdle. If the ownership's personal credit is very strong you'll be
fine.
Option 2) The business will have to have strong financials. If this is a
new business, skip the next paragraph. But if this is an established biz
(at least a year but more like three or more) and it's got good
financials (it has debts it pays on time and has a steady flow of cash)
you should be fine.
Regardless of which option you choose, here's some more of what you
should be prepared for when applying for your account:
- Be sure to have two forms of verification of the existance of the
business (i.e. any document from the local, state, or federal gov't with
the business name on it). This replaces the traditional photographs of
retail establishments. This is how the bank verifies this is for a
legitimate business.
- Make sure you have a business checking account in the business' name.
It's a must.
- Have a (mostly complete) web site for the bank to review. If you
provide a safe and secure place for your customers to shop, they'll feel
better about accepting your application. Here's a checklist of an
acceptable website:
+ Merchant’s DBA name appears prominently on the web site
The name of the merchant’s business name (DBA) should be prominent and
obvious on the website. Ideally, the DBA name will be at the top of every
page and very clear. Also, there should be a correlation between the DBA
and product(s) being offered. For example, if you plan on selling car
tires, a good DBA name would be Bob’s Discount Tires. A bad DBA name
would be Mary’s Flowers.
+ Customer Service phone number is clearly posted
A customer service phone number is required for your customers to be able
to call to ask questions. It should be clearly posted. Ideally it will be
on every page and very prominent. It need not be a toll-free number.
+ Return/Refund policy is clearly posted? Your customers should be aware
of how a refund/return is handled by your business. How long do they have
to request a refund? Will they receive their form of payment back or will
it be a credit only? Is it possible to get a refund at all? Even if your
items can not be returned and you will never issue a refund, that policy
must be clearly stated for your web site’s visitors to see.
+ Delivery methods and timing are clearly posted? How long from the time
an order is placed can a customer expect you to ship your product/
deliver your service? How will you be shipping it? UPS? DHL? Fed Ex? Next
day air? Ground? Mule? Make sure your customers are aware of how their
order will be shipped and how long they can expect to wait for it.
+ Privacy statement is outlined
How do you plan to use the information your visitors give you when they
place an order? Will you use it only to complete their order? Will you
sell it to a third party? Privacy is a concern of all web users. A
privacy policy should be very clear and easy to read. It should be
obvious and easy to find.
+ US dollars currency
Although you may offer your products in any currency you wish, you must
also display a price in US Dollars ($). The amount of the sale will be
transacted in US Dollars.
+ Product offered is clearly described
What exactly is a widget? If you’re selling them, a clear description of
what they are must be present. If you can answer the following questions
with a description, it is a good one: Who would use this product? What is
it called? What does it do? How do you use it? Is there a warranty? What
colors are available? What is it made of?
+ Page where credit card info is entered is secure
Probably the most important checklist item. The page where a customer
enters their personal information and credit card number must be secure.
This means purchasing and installing a secure certificate on the web
server. This will encrypt a customer’s private information so hackers can
not steal it while it is being sent to the web site. Most customers won’t
place an order on a web site that does not have one anyway.
If you are prepared when applying for your merchant account, you will
almost certainly get it. Being a high risk style of business, it's key.
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