Factors Regarding Getting a Merchant Account
If your company wants to accept credit cards from customers, it will need a merchant account first. A merchant account provider will process credit card transactions through a secure server and take a small fee for each transaction processed. While any company can get a merchant account, it may be harder for some companies to obtain one based on its credit history and the industry in which it is in.
Which Industries are Considered High Risk?
How do you know if you are in a high risk industry? Generally, any company that provides a service that may be considered shady or objectionable is thought of as riskier to do business with. Examples of such industries include the credit repair industry or the adult entertainment industry. Anything pertaining to gambling, gaming or electronic cigarettes may also be considered high risk.
Do You Have Bad Credit or Inconsistent Cash Flows for Your Company?
If a business owner has bad credit, that owner may be more of a risk to default on a merchant loan. If a company doesn’t have consistent cash flow, it may present a risk to a merchant account provider because the company may not make enough money to be able to help the account provider also make a profit. However, proving that your company is seasonal or that you have taken steps to clean up your credit may make it easier to get such an account.
It May Be Possible to Get Your Account Within Hours
Online account providers may be able to process a request for an account and allow you to start processing credit cards in as little as 48 hours or less. This is perfect for companies that are looking to meet the demands of their customers and grow their sales. Easy applications and low or no fees to setup the account may make it easier for smaller businesses to get what they need to start making more money and become a thriving and mature company.
Going online can help you find a Canadian merchant account provider that you can partner with quickly and easily. Once your company has a merchant account, it can start accepting credit cards, take loans against its credit card revenues and generally show customers that the business is growing and sophisticated.