Documents Needed In Opening A Merchant Account

Documents Needed In Opening A Merchant Account

Required Documents For Opening A Merchant Account

The Opening of a merchants account requires series of documentation and verification. Each country has its own procedures while acquiring a merchants account, the sole purpose of mystifying the account opening process is to limit the chances of fraudsters and unwanted people applying. Merchants account opening takes days after fulfilling all documentation processes, at times it takes weeks depending on the country. Another factor that delays merchant account opening is the nature of a business, the financial institution uses “know your customer” (KYC) techniques to verify and confirm the business premises and business owner, and this is to ensure they are not dealing with someone that is questionable. Some of the universal documents needed in opening a merchants account are itemized as follows

1-Business Documents
One of the most important documents needed in opening a merchant account is the business license of the merchant, issued by the authorities. It comes with a unique number thereby making it easier for the financial institution to verify with the authorities if the license is genuine, presenting fake or altered license can attract jail terms in some countries.

2-Means of Identification
This is also a vital document needed in opening a merchant account. Without a valid means of id, a merchant stands the risk of not getting his/her account open. Example of a means of ID is an International passport, driver’s license or National ID.

3-Utility bill
The utility bill of the business environment is needed in opening a merchant account. Be it home or a commercial address, it is a required item needed to speed the process of verification and eventual opening of the account.

4-Application Form
This is a form issued by the financial body to the merchant. The form collects basic bio-data of the merchant. Merchants Information such as address, phone number, and full names are needed. Other information includes email address, web address, tax id e.t.c

5-Void check
A voided check tied to the business account is part of the requirement needed to open a merchant account. The check must carry the name and business address of the merchant, In the absence of a check, some financial bodies consider a duly signed bank letter.

6-Cover letter
The merchant needs to properly introduce himself in writing to the financial body he intends opening an account. The cover letter helps to identify the true identity of  the merchant.

7-Processing Statements
In order to convince the financial body that a business is performing well, a 3-6 months processing history of the merchant’s bank account is required as a prerequisite for opening merchants account. The processing statement should carry a number of transactions, transaction volume, chargeback volume, refunds, and refunds volume. With a processing statement, a merchant stands a better chance of getting his account opened.

8-Business Financial Statement
This is a must for applicants considered as high risk. A two fiscal year detailed financial spreadsheet is required to convince providers that a business is genuine and performing well. A fat financial statement gives an edge to an applicant to get his/her account opened in no time.