How to Get a Merchant Account for Your Business ?

To Start with,

Accepting card payments is no longer optional for most businesses. Customers expect to pay using debit cards, credit cards, and online payment methods. To make that possible, you need a merchant account.

Many business owners hear the term but are unsure how to get a merchant account or whether they even qualify. This guide explains the process step by step, without jargon or sales talk, so you know exactly what to expect.

What Is a Merchant Account and Why Do Businesses Need It?

A merchant account is a special type of bank account that allows your business to accept card payments. When a customer pays using a card, the money first goes into the merchant account before it settles into your regular business bank account.

Without a merchant account, you cannot legally or technically process card payments. This applies to physical stores, online businesses, service providers, and even subscription based models.

If your business wants to accept payments through POS machines, payment gateways, or online checkout pages, a merchant account is required behind the scenes.

Who Can Apply for a Merchant Account?

Most registered businesses can apply for a merchant account, but approval is not automatic. Banks and payment processors assess risk before approving any application.

Eligible applicants usually include:

• Sole proprietors with valid registration
• Partnerships and LLPs
• Private limited companies
• E-commerce and service-based businesses

However, certain industries are considered high risk. These include gaming, adult services, forex trading, and some digital services. High risk does not mean rejection, but it does mean stricter checks and higher fees.

What Documents Are Required to Get a Merchant Account?

Documentation plays a major role in merchant account approval. Missing or unclear documents are one of the most common reasons for rejection.

Most providers ask for:

• Business registration certificate
• PAN card and identity proof of owners or directors
• Business bank account details
• Address proof of the business
• Website or app details for online businesses
• Description of products or services

For online businesses, payment processors also review your website. They check refund policies, contact details, pricing transparency, and terms of service.

How to Get a Merchant Account Step by Step?

Getting a merchant account is not complicated, but it does require accuracy.

First, you choose a merchant account provider. This could be a bank or a third party payment processor. Banks usually offer traditional merchant accounts, while payment processors bundle the merchant account with a payment gateway.

Next, you submit an application along with your documents. At this stage, clarity matters. Any mismatch in business details, unclear service description, or missing compliance information can delay approval.

After submission, the provider conducts a risk review. They assess your industry, transaction volume, refund risk, and compliance readiness.

Once approved, the merchant account is activated and linked to your payment system.

Choosing the Right Merchant Account Provider

Banks are suitable for established businesses with predictable transactions. Payment processors work better for startups, online sellers, and service providers who need faster onboarding.

The right choice depends on how your business operates, not just on fees.

How Long Does Merchant Account Approval Take?

Approval timelines vary.

For low risk businesses with complete documents, approval can take a few days. In some cases, it may be completed within a week.

High risk businesses or applications with missing details can take several weeks. Delays usually happen due to additional verification requests or compliance checks.

Planning ahead helps avoid disruption to your payment flow.

Common Reasons Merchant Account Applications Get Rejected

Merchant account rejection is more common than most founders expect.

Typical reasons include:

• Incomplete or incorrect documents
• Unclear business model or service description
• High chargeback risk
• No refund or cancellation policy
• Website missing legal pages

These issues are avoidable with proper preparation.

Costs and Fees Involved in a Merchant Account

Merchant accounts are not free. Costs vary based on provider and industry.

You should expect:

• Setup or onboarding fees in some cases
• Transaction fees, also called MDR
• Chargeback handling fees
• Rolling reserves for high risk businesses

Low risk businesses usually get better pricing. High risk categories pay more due to higher exposure for the provider.

How Ebizfiling Helps Businesses Get a Merchant Account?

Many merchant account rejections happen not because the business is ineligible, but because the application is poorly prepared.

Ebizfiling helps businesses understand eligibility, prepare accurate documentation, and present their business correctly to banks and payment processors. Instead of trial and error, businesses get clarity from the start.

This is especially useful for startups, online businesses, and founders applying for the first time.

Conclusion

A merchant account is essential if your business wants to accept modern payment methods. While the process involves checks and documentation, it becomes straightforward when done correctly.

Understanding requirements, fees, and risks upfront saves time and prevents rejection. With proper guidance from experts like Ebizfiling, businesses can secure a merchant account and start accepting payments with confidence.

Suggested Read :

What is a Merchant Account and Why Do Businesses Need It? 

What Do You Need to Know to Open a Merchant Account?

Understanding the Process of GST Payment for Businesses  

Complete Guide to Ebizfiling Payment Options 

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