A merchant account is a particular type of a commercial bank account that allows businesses and individuals to accept payments via debit and credit cards as well as other forms of electronic payments. With today’s trend towards a cashless society, retail and online businesses alike, must consider the necessity of a merchant account if they wish to stay completive. However, despite its popularity, opening a merchant account may not be as simple at it seems, it requires careful consideration when it comes to bank or online platform selection due to the fact that the fees, charges and terms may vary quite drastically from one financial institution to another. Furthermore, the current everchanging amendments to the regulatory framework and Directives governing financial institutions make it very difficult to open and maintain a bank account in any reputable financial institution, especially for newly incorporated or high-risk businesses. Today, opening a bank account of any form requires diligent compliance portfolios, detailed business and beneficial owner profiles, extensive transaction documentation as well as adequate evidence of substance and business purpose, which can potentially put a significant strain on the operational efficiency of any business, no matter how straightforward. Our firm can take on the administrational burden of the entire process and can assist with the successful opening of any form of bank account in a reputable financial institution or online platform in your country of choice, including the set up of a merchant account with competitive rates, fund protection and excellent traffic performance.
For more precision, a merchant account can be described as an agreement between the business, it’s financial institution and a payment processor like Visa, Mastercard or another brand. Unlike a current bank account, the account holder does not have direct access to the merchant account, instead any payments received by electronic means, post processing by the card provider, are deposited into the merchant account and only after several days or as prescribed by the terms of the financial institution transferred into the operating bank account of the business or individual after the deduction of all processing charges and rates. As mentioned above, the rates and charges for such transactions and the maintenance fees of the merchant accounts can vary significantly between financial institutions and if not carefully though through may take drastic toll on your profit margin and operational costs. What’s more many financial instructions have very stringent conditions, features and contract terms for opening merchant accounts that can potentially turn an initial mistake of selection into a dead-end situation of hefty losses. It is important to note, that often, merchant account providers include long-term-based conditions with automatic renewal clauses and high exit penalties.
At Arnos, we have extensive experience in dealing with banking operations, including merchant accounts. In fact, our firm was one of the first to offer merchant account opening services to individuals and businesses from CIS countries. We can offer invaluable advice related to cost minimization, selection of the right financial institution or online platform for your merchant account, based on your business activities, turnover and physical location. We can also assist with building a failproof compliance portfolio, review and negotiate bank contracts and terms and offer efficient solutions for high-risk businesses and transactions such as those related to betting and gambling, for example. Contact our banking team today, for a more detailed consultation on any of your banking needs.
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