Small business merchant services are both similar to and different from the usual merchant service. They are similar because they both allow a merchant to process credit card payments. However, they are also different because the merchants in these two are merchant services agent iso program classified differently, even if they happen to be involved in the same industry, for instance. In a nutshell, processors see small businesses as risks. And when a financial institution deals with risks, they use different, more stringent standards.
Application for this type of service is also more or less the same. It is similar to the regular merchant service in concept, but different due to how processors see small business owners. A smaller business has more to prove in terms of their operation’s financial viability.
Therefore, the owner of the small business needs to consider that the processor is assessing the operation’s capacity to make money when applying for small business merchant services.
First, the business needs to prepare the necessary papers and statements. This, of course, includes the application form as well as the application’s valid ID (such as a valid driver’s license).
Bank and financial details for merchant service applications are not very stringent. However, in small business merchant services applications, it helps to be thorough. It would help immensely if you can provide the bank statements of your business (for the last three or so months, consecutively), the business’ federal tax returns for the past two years and the business’ balance sheets and income statements. Normally, applications would only require the business income statements and at least a year’s worth of tax returns.
Also, personal bank statement would also be helpful as well for small business owners. In a regular application, the processor will not consider the personal finances of the application. But since the processor needs proof that the applicant is financially sound (in case the credit card processing service encounters an enormous amount of chargeback fees), this is a good back-up.
Lastly, a thorough and detailed description of the business and its services and goods is essential not only for small business merchant services applications. However, it is in the interest of the applicant to make sure that the business looks financially sound and extremely profitable.