How to Get a Merchant Account, Step by Step
A gateway account clears on its own once the form is right. A merchant account is judged on your industry, your credit and how fast you answer questions.
You have a shop, a website and customers ready to pay by card. One piece is still missing. Before a single card payment can land in your bank, you need a merchant account. Here is how to get one, in the order the work actually happens.
What this account does and why cards will not work without it
Authorize.net's pricing page says a merchant account is a type of bank account that lets businesses accept payments by debit or credit cards. The same page is firm that taking credit cards is impossible without one. No shortcut exists.
It says a merchant account works like a credit line. Sales come in through it, and so do refunds going the other way. Hand a customer their money back and it leaves by the same route it arrived. New to the term?
What an underwriter looks at when you apply
Authorize.net's pricing page says the underwriter weighs four things in a merchant account application: your industry, processing history, personal credit, and business creditworthiness. The page adds that the decision turns on your industry, your credit history and your responsiveness.
Read that list as a set of questions you will be asked. What do you sell? Have you taken cards before, and how much? What does your personal credit look like? Does the business itself have a track record?
The last word on that list, responsiveness, is the one you control most.
How the application and approval process actually works
Here is where the two halves of the setup act very differently. Knowing this saves confusion.
Authorize.net's page says a Payment Gateway account is approved automatically upon proper completion of the application. Fill in the gateway form correctly and it clears on its own. No one sits in judgment on it.
The merchant account is the judged half. It goes to an underwriter, who weighs the factors above. The gateway half is done the moment you submit it right.
How long does merchant account approval take? There is no one number. Authorize.net's page says merchant account approval depends on factors including industry, credit history and responsiveness.
What happens after approval: how funds reach your bank
Approval is not the end of the moving parts. Once the account is open, card sales flow through it on their way to you.
Authorize.net's page says the Merchant Service Provider facilitates transferring funds to your bank account. Its pricing page says the Merchant Service Provider handles the transfer. So the exact deposit time may vary. Card sales rest in the account. Your business bank account receives them next. But your provider sets the timing.
Authorize.net's page gives one helpful guide. It says the industry average funding period is between three to five business days.
What it costs to keep the account running
An open account carries fees, and it helps to know their shapes before the first statement arrives. Authorize.net's page lists merchant account fee types including percentage-based fees, fixed per-transaction fees, and monthly service or gateway fees. It lists more fee types. These include batch or settlement fees, cross-border surcharges and PCI compliance fees.
Authorize.net's page says these fee types together shape the total cost of payment acceptance and influence which pricing model fits a business. For a closer look, see merchant account fees.
Where to go next: connecting a gateway
Authorize.net's page says its all-in-one solution includes help providing you with a merchant account. Partners will work with you to make sure you have what you need to sign up. Its pricing page says this network of partners is vetted and registered with Authorize.net to help you build, integrate, and grow. Authorize.net's page says you can contact them online by filling in a quick form, and a representative will help you get started by phone.
Authorize.net's page says its Gateway Only plan connects Authorize.net to an existing merchant account without replacing it. It also says the gateway only option allows you to connect to any merchant account provider. The page also says an existing merchant account means you can update your gateway with parameters from your merchant provider. One caution sits on that page too. Authorize.net's page says an account that is not solely owned cannot be used with the Authorize.net gateway.
Fill out the form. Then the account opens. Then the cards work, and the money finds its way to your bank.