Merchant Accounts for Clients

How is it done?

[mgreen]

If a client needs a merchant account, how do I go about setting one up? Is it the client's responsiblity to find the one he wants to go with? Should I make a recommendation? And what should I/he look for in terms of which merchant account to go with?

Sorry for the 20 questions. I know how to do it if it were for me, but clueless when it comes to setting it up for someone else.

[txbakers]

If a client needs a merchant account they will need to apply for it directly. You can help point them in the direction, but it is a credit decision from the bank/credit provider.

I'd stay away from anything but the biggest and most reputable. Check with some banks as well - by now they might have developed an on-line interface.

[chameleon]

The client will need to get the merchant account themselves. You might point them in the right direction, but ultimately, it's their name that needs to be signed on the bottom line.

I usually direct them to the bank they have their checking account with (which is what most people are most comfortable with), and to the big nationals like Wells Fargo. Tell them to compare rates, and go with what's best.

ALSO (and this is big), make sure the bank they sign with has a relationship with the Payment Gateway you plan to use -- Authorize.net, Verisign Payflow, etc. Most banks will work with the majors, but not all work with them easily. Some will set up your Authorize.net account for you as part of the Merchant Account setup, and it's easy as cake. Others will say "Authorize what? Payment Gateway? I don't understand." That makes life tough for the client...

[skyhawk2002]

You could locate an ISO that has a direct relationship with a bank that set's up merchant accounts.

If your working with new businesses, many banks
make it extremely difficult to obtain a merchant account.
the business has no credit history, etc.