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  1. #1

    How to get a merchant account ID directly from a bank ?

    If yes pls recommend me some banks.

    Thank you.
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  2. #2
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    You will need to go through an MSP/ISO or similar to become your own MID.

  3. #3
    Is this process easy or hard ?
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  4. #4
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    You have to go through the application process. You will need to provide your corporation documents, bank details and some standard documents. If you do high volumes, you may be asked to provide additional documents such as bank statements and financials. Good Luck!

  5. #5
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    It isn't that difficult, as already mentioned then you have to provide some documents and to sign a contract thats all, it will take you less then 1 hour.

  6. #6
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    Is your goal to obtain a merchant account? Or to become a provider of merchant accounts? The process varies considerably based upon which direction you are wanting to go.

    Also, what geographic area are you based in and/or wanting to service?
    CDGcommerce.com - Trusted Merchant Account Solutions since 1998
    Many thousands of successful, growing businesses benefit from our expertise every day. You can, too!
    We help merchants to eliminate gateway costs, reduce & mitigate fraud and achieve streamlined PCI compliance.
    Learn more today at http://www.cdgcommerce.com - we look forward to helping your business grow!

  7. #7
    I just want to obtain an internet merchant ID from the bank just for my business .
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  8. #8
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    Are you in the US?
    ACS in Motion Inc.
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  9. #9
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    Quote Originally Posted by 123x View Post
    I just want to obtain an internet merchant ID from the bank just for my business .
    Not all banks provide merchant processing services. In fact, I believe most don't. The big boys like BofA and Wells probably have a merchant card services division. If you know your bank does in fact have a merchant card processing service, you should get the application from them directly.

    You can also find a merchant processor - there are hundreds if not thousands on the Internet - compare rates, percentages, look at some of the ratings of merchant providers here in WHT, etc. - send in your application with your business bank account on it, the merchant processor approves it and gets you setup to accept credit cards and you're done. May take 3-5 business days to get the whole process done but it's not terribly difficult.

    Be very careful that you understand all the various fees and monthly expenses involved in accepting credit cards. I was pretty surprised at how nickel-and-dimed I felt. If you have the volume to justify the fees though you probably won't notice those expenses as much.

  10. #10
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    If you are looking to obtain a merchant account for your own use, keep in mind that ANY merchant account that you sign up - whether it is from an ISO/MSP or a bank - IS a bank-sponsored merchant account.

    In fact, most smaller banks simply act as agents representing an ISO/MSP or one of the few larger banks that have direct acquiring programs.

    However, regardless of the channel by which you sign up, at the end of the day ANY merchant account you have is going to be sponsored by a bank.

    In addition, 100% of ALL funds transfers on ANY merchant account are handled on a direct bank-to-bank basis. That is the nature of the way the Visa & MasterCard settlement & clearing systems work.

    Thus, there is no inherent advantage in signing up with a bank for a merchant account vs. an ISO/MSP in terms of security, funds safety or other related issues.

    If you are a retail merchant with card present sales, most bank merchant account programs are fine. However, if you are an Internet merchant, banks are usually like fish out of water in terms of any ability to provide technical support or any real knowledge of your business model or how these processes work.

    They will be happy to underwrite an account if it meets their criteria and setup a 3rd party gateway but that is pretty much where the support stops for most banks.

    That is why I have always been an advocate of selecting an experienced ISO/MSP in the Internet merchant processing industry who works with businesses just like yours. By obtaining a merchant account with such a processor, you'll be much better off and still have the full security of a bank standing behind your processing.

    Plus - if you are in the U.S. - you have a huge number of great options to choose from.
    CDGcommerce.com - Trusted Merchant Account Solutions since 1998
    Many thousands of successful, growing businesses benefit from our expertise every day. You can, too!
    We help merchants to eliminate gateway costs, reduce & mitigate fraud and achieve streamlined PCI compliance.
    Learn more today at http://www.cdgcommerce.com - we look forward to helping your business grow!

  11. #11
    Yes I am In USA. I have seen that most of the 3rd party ISO/MSP agents terminating or putting flags immediately if they have some amount of chargeback's. That's the only reason for me to go with a bank directly. What do you think ?

    coz as you know when you do internet business chargeback's cannot be avoided.
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  12. #12
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    To be perfectly honest, I think you stand an even greater chance of running into an issue with a bank who is unfamiliar with Internet merchants than with an ISO/MSP who is.

    The important thing to realize is that chargeback ratios presets and "flags" are set by risk departments who work at banks and ISO/MSP's and Visa & MasterCard themselves track chargeback compliance ratios on entire portfolios as well as on individual merchants if the situation goes past certain pre-defined limits. Visa/MasterCard set the overall rules & guidelines but the implementation is up to the acquirer who boards and manages the merchant account.

    So by working with a bank directly vs. an ISO/MSP and their sponsoring bank, you really aren't escaping or avoiding any of that at all. In fact, I think that in most cases, you are going to put yourself even more on the radar in a lot of cases. The less experienced a bank (or ISO/MSP) is with dealing with Internet merchants, the more risk adverse they are going to be. At the first sign of trouble on an Internet merchant account, their immediate conclusion might be to close down the account or take more aggressive than is warranted action on it.

    That said, when selecting a ISO/MSP - you need to really ask them about their risk policies. What kind of tolerances do they have for the occasional month where the CB ratio exceeds the 1%? Do they automatically put a hold on the account? Is it fully automated or do staff members review each situation on a case by case basis? Do they provide any kind of online reporting for your CB compliance so that you can see your stats and trends? How are chargebacks handled? What kind of chargeback representment / reversal support is provided?

    This is the area where there is a HUGE variance between one acquirer and another. One ISO/MSP might handle it one way which creates an endless series of horror stories; while another might handle it in a completely common sense manner that ends up helping a merchant to address the situation and reduce their chargebacks in a prudent manner whereby all parties are satisfied and safer for the effort.
    CDGcommerce.com - Trusted Merchant Account Solutions since 1998
    Many thousands of successful, growing businesses benefit from our expertise every day. You can, too!
    We help merchants to eliminate gateway costs, reduce & mitigate fraud and achieve streamlined PCI compliance.
    Learn more today at http://www.cdgcommerce.com - we look forward to helping your business grow!

  13. #13
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    Montreal
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    Well said cdgcommerce. Chargebacks can be avoided. You have to go to the root of chargebacks and see why transactions ended up as chargebacks. Is it the product? Is it the service? Is it from certain geographic location? You need a processor who will help you understand reasons behind chargebacks.
    ACS in Motion Inc.
    Project Development and Risk Management
    www.PaymentGuide.Org | www.ACSinMotion.com
    Tel: (514) 739-6444 Toll Free: (877) 730-6444

  14. #14
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    May 2003
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    Thumbs up

    Alex Pher,

    nice to see people from GS board here
    Amirocms.com

  15. #15
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    Montreal
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    Hey Leksus Buddy, good to see you!

    I needed some information the other day and found it here on WHT so decided to become a member. Besides, business will be quiet for a little while till mid January and I have to pretend to look busy in the office
    ACS in Motion Inc.
    Project Development and Risk Management
    www.PaymentGuide.Org | www.ACSinMotion.com
    Tel: (514) 739-6444 Toll Free: (877) 730-6444

  16. #16
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    Oct 2004
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    Hawaii, USA
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    Any ideas on what rates one would expect to pay for visa/mastercard? Approximately 25K a month in visa/mc sales and currently with wells fargo at 3.3%
    Need recommendations on a merchant provider that can offer a better rate. Less than ten chargebacks per month for those that slipped through the cracks.

    Thanks!

  17. #17
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    If your chargeback ratio is under 1% and you have few months of processing history, any processor should be able to beat those rates. The best way is to contact couple of processors and send them your statement for rate analysis. You may want to make sure that they accept your business industry and most importantly they have experience in processing ecommerce transactions.
    ACS in Motion Inc.
    Project Development and Risk Management
    www.PaymentGuide.Org | www.ACSinMotion.com
    Tel: (514) 739-6444 Toll Free: (877) 730-6444

  18. #18
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    Samsamdb, the 3.3% that you mention - is that a bundled rate? (in other words, a flat % with no per transaction fee) Or is there also a per transaction fee(s) along with that?

    If there ARE per transaction fees, that is much higher than the industry norm. If not, then it depends mostly on what your average ticket size is.

    In general, a U.S. e-commerce merchant is going to pay in the 2.xx% range for most of their qualified transactions and a higher rate for various card types such as corporate cards, Rewards, international, etc.

    Along with all of the service related questions, the other thing that you will want to ask about on the price side is what kind of gateway options are provided and at what cost. This is another cost component that can really add up.
    CDGcommerce.com - Trusted Merchant Account Solutions since 1998
    Many thousands of successful, growing businesses benefit from our expertise every day. You can, too!
    We help merchants to eliminate gateway costs, reduce & mitigate fraud and achieve streamlined PCI compliance.
    Learn more today at http://www.cdgcommerce.com - we look forward to helping your business grow!

  19. #19
    After all these statement fees, all the non-qual, qual, pre-qual, goverment, debit, credit blah blah blah. it still works out around 15%

  20. #20
    you need to apply for business bank account if you have high volume sale

    better to ask it from your bank

  21. #21
    Join Date
    Oct 2004
    Location
    Hawaii, USA
    Posts
    25
    I bank with citibank ... I think I'll hit them up next.
    I've tried negotiating with our current processor (wells fargo) and they came down from 3.3 to 2.9 .. I don't think it's that much.
    I've been trying to get a quote from merchante-solutions.com but still waiting. We're definitely below 1% chargeback thanks to pre-authorizing cards and calling customers to verify orders.

    at about $400,000 in credit card sales a year, coming down 1 percent saves us about $4k a year.

    Any other merchant processors we should consider?

    Thanks
    Sam

  22. #22
    Join Date
    Dec 2007
    Location
    Montreal
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    May I ask what is the nature of your business?
    ACS in Motion Inc.
    Project Development and Risk Management
    www.PaymentGuide.Org | www.ACSinMotion.com
    Tel: (514) 739-6444 Toll Free: (877) 730-6444

  23. #23
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    Oct 2004
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    Hawaii, USA
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    Web hosting/registrar

    Quote Originally Posted by Alex Pher View Post
    May I ask what is the nature of your business?

  24. #24
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    Montreal
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    Do you have annual subscription or do you limit to quarterly? If you limit to monthly and quarterly, you can have several options since some processors do not allow annual subscription, unless you have good financials as back-up.
    ACS in Motion Inc.
    Project Development and Risk Management
    www.PaymentGuide.Org | www.ACSinMotion.com
    Tel: (514) 739-6444 Toll Free: (877) 730-6444

  25. #25
    Join Date
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    Quote Originally Posted by Alex Pher View Post
    Do you have annual subscription or do you limit to quarterly? If you limit to monthly and quarterly, you can have several options since some processors do not allow annual subscription, unless you have good financials as back-up.
    I'm on monthly contract. 10 cents per transaction plus a $19 monthly fee. Sales range from $25 - $200 and about 300 transactions a month.

    Sam

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