Mcc Business Credit Application: Fill & Download for Free

Greetings! As you can see from the bio line, I work as a product manager for UniPay Gateway at United Thinkers.The main point was set forth by Faisal Khan in his answer.The main problem with getting a merchant account is that the entity that issues it, i.e. an acquiring bank, has to assume the financial liability for your operations as a merchant.That is why merchant account applicants have to go through some verification procedures before getting underwritten.These background verifications primarily concern your processing history, the nature of your business, and geographical location.If you do not have any processing history, then, most probably, the acquirer will withold some considerable amount of your funds as merchant services reserve to offset the potential risks (related to chargabacks, refunds etc).If the nature of your business falls within the merchant category code (MCC) that is not supported by a particular acquirer, then you should look for a different acquiring partner to underwrite you as a merchant. This might be particularly difficult, if you represent some high-risk industry (tech support, adult content sales, marijuana sales, etc).If your business is located outside of the US, in order to get a merchant account in the US, you need to have a registered US tax ID. This problem is very common for prospective merchants from Asia (India, Bangladesh, etc) and Africa.Here are a few articles on the subject, explaining these matters in greater detail: Challenges of Startup Merchants - PaylosophyCredit Card Processing for StartupsWhy You Need Acquiring Bank PartnershipsFinding an Optimal Acquiring Partner for Your BusinessOr review our video we recently released, to learn more about fundamentals of payment processing :

Hello! As you can see from my bio line, I am the Product Manager for UniPay Gateway at United Thinkers.Quite often, businesses who wish to become a payment gateway provider, do not ask the question “What is an acquiring bank?” They base their expectations on large payment gateway brands such as PayPal or Stripe, without a complete understanding of how credit and debit card processing actually works. So, before I can explain why acquiring banks are necessary in the credit card processing ecosystem, I want to make sure you understand what exactly an acquiring bank is.Because you see, a payment gateway is just a technical solution to allow merchants to convey transaction information to a bank for payment authorization. However, this is only one aspect of the overall process.That being said, the “official” definition of an acquiring bank is this: a bank or financial institution that processes credit or debit card payments on behalf of a merchant is called an acquirer or an acquiring bank. In essence, an acquiring bank is a bank that underwrites merchant accounts.Merchant accounts are basically virtual accounts, linked to physical bank accounts. A merchant account is used to process payment cards (both debit and credit cards). Transactions processed through a merchant account are settled into to the physical bank account, associated with the respective merchant account. While a regular bank account can be opened in any bank, a merchant account can only be procured via an acquiring bank.Risks Assumed by Acquiring BanksWhen an acquiring bank issues a merchant account, it assumes some significant financial risks. In a way, the process is similar to providing a loan to the new merchant or payment service provider (PSP). Therefore, the risks are primarily related to merchant fraud.These days, it is entirely too easy for a merchant to process transactions using stolen card numbers, receive funding, and then disappear. When cardholders request chargebacks (reimbursments) for those fraudulent charges, somebody has to assume the financial liability and return funds to the cardholder(s).An acquiring bank is the entity responsible for mitigating those liability risks associated with credit card chargebacks and processing fraud. That is why prior to acquiring banks issuing merchant accounts, they require their applicants to demonstrate financial solvency and credibility, in order to prevent potential merchant fraud and minimize chargeback risks.Consequently, any business entity wanting to own a hosted version of a payment gateway and process payment transactions for other merchants as a PSP, has to either partner with an existing acquirer, or become one. However, becoming an acquirer is an extremely costly and time-consuming process so it is not often undertaken by smaller businesses with limited knowledge and funding.The first step for those who find themselves in the position of needing an acquiring partnership is to find an acquiring bank willing to issue merchant accounts to you (the PSP) and your sub-merchants.Bear in mind, every acquiring bank utilizes some type of payment platform that you will need to connect to in order to send transactions to this bank. So, after locating and partnering with an acquiring bank, you will have to request and evaluate their integration specifications for their payment processing platform. Once you have those technical specifications, you begin looking for a payment gateway solution that could be used as a foundation for your business as a payment service provider.While many people start out looking for gateway technology or payment gateway software before establishing an acquiring bank partnership, this is a backwards strategy. Many of these people end up disillusioned when they discover there is no acquiring bank that supports the MCC codes they require in their geographic region.Summary:If you want to become a payment gateway provider or a PSP, you must first locate and establish an acquiring bank partnership before looking for payment gateway technology. Your choice of payment gateway technologies will depend almost entirely on your acquiring bank partnership.You can learn more from this article:Finding an Optimal Acquiring Partner for Your BusinessCheck out our latest video to learn how you can launch any type of business, related to providing payment processing services successfully :

Credit card processors and acquirers (basically the bank organisations that issue credit card merchants with their merchant facilties), have a list of MCCs - Merchant Category Codes. They will allocate an MCC after receiving your merchant account application, based on what you tell them about your business on the application.