If your nonprofit intends to process any payments by credit or debit card (whether that’s collecting donations, taking payments for fundraising events, selling products/services, etc.) you’ll want to set up a merchant account for safe and secure credit card processing.
You’d probably assume that getting a merchant account is easy. After all, the merchant services company you select does make money every time you process a transaction, so they should be happy to have your business. But keep in mind that they are also taking on risk, so they do have to do their due-diligence before approving your application.
So, what are the typical requirements to apply for a merchant account?
When you speak to prospective payment processors, ask what type of documentation will be required to help you be prepared and expedite the application process. Also, find out how long it takes to get approved. (Some companies may take several weeks, where others are streamlined to make approvals in only 1-2 days!) If the prospective partner doesn’t have answers to these questions, then move on. You’re going to want to work with someone willing to guide you through the steps, and help make the process as simple as possible.
Here are some helpful hints to help you be prepared for the merchant services application process.
TYPICAL REQUIREMENTS TO APPLY FOR A MERCHANT ACCOUNT:
- Relevant ID #’s. This should include: Your organization’s EIN or Federal ID #, Social Security number and Date of Birth of primary owner (in addition to business EIN)
- For non-profits: Provide a 501(c)3 form from the IRS
- Bank Info: Your bank’s name, address, phone number and 9 digit routing number, Your bank account number (where you will receive funds)
- Expected monthly sales volume (includes all credit card funds you will process ie donations)
- Copies of financial statements: this will help secure your approval as most underwriters will want to see financial stability demonstrated so that they know the company will continue successfully operating well into the future.
- Processing History: if you’ve processed credit cards previously and been successful then this will reflect positively on your business. If possible, supply 3 months processing statements
If you have any other questions about about the requirements needed to apply for a merchant account, please give us a call and one of our qualified Merchant Services Sales associates is happy to help. If you are ready to apply for a new merchant account with DoJiggy Merchant services, we are happy to help you complete the application over the phone, and within 1-2 business you can start merchant credit card processing.