If you want to accept credit and debit cards online, by phone or through invoices, you need a merchant account. The process is simpler than most business owners expect, as long as you prepare the right documents and choose a provider that understands your business.
This guide explains how to get a merchant account step by step, what underwriters look for, how long approval takes and what it costs.
What is a merchant account?
A merchant account is a type of business bank account that lets you accept card payments. When a customer pays, the funds are held in your merchant account while the transaction is authorized and settled, then deposited into your business checking account, usually within one to two business days.
How to get a merchant account in 7 steps
1. Get your business basics in place
Processors approve businesses, not just people. Before you apply, make sure you have:
- A registered business, such as an LLC or corporation, with formation documents.
- An Employer Identification Number (EIN) from the IRS. You can apply for an EIN online.
- A business checking account in the business’s legal name. The SBA explains how to open a business bank account.
2. Know how you will take payments
Your setup depends on how customers pay you:
- Online checkout: you need a payment gateway such as NMI or Authorize.net.
- Phone or mail orders: you need a virtual terminal.
- Recurring billing: you need a gateway that supports stored cards and scheduled payments. See subscription payment processing.
- Bank payments: consider ACH or eCheck for large invoices.
3. Prepare your website
For online businesses, underwriters review your website before they approve card-not-present sales. Make sure it shows clear product or service descriptions, visible pricing, a refund and cancellation policy, shipping or delivery timelines, terms of service, a privacy policy and real contact details.
4. Gather your documents
Most applications ask for:
- Government-issued ID for each owner with a significant stake (often 25% or more).
- A voided check or bank letter for your business account.
- Recent business bank statements, usually the last six months.
- Recent processing statements, if you already accept cards.
- Your estimated monthly volume and average sale amount.
Our free merchant account approval checklist lists everything processors typically review, with industry-specific extras.
5. Compare providers and pricing
Look beyond the headline rate. Compare the pricing model, contract length, early termination fees, monthly minimums, reserve policies and whether the provider understands your industry. Interchange-plus pricing is usually the most transparent. See a worked example on our merchant account fees and pricing page.
6. Apply and go through underwriting
Underwriting is the review where the processor checks your business, owners, website and expected activity. Answer questions quickly and accurately. Unrealistic volume estimates, mismatched business details and missing policies are the most common causes of delays.
7. Set up and test your payments
Once approved, connect your gateway or virtual terminal, run a small test transaction and confirm funds arrive in your bank account. Set up fraud tools such as address verification and CVV checks, and make sure your billing descriptor is easy for customers to recognize.
Get matched with processing partners through one simple application. Interchange-plus pricing from 0.40% + $0.10.
How long does it take to get a merchant account?
Many established, low-risk businesses with complete documents are approved within a few business days. Newer businesses, higher-risk industries and incomplete applications can take longer, because the underwriter needs more information.
How much does a merchant account cost?
Costs usually include card-network interchange, a processor markup, a per-transaction fee and a monthly account fee. Some providers also charge gateway, PCI compliance, chargeback or early termination fees, so ask for every fee in writing. At Payment Circle, high-risk and supplement merchant accounts are priced on interchange-plus, with the markup set after underwriting.
Can a new business get a merchant account?
Yes. Many processors approve new businesses. Expect more questions about your business plan, products and expected volume, and possibly lower initial processing limits or a reserve until you build a history.
Why merchant account applications get denied
- Business names, addresses or tax details that do not match across documents.
- A website missing refund policies, pricing or contact details.
- Products or offers the processor does not support.
- High past chargebacks or an undisclosed account closure.
Some industries are reviewed more closely. If that applies to you, read about high-risk merchant accounts and what makes a business high-risk.
Frequently asked questions
Do I need a merchant account to accept credit cards?
You need either your own merchant account or a payment service that processes cards under a shared account. A dedicated merchant account is reviewed up front and is usually more stable as your sales grow.
Can I get a merchant account with bad credit?
Many processors check the owner’s personal credit, but it is only one factor. A strong business history, clear documents and a well-prepared website can still lead to approval, sometimes with a reserve.
What is the difference between a merchant account and a payment gateway?
The merchant account receives your card payments, while the gateway securely sends card details for approval. Most online businesses need both. Read our guide to merchant accounts vs payment gateways.
Ready to start? Apply for a merchant account or talk to a specialist.
What Is a Merchant Account? A Complete Guide for U.S. BusinessesWhat Is a Merchant Account? A Complete Guide for U.S. Businesses
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