Merchant is a term used to define an individual or a group of people that sell goods created by other people or provides services to the customers. In e-commerce, the word is used to describe a person who provides goods/services via the computer network. As a result of selling, the trader receives the profit from the commodity which was sold, the funds are obtained from the consumer in different ways: personally, via Internet, bank account and others.
If the client buys some goods with a credit/debit card, the seller gives the purchase transaction details to its acquiring financial organization. After this, it will address the information to the cardholder’s issuing financial institution. The holder’s bank is in charge to decide either to allow or to dismiss the payment procedure.
To accept payments online, eCommerce merchants need to apply for a merchant account. Once they do that, they get a payment gateway. That is the software that processes payments. In order to open a merchant account, an individual has to choose a PSP [payment system provider] and provide the following:
- Certificate of incorporation. This document confirms your company as a legal entity. According to our professional experience, a state governmental entity or corporation issues a certificate. The duration of obtaining a document varies from three days to two months. It depends on a country your company is registered in.
- Certificate of Incumbency (or similar document).
- Copies of valid passports with visible bearers signatures for all company officers and owners.
- Application. The application is required by a PSP to analyze your company’s structure, turnover, and geo-preferences.