How to set up a merchant account to accept credit cards without a personal guarantor?

All of our buisness%26#039; equiptment and vehicles have been financed without personal guarantor. We would like to accept credit cards for our services, but will not put our personal numbers on the contract.

How to set up a merchant account to accept credit cards without a personal guarantor?

Some merchant account providers will allow you to use alternative forms of guarantees in place of a personal guarantee. These options include:

1) A corporate resolution - your business provides documents (balance sheets, third party prepared financial statements) that shows the business is strong enough to guarantee itself

2) Provide a letter of credit - a letter of credit basically is a loan that your bank promises to give you at a future date. The catch is you don%26#039;t get to ask for it. The processing bank does, They can only invoke it if you owe them money and they are unable to get those funds from you. It is like an insurance policy.

3) A reserve - the processing bank will hold some of your funds in reserve to cover any exposure for loss they might have. 6 months or so after you close your account they give it all back to you. They may give it back sooner if you have processed for along time and shown to be a low risk merchant.

Keep in mind not all processors offer these alternative although most offer at least one of them.

How to set up a merchant account to accept credit cards without a personal guarantor?

PayPal.

How to set up a merchant account to accept credit cards without a personal guarantor?

There are several options out there. However, you must have the appropriate business structure.

To get out of a personal guarantee you must be Incorporated.

The personal gaurantee on most agreements are only guaranteeing that you will abide by Visa/MC guidelines. Its not a loan, there is no money to guarantee.

The next thing to realize is that you will be handling your customers money and credit card information. The big credit card companies like Visa/MC want to ensure that whoever accepts there cards is not going to violate any privacy laws or commit any theft crimes.

That is why they request so much personal information. They want to ensure that the people running the company have a strong financial ethic. They also want to ensure that if a merchant commits a financial crime via merchant services, that the merchant nor its owners can ever process cards again. They do have a blacklist.

There are other ways, but it is very difficult to get an account approved with out the owners personal information. Especially, If you have never accepted credit cards before.

Hope this helps. What ever you decide to do make sure you get the right pricing for your business model.

You can get more info here:

http://www.omnitranz.com/freerates

GOOD LUCK!

How to set up a merchant account to accept credit cards without a personal guarantor?

Try pay pal they can set you up alot better than most, At least they could get you started. The best of luck to you.