Merchant Account
A merchant account is a type of bank account that allows businesses to accept payments by payment cards, typically debit or credit cards. Those accounts are provided by merchant account providers. Funds processed through payment gateways are deposited in merchant accounts, which in turn deposit them in your company checking account, minus fees.
The challenge with opening a merchant account lies in the fact that merchant account providers are exposed to the financial risk as a result of their clients' business activity, and this risk is mitigated by rigorous underwriting process and elimination of certain countries and specific types of businesses considered "high-risk" businesses. You can learn more about merchant accounts here.
U.S. businesses owned by European clients, who don't have Social Security number or any merchant history in the U.S, would fall under "high-risk" category. There are merchant account providers that serve the high-risk niche, and they are called high-risk merchant account providers. Typically a U.S. bank account is required, but some of those providers would even offer services to clients with a bank account in Europe or other countries. Also, to offset the risk, those providers charge higher fees and have longer settlement times.
KEEP IN MIND: certain types of business activity, popular among our clients from Europe, fall under "high-risk" profile. Typical examples are remote IT services, staffing, etc.
We suggest clients falling in this category to consider expanding their business services to include less risky categories, such as software development and IT services, and to use every precaution and best customer service practices in order to create solid merchant history with the merchant account provider.
Good merchant history is key to opening a low-risk account in the future, which would result in reduced merchant fees and settlement times.
KEEP IN MIND: certain types of business activity, popular among our clients from Europe, fall under "high-risk" profile. Typical examples are remote IT services, staffing, etc.
We suggest clients falling in this category to consider expanding their business services to include less risky categories, such as software development and IT services, and to use every precaution and best customer service practices in order to create solid merchant history with the merchant account provider.
Good merchant history is key to opening a low-risk account in the future, which would result in reduced merchant fees and settlement times.
Online Payment Service Providers
Payment service providers (PSP) offer online services for accepting electronic payments by a variety of payment methods such credit cards, direct debit, and more. By using the services of a PSP you can circumvent the need to open a merchant account and sign up for payment gateway, since you get all those services under one roof.
There are over 900 PSPs in the world, with more than 300 offering services in the U.S. Most of those PSPs don't offer services in Europe, however since you are establishing a U.S. company, preferably with U.S. business address and U.S. bank account, your business might qualify. Click here to see a list of notable on-line payment service providers.