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Obtaining a merchant business relationship might be both expensive and challenging. This is peculiarly true for service providers, small business owners, and contained contractors. Yet with the challenges and the expense that come with obtaining a merchant card, more and more people are using credit cards to make purchases every mean solar day. This makes people want to know of other alternatives on how to accept payments without a merchant business relationship. The question is whether it is possible to take payments without a merchant account?

The answer is yeah, it is possible to become credit card payments without necessarily having a merchant account. Owning a merchant account is no longer the only option on the table, all thanks to third-party payment gateways. In this commodity we lay out what is the merchant account requirements and provide a listing of eight alternative ways to have credit carte payments.

What a merchant account is and how it works

Let's clarify what merchant account is first. A merchant account is a type of bank account. It allows merchants to accept credit card payments online. How does a merchant account work? The entire process includes six stages:

Client purchases products/services on your website.
Your credit carte processor sends the transaction to the credit carte network (Visa or MasterCard).
The credit carte network and so routes information technology to the customer's issuing bank for approval.
One time approved, the transaction funds are deposited into your merchant account.
Then the credit card processor transfers the funds from your merchant business relationship to your business depository financial institution account.
Then, and only then, you can use your money.

The first 4 stages take no longer than a few seconds. The fifth phase, though, usually takes from ii up to fourteen days. Yes, y'all've heard it right. It might have you ii weeks to use the hard-earned money. That's 1 of the reasons why some people adopt to use alternative ways to have credit card payments (more on them below).

What are the requirements to get a merchant business relationship

To open a merchant account in 2020, you need to provide the following documents:

Document of Incorporation;
Document of incumbency;
Local documents as per company jurisdiction which displays company directors and owners;
Utility nib/Bank statement/Rental agreement under corporate names proving company location;
Valid ID copies for all company directors and owners.

There are also specific website requirements yous accept to stick to. Otherwise, your website won't compile with all the Visa, and MasterCard demands. In such a example, your awarding won't be approved. Some other website requirement is to create Terms & Condition and a Privacy Policy folio.

How to accept credit card payments without a merchant business relationship

The merchant applying process is not as complicated equally it seems. However, it may take a long time to go through the paper difficulties. Service providers' verification steps could be all-encompassing also. They vary from the quality of your documents, site performance(if one), blazon of business organisation, and others. Don't want to open up a merchant business relationship?

Using an intermediary is the solution for you.

A payment aggregator acts every bit an intermediary. It is a service that collects all online funds received on account of a website, an online store, and then transfers them to the accounts of the customer visitor. Information technology is what allows yous to work non only with cash on delivery simply also quickly establish electronic payment acceptance.

When choosing a payment aggregator, consider the post-obit factors:

Security.

Payment security should be a priority for any merchant.

Therefore, when choosing a payment system, you must be sure that it tin can provide the necessary level of protection. Security methods may vary:

Instant authorization of the client.
Encryption of fiscal information on the Net;
Special certificates.

Payment flexibility.

The visitor must have a transparent payment policy. Also, be aware of hidden fees.
The flexibility of recurring payments.
Does the company provide fiscal statements?

The convenience of contacting customer support.

The possibility of quick contact by phone, live chat, electronic mail or other preferable for customer methods. Back up must promptly resolve issues.

The limitations on the maximum corporeality of card payment.

The convenience of the interface both for clients and merchants.

6 proven means to accept credit card payments without a merchant account

The majority of these payment aggregators offer online services and each ane of them comes with its own pros and cons. All in all, these platforms brand payment transactions much easier than they e'er were before and they relieve minor business organization people the agony of opening merchant accounts.

PayPal

PayPal is past far one of the virtually common and largest payment processors in the world. It rose to its prominence afterwards collaborating with eBay and many other online merchants. All you need when using PayPal is the details of your debit or credit card and your bank business relationship. From in that location you become your own secure information most your PayPal account that y'all practise not have to share with anyone.

Signing upward with PayPal is free and information technology does not require whatever annual membership fees. Y'all also do not pay any processing fees or service charges. If you are a modest business possessor, you never have to worry about the challenges of opening a merchant account.

The benefits of using PayPal are:

1. Credit card security. Since y'all don't disembalm your personal banking information, your account cannot be hacked.

2. Flexibility. Y'all will never have to face the agony of having your credit carte du jour declined. With PayPal, yous can have several banking concern accounts as well equally credit and debit cards linked to them. If the first endeavour fails, PayPal will request funds from your other accounts depending on your club.

iii. It'due south costless. PayPal is free of charge, and there are no annual membership fees.

4. Instant international transactions. You tin can send or receive money in almost any country in the world. The transfers are instant, and y'all tin can check your balance with one click. This makes it significantly meliorate than other costly payment methods like Western Wedlock.

Foursquare

Square is the number one choice for modest business owners. It does not require much paperwork and the fees charged are minimal. The Square, which is a carte-swiping device, turns your smartphone or tablet into a cash register. The menu connects with the device of your choice to comport out all kinds of payments. The companies' services are especially popular in street food stands, restaurants, coffee shops, and many other modest businesses. Through their Cash App, you lot receive payments as well as electronic invoices. Probably the main reward of using the platform for entrepreneurs will be synchronization with the POS organization of outlets. You can accept both bit cards and NFC payments for contactless or traditional operations with chips and pin codes. Moreover, you tin can access your income the very side by side business day after the payment.
Skrill

Skrill is the best alternative to PayPal. Some of the features that make Skrill stand out are its instant deposits and withdrawals. The transaction fees are minimal making it perfect for small-scale business owners. With Skrill, yous tin can likewise ship text messages from your account. The system process payments in twoscore currencies. Skrill also has an incredible referral program that allows you lot to collect 10% of all the friends' transactions. To utilise this payment system, you practise non need to install anything on your computer – no programs, plug-ins, etc. A typical browser and Cyberspace access are enough.
The entire interface is on the official website of the company. Moreover, for personal non-commercial accounts, there is no commission for using the arrangement. The only limitation of Skrill is age. It is impossible to register in the arrangement if your age is less than 18 years.
The security service scrupulously checks all user data. Therefore, if yous enter incorrect data, your account volition be blocked.
Google Wallet

If you do not have a merchant account, you can also use Google Wallet to receive your payments. Google Wallet is another popular online payment service that is unproblematic to use, safe and very fast. You lot tin apply your smartphone to comport out your transactions using Google Wallet. The service also allows you to connect debit, credit, souvenir and loyalty cards to your account.
Google tech experts claim that when you pay at a store, Google Wallet does not provide your real card details to anyone. Instead, the store receives a unique encrypted number. This approach allows yous to continue information about customer payment information secure. Too, the service has a smart hallmark office, which enables yous to make up one's mind whether the device is in a safety state and decides whether to asking information from the user to unlock the screen.
To pay for goods using this service, your smartphone must accept an Android platform version 4.4 and higher. Also, NFC wireless technology is a must.
Stripe

Stripe has been around for a couple of years now, and it is another way of accepting payments without opening a merchant account. It has a flexible and powerful API that makes all transactions easy to make.
The flexibility allows you to tailor the Stripe platform to your needs. Information technology is easily integrated with many other applications, which ways that even if y'all are not tech-savvy, you can comfortably showtime using it to do your concern. Information technology has no set-up, or monthly fees equally well every bit any other hidden costs. Small business owners that detect it hard to open a merchant account volition definitely love this piece of cake-to-apply platform.
Apple tree Pay

Another option to take into account if you don't desire to open a merchant business relationship merely want to procedure online payments is Apple Pay. All you need to showtime receiving online payments is a touch ID confirmation. This means that simple payment processing is literally at your fingertips. Though the platform needs a lot of improvement, it is by far one of the fastest-growing payment systems.

Y'all might also similar Height x PayPal alternatives

How to accept culling payment methods without a merchant account

Visa and MasterCard payments are traditional. However, y'all should not underestimate the alternative payment methods. Alternative payment methods are cardless and cashless ways of paying for products and services online. As stated past Industry data, up to 55% of global transactions will exist fabricated via culling payment methods by the stop of 2019. Check out the list of the most popular alternative methods by region.

alternative payment methods

The good news is, you can accept alternative payment methods without a merchant account.

Wrapping it up

Certain thing, merchant account holders have access to a big number of advanced payment methods but the approval time can be a existent pain in the neck. Depending on the payment service provider, information technology might accept weeks to get blessing to open a merchant business relationship. Besides, it is also expensive, particularly for minor business owners. Third-party gateways offer the best alternative to merchant accounts. Though they might non come up with the same avant-garde payment tools and services, they are affordable, fast and secure. They too give merchants the option of managing the transactions using their mobile devices. Gateways without mobile reader solutions offer the same services via a website.

When choosing a service for accepting payments, pay attending to the simplicity of the procedure for connecting a payment aggregator, the convenience of the interface of your business relationship, and the time for crediting payments. An important factor is also the security of cash flows passing through the service.

Therefore, if y'all are starting up a business organisation or are all set to run your own business but cannot afford to open a merchant account, the platforms above will show you several ways how to have credit carte du jour payments without a merchant account.