A BASIC GUIDE TO GETTING A MERCHANT ACCOUNT FOR A NON-US CITIZEN

There are a various reasons why non-U.S. citizens want to get a U.S. merchant account. Some do it because there aren’t many merchant account providers in their country. Others do it because it is cheaper to have a U.S. merchant account due to lower charges such as cheaper transaction fees and zero application fees. Whatever your reasons are, you have to concede to the fact that it isn’t exactly easy for a non-U.S. citizen to get a U.S. merchant account. Let us take a closer look at what you need.

U.S. Business Address

You need to have your own American business address. By address we do not mean just a P.O. Box number but a full address of the ‘physical’ location of your business. This address is required to open both a U.S. Bank account as well as a U.S. merchant account. All correspondence pertaining to the business such as tax notice or bank statements within America will be sent to either your home address or the business address. Refer to http://www.myus.com/index.shtml to get a U.S. address. You probably also need a toll-free U.S. phone number and to get one, go to http://www.k7.net/

U.S. Based Business

You will have to start a Corporation or LLC in America in order to be identified as a U.S. based business. In order to understand which of the two might be more suitable for you, please visit http://www.incorporate.com/. Once you have decided that, you should visit http://www.sba.gov/index.html which will guide you through the process of registering your business in America.

Federal Employer Identification Number (EIN)

Once you have a U.S. based business, the next step is to register it with Internal Revenue Service (IRS). You will be given an EIN, also referred to as Federal Tax Identification Number (Tax ID) which is required to open up a US Bank account. For more information on EID, please refer to                                                                  m http://www.sba.gov/smallbusinessplanner/start/getlicensesandpermits/index.html

U.S. Bank Account

All American banks offer online banking facilities. However, not all of them allow opening of a bank account online. A number of them require you to come to one of their branches personally to fill out the forms and provide samples of your signature to open an account with them. This will prove to be a problem for those residing outside America and for those who may not have the financial resources to make a trip to the States. There is yet another problem even with the banks that allow you to open an account with them online. They ask for your Social Security Number (SSN) as well as your American driver’s license details. Being non-U.S. citizens, you will not have both the SSN and the American driver’s license.

This is why applying for a U.S. merchant account is very tough for non-U.S. citizens. Without any of the above four requirements, you will not be able to have a U.S. merchant account. Most people have someone they trust very much residing in America to help them get through this process by opening up a bank account under their name. This person they trust will also have to be registered as a major partner in the company.

Others enlist the help of professionals to get their merchant account. This is becoming a popular option for those who can afford it. If you choose to employ the services of such professionals, remember to check on their background.

While it is true that you probably have to go through much trouble to get a U.S. merchant account if you are a non-U.S. citizen, it is not an impossible feat. However, you must consider all that applications and work you have to do carefully. Estimate the costs that you’ll incur and compare it with your expected revenue from accepting credit cards through the merchant account. Ensure that your effort as well as the money spent will be worth it. Ensure that they will definitely increase your profits substantially.