What’s the application process for a direct merchant account?

Applying for a direct merchant account can be a little confusing for merchants particularly if they started as a small business processing through someone like PayPal (as some of our smaller merchants have done).

If a merchant applies for a direct account through IPGPAY, they will need to submit a range of documentation. The amount of documentation that is required is often a surprise to first time merchants however the IPGPAY team is here to support and guide our potential merchants through the application process.

Initially we will ask for documentation that establishes the identity of the merchant, its directors and owners. Why are merchants asked to provide this information? It’s for both risk and regulatory reasons. Our acquirers need to assess the risk attached to each merchant application and they also need to comply with various regulations in particular around anti-money laundering and KYC. While they may seem very detailed, the submission of all the required information is necessary before an application can be lodged.

Merchants will also be asked to provide information on their business model, trading history and the financial performance of their business. This is to enable the acquirer to assess the underwriting or financial risk of your application. Typically brand new start up merchants without a trading history will find it very difficult to obtain a direct merchant account, as will merchants without a well documented and thought through business model. We may need to come back and clarify various points with you through the application process. Again, until we receive all the required documentation we will not be able to formally submit your application for consideration.

If you are a new startup you may prefer to talk to us about integrating to the IPGPAY Gateway and use a new or existing PayPal account. This enables you to establish a trading history and once you are ready, we can assist you to apply for a direct merchant account. The advantage of this option is that you already integrated to the IPGPAY gateway and have built a relationship with IPGPAY.

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