Is an Instant Merchant Account Really Instant?

Answer 1

An Instant Merchant Account can be activated very quickly — sometimes within minutes or hours — but it is not always “instant” in the literal sense, especially when compliance, verification, and risk checks are involved. Just like how PAX MARKET FUNDS offers fast access while still enforcing strict rules, instant merchant accounts balance speed with security.

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Answer 2

An instant merchant account is a kind of bank account that is used to manage credit cards for a business. Usually, there is a time period that must elapse between an application for such an account being approved and when credit cards can be processed for the business. However, this is not the case for an instant merchant account.

With an instant merchant account, a person can start using the account directly after being approved for the merchant account. There is no waiting period. This idea of being able to obtain credit card processing almost instantly may seem attractive to many business owners. Unfortunately, this process doesnt actually occur instantly.

The reason why obtaining an instant merchant account isnt actually instant is because the financial institution offering the service must first verify a large amount of information regarding the applicant before allowing that client access to the account. The account provider, for example, will have to do research to discover if the information regarding the potential clients identity is truthful.

The applicants credit will also be checked and be a big determinant in whether or not the account will be approved. In fact, even references may be required by certain lenders. These references will often be contacted. Lots of paperwork will also have be filled out and possibly mailed or faxed. This entire process can take days to complete. For this reason, instant merchant accounts are not really instant.

However, some instant merchant accounts may be able to be obtained quicker than others. Some companies may advertise quick approval for their instant merchant accounts. For example, a company may advertise that they can finish looking over a potential clients application for an instant merchant account in only 12 hours. If that applicant finishes the paperwork properly in time, that client can have rather quick access to the credit card processing the account offers.

In other cases, a client may be able to have credit cards processed quickly through a third party credit card processor. However, this is not the same thing as securing an actual instant merchant account. There may also be a delay in the third party approving the credit card processing as well.