Merchant Credit Card : The Application Process

While most people understand credit cards, the younger generation or people of any age that have never owned one may not understand the application process, which covers approval or denial.  For this reason, we wanted to go over the fundamentals involved with a merchant credit card, answering questions that might be lingering.  Although having a merchant credit card comes with responsibility, it is estimated that 81% of households in the United States alone have a minimum of one card. Globally statistics are s

While most people understand credit cards, the younger generation or people of any age that have never owned one may not understand the application process, which covers approval or denial.  For this reason, we wanted to go over the fundamentals involved with a merchant credit card, answering questions that might be lingering.  Although having a merchant credit card comes with responsibility, it is estimated that 81% of households in the United States alone have a minimum of one card. Globally statistics are similar.[br]

For starters, a merchant credit card is provided when an individual makes an agreement directly with the merchant, or a bank, or credit union authorized to issue a MasterCard or Visa.  To be issued a card, you would provide an application to be processed, which provides the issuing institution a variety of personal information such as name, address, bank account, creditors, and so on.  From there, your application would be reviewed and a current copy of your credit report ordered.  Based on a set of criteria, your request would be approved or denied.

As a part of the review process, the issuing institution looks at various types of credit cards to see if one being offered matches the type of card you want.  For instance, if you applied for a specific type of merchant credit card but did not meet the standards for approval, the merchant, bank, or credit union might determine that another credit card being offered would work.[br]

If you were declined for a merchant credit card, a letter would be sent out providing more detail regarding why.  However, if the merchant credit card were approved, you would receive a letter and/or the actual card along with information about the terms and conditions.  Now, if the application process were handled online, approval or denial would likely be received on the issuing company’s website or via email within 24 hours but most companies now provide an answer within a minute or two.  Regardless, if you were approved, the merchant credit card would be mailed to your address.

Typically, the merchant credit card would be received first, followed by a separate piece of correspondence containing a pin number, which would be used to withdraw money from an ATM.  You would have a choice of keeping the pin number provided or choosing a different one simply by going to the issuing company’s website or calling toll-free.  This pin number should never be shared with anyone, as a means of protection.

The merchant credit card itself would have your name, the assigned account number, which is a long series of numbers, the expiration date, and on the back, a special three-digit security code.  Just as with the pin number, this security code should never be shared with anyone.  As a new cardholder of a merchant credit card certain things need to be understood, again for security purposes.

For instance, you should never provide the merchant credit card number, the pin, or the security code to anyone, even if someone claims to be a representative of the issuing company, whether making the request via email, instant messaging, or phone.  If someone were to ask for these numbers, it would be a huge red flag in that a legitimate representative would never require them.  After all, the company issued the merchant credit card so they should have these numbers.

Finally, make sure you read the terms and conditions, and make all payments on time to avoid a late fee but also negative reporting to one or all three credit bureaus.  When a merchant credit card is managed carefully, it can be highly beneficial but if not, it could lead to disaster from overspending, excessive fees, and negative credit bureau reporting.