How to Set up a Merchant Account for Coin Dealers
If you’re a coin dealer, a good merchant account is essential for your business. You’ll need to use your merchant account any time you’re involved in the buying and selling of coins, precious metals, and numismatic items.
Today, specialized merchant accounts allow coin dealers like you to diversify their payment processing options and accept credit card payments from customers.
With that in mind, here’s everything you need to know about coin dealers merchant accounts.
Understanding Merchant Accounts
A merchant account is a specialized type of business bank account that allows businesses to accept credit and debit card payments from customers.
Coin dealer merchant accounts serve as an intermediary between the business, the customer's issuing bank, and the payment processor.
They also provide a secure, fast platform for coin dealers to accept payments and process even large financial transactions.
What are Merchant Services Providers?
Before you can set up a merchant account for your coin dealing business, you’ll need to find a merchant services provider or payment processor that specializes in your industry.
There are a few reasons that this matters. First, you can’t access a merchant account without a merchant services provider.
Second, merchant services providers understand the unique needs and risks associated with coin dealing businesses and can provide the services and functions you need to grow and scale your business.
The Application and Approval Process
To get a coin dealer merchant account, you must apply for the account through your chosen provider.
Fortunately, this is usually a simple process. In most cases, it involves providing information about the business, its financial history, and the expected processing volume.
From there, the merchant services provider reviews the application and moves forward to perform underwriting to assess the business's risk profile.
Are Precious Metals Companies Considered High-Risk?
Often, it’s difficult for “high-risk” businesses to get merchant accounts since their risk of fraud and chargebacks is generally higher.
Today, coin dealers are generally considered high-risk merchants due to the factors mentioned above and the natural fluctuations in the value of precious metals and coins.
As a result, coin dealers may face higher fees and more difficulty finding a merchant services provider. The key to avoiding these difficulties is to work with a payment processing platform like Seamless Chex, which specializes in providing solutions to high-risk merchants.
Payment Processing Equipment
Depending on your business model, you may need to invest in appropriate payment processing equipment or software.
This could include point-of-sale (POS) systems, mobile card readers, or virtual terminals for online transactions.
If you’re not sure what you need, talk to your payment processor for more details. Many companies provide payment processing equipment as part of their contracts or can offer recommendations on what kind of equipment to lease or buy.
What About Security and Compliance?
Security is paramount in the payment processing industry. Coin dealers must implement robust security measures to protect cardholder data and comply with Payment Card Industry Data Security Standard (PCI DSS) requirements.
Pricing and Fees
The security, compliance, and functionality of a merchant services account don’t come for free.
To make sure your company can afford the pricing and fees of the payment processor you’ve chosen to work with, carefully review the pricing structure for your intended merchant services account.
Make sure you also understand what kind of fees the company will charge and when. Fees may include interchange fees, processing fees, chargeback fees, and other transaction-related costs.
In addition to thinking about functionality and fees, make sure you’ve considered these factors as you set up your merchant account:
- Customer Service
Providing excellent customer service is crucial for coin dealers. They should be prepared to assist customers with payment inquiries, disputes, and concerns related to their purchases. This increases customer satisfaction and helps the business succeed.
- Available Payment Methods
Coin dealers should prominently display accepted payment methods, including credit cards, on their websites and in their physical stores. This helps customers understand which payment options are available and make an informed decision about how they’d like to pay.
- Settlement and Funding
At the end of each business day, approved transactions are typically settled in the merchant account, and the funds are transferred to the merchant's bank account, minus processing fees.
- Chargebacks and Disputes
Chargebacks and disputes are an unavoidable part of any high-risk business. To ensure the success of your payment processing, though, you should have processes in place to handle chargebacks and disputes promptly and professionally to minimize potential losses. For best results, look for a payment processing company that helps you deal with those things.
Your Merchant Account: The Key to Every Coin Dealer’s Success
Setting up a merchant account for a coin dealership requires careful consideration of the specific needs and risks associated with your business and your industry.
With this in mind, coin dealers should choose a reputable merchant services provider with experience in high-risk industries. You’ll also need a team that prioritizes security and compliance and provides excellent customer service to build trust with their customers.
Ready to learn more? Contact Seamless Chex to find out how our products can help you grow and scale your business.