Do I Need a Business Checking Account to Open a Merchant Account?

When you begin to consider your options for a merchant account provider, you’re already well aware that you will need to provide banking information for funds to be deposited to. But one of the major questions we get from new merchants is if they absolutely need a business checking account to open a merchant account.

The answer to this questions is “no.” That’s the easy answer. But the real answer is that it depends on your business situation.

If you’re running a business as a sole proprietor, you may use a personal checking account when opening your merchant account. For example, if you just launched a website where you sell hand-crafted picture frames, you can file as a sole proprietor and use a personal checking account. It’s actually extremely easy and simple to set up an account as a sole proprietor.

So when do you need a business checking account to open a merchant account?

If your business is incorporated, you will need to use a business checking account when opening your merchant account. This is due to government and Visa/Mastercard regulations. Underwriting will insist that you open or provide a business checking account.

So there you have it. The answer really is “it depends!”