Merchant Account Agencies: The Rules and Regulations You Must Follow

If you’re in the business of providing merchant account services, it’s important to be familiar with the rules and regulations that apply to your industry. This will help you stay compliant with state and federal laws and avoid any costly fines or penalties. In this blog post, we’ll discuss some of the most important rules and regulations that every Merchant Account Agency should follow.

Crucial Rules and Regulations to be Followed by Merchant Account Agencies

When it comes to payment gateway high risk merchant accounts, there are a few rules and regulations that agencies should follow. Here are a few of the most important ones:

  • -The agency should never open a merchant account without the express permission of the business owner. This is not only unethical, but it can also lead to legal problems down the road.
  • -The agency should make sure that all of the information on the application is accurate and up-to-date. This includes things like the business address, phone number, and email address.
  • -The agency should never give out false information about a merchant account or try to sell one that doesn’t exist. This could lead to serious legal consequences.
  • -The agency should always get the proper documentation from the business owner before opening a merchant account. This includes things like a copy of the driver’s license or passport, as well as a voided check.-The agency should make sure that the merchant account is set up correctly before activating it. This includes things like checking the account numbers and routing numbers.
  • -The agency should never try to hide any fees associated with the merchant account. This includes things like monthly service charges, transaction fees, and statement fees.
  • -The agency should always disclose any and all restrictions that may be placed on the account. This includes things like spending limits, withdrawal limits, and account closure.
  • -The agency should never try to pressure a business owner into opening a merchant account.

Penalties If Rules Are Not  Followed

If you don’t follow the rules and regulations set forth by merchant account providers, you could be subject to a number of penalties. These can include high fees, being placed on a blacklist, or having your account suspended. To avoid these penalties, be sure to read and understand the rules before creating an account.

Key Points To Remember

The Federal Trade Commission has released new rules and regulations that all merchant account agencies must follow when creating an account for their clients. Here are the key points to remember:

  • -All merchant account agencies must now provide a written disclosure to their clients that clearly outlines all fees associated with the account.
  • -The disclosure must also include information on any minimum monthly or annual charges, as well as any other charges that may apply.
  • -The agency must obtain the client’s written consent before charging any fees to the account.
  • -The agency must also provide the client with a copy of the written disclosure after the account is opened.


If an agency follows these simple rules, it should be able to avoid any legal problems. Merchant accounts are a great way for businesses to accept credit cards, but only if they are done properly.

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