Summer camps, snow removal and vacation services are only active for a small portion of the year. They require the ability to accept payments during those few months, but most processors will charge them a monthly fee or have the merchant reapply each year. Is there a better option?
Come the seasonal merchant account, which is custom-made for this purpose. There is no need to pay unnecessary fees or waste time on the application process each year. Credit checks, which potentially lower one’s credit score, do not have to performed each year. Additionally, if a merchant had credit problems during the year, it could prevent the merchant account from being opened entirely, or force them to get set up with a more expensive service. Unfortunately, past processing history does not entitle a merchant to the same service in the future. A seasonal account prevents these issues entirely.
The seasonal account allows a merchant to “press pause” on their account as opposed to a “hard stop”. This way, the account is ready whenever the business needs it and all that needs to be done is send the processor a re-opening letter.
However, there are several things to keep in mind: