Why You Need to Provide Personal Information When Opening a Credit Card Processing Account

Why You Need to Provide Personal Information When Opening a Credit Card Processing Account

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In 2017, nearly 1 in 15 people were the victims of identity fraud. That’s a frightening number, so it’s no wonder that individuals are more cognizant than ever of the importance of safeguarding their personal information.

As a payment processing provider, we process applications for new merchant accounts and routinely ask for information that business owners are reluctant to divulge—including Social Security Numbers and home addresses. When asked to provide your own social security number, suspicion is understandable. How will the information be used? Will it be safe?

When opening a credit card processing account, there is a very good reason that this information is requested. Let’s talk about why you’re asked for this information and what it’s used for.


Why do I need to provide my Social Security Number?

It might seem counterintuitive, but financial institutions ask for your Social Security Number and home address to protect you and are required by law to do so.

Regulations rolled out in Section 326 of the Patriot Act, which took effect in 2003, require that all financial institutions have a Customer Identification Program (CIP). The purpose of this program is to verify the identity of the individual that will be conducting financial transactions and is part of an ongoing effort to prevent illicit financial activities, such as money laundering and identity fraud. CIP requirements apply to banks, trust companies, credit unions, financial brokers, credit card processors (like BASYS), and more.


What information will I be asked to provide?

When applying for a credit card processing account, the following personal information is required:

-Legal Name
-Home Address
-Date of Birth
-Social Security Number

Whether you partner with BASYS or another provider for your credit card processing services, this information will be necessary to successfully open a processing account.


What is my information used for?

While BASYS can’t speak for any other processors that you might be considering, we understand the sensitive nature of your personal data and will only use it to verify your identity in the underwriting process. During this process, an underwriter will examine the information provided on your merchant processing application to determine whether or not it will be approved. The underwriter will first confirm that you are who you say you are, and then consider things like industry, years in business, business owner credit, and annual volume to determine the risk level of your credit card processing account. A business with a higher level of risk may be asked to provide additional supporting documentation, like bank statements or profit and loss reports.


Here’s how the process works:

Graphic - Why You Need to Provide Personal Information When Opening a Credit Card Processing Account


How does providing my personal information protect my identity?

Providing your personal information can be a nuisance and even a little worrisome, but if you’re working with a reputable business, this information is being requested for your own benefit.

Imagine that you were not required to provide this information when opening an account. If that were the case, anyone that knew your name and business name would be able to open an account in your name. ONLY YOU should know your legal name, home address, date of birth, and Social Security Number, and that’s why this is the information being requested—if all four items can be provided, a financial institution can trust that you are who you say you are.


Final Thoughts

It’s incredibly common for companies and organizations to request your Social Security Number. Some of those requests can be declined, but in the case of opening a bank account or credit card processing account, a request for your Social Security Number is legitimate and mandatory.

Keeping your information safe in a time where fraud is an ever-growing threat requires constant vigilance. When in doubt, you should ask why your Social Security Number is being requested, and if you’re required to provide it for legal reasons.

BASYS Processing as a business partner

Does your current processor understand the unique struggles of your industry? Do they provide great rates and excellent customer service? Are they offering solutions to grow your business and being pro-active about helping you reduce risk and increase your savings? Contact BASYS today to learn more about innovative payment solutions that will save you time and money. We make accepting debit cards and credit cards convenient, safe & affordable.

BASYS Processing features:

–  Live operator when you call support – no automated voice systems
–  Dedicated Relationship Manager for questions and concerns
–  Quick response time for your questions and concerns; you are a priority
–  Family-owned since our founding in 2002
–  A+ BBB rating
–  90% + Customer Retention Rate
–  Proactive contact with every merchant to walk through the annual PCI process
–  In-house PCI Team to assist with questions and concerns
–  Solutions including terminals, virtual terminals, e-commerce, mobile, and point of sale
–  EMV compliant products
–  Reporting for customer, sales, and inventory management
–  Gift and loyalty card programs
–  Easy-to-read statements
–  Transparent pricing
–  Tremendous savings


About BASYS Processing

BASYS Processing provides credit card and debit card processing services, and solutions that include terminals, virtual terminals, e-commerce, mobile, and point-of-sale, customized to fit any need.  Banksassociations, and software partners depend on us to strengthen their reputations and relationships with their customers by providing remarkable service paired with ultimate flexibility and pricing. Merchants depend on us to make accepting credit cards and debit cards convenient, safe & affordable. BASYS was founded in 2002 on one philosophy: to take care of our merchants, partners, and employees so they never want to leave. We are dedicated to working one-on-one with our customers to design the perfect solution. BASYS is Personalized Payment Processing.

Learn more at basyspro.com, and connect with us online at: