Accounting and Tax Preparation Merchant Account

With all the new rules, regulations, and tax laws, small business owners need accounting and tax preparation experts like you. And you need credit card processing for accountants.

As an accounting specialist, the future is promising. Economies around the world are bouncing back, employment numbers are up, and the demand for your services is on the rise. In fact, the expected revenue for accountants and tax prep professionals for 2021 was $119.5 billion.

Accounting services and tax professionals help individuals and businesses of all sizes manage the financial end of things and meet state and federal tax compliance. Even with the importance of what these professionals provide, a lot of banking institutions and payment processing companies won’t offer an accounting and tax prep merchant account because accounting and tax services are considered a high-risk industry. But how can you accept payments without credit card processing for accountants?

Zenti is your high-risk industry payment partner, offering credit card processing for accountants and tax prep businesses so you can accept payments online and in your office. As specialists in the high-risk payment industry, we can offer accounting and tax prep merchant accounts and services that help your business get paid.

Why You Need an Accounting and Tax Prep Merchant Account

Your CPA and tax prep business’s annual revenue depends on the number of people you help each year. Whether you normally help people and other businesses only at tax time or throughout the year with various accounting activities, the services you offer need an accounting and tax preparation merchant account so you can accept card payments.

But it’s finding a processor that could prove more difficult. A traditional bank might not accept your application.

Accounting and Tax Prep Merchant Accounts Are Hard to Find

You can understand why a marijuana merchant account or a payday loan merchant account might be considered a high-risk account. But an accounting business helping people keep their finances straight and comply with the IRS? Why?

“High-risk” sometimes has nothing to do with your business or the value of the services you provide. Instead, merchants consider your clients’ behavior “high risk”.

“High risk” often means a higher risk of fraudulent activity or a higher-than-average number of customer chargebacks. As a business owner, these things are outside your control, but you need to be able to accept credit card payments. In this case, you’ll need a high-risk merchant account.

Likewise, some payment processors won’t work with businesses in certain industries, such as firearms. Processors also are cautious of businesses selling products and services internationally, those that offer service subscriptions, or those with little or no money in the bank. If any of these apply to your accounting and income tax prep service, it doesn’t necessarily mean you’re out of luck — you simply need to apply for a merchant account with a processor that accepts high-risk merchants.

Why Is Accounting and Tax Prep Considered High Risk?

While there isn’t any special agency somewhere determining what constitutes a risky business, each payment processor has its own set of standards. Some processors say outright which industries they won’t partner with, while other merchant services invite all industries to at least apply. Typically, a payment service is a bit more strict than a merchant account provider — but in any case, you’ll still have to apply and offer details about your business and the nature of your activities.

Bookkeeping services and tax prep businesses can be marked as high risk because:

• They accept mail or telephone payments. While this can be common in the accounting or tax preparation world, it’s a much less secure method of payment acceptance than in-person or online payments. There are little to no methods of fraud prevention for one thing. Besides, traditional banks prefer to support businesses that sell physical products rather than services.
• Typical sales tickets are high. Yours is a lucrative industry — an average sale can be in the hundreds of dollars. Plus, your sales can be inconsistent: while you may process hundreds of clients during tax season, in the off-season, you may process just a few.
• You offer a service. As mentioned above, banks don’t like offering payment services to businesses that don’t sell physical products. Plus, if you help with consolidating student loans or other counseling for debts, your clientele may have bad credit or other debt problems, which can often lead to a greater risk of chargebacks or fraud.

It’s nothing personal. Banks simply have high standards and strict rules. Thankfully, a high-risk payment processor can look at your business as unique and find ways to provide services while helping you mitigate these potential risks.

How to Apply for an Accounting & Tax Prep Merchant Account

These steps and tips can help you prepare to apply for a merchant account and increase your approval odds:

• Be honest. When you apply for your merchant account, don’t try to withhold any information — even if you think it may hurt your approval odds. Disclosing as much as possible, communicating, and being transparent will actually help your case.
• Check your cash on hand. Your cash levels signal how stable your business is. If you can show you’ve got at least 25% of your monthly transaction volume in your bank account, your odds increase.
• Prepare all your documents. You should have at least three months’ worth of statements to show the merchant account provider how much cash you have coming in and flowing out. A traditional bank may also require your tax returns.
• Realize you can’t control everything. There’s no way you can influence a payment processor’s risk assessment of your business. What you can do, however, is work on improving your business credit (if necessary) and take steps to lower the number of chargebacks you typically receive.
• Clearly communicate with clients. Not every chargeback is ill-intended. Some chargebacks are the result of truly unhappy clients. These are the types of chargebacks you can help mitigate. Clearly post your policies for refunds with easy-to-understand language and make sure your contact information is easily accessible.
• Know what you don’t know. While you might be a pro at assessing taxes and preparing accounting documentation, you’re likely not an expert when it comes to payment processing. Don’t assume that you know more than a payment company representative. They have the expertise to walk you through the process of setting up your merchant account.

How to Find a Provider for a High-Risk Accounting and Tax Prep Merchant Account

Every business that needs a merchant account is different. What you need in a merchant account might not be the same as, say, a doctor’s office or a marijuana retailer. Your firm’s needs and risks mean that your merchant account’s pricing will be different from other firms. In general, don’t expect to find rates online. First, you may need to meet with the merchant account provider so they can assess your needs.

Your first step in this process is finding a few different providers and setting up consultation appointments. Some processors specialize in specific industry merchant accounts and advertise their services in familiar modes, such as trade magazines. You should start your search here, where you’re more likely to find processors that specialize in accounting and tax prep merchant accounts.

Then you’ll learn what specifics a processor offers. No two payment processors are the same, and they’ll likely have various types of packages that may or may not be right for your firm. As you search, imagine what the onboarding process might look like and what it would be like to be a long-term partner with each merchant account provider. When you attend your consultation meetings, ask questions like:

• How much experience do you have processing payments for firms in the accounting and tax prep field?
• What type of support do you offer to maximize my firm’s success?
• How long before I have access to my funds?
• Do you require me to maintain a reserve?
• What circumstances might change the terms of our agreement?
• Will you raise my rates if my chargebacks increase?

You might even consider—if you find more than one perfect processor—opting to partner with more than one merchant account provider. If you can accept payments in cash at your office, that’s great. But if you rely on credit card payments and your account provider suddenly closes your account, cash-only can be disastrous for your bottom line.

Integrating Your Accounting and Tax Prep Merchant Account With Your Accounting Software

QuickBooks, Square, and Freshbooks are fantastic resources. You probably use one of them daily in your accounting firm, so you know they also need to integrate well with your other services. Having an accounting and tax prep merchant account opens the door to multiple possibilities for streamlining your accounting activities. This could include automatic invoices, automatic payment reminders, inventory management, and more. Zenti can seamlessly integrate with any accounting software you currently use. You don’t have to update your software to take advantage of Zenti’s merchant processing.

How Can Zenti Help Your Accounting and Tax Prep Business?

Zenti has the experience you need for the clients you serve. Chargebacks and fraudulent payments are the greatest threats to accounting and tax prep businesses. Our merchant account services for accounting and tax prep businesses incorporate today’s cutting-edge technologies to fight fraud while protecting your bottom line.

Our payment system complies with all PCI regulations and integrates with any accounting software program you currently use. These seamless integrations help simplify your entire work process, from invoicing to collecting payments. Zenti helps your accounting and tax prep business:

• Instantly access your online payments system
• Process all forms of payment, from credit cards to eChecks and ACH payments
• Keep your merchant account open
• Minimize chargebacks to less than 2%
• Boost your cash flow and improve profits
• Mitigate payment fraud online
• Take payments in-office or online
• Access your funds next-day

Partner With Zenti for Your Accounting and Tax Prep Merchant Account

Even if your personal credit is dinged or your accounting and tax prep business is brand new, we have the experience to help you get a merchant account today.

We have many account reps ready to answer any questions you might have. We aim to provide best-in-class support so you can succeed. Once you apply for your accounting and tax prep merchant account, we’ll assign a dedicated account manager who specializes in accounting and tax prep merchant accounts.

We’re the merchant account provider you can trust. Our service is secure, complies with PCI regulations, and is simple to use so you can start processing all credit cards, from Visa to Mastercard and beyond. Enjoy the peace of mind that comes with having all your accounting needs in one place—with chargeback and fraud prevention and mitigation. All transactions are thoroughly tracked, from initial purchase to account deposit.