Understanding Authorized Signers, Beneficial Owners, and Account Contacts for Your Merchant Account

Understanding Authorized Signers, Beneficial Owners, and Account Contacts for Your Merchant Application

Overview

When completing your merchant application, it's crucial to list the appropriate individuals in the correct roles, such as authorized signers, beneficial owners, and account contacts. This ensures compliance with legal regulations, as well as efficient management and communication of your account. This article explains who should be listed in each category, the capabilities of each role, and why it is important for your account.

Who Should Be Listed as the Authorized Signer?

The authorized signer is the individual who has the legal authority to make decisions on behalf of your business regarding the merchant account. This is typically an owner, partner, or high-level executive.

Responsibilities and Capabilities of the Authorized Signer:

Account Changes: Authorized signers can request updates to account details such as banking information, account services, and other critical changes.
Sensitive Information: They can access detailed account data, including transaction history, merchant statements, and financial reports.
Account Management: They may approve other contacts and signers for the account.

Important Note: If the name prefilled on your application is incorrect, you may cross it out and replace it with the correct individual before submitting the proposal.

Why Is It Important to List the Correct Authorized Signer?

Accurate identification of the authorized signer is essential for several reasons:

Communication: Only authorized signers are permitted to make significant decisions and access confidential account details.
Compliance: Properly listing the authorized signer ensures compliance with industry standards and regulatory requirements.
Account Management: Mislisting or leaving out the correct individual can result in delays or issues when trying to update account details or access sensitive information.

Who Should Be Listed as a Beneficial Owner?

A beneficial owner is any individual who:

Owns 25% or more of the business, or
Has significant control over the business, regardless of ownership percentage.

Why Beneficial Owners Must Be Listed:

Listing beneficial owners ensures compliance with federal regulations, including anti-money laundering laws and transparency requirements.
It’s important for maintaining the integrity of your business's registration and financial practices.

Role of the Account Contact

The account contact serves as the primary point of communication for general account management and day-to-day inquiries. While they are an essential part of account operations, their access and authority are distinct from that of an authorized signer.

What Account Contacts Can Do:

General Account Information: Request and receive general details about account processes, such as how to access the Merchant Portal or obtain forms for account changes.
Merchant Statements: Access merchant statements as needed.
Transaction Support: Get assistance with transaction inquiries, including clarification on processing issues.
Terminal Assistance: Request help with terminal-related matters, such as troubleshooting and placing terminal orders.
Account History: Access detailed account history for reference.

What Account Contacts Cannot Do:

Make Account Changes: They are not authorized to request updates or modifications to account details.
Sign Paperwork: Only authorized signers can sign forms for account changes or updates.
Access Sensitive Data Without Restrictions: While they can receive statements and account history, they cannot make decisions that affect the account's structure or operation.

By clearly defining the account contact’s role, we ensure that account management is efficient while maintaining compliance and security standards. For significant changes or updates, the authorized signer’s approval and involvement are required.

Why Accuracy Is Crucial

Having the right individuals listed as authorized signers, beneficial owners, and account contacts is essential for:

Compliance with legal and regulatory requirements.
Efficient Account Management, ensuring that the correct person is able to make necessary changes or access sensitive information.
Preventing Delays in service due to miscommunication or incorrect contact details.

For any assistance in completing the merchant application or updating your information, please reach out to us at support@vantagecard.com.

Updating Account Contacts or Authorized Signers

Keeping your account information accurate is essential for seamless account management. If you need to update your account contact or authorized signer, here’s how to proceed:

Updating the Account Contact

To update the account contact, follow these steps:

Send an Email Request: Email us at support@vantagecard.com to request a Merchant Change Form.
Complete and Sign the Form: The form must be signed by the owner of the account. This ensures proper authorization for the update.
Submit the Form: Return the completed and signed form to us as directed in the instructions provided.

Updating Authorized Signers/Owners

Updating authorized signers or ownership of the account requires additional steps due to the significant changes it represents:

Fill Out a New Application: To update authorized signers or owners, a new application must be completed to establish a new merchant account.
Ensure Accuracy: During this process, verify that all information, including the new authorized signers and beneficial owners, is accurate and complete.

Why These Steps Are Necessary

Account Security: These processes ensure only the appropriate individuals have access to sensitive account information and decision-making capabilities.
Compliance: Federal regulations require proper documentation for ownership and authority changes.

For assistance with these updates, please email support@vantagecard.com, and we’ll guide you through the process.