Many online store owners ask if they should create a bank account for their online store and how is this possible. The answer is of course yes, if you are in e-commerce business, you need to create a bank account for your online store, especially if you use a website platform like “WoCommerce” or “Shopify”, you will need a bank account to receive payment for your sales, and the payment gateways you can use on these platforms will pay your sales to your bank account, in this article we will explain in detail how to create a bank account on the internet and why it is so important.
What is a bank account?
Before looking at how to create a bank account for your online store and why it is so important, we first need a brief and quick understanding of what a bank account is. In fact, a bank account is an account created with a bank by depositing money or an equivalent value, from which funds can be withdrawn through various means provided by the bank.
Moreover, this bank can be physical, that is, it has a head office, and can open an account in the name of an online store or in its own name, and some are electronic, mainly for financial transactions and trade through the Internet such as electronic shopping malls.
Why Create a Bank Account for an Online Store?
After we understand what a bank account is, and before discussing how to create a bank account for an online store, you may be wondering why do I have to create a bank account for my online store in the first place?
Your question is absolutely correct in that having a bank account for your online store is just as important as having a personal bank account as these accounts help you receive funds from your customers and ease the process of paying for your online store; like:
- Purchase products to display in the digital catalog of the online store.
- Pay the shipping and processing company.
- Pay for the online store.
There are others, and when it comes to e-commerce, it’s best to create a private bank account so your financial transactions don’t overlap and you can do e-commerce separately.
Advantages of creating a bank account for an online store
There are many advantages you can gain when creating a bank account for your online store, Here are the most prominent of these features:
- Easy to monitor and manage deposits and payments.
- Get a business-only credit card.
- Benefit from various services of online banking companies.
- Easy cash flow for online stores.
- Receive regular notifications of all transactions in your online store.
- Enjoy electronic transfer service.
- Commercial registration for your business.
- Take advantage of various digital payment services.
- Have a credit history with a bank for your online store.
How to Open a Bank Account for an Online Store
The best way to open a bank account for an online store is to use e-banking, an innovative type of bank that has emerged with the massive expansion and popularity of e-commerce and online buying and selling. The purpose of these banks is to facilitate the safe and fast sending and receiving of funds between individuals and merchants, especially since these banks are completely legal and provide fast and secure solutions for customers and shoppers through stores and various websites around the world.
There is no need to worry about fraud as it can cost the shopper or merchant a lot of money, especially since all shoppers use MasterCard or Visa to purchase desired products and services electronically from various online stores. In order to be able to open a bank account for your online store, you need to choose a suitable online bank and start opening an account with it for your online store.
If you are one of the owners of an electronic store, you need to know the steps to register in the bank’s electronic invoicing system.
Steps to Opening an Ecommerce Bank Account
If you want to know how to open a bank account, you should follow these steps:
- Prepare the documents you need, such as your ID and a copy of the web store interface, as you may need more documents specified by the bank for you.
- Create a copy of the business registration of your online store.
- Prepare the names of your authorized signatories.
- Include the name of the person authorized to sign the store’s check and the name of the person responsible for accessing bank account information through the authorization letter.
- Deposit the minimum amount into your bank account, usually determined by the bank.
- Go to the bank to create your bank account.
The most important conditions for opening a business account for an online store with a Saudi bank include:
- You must have business records of current activity for the sole proprietorship.
- Proof of owner identification for sole proprietorships must be valid.
- It is important to register a national address.
- Owner must be a former member of the Single Country Login Platform.
Once the business registration is complete, the client can open a current account for the organization with Albilad Bank through the Business and Investments sector portal:
The client chooses Bank Albilad as the party to open the checking account for their institution. The customer fills out the account opening form. After completing the form, the customer will click on the submit option. He writes down the username and password, and when he successfully completes the account opening process, a welcome message is sent to the customer’s mobile phone.
Best Saudi Banks to Create a Bank Account for Online Stores
As the world progresses and e-stores are widely popularized, in the context of digital transformation, there are many e-banks that you can use to easily create a bank account for your online store.
The most important Saudi banks offering bank account creation services for online stores include:
1. Albilad Bank
The bank offers services in line with electronic development and is one of the most important leading banks in the field of e-store account opening, where you can create an account without submitting documents and without facing difficulties in going to a branch.
What services does Albilad Bank provide?
Albilad Bank offers you banking services to your satisfaction, based on the principles it follows in all its services, and offers a wide range of solutions in many areas, including:
- Personalized service.
- Corporate Services.
- Enjaz Payment Services Company.
- Investment services are provided through Albilad Investment Bank.
2. National Bank of Saudi Arabia
The National Bank of Saudi Arabia offers its clients an electronic platform for trade finance products with the latest record of electronic protection, as it offers the possibility to issue bank guarantees, issue documentary credits, and import and follow up documents for documentary collections.
The advantages and services of the online platform for trade finance products include:
- Issuance and review of various bank guarantees.
- Issuance and amendment of documentary credits (import).
- Review and accept file violations.
- Deferred payment and advance payment requests for credits accepted.
Safety features:
- Use the latest encryption system technology.
- Authorizes the security system to generate a password.
- Security system for checking and activating functions.
- Depending on company regulations and decisions, different levels of authorization can be set for the operation of each product.
- A detailed audit trail that tracks all activities within a single process and can be used as a reference for future data.
- Account Audit.
- Automatically stop pages in the system so that unauthorized personnel cannot enter the system.
Opening an online store bank account is an important step in the process of building a business. Now that we’ve gone through the steps of opening a bank account for your online store, it’s time to get started. We wish you all the best and hope this article was helpful.