Setting Up Your Online Store: The Essential Banking Step
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Banking Essentials for Your Online Store
Before launching your online store, securing a bank account is crucial. This step is fundamental for managing payments effectively.
This article continues my series on establishing an online store. You can find the introduction here. In this segment, we'll focus on the necessity of having a bank account, a vital component for running any business. After all, you need an efficient way to receive payments.
As someone who just turned 18, I can now vote, serve in the military, and participate in jury duty—signifying my newfound financial independence. My parents opened a joint savings account for me at a local credit union when I was born. At 16, I received a debit card linked to that account, but it remained a shared account.
Transitioning to a Personal Bank Account
On my 18th birthday, I visited the bank to convert my savings account into one solely in my name. This change felt liberating; I no longer had to justify my purchases when my father reviewed the monthly statements.
Now, I have a checking account that will facilitate my payments. While ordering checks incurs a fee, I can print up to 12 for free daily at my local branch. I took advantage of this and printed my daily allotment right away.
I also applied for a credit card. Given my lack of credit history, it has a low limit for now. To maintain my credit score, I plan to follow the 1/3 rule, ensuring that any balance I accrue won’t negatively impact my credit rating. After all, applying for the card alone affected my score.
This card will be beneficial for online transactions, and the limited credit will help keep my spending in check. Since I don't foresee needing a credit card for personal use, I will reserve it exclusively for business expenses. Fortunately, I expect my monthly costs to remain low—ideally under $3.
It will take a few days for these changes to process and for my credit card to arrive. That’s perfectly fine; after waiting 18 years for this moment, a few extra days won't be an issue. Additionally, I can now enroll in the Medium Partner program, which also requires you to be 18.
In the next article, I’ll discuss other essential steps to take when starting an online business. If you're interested in this journey, be sure to click the mail icon below my profile to stay updated.
Understanding Digital Banking
Before diving deeper, let's explore the advantages of digital banking for your online store. Digital banks offer convenience and efficiency that traditional banks may not provide.
Choosing the Right Payment Processor
Next, it's essential to find the best payment processor for your online business needs. This choice can significantly impact your operational efficiency and customer satisfaction.