Internet Merchant Accounts For Innocents Abroad
By T. O' Donnell
If you want to sell on the internet, your need to accept credit
cards. To accept credit cards, you need a merchant account, or
access to one. There're two ways of getting this: Get your own
merchant account, or 'pimp' off someone else's.
The latter is the option most new merchants choose. You use a
third-party to process your payments, and they take percentage.
Here are a few popular ones:
PayPal.com (http://www.paypal.com)
I don't recommend them as your main processor. See
http://www.paypalsucks.com. PayPal is popular because it was
'firstest with the mostest' on auction sites. For this reason,
eBay bought them out. PayPalSucks.com alleges that if you have
a bad order they freeze your account, and can even dip into
your bank account to make up any shortfalls. Mitigating
circumstances are not taken into account. I've read enough
complaints about PayPal on webmaster forums to heed them.
The usual rejoinder is; "But I've never had any problems with
PayPal". To which is usually retorted "Just wait 'till you get
a chargeback!"
A chargeback occurs when someone asks their credit-card company
for a refund. They say they didn't get the goods, or they never
made the order, or the goods were not as advertised. This is
passed on to the processor, who in turn debits the merchant. Or
drops him entirely. You don't want too many of these.
I've used them for years for small amounts, with no problem,
but on the basis of others' complaints in webmaster forums, I
wouldn't use them for large ones. Don't leave large amounts 'on
deposit' in any internet-based company; they're not banks, and
even banks go bust occasionally.
The best use for PayPal is to entice customers who already use
it. Find another provider to be your main one. One like ...
2Checkout.com (http://www.2checkout.com)
This is a factoring service like PayPal. Unlike them, they have
a pretty good reputation with webmasters. Like PayPal, they
don't provide you with a merchant account; they process your
orders through their own.
This is why such sites have to be very stringent; they are
answerable to their own merchant account provider. Too many
bogus orders, and they go out of business.
This is why third-party factoring services like 2Checkout are
very useful to a newbie merchant: fraud prevention. They can
screen out suspicious orders.
Most merchants would like to think they can sell worldwide. The
fact is most of the world is poor; MOST countries can't afford
your goods. So some citizens try to get them fraudulently.
A smart merchant would bar most of the world from accessing his
cart, and only accept orders from the USA, Canada, western
Europe, Australia and New Zealand, and his home country. Harsh,
but you'll sleep better at night.
WorldPay (http://www.worldpay.com)
A well-regarded service. I found adding it to the Oscommerce
cart (http://www.oscommerce.com) a bit of a chore, but it
worked. More expensive to join than 2Checkout. You don't hear
many gripes about WorldPay, which is rare in webmaster circles.
ClickBank.com (http://www.clickbank.com)
Handy if you're selling a few items of inexpensive software to
start off your business. They'll let you up the price once
they're sure of you. I managed to get them to go up to $150
(whoo!). I was very jealous of their system. It's well designed
and extremely 'viral'; they're basically a huge affiliate
program. Join ClickBank, and others will try and sell your
product for you.
They allow you to block whole continents from trying to buy
your product, and that is good. The odds are that a $25 order
for an ebook, from a third-world country, is fraudulent.
If an order looks dodgy, it probably is. Contact the customer
by 'phone or email. If you don't get a satisfactory reply,
refund the card.
When you're making $1000+ a month, get your own merchant
account.
MerchantSeek (http://www.merchantseek.com)
A useful collection of affiliate links to merchant account and
processing providers. Scroll down their front page to their
search tool. You can find an account that suits your needs.
This is most helpful to non-U.S. merchants, or those seeking
'international merchant accounts'.
In the UK, look for 'merchant services' at:
Barclays bank (http://www.barclaycardmerchantservices.co.uk)
NatWest (http://www.natwest.com)
Bank Of Scotland (http://www.bankofscotland.co.uk)
Royal Bank Of Scotland (http://www.rbs.co.uk)
Streamline (http://www.streamline.com)
UK processing services are:
Secpay (http://www.secpay.com)
Netbanx (http://www.netinvest.co.uk)
Protx (http://www.protx.com)
Having one's own merchant account means paying less in
processing fees.
IMPORTANT: You should specify up-front that you are looking for
an internet merchant account. Internet transactions are viewed
as higher risk than those by bricks-and-mortar businesses. The
technical term is 'card not present'.
Some things you may need, if applying for an internet merchant
account of your own:
Business bank account;
Photocopy of a voided cheque for said account;
Copy of the articles of incorporation of your company;
Photocopy of your return policy information;
Trade references;
Photocopy of your driver's license or passport.
In short, you need to prove that both you and your company are
what you say they are. Your account provider is taking a chance
on you. You might send them a ton of bogus orders. A bank is a
business too, not a community service. Help them to make the
right decision! The more you can establish that you are
bona-fide, the lower the cost of your account.
Things to avoid, if you can:
a) Expensive credit-card processing software rental or
hire-purchase.
b) Monthly fees.
c) High discounts (the % of your sales they keep).
d) Fat fees up front (anything over $500 is a joke).
e) Salesmen calling you up with a spiel.
f) Getting lumbered with hiring their shopping cart as well.
Things to look out for at sites offering merchant accounts:
If you need to maintain a U.S. presence - full U.S.
incorporation, U.S. server, U.S. offices, U.S. bank account -
or NOT.
Also if they want a deposit, and the size of their application
fee. And the usual monthly minimums, discounts etc.
Avoid getting into any software purchase or equipment rental.
You can sort all that out later, for less money. There are
plenty of good payment gateways, like Authorize.net
(http://www.authorize.net) just itching for your business.
PS: Don't accept a merchant account from an Eastern European
bank. I did, some years ago. The bank went bust. One guy wailed
on Usenet that he'd lost $10,000 dollars. Luckily for me,
business was bad that year!
About the Author: T. O' Donnell (http://www.tigertom.com) is an
ecommerce consultant in London, UK. His latest projects are a
mortgage calculator and ebook, available at
http://www.tigertom.com/mortgages-uk.shtml
Source: http://www.isnare.com
Monday, May 14, 2007
Saturday, May 12, 2007
Merchant Account
Online Merchant Services
By Alison Cole
An online merchant service is one that enables you to make payments on the internet. Typically, online merchant services work through Internet merchant accounts that are provided through an acquiring bank. This acquirer effectively allows you to accept or make payments through credit cards online. As it is the case with almost any business decision, there are a number of both advantages as well as disadvantages to online systems of payment and also to other types of processors of credit card. On a general basis, the advantages tend to be tied to having a direct control of the system for processing the payment. On the flip side the disadvantages tend to revolve around factors like mechanics, logistics, and security. The responsibility for the entire process of payment is a very risky affair and needs to be contemplated to avoid any loopholes.
A major concern that a lot of people face is the costs incurred to obtain online merchant services. There are a multitude of potential fees and costs that are associated with even designing an ecommerce web site that would provide these services. If you are looking to set up such a web service to enhance your business process then you need to consider potential charges for the same. Various credit card merchant account fees will crop up from each provider who is involved in assisting you to establish your ecommerce web site. The merchant service set up will involve application fees, the actual set-up fees, not to mention yearly membership charges. There are also other factors like monthly statement charges and gateway access fees. The list is quite long and so you will need to look into it in a comprehensive manner as it is easy to misinterpret the fee structures. This is because very rarely are all the exact costs related to ecommerce revealed in a single place. However in the end the set up of such an online merchant service could prove to be extremely beneficial to your trade and could leverage your customer base.
Merchant Services provides detailed information on merchant services, e-commerce merchant services, high risk merchant accounts, internet merchant services and more. Merchant Services is affiliated with Internet Merchant Accounts.
Article Source: http://EzineArticles.com/?expert=Alison_Cole
http://EzineArticles.com/?Online-Merchant-Services&id=410024
By Alison Cole
An online merchant service is one that enables you to make payments on the internet. Typically, online merchant services work through Internet merchant accounts that are provided through an acquiring bank. This acquirer effectively allows you to accept or make payments through credit cards online. As it is the case with almost any business decision, there are a number of both advantages as well as disadvantages to online systems of payment and also to other types of processors of credit card. On a general basis, the advantages tend to be tied to having a direct control of the system for processing the payment. On the flip side the disadvantages tend to revolve around factors like mechanics, logistics, and security. The responsibility for the entire process of payment is a very risky affair and needs to be contemplated to avoid any loopholes.
A major concern that a lot of people face is the costs incurred to obtain online merchant services. There are a multitude of potential fees and costs that are associated with even designing an ecommerce web site that would provide these services. If you are looking to set up such a web service to enhance your business process then you need to consider potential charges for the same. Various credit card merchant account fees will crop up from each provider who is involved in assisting you to establish your ecommerce web site. The merchant service set up will involve application fees, the actual set-up fees, not to mention yearly membership charges. There are also other factors like monthly statement charges and gateway access fees. The list is quite long and so you will need to look into it in a comprehensive manner as it is easy to misinterpret the fee structures. This is because very rarely are all the exact costs related to ecommerce revealed in a single place. However in the end the set up of such an online merchant service could prove to be extremely beneficial to your trade and could leverage your customer base.
Merchant Services provides detailed information on merchant services, e-commerce merchant services, high risk merchant accounts, internet merchant services and more. Merchant Services is affiliated with Internet Merchant Accounts.
Article Source: http://EzineArticles.com/?expert=Alison_Cole
http://EzineArticles.com/?Online-Merchant-Services&id=410024
Friday, May 11, 2007
Merchant Account
How To Accept Credit Cards Without a Merchant Account
By J. Stephen Pope
To increase sales on your website, you must accept credit
cards. To process credit cards, you could apply for a
merchant account through your bank or other financial
institution.
Sometimes, though, you would be further ahead to use the
services of a credit card processor. This is especially
true when you are first starting out and have more
limited resources. In this way, you may process credit
card transactions without the high front-end costs and
requirements of a merchant account.
Here, then, are just a few ways of accepting credit cards
without a merchant account. I personally use all of these
vendors and can recommend them wholeheartedly.
1. Clickbank
If your product is downloadable (such as electronic books
or software), you might consider ClickBank.com . For a
$49.95 initial fee, you can process credit cards and
on-line cheques for $1.00 per transaction plus 7.5% of
sales.
You receive additional exposure through free listing on
their website and through the search facilities of other
websites, such as CBMall.com .
As an added bonus, you have your own built-in affiliate
program. You decide what commission (from 1% to 75%) you
would like to pay your affiliates.
2. PayPal
PayPal.com has no initial fees. For just 2.9% of sales
and $ .30 per transaction (and sometimes less), you can
receive money from anyone.
Also, you can pay others by credit card or chequing account
without supplying your personal credit information to the
payee. PayPal can be used to collect money from your
auctions, website sales, or even from friends or clients.
3. PaySystems
PaySystems.com can handle either intangible (downloadable)
or tangible (shippable) products. For an initial fee of
$49.00, you can accept all major credit cards as well as
online checks. Fees are just 3.95% of sales and $1.00 per
transaction. Alternatively, you may pay 5.5% of sales and
$ .35 per transaction.
For this, you receive shopping cart, integration with
third-party affiliate programs (such as ClixGalore.com ),
fraud screening, multi-currency transactions, toll-free
support, marketing tools, and more.
For more information on how to accept credit cards without
a merchant account, visit:
http://www.yenommarketinginc.com/creditcards.html
RESOURCE BOX:
J. Stephen Pope, President of Pope Consulting Inc.,
http://www.popeconsultinginc.com/ has been helping clients
to earn maximum business profits for over twenty-five years.
For valuable Work at Home Small Business Ideas, visit
http://www.yenommarketinginc.com/
Article Source: http://EzineArticles.com/?expert=J._Stephen_Pope
http://EzineArticles.com/?How-To-Accept-Credit-Cards-Without-a-Merchant-Account&id=160
By J. Stephen Pope
To increase sales on your website, you must accept credit
cards. To process credit cards, you could apply for a
merchant account through your bank or other financial
institution.
Sometimes, though, you would be further ahead to use the
services of a credit card processor. This is especially
true when you are first starting out and have more
limited resources. In this way, you may process credit
card transactions without the high front-end costs and
requirements of a merchant account.
Here, then, are just a few ways of accepting credit cards
without a merchant account. I personally use all of these
vendors and can recommend them wholeheartedly.
1. Clickbank
If your product is downloadable (such as electronic books
or software), you might consider ClickBank.com . For a
$49.95 initial fee, you can process credit cards and
on-line cheques for $1.00 per transaction plus 7.5% of
sales.
You receive additional exposure through free listing on
their website and through the search facilities of other
websites, such as CBMall.com .
As an added bonus, you have your own built-in affiliate
program. You decide what commission (from 1% to 75%) you
would like to pay your affiliates.
2. PayPal
PayPal.com has no initial fees. For just 2.9% of sales
and $ .30 per transaction (and sometimes less), you can
receive money from anyone.
Also, you can pay others by credit card or chequing account
without supplying your personal credit information to the
payee. PayPal can be used to collect money from your
auctions, website sales, or even from friends or clients.
3. PaySystems
PaySystems.com can handle either intangible (downloadable)
or tangible (shippable) products. For an initial fee of
$49.00, you can accept all major credit cards as well as
online checks. Fees are just 3.95% of sales and $1.00 per
transaction. Alternatively, you may pay 5.5% of sales and
$ .35 per transaction.
For this, you receive shopping cart, integration with
third-party affiliate programs (such as ClixGalore.com ),
fraud screening, multi-currency transactions, toll-free
support, marketing tools, and more.
For more information on how to accept credit cards without
a merchant account, visit:
http://www.yenommarketinginc.com/creditcards.html
RESOURCE BOX:
J. Stephen Pope, President of Pope Consulting Inc.,
http://www.popeconsultinginc.com/ has been helping clients
to earn maximum business profits for over twenty-five years.
For valuable Work at Home Small Business Ideas, visit
http://www.yenommarketinginc.com/
Article Source: http://EzineArticles.com/?expert=J._Stephen_Pope
http://EzineArticles.com/?How-To-Accept-Credit-Cards-Without-a-Merchant-Account&id=160
Thursday, May 10, 2007
Merchant Account
Getting a Real Merchant Account or Using 3rd Party Processors Like PayPal(R) - Which is Better?
By Chris Rempel
A lot of folks see PayPal, ClickBank and other third-party agents as the optimal method of doing business excluding a Merchant Account. This view is substantiated because there is usually no application process, and a few companies, PayPal for example, do not have any fees up-front. This feature boosts their appeal to "shoestring" start-ups and companies that deal in online (digital) products. A bargain is not always the 'cheapest' product.
Why don't we discuss the real differences between going with a third-party company (such as PayPal) and setting up a merchant account of your own...
1. A regular merchant account will charge between $100 - $250 initially to set up, a minimum monthly fee (minimum charges incurred) of $25 and $5+ to send out statements. These companies will bill you somewhere around 1% to 4% or even more per transaction (discount rate) - this varies with your business type - and a majority also use some kind of flat-fee for transactions. These fees range from $0.05 to $0.25
In contrast, PayPal does not charge a set up fee. They do have a 2.9% discount rate and charge 30 cents for each transaction. CC Now lacks fees except a 9% per transaction charge. ClickBank's set-up fee is $49.95. They charge no monthly fee, but a transaction fee of $1 in addition to 7%. DigiBuy has a set-up fee of $29.95 and no monthly fee. They do charge 13.9% or $3 per transaction (you pay the larger fee).
To better explain the fees involved, essentially, as soon as you build up a noteworthy sales volume ($1000/month or more), the costs involved with utilizing companies such as ClickBank, CCNow and DigiBuy far exceed what you would pay for a true merchant account that really works with your business. The advertised discount rate is normally where most of the money is used anyway, and this is how third-parties usually take in all their money.
PayPal, however, has a quite affordable discount rate, and the sole extra charge incurred for a regular account is the 30 cents transaction fee. In fact, if the average charges of a traditional merchant account are compared with PayPal's strictly from a "numbers" standpoint, the only time it is less expensive to use a merchant account is if your transactions are upwards of $50,000 monthly.
This perspective is only taking considering the actual numbers involved - and not any other variables that crop up when conducting business online, or offline...
2. Initially, it seems like PayPal is by far the better choice. Their low discount rate and transaction fees are without equal, and there is almost no entry impediment. You can start a PayPal account at no cost in a few minutes, and you are able to begin taking payments the moment your details are verified. For some small-time sellers and internet entrepreneurs, PayPal is just the ticket.
However, there are huge shortcomings that are not disclosed in the black and white contrast table that deals with cash - the value of the service could be different after you understand the following:
a. Many times these alternatives don't deal with support requests quickly; there have been times that delays persisted for several weeks.
b. Paypal does not give you access to your customer's credit card number, neither do any of the other third party service bureaus
c. A great majority of the alternatives cannot calculate shipping charges and taxes in their shopping carts
d. Some other companies are only serviceable for large profit-margin sales because of the expensive charges per sale (eg. DigiBuy charges 14% per sale which is huge)
e. Many alternatives to the merchant account lack a shopping cart altogether (eg. ClickBank), while like Paypal's is crude to say the least
f. PayPal has been known to shut down accounts and freeze funds - without warning - based solely on the hunches of employees that feel that vendors have violated their terms of service.
g. If you're especially accomplished at marketing, and if you render an ample amount of sales during a launch - you should not be startled if your account ends up being "red-flagged", frozen and audited. And this will take place, once again, without warning.
In comparison, this is what you can anticipate from a merchant account:
1. If you are processing sales online, you will have the ability to enter your merchant details into an easy to use, uncomplicated menu-driven (shopping-cart) interface/gateway - and there are several that are readily obtainable, even free ones such as OSCommerce. These are is simple to use by potential clients, and all-inclusive in terms of assembling crucial data
2. You can allow you to modify the shopping cart to fit your precise purpose including the shipping costs and taxes
3. It will show you your clients' credit card numbers to make tracking, refunds, etc. easier.
4. It will assist you in fully automating your business's payment processing
In other words, when you are starting out and your sales volume is low, a more cost-effective approach could be to use services like PayPal. However, when your sales increase - or if you desire more control over your ordering process, at the same time saving cash on higher sales volumes, a merchant account is a better choice.
In conclusion, if you're sincere about making your small business succeed, you will sooner or later need to obtain a merchant account. It's more cost effective, and you have much greater control over the money being processed.
Chris Rempel highly recommends http://www.AcceptByPhone.com, which enables anyone to accept credit cards using any touch-tone phone (or cellular) for a FRACTION of the regular cost - and it's completely mobile.
Find out why Chris and others think this service is the ultimate mobile merchant account service.
Article Source: http://EzineArticles.com/?expert=Chris_Rempel
http://EzineArticles.com/?Getting-a-Real-Merchant-Account-or-Using-3rd-Party-Processors-Like-PayPal(R)---Which-is-Better?&id=428271
By Chris Rempel
A lot of folks see PayPal, ClickBank and other third-party agents as the optimal method of doing business excluding a Merchant Account. This view is substantiated because there is usually no application process, and a few companies, PayPal for example, do not have any fees up-front. This feature boosts their appeal to "shoestring" start-ups and companies that deal in online (digital) products. A bargain is not always the 'cheapest' product.
Why don't we discuss the real differences between going with a third-party company (such as PayPal) and setting up a merchant account of your own...
1. A regular merchant account will charge between $100 - $250 initially to set up, a minimum monthly fee (minimum charges incurred) of $25 and $5+ to send out statements. These companies will bill you somewhere around 1% to 4% or even more per transaction (discount rate) - this varies with your business type - and a majority also use some kind of flat-fee for transactions. These fees range from $0.05 to $0.25
In contrast, PayPal does not charge a set up fee. They do have a 2.9% discount rate and charge 30 cents for each transaction. CC Now lacks fees except a 9% per transaction charge. ClickBank's set-up fee is $49.95. They charge no monthly fee, but a transaction fee of $1 in addition to 7%. DigiBuy has a set-up fee of $29.95 and no monthly fee. They do charge 13.9% or $3 per transaction (you pay the larger fee).
To better explain the fees involved, essentially, as soon as you build up a noteworthy sales volume ($1000/month or more), the costs involved with utilizing companies such as ClickBank, CCNow and DigiBuy far exceed what you would pay for a true merchant account that really works with your business. The advertised discount rate is normally where most of the money is used anyway, and this is how third-parties usually take in all their money.
PayPal, however, has a quite affordable discount rate, and the sole extra charge incurred for a regular account is the 30 cents transaction fee. In fact, if the average charges of a traditional merchant account are compared with PayPal's strictly from a "numbers" standpoint, the only time it is less expensive to use a merchant account is if your transactions are upwards of $50,000 monthly.
This perspective is only taking considering the actual numbers involved - and not any other variables that crop up when conducting business online, or offline...
2. Initially, it seems like PayPal is by far the better choice. Their low discount rate and transaction fees are without equal, and there is almost no entry impediment. You can start a PayPal account at no cost in a few minutes, and you are able to begin taking payments the moment your details are verified. For some small-time sellers and internet entrepreneurs, PayPal is just the ticket.
However, there are huge shortcomings that are not disclosed in the black and white contrast table that deals with cash - the value of the service could be different after you understand the following:
a. Many times these alternatives don't deal with support requests quickly; there have been times that delays persisted for several weeks.
b. Paypal does not give you access to your customer's credit card number, neither do any of the other third party service bureaus
c. A great majority of the alternatives cannot calculate shipping charges and taxes in their shopping carts
d. Some other companies are only serviceable for large profit-margin sales because of the expensive charges per sale (eg. DigiBuy charges 14% per sale which is huge)
e. Many alternatives to the merchant account lack a shopping cart altogether (eg. ClickBank), while like Paypal's is crude to say the least
f. PayPal has been known to shut down accounts and freeze funds - without warning - based solely on the hunches of employees that feel that vendors have violated their terms of service.
g. If you're especially accomplished at marketing, and if you render an ample amount of sales during a launch - you should not be startled if your account ends up being "red-flagged", frozen and audited. And this will take place, once again, without warning.
In comparison, this is what you can anticipate from a merchant account:
1. If you are processing sales online, you will have the ability to enter your merchant details into an easy to use, uncomplicated menu-driven (shopping-cart) interface/gateway - and there are several that are readily obtainable, even free ones such as OSCommerce. These are is simple to use by potential clients, and all-inclusive in terms of assembling crucial data
2. You can allow you to modify the shopping cart to fit your precise purpose including the shipping costs and taxes
3. It will show you your clients' credit card numbers to make tracking, refunds, etc. easier.
4. It will assist you in fully automating your business's payment processing
In other words, when you are starting out and your sales volume is low, a more cost-effective approach could be to use services like PayPal. However, when your sales increase - or if you desire more control over your ordering process, at the same time saving cash on higher sales volumes, a merchant account is a better choice.
In conclusion, if you're sincere about making your small business succeed, you will sooner or later need to obtain a merchant account. It's more cost effective, and you have much greater control over the money being processed.
Chris Rempel highly recommends http://www.AcceptByPhone.com, which enables anyone to accept credit cards using any touch-tone phone (or cellular) for a FRACTION of the regular cost - and it's completely mobile.
Find out why Chris and others think this service is the ultimate mobile merchant account service.
Article Source: http://EzineArticles.com/?expert=Chris_Rempel
http://EzineArticles.com/?Getting-a-Real-Merchant-Account-or-Using-3rd-Party-Processors-Like-PayPal(R)---Which-is-Better?&id=428271
Wednesday, May 9, 2007
Merchant Account
How To Comprehend Merchant Service Provider Rates
By: Jim Saka
If you have an online business today, you are well aware of the necessity to have a merchant service of some kind. Being able to accept credit cards online makes it convenient for customers and allows them to feel secure about their purchase with a credit card. For the merchant, it is vital that you are well aware of the merchant service provider rates. Otherwise, it can be easy to spend an arm and a leg on a merchant service.
The first part to understanding your merchant service provider's rates is knowing the classifications of each transaction. Each transaction will fall into the category of either qualified, midqualified or nonqualified. There are several ways the classification is determined, including the Visa/MasterCard regulations, the category of credit card used, whether the address verification system was used and whether the order was shipped within 24 hours.
If the transaction for whatever reason does not satisfy all conditions set by the Visa/MasterCard regulations, the transaction falls into the category of either midqualified or nonqualified. Another way the transaction can be classified as a nonqualified surcharge is by the category of credit card used. If you use a business card, business cards are considered high-risk, which puts the order into a nonqualified surcharge.
What this means is that your merchant service provider rate will be potentially 1.4% more in surcharges because of it being categorized as nonqualified. To avoid being docked any extra rate for transactions, you will want to talk with your merchant service provider to see the list of determinants that put a transaction into nonqualified.
The rates that you really want to watch for when going through a merchant service provider are the discount rate for each transaction and the per-transaction fee. The discount rate is the percentage applied to the dollar value of each transaction. The per-transaction fee, on the other hand, is a flat fee that is assessed after each transaction.
If you have a qualified transaction, the merchant service provider rates will generally be in your favor. However, the rates will fluctuate and could potentially not be the most cost-effective if the transaction is nonqualified or midqualified.
As you can see, having nonqualified or midqualified surcharges can cause high merchant service provider rates. By being aware of how to stay away from these classifications and assure yourself that you fall into the qualified surcharges, your rates will be much more feasible. All in all, it will make more a convenient way for your customers to make transactions using their credit cards while feeling safe at the same time.
Copyright (c) 2007 Jim Saka
Article Source: http://www.ApprovedArticles.com
For more information about Jim Saka or to find out how your business can can benefit from accepting credit cards online or at a place of business visit United Bank Card's merchant account services websites.
By: Jim Saka
If you have an online business today, you are well aware of the necessity to have a merchant service of some kind. Being able to accept credit cards online makes it convenient for customers and allows them to feel secure about their purchase with a credit card. For the merchant, it is vital that you are well aware of the merchant service provider rates. Otherwise, it can be easy to spend an arm and a leg on a merchant service.
The first part to understanding your merchant service provider's rates is knowing the classifications of each transaction. Each transaction will fall into the category of either qualified, midqualified or nonqualified. There are several ways the classification is determined, including the Visa/MasterCard regulations, the category of credit card used, whether the address verification system was used and whether the order was shipped within 24 hours.
If the transaction for whatever reason does not satisfy all conditions set by the Visa/MasterCard regulations, the transaction falls into the category of either midqualified or nonqualified. Another way the transaction can be classified as a nonqualified surcharge is by the category of credit card used. If you use a business card, business cards are considered high-risk, which puts the order into a nonqualified surcharge.
What this means is that your merchant service provider rate will be potentially 1.4% more in surcharges because of it being categorized as nonqualified. To avoid being docked any extra rate for transactions, you will want to talk with your merchant service provider to see the list of determinants that put a transaction into nonqualified.
The rates that you really want to watch for when going through a merchant service provider are the discount rate for each transaction and the per-transaction fee. The discount rate is the percentage applied to the dollar value of each transaction. The per-transaction fee, on the other hand, is a flat fee that is assessed after each transaction.
If you have a qualified transaction, the merchant service provider rates will generally be in your favor. However, the rates will fluctuate and could potentially not be the most cost-effective if the transaction is nonqualified or midqualified.
As you can see, having nonqualified or midqualified surcharges can cause high merchant service provider rates. By being aware of how to stay away from these classifications and assure yourself that you fall into the qualified surcharges, your rates will be much more feasible. All in all, it will make more a convenient way for your customers to make transactions using their credit cards while feeling safe at the same time.
Copyright (c) 2007 Jim Saka
Article Source: http://www.ApprovedArticles.com
For more information about Jim Saka or to find out how your business can can benefit from accepting credit cards online or at a place of business visit United Bank Card's merchant account services websites.
Tuesday, May 8, 2007
Merchant Account
Merchant Account Fees by Jack Chevalier
From: frontpages-web-hosting.net
Merchant account -- a special bank account for handling the revenue (and fees) from credit card transactions. Your merchant account provider (MAP) is a bank or other institution that processes online credit card transactions.
Some MAPs will not allow a large volume of purchases to be made when a card is not physically present; or example, for charges made over the Internet, or by phone, fax, or mail. In that case, you will need to obtain a separate merchant account to process your online transactions because financial institutions and the Visa/MasterCard card associations have different criteria for evaluating the potential risks of credit card transactions when a card is not present. A variety of fees and other expenses are associated with online merchant accounts.
Setup Fees
Your MAP will charge some combination of fees to get started. Most charge an application fee, which is seldom refunded if your application is denied. When you open an account, you may be charged software licensing fees, if applicable, and you may be required to purchase hardware or equipment, such as a point of sale (POS) terminal.
Software
Software requirements also vary widely, from using Web-based applications hosted on your provider's server free of charge, to purchasing and installing software. In some cases, all that's required is a personal computer with Internet access, but depending on your business needs, a POS terminal may be necessary. POS terminals are the devices you see in most retail locations, used for processing credit card transactions. These terminals come in a variety of models -- from bare-bones versions to fully loaded editions with integrated printers and real-time processing capabilities.
Transaction Fees
A transaction fee is a flat fee charged for each transaction. Credit card transaction fees may be assessed by the financial institution that handles your merchant account, the Internet payment service that enables the merchant to accept online payments from their customers and securely processes these payments, or both. You may be able to receive separate invoices from your financial institution and the Internet payment service; but in many cases, this fee is presented to merchants in one invoice from your financial institution. The transaction fee is based on the financial institution and the risks associated with the merchant, including type of products, market segments, method of selling, price of product, expected sale volume and merchant credit history.
Discount Rates
Discount rates are percentages taken from each order. Expect to pay discount rates from 1.75% to 3.95%.
Other Fees
Beyond these fees, many MAPs have also established minimum annual revenue requirements. Some MAPS also require security deposits or revolving accounts to ensure that you'll pay for any charges contested by a customer. Like transaction fees, these amounts are usually based on the type of product you're selling and the price of your goods and services, your credit history, and the length of time you've been in business. Each MAP offers a different mix of fees. Regardless of the MAP, however, these costs can add up quickly.
About the Author
None
From: frontpages-web-hosting.net
Merchant account -- a special bank account for handling the revenue (and fees) from credit card transactions. Your merchant account provider (MAP) is a bank or other institution that processes online credit card transactions.
Some MAPs will not allow a large volume of purchases to be made when a card is not physically present; or example, for charges made over the Internet, or by phone, fax, or mail. In that case, you will need to obtain a separate merchant account to process your online transactions because financial institutions and the Visa/MasterCard card associations have different criteria for evaluating the potential risks of credit card transactions when a card is not present. A variety of fees and other expenses are associated with online merchant accounts.
Setup Fees
Your MAP will charge some combination of fees to get started. Most charge an application fee, which is seldom refunded if your application is denied. When you open an account, you may be charged software licensing fees, if applicable, and you may be required to purchase hardware or equipment, such as a point of sale (POS) terminal.
Software
Software requirements also vary widely, from using Web-based applications hosted on your provider's server free of charge, to purchasing and installing software. In some cases, all that's required is a personal computer with Internet access, but depending on your business needs, a POS terminal may be necessary. POS terminals are the devices you see in most retail locations, used for processing credit card transactions. These terminals come in a variety of models -- from bare-bones versions to fully loaded editions with integrated printers and real-time processing capabilities.
Transaction Fees
A transaction fee is a flat fee charged for each transaction. Credit card transaction fees may be assessed by the financial institution that handles your merchant account, the Internet payment service that enables the merchant to accept online payments from their customers and securely processes these payments, or both. You may be able to receive separate invoices from your financial institution and the Internet payment service; but in many cases, this fee is presented to merchants in one invoice from your financial institution. The transaction fee is based on the financial institution and the risks associated with the merchant, including type of products, market segments, method of selling, price of product, expected sale volume and merchant credit history.
Discount Rates
Discount rates are percentages taken from each order. Expect to pay discount rates from 1.75% to 3.95%.
Other Fees
Beyond these fees, many MAPs have also established minimum annual revenue requirements. Some MAPS also require security deposits or revolving accounts to ensure that you'll pay for any charges contested by a customer. Like transaction fees, these amounts are usually based on the type of product you're selling and the price of your goods and services, your credit history, and the length of time you've been in business. Each MAP offers a different mix of fees. Regardless of the MAP, however, these costs can add up quickly.
About the Author
None
Friday, May 4, 2007
Merchant Account
How to accept money online? by Debabrata Dhar
Why Internet is so much popular? It is popular because the entire concept of the Internet is "Instant" access to information, products, and services. Everybody wants to have his or her preferred items instantly whether it is information, products or services on the Internet even if it requires money to access it. So, you need to use this opportunity to help your impulsive customers pay at your website and get access to their requirements. It makes them happy and you make instant money from it.
What is the method we should accept?
The most popular online payment method, by far, is accepting payments by credit card. The reasons are:
* Convenient: It is more convenient for people to pay you.
* Establish Your Credibility: General concept of people is that merchant account status is not easy to get and therefore they look at you as one that is stronger than others.
* Increase Lifetime Value Of Your Customers: When people are ready to purchase from you with a credit card, they most likely want to believe you. If someone believes you in business, want to purchase more whatever you recommend. That means you are providing a chance of selling different products to the same customers. It is also evident that if someone believes you, he or she wants others to purchase from you. You can find that your customers would be taking initiative to recommend your product to others because they believe you.
* Increase Impulsive Purchase: Provision of accepting credit cards on your website enforces your customers to go for instant purchase because they are in buying mood and it is the online credit card acceptance system that make it easier for them to get access whatever they want.
So, you can see that there are so many advantages of accepting credit cards online. All of the advantages will certainly go in your favor if you implement the system on your website from the day one of your online sells.
I hope you got the importance of accepting money online. Besides all of the benefits discussed above, it will make you most happy because it actually earns money for you. This is best reason for which you need to be encouraged.
About the Author
Debabrata Dhar, the creator of Net Profit Magic: A Total Automated Instant Money Making Magic Internet Business Solution... Click the link for your free copy of an exclusive brand new ebook Insider Secrets Of A Successful Internet Business: http://www.netprofitmagic.com/
Why Internet is so much popular? It is popular because the entire concept of the Internet is "Instant" access to information, products, and services. Everybody wants to have his or her preferred items instantly whether it is information, products or services on the Internet even if it requires money to access it. So, you need to use this opportunity to help your impulsive customers pay at your website and get access to their requirements. It makes them happy and you make instant money from it.
What is the method we should accept?
The most popular online payment method, by far, is accepting payments by credit card. The reasons are:
* Convenient: It is more convenient for people to pay you.
* Establish Your Credibility: General concept of people is that merchant account status is not easy to get and therefore they look at you as one that is stronger than others.
* Increase Lifetime Value Of Your Customers: When people are ready to purchase from you with a credit card, they most likely want to believe you. If someone believes you in business, want to purchase more whatever you recommend. That means you are providing a chance of selling different products to the same customers. It is also evident that if someone believes you, he or she wants others to purchase from you. You can find that your customers would be taking initiative to recommend your product to others because they believe you.
* Increase Impulsive Purchase: Provision of accepting credit cards on your website enforces your customers to go for instant purchase because they are in buying mood and it is the online credit card acceptance system that make it easier for them to get access whatever they want.
So, you can see that there are so many advantages of accepting credit cards online. All of the advantages will certainly go in your favor if you implement the system on your website from the day one of your online sells.
I hope you got the importance of accepting money online. Besides all of the benefits discussed above, it will make you most happy because it actually earns money for you. This is best reason for which you need to be encouraged.
About the Author
Debabrata Dhar, the creator of Net Profit Magic: A Total Automated Instant Money Making Magic Internet Business Solution... Click the link for your free copy of an exclusive brand new ebook Insider Secrets Of A Successful Internet Business: http://www.netprofitmagic.com/
Thursday, May 3, 2007
Merchant Account
Free Internet Merchant Accounts
By Seth Miller
Any business which wants to grow in today’s world must accept online payments made through credit cards. This would require an Internet merchant account. Small businesses can also open free merchant accounts to save initial costs.
A free Internet merchant account can be opened by involving a third-party processing company. The third party processor company has its own online merchant account. When you authorize this company on your behalf, it starts accepting online payments through credit cards for your products or services. A particular amount is deducted from this sale by the third party processor as a commission. The rest of the money is transferred to your offline merchant account. The commission is often known as a processing fee. This is how the third party processor makes a profit. Hence, it does not charge you anything up front. Usually, the fee charged by a third party processor is slightly higher than the fee charged for an original online merchant account operated by the merchant.
Not all third party processor companies offer free Internet merchant accounts. Some of them may charge a nominal fee. But there are many companies which help you in receiving online payments without charging an initial fee. It is only after the payments have been received that a commission is charged.
Before hiring the services of a third party processing company, it is always advisable to check its past record. Try and go for stable and well-known entities, because there is always the risk of fly-by-night operators vanishing with your hard-earned money.
Filling some basic information and signing an agreement with the third party processing companies can help open such accounts. A free Internet merchant account helps you tap potential online business opportunities even if you don't have a web site.
Internet Merchant Accounts provides detailed information on Internet Merchant Accounts, Free Internet Merchant Accounts, Ecommerce Internet Merchant Accounts, Internet Merchant Credit Card Accounts and more. Internet Merchant Accounts is affiliated with International Ecommerce Merchant Accounts.
Article Source: http://EzineArticles.com/?expert=Seth_Miller
http://EzineArticles.com/?Free-Internet-Merchant-Accounts&id=251504
By Seth Miller
Any business which wants to grow in today’s world must accept online payments made through credit cards. This would require an Internet merchant account. Small businesses can also open free merchant accounts to save initial costs.
A free Internet merchant account can be opened by involving a third-party processing company. The third party processor company has its own online merchant account. When you authorize this company on your behalf, it starts accepting online payments through credit cards for your products or services. A particular amount is deducted from this sale by the third party processor as a commission. The rest of the money is transferred to your offline merchant account. The commission is often known as a processing fee. This is how the third party processor makes a profit. Hence, it does not charge you anything up front. Usually, the fee charged by a third party processor is slightly higher than the fee charged for an original online merchant account operated by the merchant.
Not all third party processor companies offer free Internet merchant accounts. Some of them may charge a nominal fee. But there are many companies which help you in receiving online payments without charging an initial fee. It is only after the payments have been received that a commission is charged.
Before hiring the services of a third party processing company, it is always advisable to check its past record. Try and go for stable and well-known entities, because there is always the risk of fly-by-night operators vanishing with your hard-earned money.
Filling some basic information and signing an agreement with the third party processing companies can help open such accounts. A free Internet merchant account helps you tap potential online business opportunities even if you don't have a web site.
Internet Merchant Accounts provides detailed information on Internet Merchant Accounts, Free Internet Merchant Accounts, Ecommerce Internet Merchant Accounts, Internet Merchant Credit Card Accounts and more. Internet Merchant Accounts is affiliated with International Ecommerce Merchant Accounts.
Article Source: http://EzineArticles.com/?expert=Seth_Miller
http://EzineArticles.com/?Free-Internet-Merchant-Accounts&id=251504
Wednesday, May 2, 2007
Merchant Account
Online Credit Card Merchant Accounts
By Richard Romando
A recent survey indicates that when you accept credit cards online, you can expect your sales to increase by an astounding 50 to 400%. If experts are to be believed, in this fast-paced world you simply can't compete if you don't accept credit cards. For the online web entrepreneur, the most important factor in credit card processing is how many products you think you can realistically sell in a month.
Business firms are often forced to extend credit to increase sales. In some businesses, the entire sale takes place on credit, cash sales being negligible. In certain other businesses, hire purchase and installment payments are the normal practices. Even in those cases where the sales to consumers are on a cash basis, credit is extended to the distribution channels. It is essential for any business firm to evolve a clear policy on credit and exercise proper control of it.
The firm must ensure that customers and channels do not exploit the credit policy of the firm. Credit transactions should not turn into bad debts. Credit has two cost dimensions: the interest on the money involved in the credit transaction, and the risk of bad debts. Bad debts must be seen and understood as an important part of the cost of credit. They erode the profits of the firm.
All credit transactions have the potential of becoming a bad debt. And even if they are sound, credit transactions always have another serious implication-- of affecting the liquidity of the firm. An analysis of outstandings and overdues will highlight the corrective action to be taken. Some firms offer cash rebates to customers in lieu of credit, with a view to reducing credit transactions and accelerating recoveries. Proper credit rating of the client is the fundamental step in credit control. Credit rating ensures that the credit worthiness of the client is assessed objectively before the firm proceeds with the risk of extending credit facility to him.
Online Merchant Accounts provides detailed information on Online Merchant Accounts, Online Merchant Account Services, Online Merchant Account Application, Online Credit Card Merchant Accounts and more. Online Merchant Accounts is affiliated with Free Offshore Merchant Accounts.
Article Source: http://EzineArticles.com/?expert=Richard_Romando
http://EzineArticles.com/?Online-Credit-Card-Merchant-Accounts&id=190819
By Richard Romando
A recent survey indicates that when you accept credit cards online, you can expect your sales to increase by an astounding 50 to 400%. If experts are to be believed, in this fast-paced world you simply can't compete if you don't accept credit cards. For the online web entrepreneur, the most important factor in credit card processing is how many products you think you can realistically sell in a month.
Business firms are often forced to extend credit to increase sales. In some businesses, the entire sale takes place on credit, cash sales being negligible. In certain other businesses, hire purchase and installment payments are the normal practices. Even in those cases where the sales to consumers are on a cash basis, credit is extended to the distribution channels. It is essential for any business firm to evolve a clear policy on credit and exercise proper control of it.
The firm must ensure that customers and channels do not exploit the credit policy of the firm. Credit transactions should not turn into bad debts. Credit has two cost dimensions: the interest on the money involved in the credit transaction, and the risk of bad debts. Bad debts must be seen and understood as an important part of the cost of credit. They erode the profits of the firm.
All credit transactions have the potential of becoming a bad debt. And even if they are sound, credit transactions always have another serious implication-- of affecting the liquidity of the firm. An analysis of outstandings and overdues will highlight the corrective action to be taken. Some firms offer cash rebates to customers in lieu of credit, with a view to reducing credit transactions and accelerating recoveries. Proper credit rating of the client is the fundamental step in credit control. Credit rating ensures that the credit worthiness of the client is assessed objectively before the firm proceeds with the risk of extending credit facility to him.
Online Merchant Accounts provides detailed information on Online Merchant Accounts, Online Merchant Account Services, Online Merchant Account Application, Online Credit Card Merchant Accounts and more. Online Merchant Accounts is affiliated with Free Offshore Merchant Accounts.
Article Source: http://EzineArticles.com/?expert=Richard_Romando
http://EzineArticles.com/?Online-Credit-Card-Merchant-Accounts&id=190819
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