Posts Tagged ‘payments’
Internet Merchant Accounts – Accept Credit Payments Online
Posted by admin in Merchant Accounts Wednesday, 1 September 2010 06:21 No Comments
If you have ever tried surfing Google, using the phrase “Internet merchant accounts” you must have been astounded by the results. Over four hundred thousand merchant service providers vying for your account, is likely to leave anyone dumbfounded. Some of these service providers provide services for all businesses irrespective of their domain of specialization. Whether you own a retail store, take order through phone or have a website based business, they process all types of payments. Then there are some that process payments, for any one of these of these three types of businesses. It’s however better, to go for those providers that provide all round payment processing services. It’s also important to check out with the service providers whether they process international payments in addition to domestic payments. These are some of the most basic things you need to be aware of, while deciding upon a merchant service provider.
In addition to above mentioned considerations, you also need to understand the three tier structure of merchant services. First there is the payment gateway which is the secret code that transmits a customer’s order to internet merchant account provider. Then comes the merchant accounts, which is an account with a financial institution that basically enables you capture funds from the credit cards of your customers. The funds captured are transferred to your personal account within two to three business days. Then there’s your website, which you would need to integrate with your service providers. Most Internet merchant accounts service providers have detailed web integration instructions.
Then third part of your quest to the perfect Internet merchant service provider involves discovering the cost factor. There are a number of fees that are charged by merchant service providers. Some of them have no valid justification and are a part of the service providers money making scheme. Fee charges like termination fees and miscellaneous fees should be negotiated with the service provider. However, you can save yourself all this trouble by simply logging to Advanced Merchant Services.
Advanced Merchant Services (AMS), is one of the premier merchant service providers operating in the United States. We are a 360 degree service provider and are backed by the most powerful conglomeration of banks in the United States. More importantly, the unique advantages we offer can’t be aped any other site. Our position of absolute superiority in the field is reflected by the Price Bust option. Moreover, we are also providing a free credit card terminal with every new merchant account. To find out more about our services, do visit us at www.merchant-accounts.com.
Steve Depraida is a well known author who writes articles on Merchant Accounts like Merchant Services, Merchant Service, Accept Credit Cards, Credit Card Processing, Credit Card Machine, Internet Merchant Accounts etc. For further details, please visit the site www.merchant-accounts.com.
Online Payments and Merchant Account Providers
Posted by admin in Merchant Accounts Wednesday, 21 July 2010 06:22 No Comments
The process of setting up online payment may appear confusing at first, but the hard work is choosing the right service provider. In my search I spoke to everyone from sales agents to bank representatives and I now have a collection of contracts with very tiny print. I put together a summary of the process, things to watch out for, and a comparison of rates. I hope this helps.
How it works: Credit Card Payment Flow
Customer enters payment information into our secure site (aka Shopping Cart/Checkout).
The payment details are sent to the Payment Gateway for approval. Gateway forwards the transaction to our Merchant Bank. Our Merchant Bank forwards the transaction to the Credit Card Issuing Bank for verification. Credit card bank verifies transaction and sends response code (Approve, Deny) back to our Merchant Bank. Our Merchant Bank forwards the response to the payment gateway. Payment gateway stores the results and response back to our online store. Payment information is displayed to the customer; i.e. “credit card was charged”, “credit card was denied”, etc.
This process happens in a matter of seconds.
Where Do We Get a Merchant Account?
Banks. Most banks use First Data Corporation network for their credit card payment process. FDC network clears about 80% of all credit card transaction. Here’s a list of banks that are FDC Alliance Partners.
Merchant Service Providers (MSPs). I refer to them as Vendors in this article. Advantages of MSP over Banks:
MSP have many bank affiliates and third-party account database, which mean higher approval rates (especially if your business is considered high risk). MSP will make recommendation on the best suited solutions or packages. Banks are limited on options. Better chances of negotiating lowers rates and contract terms with vendors than at a bank.
What are the requirements?
Requirements vary depending on the provider and the amount of risk they are willing take. Three vendors told me they only needed a Tax ID or SS#, business checking account, and an address (which is not completely accurate). I later found out that the vendor submits our application to the underwriter and the underwriter will request additional information for approval. Most underwriters will ask for both application and website information as follow:
The Applicant & Business Info:
Applicant must be a principal owner of the business Business License (Tax ID) or DBA (SS#) Checking Account Address Driver’s License and Contact Info of Principal Credit check – for new business, the personal credit history is a influential element
On the Website:
Must be a live site Company name or DBA name on the site Shows Product and Price Terms of Service Return/Refund Policy Shipping Methods Privacy Policy Contact info for support (email, form, etc.) Working Shopping Cart/Check out page Secure
Alternatives Service Providers
Alternative payment service such as PayPal, Google Checkout and Amazon FPS are becoming more and more popular with new small businesses. These companies provide packages that fit most business model, they are simple to implement, low cost, and you can get started almost immediately.
RATING AND RATES
Read the Tiny Print
Vendors use the same pool of financial institutions and gateways. It is a very competitive and lucrative market. They make money from markups to the fees, and additional service charges. In my talks with vendors, only if asked, did a few of the reps disclose the additional costs. One rep told me to read the contract carefully, but he can’t give me the contract or discuss rates until he has my application.
Varying fees and rates can be applied to specific card type (MC, Visa, AMEX, Discover, personal, business, and rewards card). The industry term for this is Qualified vs. Unqualified cards (unqualified having the higher unadvertised rates of course). Read your contracts carefully, especially the footnotes.
What’s important?
Keep in mind rates are not fixed, most companies can change the rate with 30 days notice. Finding a service provider with a solid reputation, flexible policy, provides good customer service, and 24/7 technical support is more important than the fees. An indicator of a good vendor is transparency into their company and if they ask in-depth questions about your business.
New Business Recommendation
For new a business with unknown sales volume, the per transaction rates may not make a difference early on. I might go with PayPal or Google Checkout for a few months just to collect some information around sales. Because there is no start-up cost, no monthly fees, an immediate sign up and use process, and low development time, there is very little risk and out-of-pocket cost. The only disadvantages are that customers will be redirected from your site during the transaction and the possible perception of not being as ‘professional’. That said, until you understand your volume, the flexibility and ease are the way to go.
Paypal Payments Module – Online Shopping Cart
Posted by admin in Shopping Cart Optimization Saturday, 26 June 2010 07:51 No Comments
Quick & Easy payment terminal for your clients to pay for your services through Paypal
Do i need a merchant account to accept credit card payments through Pay pal?
Posted by admin in Merchant Accounts Tuesday, 8 June 2010 06:19 1 Comment
I am starting my own online business and need to accept credit cards. I have looked at the services that paypal web payments standard have and like them. However i need to know if i have to have a merchant account or can i just use my own/business’s account ?
Do I still need a merchant account to use google check out to accept payments online?
Posted by admin in Merchant Accounts Wednesday, 28 April 2010 06:21 2 Comments
Basically I want to know if I can use Google Check out without having to apply for a merchant account.
