Here's breaking news about the credit card merchant account.
Business.com makes these important points:
* The rule on merchant card services: If low fees mean high per-transaction costs, high fees should mean low transaction costs.
* Bargain down set-up fees and equipment, especially if the merchant card services broker wants a long-term contract.
* Be suspicious of fine print. Credit card processing companies are lightly regulated and prone to fast-moving, fast-talking sales agents.
Greg Brown gives this comprehensive write-up:
You got the shop set up, the goods on the shelves and customers coming in. But, if you accept credit cards, are you losing money every time a buyer flashes some plastic?
The answer has a lot to do with exactly what terms you agreed to when you signed on for a credit card merchant account in order to accept credit cards. Taking plastic can mean a lot more money: Checks are becoming a quaint memory, and credit card companies have effectively declared war on cash with billions of dollars in marketing messages to the consumer.
So, take that card. But understand what it will cost and make sure you get the best possible deal on merchant card services for your size business. In this guide, you'll learn:
1. How to get equipment and a merchant card services account for cheap -- and why that's risky
2. Balancing credit card merchant account fees with per-transaction charges
3. Watching out for fine print with merchant card services
4. Speeding up payment with online credit card processing and mobile credit card processing
Action Steps for Best Credit Card Processing Terms
The best contacts and resources to help you get it done
Who's who in credit card processing companies It can be tricky at first, but a credit card transaction has basically four stops along the way. The customer's card is from a bank. It is issued and backed (think customer service)by a card company, like Visa or MasterCard. There's an often a third party clearing the deal (although it might be the customer's bank), and then your bank has to get the money.
I recommend: Forbes has a great, detailed analysis of credit card processing basics. See the gamut of merchant card services at Business.com.
I recommend: Many vendors will eat set-up fees and even discount credit card processing equipment to get a sale, but watch out. They have to make money somewhere, right? If you want to accept credit cards, better to get into the basic terminology at the MerchantSeek glossary on credit card processing or try their exhaustive frequently asked questions page.
I recommend: Bottom line: If your per transaction rate is high -- 5% is punitive, 2% is about right -- make sure fees are low or zero. If you agree to a low transaction rate, fees you might not even notice for meaningless things (statement fees, instance) could be piled on. Allbusiness.com has a good checklist for this. Merchant card services company VantageCard has detailed explanations. Also, run the actual fees you are quoted through the handy calculator at the Merchant Account blog.
Letting your bank handle credit card processing may seem convenient--but that convenience comes at a price. Often, using one of the 400 third-party service providers--such as Heartland Payment Systems (nyse: HPY - news - people ) and Global Payments (nyse: GPN - news - people )--is a cheaper way to go.
Of course, fees aren't the only consideration when choosing the right processor. Service and speed matter, too. Terms are negotiable (these guys want business), so knowledge is your best weapon. Here are some things you should be looking for.
Equipment. Credit card processing machines--which often come as part of point-of-sales systems--run between $300 and $800 apiece. (Sleeker systems involve software, too.) Vendors include Micros, Aloha and Squirrel, though some processing companies offer equipment as part of a package. Merchants also need a way to connect to the processor, via either a separate telephone line or the Internet.
Lag time. Another critical factor is the time it takes to get your mitts on customers' money. The lag can be anywhere from one to five days. Why the difference? Some processors have more efficient fraud-checking systems. Others try to eke out interest on the "float" (the reimbursement from the credit card companies) before depositing the funds into merchants' accounts. (That's why all processors must be sponsored by a bank insured by the Federal Deposit Insurance Corporation.) Obviously, the quicker you get the money, the better--and you may not have to pay more for faster service.
Fees. Generally speaking, a base rate of 2% on each bill is pretty good. Unfortunately, there is no one resource for comparing processing prices--and the fee structures are opaque at best. While third parties typically offer cheaper rates than banks, there are plenty of caveats.
Case in point: "nonqualified" rates on certain types of transactions. Fees on phone orders (where the merchant types the number into the system rather than swiping the card) might cost in the 5% to 8% range, for instance. Some processors may deem a wide range of charges nonqualified. Make processors spell those out before giving them your business.
Forbes says: "While third-parties typically offer cheaper rates than banks, there are plenty of caveats. Case in point: "non-qualified" rates on certain types of transactions. Fees on a phone order (where the merchant types the number into the system, rather than simply swiping the card) might cost in the 5% to 8% range, for instance. Some processors may deem a wide range of charges non-qualified. Make processors spell those out before giving them your business."
An Internet merchant account is set up through a bank or an online merchant account provider for a retail or online business in order to accept credit cards as payment from customers. That's why it is very important that you have a merchant account for credit card processing whether you work from a physical location or operate an online store.
Accepting credit card payments online is easy when you ensure that your bank supports a merchant account gateway. If you're going to run any type of online business then the ability to accept payments via credit card, or through an Internet merchant account, is critical.
To set up merchant account for credit card payments, first find the best lender and account terms that you can trust to represent and safeguard your business interests. When you are ready to accept credit card for your goods or services, start by shopping for an established banker or lender that can offer you an ecommerce merchant account.
Your credit card merchant account, when approved, will let you accept credit card payments from customers in a number of ways. This is essential to keep your customers coming back for the convenience you are offering them.
The ability to process credit card payments would substantially increase your customer base, and this is what good merchant account services could offer. You won't be able to enjoy the use of merchant services until you apply for them, so ask your preferred lender about the process for a merchant account application. Why not apply for one soon so that you can enjoy the status and benefits of attracting customers who prefer using credit card when they purchase a product or service from your website?
Merchant Account Terminology
Bank
Bank and financial institutions assist in setting up Visa, Discover, American Express and MasterCard merchant accounts. Banks provide their services in exchange for processing fees. Assuming you have reasonable credit, setting up with MonsterMerchantAccount's merchant services is simple. Our relationship with banks and financial institutions making our merchant account offering appealing. Begin accepting payments online today.
Choosing a Bank Credit Card Processing & Clearinghouse Processing credit card transactions usually occurs at a clearinghouse. When your shopping cart within your online store receives the credit card during the payment process, the Transaction Processing Clearinghouse is the organization that authorizes and validates the card (making sure the number matches the card and that sufficient funds are available).
Merchant Account Provider (Accept Credit Cards)
Merchant account and credit card service companies are plentiful on the Internet. In Industry terms, these companies are called merchant account providers or Independent Sales Organizations.
Make sure you research these companies before you pay for their e-commerce certified merchant services. Brokers make money by either an up front fee, an application fee, or a per transaction fee. Their main goal is to place you with a bank or company experienced with Internet transactions that accepts your credit history.What's Involved?
Costs
The cost of setting up and maintaining a credit card merchant account depends on who you choose to provide your merchant account services and how many middlemen you go through. In addition, we will waive the setup fee and the application fee for your merchant account.
Review our Merchant Account information you will learn how to bypass the confusion of working with multiple third-party vendors. Our representatives will take care of you regarding all aspect of your application process to hooking up your merchant ID into your online store.
Contact us at (877) 663-5169 for a FREE consultation.
We are an excellent solution for your merchant account credit card processing needs. We also offer a leading online store applications and Internet security services to ensure the safety of your online business transactions. To learn more about building your own online store visit MonsterCommerce Shopping Cart Software!Learn More
Credit Card Merchant Accounts enable you to accept credit cards over the Internet. Did you know over 85% of all Internet transactions are paid for using online credit card payments? Don't miss out! Let us help you complete your e-commerce payment process with our merchant account services.
Choosing a Gateway
Gateway
The final piece to setting up a merchant account to accept online payment is the gateway that connects you to the transaction clearinghouse. There are three common gateways:
Credit Card Card Swipe Machines
The machinery next to nearly every checkout register in the country. After the card is swiped, an authorization code displays, and is usually printed on a credit card transaction slip. The authorization comes from the clearinghouse that the store's bank contracts with, and it effectively assures valid payment to the merchant when the customer signs on the dotted line. This method is not needed for pure-play dot-com businesses.
Desktop Software
For e-businesses, desktop software can be used as the transaction gateway. Once you receive the credit card number via phone, mail, or email the merchant manually enters the credit card numbers and payment amounts into the computer software, and transmits the list over the Internet to the clearinghouse designated by the bank. In a few moments, the clearinghouse responds with a list of good card and bad cards to allow the merchant to proceed as necessary. This software solution works better than the card swipe machine, but may not work for large volume stores. It also requires re-keying data from each order into your computer, which can lead to user errors and can be time consuming.
Real-Time Web Gateways
There are several payment gateways to the transaction clearinghouse that can authorize and validate credit card payments while the customer is still online. These gateways provide a walkway from your website to a different modem channel to check the credit card status in real-time, a very complicated process if you were to do it on your own from step one.
Here are some important links regarding the credit card merchant account:
Internet Merchant Accounts Every year, the number of Internet merchant accounts grows, as more business realize the value in selling their goods online. More and more people have PC's and high speed connections, and are finding great convenience and value in making their purchases right from home...
- Retail Merchant Accounts Some entrepreneurs are satisfied with making a certain amount of income and have no wish or plan to grow their business with a retail merchant account. Others, however, aggressively pursue professional opportunities for expansion by seeking out technological advances...
- Fast Merchant Account Services Fast merchant account services might be the answer to your dreams if you aspire to build a corporate empire. When you check out the various lines of merchant services that can help you do business more efficiently...
- Compare Credit Card Processing Merchant Accounts In this day of continuous technological advances, it is important to choose the most appropriate services for your company's benefit - to compare merchant accounts is part of that process. You don't need to purchase every new bell or whistle that comes along...
- Accept Credit Card Payments These days, it is almost vital that a business accept payments by credit card. People tend to carry very little cash as credit and debit cards become more and more commonplace...
- Discount Merchant Accounts Discount merchant accounts are a must have to conduct any business properly. In simple terms, a merchant account implies a relationship of trust between you and a merchant account provider and their sponsoring bank...
- Business Credit Card Processing In developing a personal, home-based, or small community business, you may find that it will grow to the point that informal transactions are no longer advisable - this is where business credit card processing comes into the picture...
- Canada Merchant Accounts Canada merchant accounts are a great way for Canadian business owners to process customers credit card payments. With a merchant account, a Canadian business professional can set up a bank account in a participating bank or credit union...
- Credit Card Merchant Account There are many reasons why a credit card merchant account may be right for your business. If your customer base is growing steadily or if you are having problems finding time to collect delinquent accounts, a credit card merchant account may be the answer to your difficulties...
- Credit Card Processing Company Your business may be poised on the brink of exhilaration or extinction - the direction is up to you - so perhaps you should become a credit card processing company? If you want to see profits increase while staffing costs decrease, consider becoming a credit card processing company...
- Credit Card Processing Services Are your customers asking for credit card processing services? If so, you may want to consider adding this service to your company's Website in order to provide convenient payment methods that will bring back repeat business...
- High Volume Merchant Accounts As your business continues to grow and customers buy more goods and services, you may want to consider joining those who are applying for high volume merchant accounts. When you are approved for a high volume account...
- Best Credit Card Processing Rates Everyone goes into business to make money, so why spend more of your profits on expensive transaction fees, Website maintenance, service agreements and high credit card processing rates? When you take time to shop for the best deals...
- Free Credit Card Processing Services Would you like to upgrade your company's operations by taking advantage of free credit card processing for business owners? There has never been a better time to locate banks offering this service and make the best possible deal for your interests...
- Credit Card Processing For Business Would you like to upgrade your company's operations by taking advantage of free credit card processing for business owners? There has never been a better time to locate banks offering this service and make the best possible deal for your interests...
- High Volume Merchant Account When your business grows to the point where it is ready to move into the electronic age, you should give some thought to opening a high volume merchant account to expand your company's potential...
- How To Accept Credit Cards Those who are still learning the ropes of running a small or home-based business may be unsure about how to accept credit cards for their goods and services. Perhaps you have sold handmade items by mail order up to this point, receiving a check in the mail as payment...
- Internet Payment Solution So your business has expanded to reach the point where you need to find an effective Internet payment solution? The first option to consider is applying for a merchant account. If your business enjoys a solid credit history...
- Merchant Account for Restaurants A merchant account for restaurant owners may be just the thing to help your business grow. If you have experimented with several marketing techniques and feel that you are ready to venture into e-commerce, this might be the venue you need to help your business really take off and start bringing in high-level profits...
- Merchant Services Account A merchant services account can lead you into the next level of professional success if you own a home-based or personal business. If you are used to handling company matters in an informal or low-key way, you may be ready to start growing your client base and increasing your profits...
- Restaurant Merchant Account Some eatery entrepreneurs enjoy the old fashioned style of cooking and serving customers themselves, while others are experimenting with the latest technological enhancements via restaurant merchant accounts. While it is always enjoyable to dine at a restaurant...
- Setting Up a Merchant Account Is it time to start accepting credit cards? Your business should strive to stay a step or two ahead of your customers, which is why you should become familiar with setting up merchant account details...
- Small Business Merchant Account A small business merchant account may be just what your company needs to edge out the competition. If your customer base is growing or they are asking increasingly for credit payment options as well as for information about your products and services...
- Wireless Merchant Account A wireless merchant account can bring your business into the 21st century by enabling you to accept credit payments while on the go. All you have to do is get approved for a merchant account and then purchase or lease a wireless credit card processor...
- Accept Credit Card Payments Is your small or home-based company ready to accept credit card payments? You may have noticed that more customers are asking to pay with a credit card. Or perhaps you are losing customers who prefer the convenience of credit payments...
- Accept Credit Card at Trade Shows Are you wondering whether to accept credit card at trade show options? You know how it goes. You register for a show, set up your booth, and over the course of the event you find that lots of customers want to buy your products...
- Accept Credit Cards and Check Cards Do you accept credit cards and check cards? More and more companies are doing just that in an effort to acknowledge and work with their customers' preferences and needs. Businesses that operate under a cash-only basis limit the amount of their customers' transactions...
- Accept Credit Card At Your Business Should you accept credit cards in your business transactions? Many small companies or home-based businesses avoid doing so because of their concern over fees and expenses that may drain away potential profits. Yet the actual cost of implementing credit card payment processing equipment...
- Accept Credit Card Merchant Did you know that special business accounts would let you accept credit card merchant payments? Now you can apply for the exciting business merchant account and learn how to process credit card payments at your place of business or at your Internet Website...
- Accept Credit Card Merchant Account If you're looking to expand your business, you can soon accept credit card merchant account payments by applying for a merchant services account. Many lenders and financial institutions are eager to provide this account...
- Accept Credit Cards on Your Website If you own a company website, are you ready to accept credit cards on your site payments? This is a great way to grow your client base, increase sales, and reduce overhead costs...
- Accept Credit Card Online Merchant Account Learn how you can accept credit card online merchant account payments by applying for this special account soon. Many first-rate banks, credit unions, or other types of lenders are eager for your business and will provide great deals on a merchant account...
- Accept Credit Cards Over the Internet If you decide to accept credit card over Internet transactions, you will need to take a few important steps toward preparing your business for this exciting venture. First, make sure you have a solid product or service line that you can offer customers who will browse at your site...
- Want to Accept Credit Card Services? When your business has expanded to the point that you're ready to accept credit card services, it is time for an upgrade of payment options so that your clients can pay by credit as well as by cash or check...
- How to Accept Credit Cards at a Small Business Would you like to accept credit card small business payments at your company or Website? More and more entrepreneurs are taking this route on the road to riches as they learn how to grow their business...
- Accept Credit Cards Today Do you accept credit cards? If not, this may be the time for you to check into opening a merchant account. By learning how to accept credit card payments at your place of business or on a company Website, you can multiply profits and expand your client base...
- Learn How to Accept Credit Cards by Phone If your business is poised for growth, don't be held back by a fear of technology if you don't know how to accept credit cards by phone. E-commerce is the way to go if you want to stay ahead of the competition and grow your customer base...
In order to help small business owners simplify the process of accepting credit cards for their businesses, CreditcardEmerchant.com has announced their new "Fast & Easy Merchant Account Package." More information about the company is available at http://www.CreditCardEmerchant.com The "Fast & Easy Merchant Account Package" is now available to online businesses, as well as traditional retail stores and restaurants.
"Choosing the right type of credit card merchant account can be difficult and time consuming, especially for new businesses owners who have never done this before," according to Chuck Irving, Director of Web Marketing for the company. "So, we have streamlined and simplified the process with our 'Fast & Easy Package.' And to make it even more attractive to new businesses, the application and setup is 100% free except for a nominal gateway licensing fee. There are no other upfront costs," according to Chuck.
On the company's newly designed website, business owners can find out how credit card processing works in simple language. You can learn the details of how an online transaction works at http://creditcardemerchant.com/how.html . And you can get up to speed and learn basic payment processing terminology at http://creditcardemerchant.com/glossary.html .
The website is uncluttered and uncomplicated and makes it easy for people to learn about credit card processing accounts. Rates and fees are clearly displayed and telephone agents are available to answer questions. Business owners can start the application process online by going to the website and clicking on the "Apply Now" button http://creditcardemerchant.com/apply.html
Accepting credit cards is essential these days for most businesses. For all online ecommerce businesses, credit card acceptance is especially critical. If an online marketer is only doing a few hundred dollars in monthly credit card transactions, they will usually find that a Pay Pal type account is probably sufficient. But once a merchant starts doing close to a thousand dollars per month in credit card transactions and beyond, it makes a lot of sense and usually saves a lot of money for them to get their own merchant account.
The "Fast & Easy Package" makes rate shopping simple too. The rates and fees for accepting credit cards are available on the CreditcardEmerchant.com website http://creditcardemerchant.com/rates-fees.html . Rates are included for online ecommerce retailers as well as traditional storefront retail and restaurants. Business owners who are already accepting credit cards but who would like to lower their rates and fees can provide CreditcardEmerchant.com a copy of a recent statement from their current processor by fax or email and get a free no-obligation competitive rate analysis usually within 24 hours.
The company website http://www.creditcardEmerchant.com is an excellent resource for new businesses looking for credit card merchant accounts for the first time. All of the basic information that new merchants need to learn about electronic payment processing is concisely presented along with a simple pre-application form to get the application process started. Most applicants get their credit card merchant accounts approved within 24 hours of submitting the application.
BidPay was one of the few online payment services eBay allowed sellers to accept aside from its own PayPal service. For eBay sellers who don't want to accept PayPal and may be too small to get their own credit-card merchant account, this may be a major setback. Off-eBay merchants do have the choice of using services like Google Checkout, and, as of this month, Amazon Payments. Some sellers posting on eBay boards expressed no surprise that BidPay did not survive, others expressed anger that so little notice was given to users. One seller who chooses not to accept PayPal called AuctionBytes and wondered what would happen to 10-day auctions that advertise BidPay, given the service will stop accepting payments in 6 days.
I recommend these links about the credit card merchant account: