Roger Carthew’s Blog

The chance that any business will succeed will have a lot to do with its ability to survive competition. And competition these days means the Internet. Nobody doesn’t market on the Internet anymore and, if anything, it has only become the most powerful tool in promoting businesses and gaining dramatic positive response rates. Part of the psyche of the online market is the perception that a business website always accepts credit cards as payments. Why not? If you’re selling something on the web, you must be getting paid on the web. The problem is, some businessmen lack the guts to face the risks even as these are easily outnumbered by the advantages. In most cases, it’s just for the reason that they are intimidated by the thought of applying for an ecommerce merchant account. If you’re one of these merchants, you’ll be amazed to know that it’s not all that difficult and bad to start accepting credit cards. The very first thing you would need to do is understand the way the whole thing works before making any decisions. Understand how credit cards go through all that processing - the steps, rates, fees, etc. Then round up all the merchant banks or account providers in your area and keep a list of each of their features and benefits. Don’t forget to note down costs as these will be a primary consideration when you finally need to decide which one to choose. It’s also important for you to understand that applications are approved based on how risky your business appears to be. In the world of merchant accounts, a risk is a possibility that a transaction will be reversed and what was credited to the merchant account will now be deducted from it. This is called a chargeback and when merchants are monetarily unable of making the reversal, it’s the merchant bank or account provider that assumes responsibility. For this reason, banks and providers cautiously evaluate their applicants based on their ability to cushion chargeback. If your application for a merchants account does get turned down, it doesn’t mean you can’t explore your other options. In fact, there are companies or Independent Service Organizations (ISO) that will stand as a third party in a merchant conformity and will even vouch for you. As usual, know need to know everything you need to know from costs to terms before signing any contracts. Then keep yourself focused on the direction you want to take. If you want to find out about Merchant Accounts, you can read the following article. 5 Questions to Ask A Potential Internet Merchant Account Provider Questions to Ask A Likely Internet Merchant Account Provider 5 Questions to Ask A Potential Internet Merchant Account Provider

Back in those days, it was very difficult to get a merchant account. Banks were so strict about requirements which you either met or not. There weren’t too many options as well and the banks offered very little freedom in their policies and rates. Now, a lot of this has changed. There are many companies these days that just might give you a merchant account, whether you’re a big or small business, with or without a physical location. There are simply more providers now who are more liberal with their rules on approving applications and every businessman should take advantage of this. If you’re looking around for a good merchant account, the most important thing at this stage is to keep your eyes open on the numbers involved - fees, percentages, credit card processing rates, etc. It’s also wise to understand how the bank defines certain terms. For example, “transaction” may mean simply getting authorization but may include processing a return. The type of business you have also confirms your need for a merchant account. If you have a big business with a huge volume of sales monthly, getting this account can save you money in the long run. However, if you’re just starting out, you may find a third party merchant to be a good way to go. These third party vendors will normally take care of all details, pay the fees and even take care of the risks, including security issues for your customers as they make their purchase online. In this set up, the monthly fees are usually higher, but there won’t be a need to pay set up charges, gateway fees, etc. You simply pick the service you think is good for your business. They will simply instruct you on what to do depending on the service that you have picked. If you want to give your customers the convenience of making an online payment with their credit card or check, you do have to apply for a merchant account. It is actually very simple. The first general rule you need to follow is to look for options, options and more options. From these, you will be able to spot their differences and base your decision on which one you think will provide you the best service. Take your time to study about fees, rates and policies, especially about security issues. If you have other businessman friends who have merchant accounts, it would be a great help if you could come to them for assistance. If you want to find out about Merchant Accounts, you can read the following article. Merchant Accounts – Receiving Payments Online 5 Questions to Ask A Potential Internet Merchant Account Provider The Fundamentals of Merchant Accounts

Even when the answer has become obvious to most, some merchants still question the benefit of accepting credit cards. They think all the time about risks but they do not realize how much these are easily outweighed by advantages. In fact, an average credit card sale could be higher by as much as 23% compared to an average cash sale. Although most stores downtown accept credit card payments, home-based and especially online businesses may well do the same. Besides, it remains a basic fact of business that those who accept credit cards will likely sell more than those who don’t. If you’re finally thinking about getting a merchant account credit card, which is what you need to accept card payments from customers, you have to review the type of business you’re in. Each merchant bank or account provider will have their own set of guidelines for approval of applications. Generally, retailers are the most favored because they are considered least risky. For example, if you’re running a home-based business, you will have less chances of being approved than if you ran a stationary retail store. However, if you happen to be anything but a retailer, you can still get a merchant account through a third party company or bank that will vouch for you. Typically, the initial cost of getting a merchant account is anywhere between $ 200 - 0 and may cover application, equipment and installation, deposits and other additional costs. Your investment in equipment will also vary depending on which types you will use. Leasing those machines may cost you up to per month consisting a terminal, automatic printer and software. If your business requires real-time processing and shopping carts, the amount will vary depending on the type and degree of customization you need. For your last minute doubts about needing to accept credit cards, just put yourself in your customers’ shoes. Wouldn’t you appreciate that freedom of being able to manage your finances with less pressure as what these ever useful plastics provide? Online merchants, specifically, would benefit greatly from these cards considering that online shoppers mostly shop on impulse. If you don’t have an automated credit card payment feature on your site, how would you catch that impulse and turn it into a sale? Surely, if you’re going to have your customers mail you a checque, you will have lost them before your site even finishes loading the instruction page about your outdated payment mode. If you want to find out about Merchant Accounts, you can read the following article. 5 Questions to Ask A Possible Internet Merchant Account Provider Retail Merchant Account, Credit Cards And Your Business 5 Questions to Ask A Likely Internet Merchant Account Provider

If you’re looking at a website saying they can give you an instantaneous merchant account, that’s a con. There is no such thing as an instant merchant account and if some providers boast of a high approval rate, it’s for the reason that they would have already pre-screened their applicants before submitting applications to the merchant bank or processor. In the legitimate world, there could, in fact, be reasons why an application might be denied. If you’re planning to apply, know beforehand what makes your application strong or weak . By doing this, you get to save time and cost. Fraud is something providers are very firm about. Every application is, thus, inspected thoroughly for any suspicious signs. If an inconsistency is spotted between the type of business and processing volume and average ticket size, it will be a serious ground for denial, although the bank will usually ask for an explanation from the applicant. If the approving officer thinks the discrepancy is justified, the application may have a chance of being approved. Otherwise, it will be turned down. If your name appears on a list of merchants who’ve had their accounts closed or canceled due to merchant policy violations, you will not be granted a new account until such time that your name has been removed. This list, which is shared by member banks, is kept updated and always referred to by officers while reviewing an application. Although it is possible to remove one’s name from the list, doing so will usually require legal assistance. Other reasons that your merchant account application may be denied include poor personal credit unless your business is registered with a major stock exchange or if you have active collection accounts. An active tax lien against you is another hint of a sure rejection as well as the nature of your business. While merchant banks have different rules or guidelines, they all agree on prohibiting certain types of business such as lending, adult entertainment and those with lengthy warranties. If you’re considering applying for a merchant account, it’s important to first research on merchant banks and providers and the options they can give you. You’ll desire to review many things such as their rates, processing fees and policies. You also need to make sure that you’re applying for an account that suits your type of business in order to avoid unnecessary charges. If you want to find out about Merchant Accounts, you can read the following article. Merchant Accounts - Impression From Home 5 Questions to Ask A Possible Internet Merchant Account Provider Merchant Accounts – Impression From Home

Merchant accounts are an essential part of accepting and processing credit card payments through your web site, but failing to properly research your chosen merchant account provider can cost you - in a big way. By knowing how to spot merchant account problems before they happen, you can save yourself significant frustration as well as money. “Too many Internet marketers don’t understand how merchant accounts work,” says Matt Bacak, a victorious online marketer who trains speakers and authors. “When I first started out, I definitely didn’t understand them. First of all, I had no idea that your merchant account provider would freeze your account if you made what they considered to be too much money. I mean, I didn’t even know you could make too much money!” But when it comes to many merchant accounts, it is possible to make too much money. Bacak had given his merchant account provider an estimate of what he expected to make each month. The holiday season brought in far more; in fact, within a few days Bacak had made more money than he’d expected to make in a year! Instead of reveling in his success, he soon found himself battling his merchant account provider for his earnings. “It seems that the amount was more than my merchant account could handle,” he says. “They froze my account and held my money until they could be sure that all of my customers had received their credit card statements in the mail. It ended up being six months before I got paid.” With his merchant account frozen, Bacak was unable to continue selling his product online. With no way to process credit card payments, his business was quickly put on hold. “I went out and got one more merchant account,” he says. “I now had two; I was under contract with the first one so I couldn’t just leave them. The new provider was happy to take me on, but not before charging me nearly 10% in fees on every sale I made. In the end they ended up just picking up and leaving, with ,000 of my profits that I still have yet to pull through.” Armin Morin, an online marketer and entrepreneur who has made more than million promoting and selling products online, is no stranger to merchant account problems. “My product brought in over million over a very short period of time. My merchant account provider not only shut me down, but they went into my bank account and took more than million from me! This was half my profits; money that was allocated to pay my affiliates. How can you run a business when half your profits are frozen? I hadn’t done anything wrong, and yet my money was gone.” If your merchant account is frozen, your business will basically be dead in the water. You won’t be able to process credit card payments online any longer, putting your sales indefinitely on hold. Even worse, you may find that if you’ve had an account frozen in the past, other merchant account providers will be reluctant to take you on as a customer. “Once they took my merchant account away no one else would take me on as a merchant,” says Morin. “After they took my money, my bank discontinued doing business with me as well. I had a check for over two million dollars in my pocket and no major bank would take me on because they didn’t want the annoyance caused by my merchant account troubles.” If you want to know more about merchant accounts, here are a few information that you can use. 5 Questions to Ask A Possible Internet Merchant Account Provider The Big Six Of Credit Card Processing Rates How Multiple Merchant Accounts Work