By T. L. Lindemood
Regardless of what company provides your Merchant Account, there are certain fees that will always apply. This is because the major credit card associations (Visa, MasterCard, Discover, and AMEX) have a set fee structure that is passed along on all transactions handled over their networks. These fees (known collectively as InterChange, Dues, and Assessments) are non-negotiable. Whether Company A, B, or C provides your Merchant Account, these costs will remain the same because they are set by "a higher authority," so to speak.
In fact, a large number of variables go into determining what the base rate is for each type of transaction run through your business. Here are just a few examples of what affects the costs associated with each transaction:
What type of card was used (debit or credit)?
Was it swiped or key-entered (or done over the Internet)?
Were rewards or points offered on the specific card used for the transaction?
Was it a corporate or purchasing card?
What type of business are you in?
How long did you wait from the time the transaction was run to close out the batch?
I like to think of these fixed costs as the "science" behind pricing in the credit card processing world - the "art" comes in with how each individual processing company bundles these prices and passes them along to you, the business owner.
The key is to understand that the fees added ON TOP of the fixed costs is where you have room to negotiate on behalf of your business.
Therefore, before you sign a credit card processing contract, be sure you have a thorough understanding of all the fees and charges that will be associated with your new Merchant Account.
Here are some of the typical fees associated with credit card processing:
Discount rate (a percentage of sales)
Per-item Fees
Monthly Minimums
Statement Fees
Annual Fees
Application Fees
Chargeback processing
Early Cancellation Fees
Fees for supplies (e.g., drafts, roll paper, etc.)
Terminal purchase, lease or rental fees
Be sure ALL of these fees are spelled out clearly, in writing, on your contract before signing. I personally wouldn't consider a company that charges an application fee or an annual fee. Same for monthly minimums. I've reviewed many statements where a seasonal or low volume merchant did $0 in processing for a given month, and got hit with $40 or $50 in monthly fees because there was a $25 monthly minimum, plus other ongoing charges, written into their contract.
Also, beware of any processing company that over-simplifies their fee schedule. Many will lead with a very low rate (i.e. 1.29%) and the merchant will go about their business believing that this is, in fact, what they are paying for processing. The reality is that this low rate will apply only to a very specific type of transaction - debit (rather than credit) card, swiped at the point-of-sale (vs. being key-entered into the terminal). All transactions falling outside these specific parameters (including ALL credit cards - especially those offering some type of perk or reward to the user, non-swiped transactions, etc...) will be charged at higher - often MUCH higher - rates. Push your agent to reveal - in writing - what those rates are up front to avoid any unpleasant surprises.
Finally, be sure to find out what specifically causes your transactions to "downgrade" to those higher discount rates - and make sure you are working with a company that will work with you to avoid those downgrades - many won't as that is where the true profit in your account lies.
Sunday, June 21, 2009
Tuesday, June 16, 2009
Offshore Credit Card Processing
By Steve Valentino
Doing business online is like treading a razor sharp road. There is very little difference between a good and bad business situation. However, a secured, cost-effective and reliable method of payment collection through offshore credit card processing can make all the difference to the way you do business online. It can help you hold all information privacy, avail zero taxation and have protection from currency fluctuations
Offshore credit card processing enables you to effectively accept payments for the goods and services you sell online. You can accept payments in multiple currencies. Offshore credit card processing service can process various types of credit cards, be they Visa, MasterCard, Amex, JCB, Diners or Discover.
The order and payments processing procedure gets streamlined with an offshore credit card processing account. Your customers can make easy and quick purchases online through a secured server. Your card processing system is directly linked to your offshore merchant account. Therefore, you get excellent tax-reduction benefits.
Your business remains up 24/7. The transactions are authorized within a few seconds. Automated receipts are sent to you (the merchant) and the customers, instantly. The credit reserve is as low as 10%. Most of the offshore credit card processing services involve no hidden costs.
An offshore credit card processing service can reduce your charge back with active customer fraud screening and address verification systems (AVS). The transaction processing rates are 5% and upwards depending on the type and volume of your business. Add to it a small 0.75% transaction fee and 10% rolling reserve. However, with most of the offshore credit card processing accounts you do not have to pay gateway fees. There are no card processing dollar limits.
Offshore credit card processing provides comprehensive online credit card processing, rapid order processing, online merchant center, fraud and risk management and 24 hour dedicated support. Offshore credit card processing gives a turnkey payment processing solution. Such an account provides instantaneous online credit card processing. This helps in maximizing sales opportunities and customer satisfaction.
Offshore Merchant Accounts provides detailed information on Benefits of Offshore Merchant Accounts, Free Offshore Merchant Accounts, Offshore Bank Accounts, Offshore Credit Card Processing and more. Offshore Merchant Accounts is affiliated with Online Merchant Account Application.
Doing business online is like treading a razor sharp road. There is very little difference between a good and bad business situation. However, a secured, cost-effective and reliable method of payment collection through offshore credit card processing can make all the difference to the way you do business online. It can help you hold all information privacy, avail zero taxation and have protection from currency fluctuations
Offshore credit card processing enables you to effectively accept payments for the goods and services you sell online. You can accept payments in multiple currencies. Offshore credit card processing service can process various types of credit cards, be they Visa, MasterCard, Amex, JCB, Diners or Discover.
The order and payments processing procedure gets streamlined with an offshore credit card processing account. Your customers can make easy and quick purchases online through a secured server. Your card processing system is directly linked to your offshore merchant account. Therefore, you get excellent tax-reduction benefits.
Your business remains up 24/7. The transactions are authorized within a few seconds. Automated receipts are sent to you (the merchant) and the customers, instantly. The credit reserve is as low as 10%. Most of the offshore credit card processing services involve no hidden costs.
An offshore credit card processing service can reduce your charge back with active customer fraud screening and address verification systems (AVS). The transaction processing rates are 5% and upwards depending on the type and volume of your business. Add to it a small 0.75% transaction fee and 10% rolling reserve. However, with most of the offshore credit card processing accounts you do not have to pay gateway fees. There are no card processing dollar limits.
Offshore credit card processing provides comprehensive online credit card processing, rapid order processing, online merchant center, fraud and risk management and 24 hour dedicated support. Offshore credit card processing gives a turnkey payment processing solution. Such an account provides instantaneous online credit card processing. This helps in maximizing sales opportunities and customer satisfaction.
Offshore Merchant Accounts provides detailed information on Benefits of Offshore Merchant Accounts, Free Offshore Merchant Accounts, Offshore Bank Accounts, Offshore Credit Card Processing and more. Offshore Merchant Accounts is affiliated with Online Merchant Account Application.
Monday, June 15, 2009
What to Pay Attention About the Credit Card Processing Business
By Wade Henderson
There are many Credit Card Processing Businesses that you may consider getting a merchant account from, but you should know the basics. Here are some tips to help you get one and what to look for.
How do I get one? Well, there are many ways to go about getting a merchant account from a Credit Card Processing Business. You just have to know where to look.
You may be easily drawn to find a Credit Card Processing Business over the internet, like many people do. It is the best choice for those who have businesses online and are familiar with the web. You also have the option of going to a physical bank whose specialty is to deal with seller's accounts. Be sure to research both options before deciding what is the best choice for your business.
The following step is to learn more about the process of application. The Credit Card Processing Businesses will request banking history of your business and of your personal accounts.
You will need to fill out an application, too. This can be a page of a detailed application that shows information about you and your business. If you are applying online, then you will most likely need to send it by fax to Credit Card Processing Business you are getting your merchant account. If you are applying from an office, then it should be easy to find out if it is approved before leaving office.
What to search?
Calculate the total costs of getting the credit card. Some services provided by some credit card companies will even be free, but they can go up to $400 if you do not read the fine print. Some times you realize what the total cost will be only before signing the contract. At that moment, meditate on how much is too much, when dealing with Credit Card Processing Businesses. Pay close attention to the percentage rates. They can be as little as 2% or less. Low is better. However, you may have low monthly fees because of the way percentage fees are distributed. This will only depend on your contract the company. Always remember to read all the conditions before you finally decide for a deal.
You should also be ready to encounter some fraudulent companies. It has happened that people end up trusting companies who pretend they are a serious business but they in fact take your money and disappear with it and later avoid all contact with you. Be very careful when trusting a Credit Card Processing company over the internet. It is advisable to do a little research on the company you decide for. Remember to demand for privacy in all related to your personal and professional accounts.
There are many Credit Card Processing Businesses that you may consider getting a merchant account from, but you should know the basics. Here are some tips to help you get one and what to look for.
How do I get one? Well, there are many ways to go about getting a merchant account from a Credit Card Processing Business. You just have to know where to look.
You may be easily drawn to find a Credit Card Processing Business over the internet, like many people do. It is the best choice for those who have businesses online and are familiar with the web. You also have the option of going to a physical bank whose specialty is to deal with seller's accounts. Be sure to research both options before deciding what is the best choice for your business.
The following step is to learn more about the process of application. The Credit Card Processing Businesses will request banking history of your business and of your personal accounts.
You will need to fill out an application, too. This can be a page of a detailed application that shows information about you and your business. If you are applying online, then you will most likely need to send it by fax to Credit Card Processing Business you are getting your merchant account. If you are applying from an office, then it should be easy to find out if it is approved before leaving office.
What to search?
Calculate the total costs of getting the credit card. Some services provided by some credit card companies will even be free, but they can go up to $400 if you do not read the fine print. Some times you realize what the total cost will be only before signing the contract. At that moment, meditate on how much is too much, when dealing with Credit Card Processing Businesses. Pay close attention to the percentage rates. They can be as little as 2% or less. Low is better. However, you may have low monthly fees because of the way percentage fees are distributed. This will only depend on your contract the company. Always remember to read all the conditions before you finally decide for a deal.
You should also be ready to encounter some fraudulent companies. It has happened that people end up trusting companies who pretend they are a serious business but they in fact take your money and disappear with it and later avoid all contact with you. Be very careful when trusting a Credit Card Processing company over the internet. It is advisable to do a little research on the company you decide for. Remember to demand for privacy in all related to your personal and professional accounts.
Friday, June 12, 2009
Secure Credit Card Processing With an Internet Merchant Account
By Michael Rupkalvis
The time of online commerce has finally, fully arrived and along with it comes the issue of credit card processing. More and more businesses are going online, and more and more transactions occur through online commercial sites. But that means that more and more entrepreneurs are having to decide how they wish to handle order processing.
Using an internet merchant account to process credit card transactions provides a range of benefits to you and to your customers that makes the transactions safe and attractive to both parties. A secure merchant account gives reassurance to customers, providing a clear paper trail in cases of lost purchases or customer dissatisfaction. It allows the merchant comfort, too, securing payment and delivering it to the merchant within two days of purchase.
The safety and security of an online purchase by credit card, using a secure credit card processing system, improves your rate of sales and capitalizes on impulse buys, encouraging customers to make high priced purchases knowing they can pay them off through their card credit companies over time. Up selling is easier, too, allowing simple and elegant product bundles and suggested products to be presented to the buyer without creating that annoying sense of pressure that can kill a sale before it ever has a chance.
A customer who is free to choose in the privacy of his own home is more likely to follow his heart: that means more sales of a higher level for you, and better yet, greater customer satisfaction. The purchaser who buys exactly what he really wants is less likely to be unhappy with his purchase or the merchant who provided the product than a customer who was only buying something "close enough."
Having a proper, secure internet merchant account gives an aura of prestige and legitimacy to any business - no 'fly-by-night' payment arrangements designed to avoid the clearance and approval process that is required in order to be approved for an account.
The internet merchant account makes everything clean, smooth, simple and elegant: your business looks good, you are able to ship faster, your customer receives his goods more quickly, and you both have a paper trail to simplify accounting...the advantages are obvious.
When searching for a great internet merchant account for your credit card processing needs, you should look for some specific details that make the package all it could be. Be sure to get an AuthorizeNet online payment gateway. Some companies offer this secure benefit for free. Be sure you are getting secure real-time processing. Anything less can add levels of risk for both parties.
If you can, avoid going with a merchant account that involves a long-term contract. A lot of providers function like many phone companies, tying merchants to two to three year contracts, making it hard to alter your plans should you need to. Also, try to find a service that charges no annual fees, and that demands no monthly minimums.
If you are able to put a check beside all the above features when contracting for an internet merchant account to handle your credit card processing needs, you will have found a gem. You and your customers will be getting top of the line benefits at a fair rate, with solid protections.
Michael Rupkalvis oversees The Transaction Group website. The site offers advice on credit card processing over the Internet and provides merchants with cheap credit card processing rates, along with excellent client service.
The time of online commerce has finally, fully arrived and along with it comes the issue of credit card processing. More and more businesses are going online, and more and more transactions occur through online commercial sites. But that means that more and more entrepreneurs are having to decide how they wish to handle order processing.
Using an internet merchant account to process credit card transactions provides a range of benefits to you and to your customers that makes the transactions safe and attractive to both parties. A secure merchant account gives reassurance to customers, providing a clear paper trail in cases of lost purchases or customer dissatisfaction. It allows the merchant comfort, too, securing payment and delivering it to the merchant within two days of purchase.
The safety and security of an online purchase by credit card, using a secure credit card processing system, improves your rate of sales and capitalizes on impulse buys, encouraging customers to make high priced purchases knowing they can pay them off through their card credit companies over time. Up selling is easier, too, allowing simple and elegant product bundles and suggested products to be presented to the buyer without creating that annoying sense of pressure that can kill a sale before it ever has a chance.
A customer who is free to choose in the privacy of his own home is more likely to follow his heart: that means more sales of a higher level for you, and better yet, greater customer satisfaction. The purchaser who buys exactly what he really wants is less likely to be unhappy with his purchase or the merchant who provided the product than a customer who was only buying something "close enough."
Having a proper, secure internet merchant account gives an aura of prestige and legitimacy to any business - no 'fly-by-night' payment arrangements designed to avoid the clearance and approval process that is required in order to be approved for an account.
The internet merchant account makes everything clean, smooth, simple and elegant: your business looks good, you are able to ship faster, your customer receives his goods more quickly, and you both have a paper trail to simplify accounting...the advantages are obvious.
When searching for a great internet merchant account for your credit card processing needs, you should look for some specific details that make the package all it could be. Be sure to get an AuthorizeNet online payment gateway. Some companies offer this secure benefit for free. Be sure you are getting secure real-time processing. Anything less can add levels of risk for both parties.
If you can, avoid going with a merchant account that involves a long-term contract. A lot of providers function like many phone companies, tying merchants to two to three year contracts, making it hard to alter your plans should you need to. Also, try to find a service that charges no annual fees, and that demands no monthly minimums.
If you are able to put a check beside all the above features when contracting for an internet merchant account to handle your credit card processing needs, you will have found a gem. You and your customers will be getting top of the line benefits at a fair rate, with solid protections.
Michael Rupkalvis oversees The Transaction Group website. The site offers advice on credit card processing over the Internet and provides merchants with cheap credit card processing rates, along with excellent client service.
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