Internet Credit Card Processors For The International Market

75% of the Internet population will be non-English speakers by 2005. Selecting a Credit Card Processor for the Internet is one of the key ingredients to ensure a suceessful International e-Business.
Approximately 75% of the Internet population will be non-English speaking by 2005. Put this together with the predicted 2 trillion plus USD e-Commerce industry, and you have an nteresting set of dynamics taking place. Language! Culture! Money! Product! If you intend to sell your product into the International market then you better pay special attention to the language and culture. Listening and acting upon cultural requirements is a step towards making your organization a success.

From a cultural perspective, selecting the the right Credit Card Processor' is an important piece of the International e-Commerce jigsaw puzzle. The market is literally flooded with the Credit Card Processors, and have various alias's - credit card clearers, transaction processor, payment provider, payment processor, digital payment processor, etc. You get the idea!

I've been asked often enough about selecting 'A Credit Card Processor' that I decided to write a short article that helps cut through the hype. Once you narrow your choice to a few 'Credit Card Processors' then you need to drill down another layer and understand cost & contract commitments, supports services, contingencies, etc.

Merchant Account - International Acceptance

Firstly you will need a merchant account. A merchant account will allow you to transact business via credit cards, and also provides a mechanism to have the funds deposited after settlement. For the most part, the merchant account is a straightforward to establish, as long as you can prove you are a low financial risk. Most 'credit card processors' will provide (or coordinate) the merchant account setup for you. Your alternative is to go directly to your bank and apply for a merchant account, or use a 3rd party (e.g. Verotel - http://www.verotel.com) who provides a 'shared' merchant account.

In the International arena, you need to pay close attention to the the location where your company is legally registered. Some merchants account issuers require your company to be located in the same country as the issuer. Each issuer have their own rules and regulations.

The Shopping Cart - The Right Language

You will find that some 'credit card processors' provide shopping cart checkout facilities. It is important that the checkout software is localized for your target market. There is nothing more painful (for the shopper and the business) when a shoppers abandons the transaction because the checkout facility was not in the language of their choice. Needless to say the entire web site should be in the localized language too. From my experience, and speaking in general terms, the Japanese, Koreans, Spanish and Germans tend to feel more comfortable transacting business in their native tongue. These four groups make up roughly 40% of the total e-Commerce transactions. Aim to please your target market!

If your 'credit card processor' does not offer either the localized version of the software or does not offer it at all, you can always integrate a 3rd party solution. Miva (http://www.miva.com) is a good example of a 3rd party solution. They have both a European and Asian presence.

The Credit Card - Many Types

There are many types of credit cards in the International market. Visa, Mastercard, American Express, JCB, Diners Club and Discover are the most prevalent credit cards. Smaller card issuers in the different countries exist too, but will not be the focus of this article. Given this, you want to make sure your 'credit card processor' supports the credit cards for your target geographic region. For example, if your credit card processor cannot support JCB and you intend to do business in Japan you should probably look elsewhere.

The Credit Card - Black List

Some 'credit card processors' do not accept credit cards that have been issued outside of their home country, while others will not authorize a credit card transaction from a 'black listed' country. You should understand your 'credit card processors' position on this issue, especially if you are going to be transacting business in the International arena.

The Credit Card - International Fraud

Fraud is a major concern on the Internet. It is a global issue. In an online community your transactions can originate at almost any of the 170 million plus registered domain. As a merchant, you should understand who is liable in the event of credit card fraud the merchant or the credit card issuer/underwriter. Most 'credit card processors' will insure you against fraud, and usually have logging and tracking facilities to help them hunt down the origins of the fraudulent transaction.

The Credit Card - Settlement Time

Your cash flow is important, and equally important to be aware that International credit card transactions may take a week or more to settle. This means that the funds from the transaction will hit your account in roughly one week from the transaction date. Understand the settlement lead time & plan accordingly.

The Credit Card - Credit Limit

Credit card processor will typically put a limit on your credit, and you need to make sure you do not run into an awkward situation by which the transaction is declined due to a maxed out credit limit. Most 'credit card processor' will continually review your credit and adjust it accordingly, but you need to make sure that your credit limits are high enough to accommodate the volume of International business.

The Bottom Line

The bottom line make sure you select an appropriate 'credit card processor' who can support your organization in the International market. You may find the following 'International Credit Card Processors' a good starting point for your investigation.

- Pay Systems http://www.paysystems.com

- iBill http://www.ibill.com

- Multi Cards http://www.multicards.com

- Verotel http://www.verotel.com

- World Pay http://www.worldpay.com

- Verisign http:/www.Verisign.com

Gary Hyman has lived and worked Internationally over the last 20 years. He is an e-Commerce consultant, assisting organizations to expand their global presence via e-Commerce. He can be reached at mailto:gih@ecommercegrowth.com. The e-Commerce Growth Group at http://www.ecommercegrowth.com.

Ecommerce 101 Online Credit Card Processing

Back in 1998 (through 2000 or so), I worked for a small company (called PaymentNet / then Signio) that handled online transactions. Verisign later purchased this company, and the product team I led integrated the "client" - the portion that took the credit card information and sent it to our servers for processing. The product name is Payflow Pro - maybe you've heard of it?

I'm going to limit this discussion to Visa / MasterCard credit cards -- Amex and others operate slightly differently.

First, there is the bank that the consumers credit card is attached to. That bank is called the "acquiring institution" ... it handles the "credit" you have on your credit card.

Then, there is the merchant bank. That's where the business opens up a "merchant account" to be able to accept various forms of credit cards.

The merchant account is connected to another company called a "processor". This "hidden" layer is the company that actually moves the funds from the acquiring institution to the merchant account (that process is called "settlement"). The processor also handles talking to the acquiring institution to make sure that the customer has the funds available (a process known as authorization).

Some well-known credit card processors are First Data Merchant Services (FDMS). Nova and PaymentTech.

Sitting on top of the processor is one of two primary systems either a swipe-card terminal (like those you see in Wal-Mart) or a "gateway" company that does basically the same thing, but over the Internet - that's what Verisign Payment Services and Authorize.Net do.

Note that the waters are even muddier in many cases, for example, Wells Fargo can act as every piece of the puzzle in some circumstances.

So, what actually happens when you purchase something at Wal-Mart using a credit card?

a) You place your items from your "basket" onto the counter and scan them. the checkout system provides a total.

b) You swipe your card through a "terminal", which reads the # off the magnetic stripe.

c) Wal-Mart dials their processor, and asks if you have the funds available on your credit card. The processor talks to your bank (the acquiring institution). If funds are available on the card, they are marked as "held" in your account (an authorization) - if not, the transaction is declined (yuk). Authorizations that are never settled tie up your credit card funds for a period of time, usually 10 days or so.

d) At the end of the day, Wal-Mart marks all the transactions they want to receive funds for, and submits them to their processor in a "batch". The processor then contacts the acquiring institutions and transfers the funds to your merchant bank - which may make the funds available instantly (in a day or two), or may hold them for a while, or may hold the funds in a "rolling reserve" (keeping some funds held back in case a consumer fights the transaction, called a chargeback).

In the online world, replace the cash-register with an online shopping cart, and the electronic credit-card with terminal with called a "gateway" such as Payflow or Authorize.Net. the process is basically the same, with slightly more complexity.

My site, CommerceStore.com handles the entire "shopping cart" and storefront process, including talking to the gateway. It knows how to talk to every major gateway (online credit card terminal) available. In addition, we have direct relationships with various banks that can help you open a merchant account in the US or in Canada, and the system works with PayPal. There's a whole lot more, including AutoResponders, built-in affiliate system, etc.

As a merchant, all you really need to know is that all services purchased through CommerceStore.com will work together. Be careful going "a-la-carte" with ecommerce credit-card services: if the gateway you chose can't talk to the processor your bank uses, or your software can't talk to the gateway, you're hosed. That situation was MUCH more common (things not working together) back in the mid/late 90's than it is today. However, most brick and mortar banks (like your local branch) still dont have a clue about online credit-card processing if they attempt to sell you a leased terminal, its best to run the other way and find a solution from reputable online source.

Nick Temple is a former engineer for what is now Verisign Payment Services. He can be reached at his website, http://www.nicktemple.com. He is part-owner of the CommerceStore.com complete ecommerce solution.

Playing the Credit Card Processing Field - To Switch or Not to Switch

Imagine a company that specializes in setting up merchant accounts for new businesses or established ones that have never had credit card processing capability. The firm's collective pride and confidence swell when such business owners report that they have selected the company after performing much due diligence - some researching for months before taking the leap and deciding which credit card processing vendor to select.

However, while the merchant account providers' representatives may be enthusiastic speaking with merchants who are new to the credit card arena, they may typically feel a little uneasy speaking with merchants who are already processing with another vendor ' as if they’re walking on someone else’s lawn.

This is not to suggest that the representatives are not open and convinced that they can save these type of merchants money, making their lawn a little greener, so to speak. It is especially gratifying to the representatives that merchants who have experience accepting credit cards are finally aware of all the relevant fees – many of which may not have been disclosed when the original account was opened. However, during a discussion with credit card processing veterans, the given merchant account agents not only want to emphasize the savings that will result by switching to their program, but the incredible responsive service that the merchants can expect in the future. This is welcome news for many who have had unpleasant experiences with their current credit card processing provider.

Despite the fact that the company in question can convert many merchants who errantly chose another merchant account company, there will exist other business owners who will remain on the fence -- uncertain whether to switch or not.

One consideration that may be factored into the decision is whether a termination or cancellation policy is in effect. Many companies institute a rather severe penalty for canceling an account (many charging a base amount plus missed revenue from lost processing months) that can even surpass $1,000. Will the savings realized on a new account, in time, make up for this penalty? (Please note that many credit card processing providers do not have any termination fee.)

Merchants may also need to weigh whether it is worth their time setting up shop with another credit card processing company. A new application has to be completed, and assuming successful underwriting determination, a retail merchant then has to have his/her credit card terminal enabled to accept transactions from the new processor via a download process. An Internet merchant will have to alter html coding to post transactions to a new vendor.

While the allocation of time to switch credit card processing providers is generally modest (i.e., should not take more than several hours, and often, much less time), it still may be overwhelming for the merchant who feels under tremendous time constraints. Recently, I spoke with a harried business owner who does about $100,000 in credit card processing volume per month. He asserted that he has no time to thoroughly evaluate our proposal but will find some time if we save him at least $100 on a monthly basis. Needless to say, we are examining his statement with a fine, too comb, certain that we will provide this savings to the merchant and that he will find the time to switch to our credit card processing program.

Even despite any resultant credit card processing savings, a merchant may also place importance on the relationship that he/she has with the sales agent. One of our clients emailed us in distress over a Holiday weekend and we were able to solve a problem that appeared insurmountable to the merchant. She feels indebted to us (she need not feel this way) and always lets me know that, “We have a customer for life.” So even if she is presented with a competitor’s quote where another agent claims that she can save money by switching, she will politely decline the offer. As one agent sagaciously stated, “People buy from people, not processors.”

Merchants need to feel comfortable that their rates are extremely competitive, that they have someone to turn to (after the account … and especially in times of crisis) to answer questions and rectify problems, and that they are receiving great value for their processing dollars. When a merchant is happy with their merchant account partner, there is no need to look in another direction. Conversely, if a merchant experiences nothing but consternation with his/her current credit card processing vendor, then the merchant needs to look elsewhere to satisfy their credit card processing needs.

Andy Lax is an Account Manager with IntelliCollect, a credit card processing vendor that offers an affordable merchant account with excellent customer support. Those currently processing credit cards with another vendor would be very wise to examine IntelliCollect's program, comparing rates. Please see the following site, http://www.intelli-collect.com to reduce your credit card processing expenses.

Service Franchises and Nationwide Credit Card Processing in the Field in Real Time; case study

Large service company franchise systems are a lot to manage. Luckily with many franchise owners they work much more efficient than straight managers because it is their money on the line and they know it. Franchise services companies which clean carpets, pave driveways, clean mini blinds, change oil in cars or even groom dogs need nationwide systems for customer credit card approvals, as well as gift cards and perhaps even loyalty credit cards too. With such system it is indeed important to have Universal Credit Card Approval. How so you ask?

Well for instance what about a Nationwide franchise credit card processing software program? Your franchisees can log on (secured) and enter the customer’s credit card and charge it appropriately, via wireless device and it would go into the Intranet System and would be able to take the company credit loyalty cards too.

Franchisees often have companies call them and tell them that they have software they can install on their computer to accept credit cards and have it processed immediately. And rather than allow all the franchisees with different systems, it is better to implement a nationwide system to leave you more options.

It is best for nationwide or fast growing regional franchise companies to do this over their websites thru an intranet system? Many franchise service company franchisees have customers who allow their credit cards to be on file and charge them when service is rendered. This is much better for the franchisees than them having to wait 180 days to finally get a check in the mail.

Franchisors who implement such a system can take their royalties out upfront as a percentage and allow their franchisees more immediate cash flow and thus more monies available for expansion of their franchises and thus further extension of brand name, so think on this in 2006.

"Lance Winslow" - Online Think Tank forum board. If you have innovative thoughts and unique perspectives, come think with Lance; www.WorldThinkTank.net/. Lance is a guest writer for Our Spokane Magazine in Spokane, Washington

Credit Card Processing - 7 Things You Need to Know Before Opening an Online Merchant Account

When considering opening an online merchant account to accept credit card orders, there are a lot of things you need to keep in mind. The best thing to do is learn all about credit card processing before you open your online merchant account so you can handle everything from the beginning rather than having to go back and make many changes.

The following topics are things you need to know about credit card processing online before you open an online merchant account:

Topic 1 Security

When it comes to making online purchases you need to be sure your customers feel as confident as possible that your site is secure and there is a very small percentage that any fraud will take place during their purchase. In general, the credit card processing software takes care of the security for the transactions; however you can boost security on your own website to reduce the theft of credit card numbers, hackers, and general fraud. Also, consider using additional secure measures like asking for the numbers on the back of their visa card or the four numbers on the front of their American Express. Doing so ensures that the person ordering has the credit card in hand, and more than likely this is the owner of the card.

Topic 2 Fixed Rates

Before signing up with a credit card processing company you want to make sure you will be receiving fixed rates for the life of the service. Many firms offer this so don’t feel that this is not an option. When you set this up, it is important that you get this in writing to ensure your rates stay the same. Of course, your rates will rise if Visa or MasterCard increase what they charge for credit card purchases, but this should be the only condition. Don’t sign any contracts without addressing this issue!

Topic 3 Bundled Rates

Be careful with bundled rate offers. Frequently, credit card processing companies will mention bundled rates and how they will save you money. This may or may not be the case, depending on your products and the average price you sell them for. Do some research on this topic in comparison to the types and prices of products you sell to see if it will save you money or not. For most businesses it costs more.

Topic 4 Confidence

Before you open an online merchant account, be sure you have complete confidence in the company that is handling the credit card processing. If for some reason you do not, even if you don’t know why, keep moving on until you find one you do feel comfortable with.

Topic 5 Credit Cards and Debit Cards

You want credit card processing software that will allow you to accept a wide variety of credit cards as well as debit cards. Do not limit yourself to just Visa or MasterCard. Also accept cards like American Express, Diners Club, as well as all bank debit cards. Doing this will only increase your business.

Topic 6 Accept Credit Cards

Before opening an online merchant account you should know that most people are going to purchase from you using their credit or debit card. Sending personal checks and or money orders might be an option you provide for the small percentage without credit cards or who mistrust the Internet, but most people are going to buy with their cards so it is important to have secure software and an easy to use interface.

Topic 7 Save Payment Information

Many websites offer the option to save payment information. This means that more than likely, you will have a return customer who wants to save time when shopping next time by not having to type in all of their information again. Provide this option to shoppers on your website!

Michael Turner reveals step-by-step how you can increase search engine traffic in his free 7 part mini-series. Grab it now at http://www.powertraffictactics.com/

Credit Card Processing Provides Customers with an Extremely Popular Payment Option

If your business does not accept credit card orders you could lose an expected 85% of potential sales. Most online businesses report that 95% of their orders are through online order forms. Accepting credit cards via credit card processing systems has several advantages for business owners as well. It gives you the chance to increase sales by enabling customers to make impulse buys even when they don't have cash in their wallets or sufficient funds in their checking accounts. Accepting credit cards can improve your cash flow because in most cases you receive the money within a few days instead of waiting for a check to clear or an invoice to come due. Finally, credit cards provide a guarantee that you will be paid, without the risks involved in accepting personal checks.

If business is new, home-based or online, in order to sell products effectively online, via telephone or mail order, it is essential to have a credit card merchant account with a reliable credit card processing company. A merchant account gives a business the ability to accept credit cards as payment for the company's goods and services. Credit card processing solutions provides customers with an extremely popular payment option, beyond cash and checks. Plastic cards are becoming increasingly popular as organizations roll out new and exciting card programs. Join a growing number of successful companies offering credit card processing solution. It has been recognized that it takes more than great technology to become a market leader.

For more information on credit card processing,please visit http://www.paynetsystems.com

Online Credit Card Processing Services - Why Your Business Needs It

Payment processing is the major reason for any e-commerce business to get a merchant account. Merchant accounts enable your business to receive credit card payments online and become capable of providing your customers with several payment processing options.

Online credit card processing not only enables you to boost sales but also saves you a lot of hassle along with offering you many other benefits.

Reliable and secure credit card processing services allow your business to flourish and increase sales by leaps and bounds. Merchant account providers who offer international payment processing understand your business needs and that is why they offer major benefits like various payment processing options worldwide.

Online credit card processing allows you to accept all forms of payments from anywhere in the world at any time at all. This allows businesses to accept all kinds of various major credit and debit cards online and saves the merchants and customers the hassle of going to the bank.

With international credit card processing services you become capable of accepting payments from anywhere at all. Doesn’t matter whether you are in the US or the UK or in any other corner of the world, a good merchant account provider will offer you payment processing services that will allow you global transaction facility. All kinds of businesses whether big or small, high risk or low risk become capable of increasing their sales and revenue with online credit card processing.

Good merchant account providers will offer you safe and reliable credit card processing services with scam and fraud protection along with SSL encrypted servers that guarantees secure transactions. This in turn will help protect your transactions against fraudulent cases.

More info on Credit Card Processing at Instabill.com

Credit Card Processing Options for Home-Based Business Owners

Are you the owner of a home based business that wants to be able to accept credit cards payments from clients or customers, without all the high fees that typically go along with it? Well, now you can thanks to e-commerce and the internet.

Special Options for Home-Based Businesses

With proper research you will be able to find that many merchant account providers also now have special packages for the specialized industry of home-based businesses. No one knows your business like you do. Therefore, you should carefully research any and all possibilities before making a decision on what way is the best to accept credit card payments for services rendered. Though there are pros and cons to be weighed and considered, the option of being able to accept credit cards from clients and customers is a huge convenience for you both.

For home based business owners, it has been a difficult and lengthy process in the past to receive payments from clients or customers; but by having a merchant account, you can now accept payments through a banking institute, independent sales organization, or by a third party such as PayPal. Home-based businesses must be approved in order to establish a true merchant account through a banking institute or independent sales organization. An underwriting process is necessary, and it will also involve using your personal credit rating, and this will be reviewed and evaluated. Many merchant account providers offer high approval rates, and special account options for home-based businesses.

Receiving Funds From Credit Card Payments

When the process is completed the home-based business owners can automatically deposit funds received from credit card payments directly into their account. There are fees that are charged by an Independent sales organization or banking institute, and while they are not as low as the third party provider they are often worth the ability of accepting credit cards. With higher sales volumes, the fees charged by Independent Sales organizations or banking institutes will be less compared to the third party providers-so you have yet another incentive for increasing your business!

Third Party Providers

When using a third party provider, the funds will get deposited into the merchant account, and then you can transfer it to your account. The entire process may take up to several days. Additionally, using a third party provider means you run the risk of never receiving the funds from your transactions, as they are often fraudulent businesses.

Merchant Accounts Through Banks

There are both positives and negatives associated with a merchant account through a banking institute, as well. Some advantages include the fact that banks are considered to be secured and dependable, and fees associated with setting up your merchant account are considerably lower for the long-standing business owner and owners with good credit. Many banking institutions do not like to open merchant accounts for a business seeking to accept credit cards over the internet. You will have to go and speaking informatively about your business and your goals and why it would be profitable for you to be able to accept payments on line. Banking institutions are more likely to close a merchant account if there are any charge backs.

Independent Sales Organizations

Business owners wishing to open a merchant account with less than perfect credit typically use Independent Sales Organizations. Independent Sales Organizations go through a bank for the merchant account. Independent Sales Organizations accept businesses that wish to collect online payments and they do accept high risk businesses. These types of organizations will charge higher fees and you do need to watch them carefully to make sure that you do not pay for the same fees over and over again, but they can be a good option for people and businesses that are otherwise unable to accept credit cards.

Many merchant accounts that are now available for the home-based business owners have a high approval rate, and most are approved within twenty-four hours. Most of the merchant accounts have done away with all the application, set up, monthly and annual fees. Be sure to ask questions up front about any fees that may be associated with obtaining a merchant account.

This article has been provided by Creditor Web. Creditor Web has the articles and other credit card processing resources to help you choose the right provider.

Online Credit Card Processing Services - What To Look For

A good credit card processor will offer an accommodating service and will allow you to process your transactions faster and at a better rate. Make sure that the average approval rate of the processor is good before applying. However if your merchant account provider is offering you online credit card processing services than you do not have to worry about such details.

Low monthly fee is another option worth checking. This allows you to keep the overhead costs down and get good ratings on per month transactions. Good credit card processing services will keep the ongoing fees and costs in check. Setting up a merchant account with credit card processing services and a secure payment gateway should not be much of a hassle and merchant providers will help you setup an account for your business as soon as your application is approved, which generally takes only a few days.

A 24/7 customer service is a great benefit and processing services which offer this via various options like phone, email and fax etc understand the importance of your business. Also internet facilities like secure virtual terminal and POS options allow your business to process transactions faster and give your business a great deal of flexibility. With such facilities, customers become capable of using online credit card processing services from anywhere at anytime.

Apart from these features there are several other benefits that online credit card processing offers. These include cost effective e-commerce solutions, online fraud protection, shopping cart services, electronic payment processing, various credit card processing tools, risk management services and much more.

In short, online credit card processing is the need of the day for all e-commerce businesses. Not offering online credit card processing services to your customers mean that you are losing potential customers and offering this service allows you not just to expand your business beyond the geographical boundaries but also to gain several other major benefits as well. Make the right choice for your business and choose a merchant account provider who offers valuable services with added benefits especially online credit card processing services.

More info about Online Credit Card Processing on Instabill.com

Revealed: The Ins and Outs Of Credit Card Processing

If you have spent time browsing on the internet then I’m sure you’ll appreciate the importance of being able to process credit cards for businesses which operate online. Having the ability to process credit cards allows the online business to access and receive orders from a much larger spectrum of possible clients. Credit card processing is one of the main factors required for growing a successful internet business,

This article will aid your understanding of credit card processing and will cover the benefits of utilizing credit card processing capabilities for your internet business and also the procedures involved with implementing credit card processing into online business systems.

So Why Is Credit Card Processing So Important?

Other than being able to accept credit card payments, which is essential, credit card processing enables you to dramatically increase the efficiency and effectiveness of your online business as it allows you to automate almost all your payment procedures as well as giving your customers an easy hassle free transaction method.

Having credit card processing facilities for your online business will make the whole buying experience for your customers much simpler and straightforward. As it cuts out the hassles of having to send checks or place orders by telephone, all they do is simply enter in their credit card details and voila, the system handles the order and processes the transaction. It also saves you the problems and hassles of having to handle checks and credit card orders, saving you valuable time and money.

The biggest bonus of accepting credit cards is the fact that it will enable you to automate virtually all of your online transactions and as you will know an online business needs to be able to operate 24 hours a day and 7 days a week, so automation is key to success. Credit card processing capabilities handle everything for you, so you don’t have to be chained to your desk attending and monitoring everything.

So How Do You Get Started Credit Card Processing?

The most important requirement for credit card processing is to have an online merchant account, which is a service you subscribe to, to process the orders for you. There are a large number of different merchant account providers out there which cater for all kinds of businesses wanting to process credit card orders. Many charge monthly fees while some charge one off payments for their credit card processing services. However with the likes of Paypal and the reported development of a Google payment system, prices are sure to come down in the future.

However before you jump in a choose a credit card processing service, shop around and don’t just go for the cheapest option as good customer service, security and reliability are key for any successful online business, so it should be one of your main concerns while you grow and expand your internet business.

For more information on credit card processing and learn how to increase your profits using a merchant account visit: http://www.1merchantaccount.info/

Ecommerce: Merchant Account and Credit Card Processing

Having an online business that takes in money over the internet requires the ability to accept credit cards directly from your website. This is commonly known as “ecommerce”, or electronic commerce. This tutorial will help explain all there is to know about processing credit cards over the internet.

The Basics

Terms to Know:

  • Shopping Cart: An online application that collects all your products and gets them ready for checkout, passing the information about the transaction to the payment gateway.
  • Merchant Account: The bank or financial institution that actually processes and handles the transaction of debiting one account and crediting another.
  • Payment Gateway: The program or application that communicates between the website and merchant account, verifying the credit card information and executing the transaction.
  • Web Hosting: Serving your website or web page from a web server to any requesting client browser.
  • Secured Socket Layer (SSL): The process by which information is securely exchanged between the web server and the client browser. 128-bit encryption is the most secure.
  • Secure Certificate: A certificate of authentication that assures website visitors that the website being used is safe, secure and tested and up-to-date.
  • IP Address (internet protocol address): The physical, numerical address that is associated with the domain name. There are two types of IP addresses:
      1. Static IP: There is one IP address that is associated with a domain name, and it never changes.
      2. Dynamic IP: The IP address can change at any time, depending on the need and whenever necessary, as determined by the hosting company.

There are 3 things required for credit card processing:
  1. A web hosting account with a static IP address
  2. A merchant account with a reputable company
  3. A current, secure SSL certificate

Web Hosting

There are many web hosting companies that operate online, and choosing one is not too difficult. However, there are a couple requirements that you need to look for when choosing your company. The hosting account must have a static IP address because a secure SSL certificate is required when transferring confidential information over the internet through the payment gateway.

Merchant Account

A merchant account is required for credit card processing because this is how the payment will be processed; money must be taken out the buyer’s account and deposited into the seller’s account. The merchant account is the generic name for the process by which all transactions are handled. This is explained in detail:

  1. The website visitor selects the product or service to purchase and initiates the sale.
  2. The website takes the visitor to secure area of website (with gold lock on bottom of browser) and requests payment information (credit card info).
  3. The visitor completes the required information and clicks ‘submit’.
  4. The information is sent securely through the payment gateway for the information to be verified as valid or invalid.
  5. After verifying the accuracy of the credit card information, the transaction amount is debited from the buyers account (bank or credit card) and deposited into the seller’s bank account.
  6. The buyer receives a payment confirmation via the website.

Account Fees & Charges:

There are two basic charges associated with a merchant account. These are:

  • Administrative Fee: This is usually a monthly fee that is assessed for all administrative fees.
  • Discount Rate: This is a fee (percentage based) that is imposed based on the total amount of the sale.
  • Per Transaction: This is a payment gateway fee that is charged with each transaction that comes from your website.

The way this fee system works is the same, no matter what merchant account provider you use. For instance, let’s say you have a transaction rate of $0.25 and a discount rate of 2.5%. If you have a product that you sell for $10 from your website, each time the product is purchased you will receive $10 deposited into your account. You will also be charged $0.25 for the transaction, and $0.25 discount rate (computed at the end of the month). That’s a total of $0.50 in fees for the $10 sale of your product.

Most merchant account providers will impose a monthly base (minimum) fee for the account. Let’s say the base fee is $15. This base rate is an either/or charge, meaning you are charged that amount unless your discount rate and per transaction fee amount to more than the base amount.

For example, through the course of business, you sell your $10 product to 20 buyers. At the discount rate and per transaction rate used above ($0.25 transaction and 2.5% discount), your fees amount to $10 on $300 ($10 x 30) in sales. Since this amount is less than the base rate ($15), you will be charged the base rate for the month. However, if you sell your $10 product to 90 buyers, your fees amount to $45 dollars for the month. Since your fees amount to more than the base rate ($45 vs. $15), you will be charged $45 on $900 in sales.

Types of Transactions

There are two basic types of transactions when purchasing goods or services online:

  1. One-time Purchase
  2. Recurring Subscription

Most online stores and catalogs deal with ‘one-time’ purchases, meaning you find a product online and purchase it. After confirmation of sale, this ends the relationship between buyer and seller.

The other type, ‘recurring subscription’, is based on interval billing. This type of purchase can be for membership fees, or for any other type of fee that is billed on intervals.

Payment Gateway

The payment gateway is an application that you integrate into your website. Most payment gateways have an API that allows for easy, seamless integration into your website, meaning the user’s experience on your website remains consistent, even through the credit card processing phase. The payment gateway is responsible for validating the credit card information provided, such as address verification and security code matching. There are many payment gateways available on the market, but to ensure compatibility, it’s recommended that you use the one provided at the time of your merchant account setup.

SSL Certificate

The secure digital certificate validates the site as being secure, letting the buyer know that the information exchanged over the internet will be sent using the best possible encryption. In other words, the personal, confidential information sent will be scrambled to avoid interception by a 3rd party and used fraudulently. An SSL certificate requires a static IP address, but does not have to be associated with your website. You can link the transaction to another website (sharing a certificate) to handle the transaction. However, it is recommended that your website have its own static IP and secure certificate to maintain site continuity. Think of it this way; you're at the supermarket, and when you go to checkout, you are either taken across the street to handle the transaction, or the transaction can be handled at the store you're currently at. Basically, it looks more professional to process the transaction immediately, rather than take the buyer somewhere else.

In Conclusion

That is what merchant accounts are all about. All merchant accounts operate on the same guidelines, and determining which merchant account you want to conduct business with is up to you. The main things to consider are the per transaction fee, discount rate and base monthly rate. Make certain that the merchant account provider you are going to use is a top-tier provider, meaning the company is the actual processor, and not a reseller of another provider. This is important when it comes to the fees and customer service for your account.

This article was written by Gus Garcia, owner and operator of http://www.merchantaccountchoices.com, a free-to-use merchant account comparison website.

Click here to see the top credit card merchant account providers in the industry.

Choosing the Right Credit Card Processing Company

There are many credit card processing companies to choose from, how do you know which one you should go with? Will they benefit your company? Are they affordable? Are they reliable? The internet can be a great tool for finding the right credit card processing company. Do your homework, determine which one has the features you need and are looking for in a company.

First, though reliability and trust is most important, you may likely be concerned about the start up costs. Some companies do not charge anything for startup, while others can charge as much as $250 start up fees. You want to make sure you choose a company that is both affordable for you and worth the costs.

Then of course, in keeping with costs, you need to look at other fees that may be required. Most credit card processing services charge several types of monthly fees. For example, a gateway fee, this could cost you as little as $10.00 per month and all the way up to $50.00 or more per month, depending on which company you choose.

You might have a statement fee as well charged to you each month. For most companies, this will cost you between $9.00 and $10.00 each month. Then you have to consider the monthly minimums, this will vary from one company to the next, but for the most part, this minimum runs between $20 and $30 monthly.

The fees do not stop there either. You will also have to deal with transaction fees. Per transaction fees average between twenty-four cents to thirty-five cents per transaction. Then on top of that, the company will likely take a percentage of each transaction as well, which could be anywhere from 2.14% to 2.40% on average. Lastly, some credit card processing companies charge a fee for address verification. If they charge the price is typically five or ten cents per address.

In other words, you need to find a company that is both affordable, trustworthy, and honest, fitting your budget at all the same time.

Then you have the chore or finding a credit card processing company that provides you with all the features you need for your company. This is just as important as costs because you definitely do not want to pay a lot for credit card processing if the company cannot meet your needs.

Some features to look for, that you may or may not need, includes:

Payment Gateway

• Virtual Terminal
• Merchant Account
• How many days the payments clear
• e-Check services
• Point of Sale Swiper
• Recurring Billing
• Shopping Cart

You will then want to look at how the credit card processing company protects your business. Some features you will definitely want from any company includes:

• Fraud Protection
• CVV2 Acceptance
• Real Time Processing
• Address Verification
• SSL

Then you need to consider what credit cards you wish to accept and if the credit card processing company supports those credit cards. The most commonly accepted credit cards are:

• Discover
• Visa
• American Express
• MasterCard

Lastly, while features, fraud protection, and the credit cards that you can accept are extremely important, you want to make sure that you choose a credit card processing company that provides you with the help and support you need, when you need it. Here are some tips that will help you choose:

1. Make sure that you can easily find their fax number
2. Make sure that reaching them by E-Mail is possible and readily available.
3. Check out their support hours, the best companies offer support 24 hours a day, 7 days a week.
4. Does the company provide you with a toll-free telephone number? This is a positive for any company.
5. If Live Online Chat is important you, look for this feature as well.

Overall, you want to make sure the credit card processing company you choose not only fits your budget, but it fits your needs and requirements as well.

This article has been provided by Creditor Web. Creditor Web has the articles and other credit card processing resources to help you choose the right provider.

Free Credit Card Processing for Business Owners

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. Financial institutions are eager to work with you in opening a merchant account, and they sometimes offer attractive incentives to get entrepreneurs’ business. If you like the idea of free credit card processing, start shopping at your community banks and credit unions to see what type of deals they can offer.

Free credit card processing for business owners is an attractive perk, since some companies impose fees of perhaps 15 to 25 cents per transaction or a monthly percentage fee overall of between 1% and 2%. Being able to get free credit card processing for business owners could save you a significant sum of money each month, and over time, those savings could increase even more. Your customers will love the ease with which they can make online credit card payments, and you will appreciate the time-saving benefits of handling credit payments electronically rather than by employees who require regular paychecks.

It is a good idea to sit down with your financial institution and discuss the precise terms of the free credit card processing for business owners deal. Will you have to pay an application fee? Will annual membership fees come due each year? Are there other embedded costs that you should know about up front? Even if your credit card processing is free, other start-up expenses could add up to cost even more than the transactions would. You will want to make the best possible deal before signing an application or contract to be sure you don’t get trapped into paying unexpected high costs later.

Keep in mind that free credit card processing for business owners may not be the best perk to ask for when applying for a merchant account. In addition to start-up fees that could be imposed and perhaps increased in lieu of the free credit card processing option, you also may have to pay expenses like a statement fee, a minimum fee, a discount fee, and a license fee. These could add up initially to more than you will pay for transaction fees. Even if the free credit card processing option appears to save you money at first, is this a limited time offer? When reinstated later, will transaction fees be difficult to add to the company budget since you did not start the process with them?

You might want to get a second opinion on weighing the benefits offered with various merchant account deals. You could even ask the customers via an informal survey about the type of credit processing they are most interested in and then see how promotional offers for opening a merchant account may impact customer interests. Of course, you can always check out the benefits of paying no transactions costs, and if permissible, switch to another system later if costs increase more than expected with free credit card processing for business owners.

Shane Penrod is the founder of http://www.Merchant-Account-Quotes.com Specializing in allowing merchants the ability to shop and compare multiple quotes from national merchant account providers. For free quotes on merchant account rates and fees, please go to http://www.merchant-account-quotes.com

Credit Card Processing - Benefits Of Accepting Online Payments

Advantages of Online Credit Card Processing

If you own an online business and don't already accept credit card payments you should consider doing so immediately. Nowadays upwards of 80% of consumers use credit cards to pay for products and services online. If you don't accept credit card payments regardless of how small your business is, you risk losing customers and profits.

Credit cards are often preferred by customers because they are safe, secure and easy to use. Many people rely on credit to buy gifts and business items. Some customers will walk away from a website and not even look at the products and services if they know that credit card payments are not accepted. For that reason alone it is very important you consider credit card payments. Here are just a few of the benefits credit card processing has to offer:

You provide your customers with a secure and easy to use online method of payment.

Your customer's purchase is guaranteed and protected by the credit card company.

Customers receive instant satisfaction because they can order products and receive confirmation, and sometimes download their product or service within minutes of placing their order.

Businesses that accept credit card payments will improve their sales and profits exponentially.

Accepting credit card payments makes a business look more professional and established.

Credit card processing ensures optimal customer service and convenience.

You don't have to worry about bounced or bad checks or wait several days for a payment to clear when you use online credit card processing.

Article by Frank Owen, visit his web site on credit card processing for more information on credit card processing http://www.creditcardprocessinginsider.com

Up to Here with Credit Card Processing Limits

When a merchant signs a contract with a credit card processing provider, said business owner must indicate the anticipated monthly volume, average ticket and highest ticket. Invariably, merchants (especially new ones), have an exceedingly difficult time with this speculation process. It’s not easy forecasting one’s volume of business, let alone how much will be secured through the use of credit cards.

Despite the arduous task of predicting limits, it is always best to OVER-estimate the volume. While the merchant needs to use reasonable assumptions in arriving at these figures, an overinflated amount may preclude a problem in the future.

Suppose a merchant indicates that the highest anticipated amount will be $1,000 for any given transaction. If this merchant unexpectedly makes a sale of $3,000, this transaction will be red flagged and funds will not be released. The risk department of the processing company will verify the validity of the transaction, holding up this merchant’s funds, jeopardizing needed cash flow. Subsequent transactions may be held as well, even if they fall below the highest threshold amount.

While some companies expedite the process in confirming the authenticity of transactions, other processing firms place indefinite holds on merchant accounts, refusing to release funds for weeks or even months! This is especially problematic during a merchant’s busy season where monthly volume can accelerate and reach much higher levels than anticipated. Here, too, the processing companies can put the kibosh on the merchant’s account until further notice (i.e., when transactions are verified). Serious funding delays may materialize and the merchant may very well be out of business (literally) as funds are not released on a timely basis.

While it may appear to the merchant that the processing company does not gain any commission from held transactions, there exists a very sound reason why processors engage in such a business tactic: to protect their financial interests. Credit card processors worry that such transactions may be charged back to the merchant and that the merchant will not have sufficient funds to cover these chargebacks. Who must then issue credit to the merchant’s customer? The credit card processing company must then return the deemed ill-gotten funds.

So what is an honest, hard-working merchant to do to avoid interminably held transactions – aside from signing up with a reputable credit card processing company that does not indiscriminately freeze accounts or takes an inordinate amount of time to verify transactions? The merchant should initially request limits that are higher than anticipated. Of course, with higher limits, credit card processing application approval becomes a little more challenging. However, a merchant’s good personal credit score should be more than sufficient for the underwriter to approve the account. (Those that do not possess favorable credit may be able to get a cosigner that does have good credit.)

As time progresses, merchants can request a merchant limit increase as well. Those in good standing (e.g., those that have not incurred chargebacks) can easily have their limits increased. As business grows, it seems logical that such limits should increase from the initial forecast.

Merchants need to know their credit card processing volume limits and attempt to expand them when necessary. In the scenario that the merchant knows that a given transaction will exceed one of the limits, a phone call to the processing company is in order. The merchant may have to provide an invoice and even business bank statements but the holding time will be less as the processor is then included in the loop from the start.

There is no guarantee that funds will never be held. Indeed, a company that suddenly takes in $1,000 per day when formerly taking in $100 per day will be under scrutiny from the credit card processing company. This company may very well have to explain the set of circumstances to the processor and share business financials. But if the merchant takes a more proactive role, keeping an all-important eye on limits and maintaining open communication with the processor, problems may be avoided.

Andy Lax is an account manager with IntelliCollect, a merchant account provider that enables business owners to accept credit cards and electronic checks from their customers. Please visit this site, http://www.intelli-collect.com to learn more about the merchant account field and examine the payment processing programs of this reputable merchant account provider.

Top 7 PayPal Credit Card Processing Advantages

Here are seven good reasons why you should consider PayPal.com as your credit card processing solution and merchant account alternative.

1. Accept Credit Cards Without a Merchant Account

You can accept all major credit cards as well as payments from bank accounts. Your customer doesn't have to be a member of PayPal to pay by credit card.

2. Low Cost

There are no initial or monthly fees to join PayPal. Fees are 2.9% of sales and $0.30 per transaction; rates vary slightly by country and sales volume.

3. Flexible and Easy to Use

PayPal payments can be made in six different currencies for digital or physically shipped products, auctions, services, recurring payments (like subscriptions), et cetera. As well, PayPal is very easy to use and setup.

4. Shopping Cart5. Buyer Network

According to PayPal.com, PayPal has "more than 86.6 million accounts in 56 countries and regions ...growing by 83,000 a day... One in three online buyers in the U.S. has a PayPal account."

6. Merchant and Auction Tools

PayPal has a number of automated tools to make your life easier including financial reporting, shipping calculation, sales tax and value-added tax calculation, and much more. Since PayPal is an eBay company, it is designed to integrate well with eBay auctions.

7. Fraud Detection

PayPal claims to have "one of the lowest loss rates in the online retail industry." Their Seller Protection Policy is designed to protect the merchant; their Buyer Protection Policy is designed to protect the customer.

RESOURCE BOX:

http://www.yenommarketinginc.com/creditcards.html

For profitable Work at Home Small Business Ideas, visit http://www.yenommarketinginc.com/

Top 7 2Checkout Credit Card Processing Advantages

Here are seven good reasons why you should consider 2Checkout.com (also known as 2CO) as your credit card processing solution and merchant account alternative.

1. Accept Credit Cards Without a Merchant Account

For an initial fee of $49.00, you can accept all major credit cards as well as online checks. Fees are 5.5% of sales and $0.45 per transaction.

2. Handle Both Intangible and Tangible Products

While ClickBank.com restricts itself to digital products, 2Checkout can handle both digital and physically shipped products.

3. Shopping Cart

Whereas ClickBank handles only single sales, with 2Checkout, you receive a shopping cart. Alternatively, many third-party shopping carts integrate with 2Checkout.

4. Integration With Third-Party Affiliate Programs

2Checkout integrates with third-party affiliate programs such as ClixGalore.

5. Eliminate Sales Tax Problems

Since you must agree to sell your product to 2Checkout for resale, 2Checkout becomes the retailer responsible for collecting sales taxes -- not you. This simplifies or eliminates sales tax administration for you.

6. Fraud Detection

With 2Checkout, you have to wait until they complete their fraud detection checks before you deliver the product. This protects the merchant as well as the customer.

7. Other Advantages

As well, 2Checkout features free on-line support, their own affiliate program, and more. Your products are also searchable from shopping center links on their website, thus giving you more exposure. 2Checkout also allows for multi-currency transactions which enable customers to buy in their own local currency. According to the 2Checkout.com website, this improves sales and reduces credit card disputes.

RESOURCE BOX:

J. Stephen Pope, President of Pope Consulting Inc., has been helping clients to earn maximum business profits for over twenty-five years.

To learn more about accepting credit cards, visit http://www.yenommarketinginc.com/creditcards.html

For profitable Work at Home Small Business Ideas, visit http://www.yenommarketinginc.com/

Credit Card Processing without a Merchant Account

Credit Card processing without a merchant account is a feasible option for website owners.. If your business is to grow and succeed, it is essential to accept online credit cards.

Benefits of accepting online credit cards.

1. It has been proven that sales increase dramatically when you accept online credit cards.

2. Up to 75% of online purchases are made on impulse and customers spend up to 50% more when using their credit cards.

3. Above all, if you accept online credit cards you build credibility in the eyes of your customers as they assume only established businesses will accept cards.

However, it is not necessary to have your own internet merchant account to be able to accept credit card payments on your website. Most small businesses do not need their own online merchant account.

How to get free online credit cards

Getting your own internet merchant account is more difficult than obtaining an offline merchant account because the card is not present at payment nor is the signature obtained. Sometimes, small and new companies face extra difficulties.

Nevertheless, these problems can be overcome by getting a Third Party Processing company to accept online credit card payments on behalf of you or your company.

How Third Party Processors operate

The payments your customers make are processed through the third party’s own merchant account, and you the retailer is paid (minus a commission) by the third party processor. This allows you to sell online without the necessity of having your own internet merchant account.

However, the Third Party Processor makes its profit by charging a processing fee. Usually, third party processor charges are a little more on a transaction compared with having your own online merchant account. Though set-up fees are usually free or minimal.

So, there you have it. You can accept online credit cards on your website through a Third Party Processor without needing your own merchant account. Credit card processing without a merchant account is definitely an option.

(c) John Lynch

For a review of online merchant accounts and third party processors Got to: http://www.merchant-account-service.com/third_party_processors.html

Top 7 ClickBank Credit Card Processing Advantages

Here are seven good reasons why you should consider ClickBank.com as your credit card processing solution and merchant account alternative.

1. Accept Credit Cards Without a Merchant Account

If your products are digital (such as electronic books or software), you can use ClickBank to process credit cards and on-line cheques. The cost is $49.95 upon signup and $1.00 per transaction plus 7.5% of sales.

2. Start Your Own Affiliate Program

With ClickBank, you have your own built-in affiliate program. You decide what commission (from 1% to 75%) you would like to pay your affiliates.

3. Receive Free Advertising

You receive additional exposure through free listing on the ClickBank website and through the search facilities of other websites, such as CBMall.com.

4. Obtain Referral Commissions

Even without applying for ClickBank credit card processing, you can earn referral commissions on thousands of ClickBank Marketplace products.

5. Eliminate Sales Tax Problems

Since you must agree to sell your product to ClickBank for resale, ClickBank becomes the retailer responsible for collecting sales taxes -- not you. ClickBank will not be subject to sales taxes in most jurisdictions. ClickBank is registered for European Union (EU) purposes and adds the appropriate Value Added Tax (VAT) to each applicable transaction.

6. Accept PayPal

ClickBank now accepts PayPal as a payment method. According to PayPal.com, PayPal has "more than 86.6 million accounts in 56 countries and regions ...growing by 83,000 a day."

7. Automated Product Delivery

After purchasing your product through ClickBank, the customer is redirected to a "thank you" page. This page may contain information about how the customer can download your product, thus automating your product delivery.

RESOURCE BOX:

J. Stephen Pope, President of Pope Consulting Inc., has been helping clients to earn maximum business profits for over twenty-five years.

To learn more about accepting credit cards, visit http://www.yenommarketinginc.com/creditcards.html

For profitable Work at Home Small Business Ideas, visit http://www.yenommarketinginc.com/

Credit Card Processing and the Pitfalls

Disadvantages of Credit Card Processing

The benefits of credit card processing online usually outweigh the disadvantages. Unfortunately there are some pitfalls involved with credit card processing you should be aware of. The more knowledge you have going into a situation the more likely you are to come out of it ahead.

One of the biggest pitfalls associated with credit card processing is refunds or charge backs. Of these charge backs are potentially the most damaging. Most merchant account providers charge a hefty fee for any chargebacks they have to process. Some will close your account if you have too many so it is best you avoid them altogether.

There are ways you can reduce refunds or chargebacks. One you should make sure you have a clearly defined refund policy. You could for example limit the amount of time a customer has to request a refund. You should also ensure that your customers have a legitimate reason to ask for a refund. You can minimize refund requests by offering special bonuses to encourage better customer satisfaction.

Another way to limit chargebacks is by being open and up front about your business. If you use a third party processor for example to handle credit card payments you better let your customers know. Otherwise they may not recognize the third parties name when they receive their credit card statement and ask for a refund. This is an honest but also costly mistake.

You should also make sure you have adequate customer service which may help you iron out kinks with customers before a refund is requested. Good customer service goes a long way to preventing future problems with credit card processing.

Article by Frank Owen, visit his web site on credit card processing for more information on credit card processing http://www.creditcardprocessinginsider.com