Merchant Credit Card Processing Tips

Merchant Credit Card Processing Tips

Welcome to my Merchant Credit Card Processing Tips blog. Here you will learn about Merchant Credit Card Processing Tips.

When searching for a merchant account, credit card processing, you will find that there are thousands of companies who can provide you with service. All offering special deals that are better than other companies, at least that is what they say. So how do you know which company really will provide what they say? Answer, you don't. While researching for the best deal, you can only hope that everything in the merchant account setup process will be revealed to you, the merchant.

So how do I, the merchant, know what I am not being told? Hopefully, after this article, you will know what to look for when choosing a credit card processor. After all, why should accepting credit cards be so complicated? It shouldn't and withNational Processing Services, processing has never been easier.

First of all, know your industry. Know exactly what your selling, know your monthly sales volume, know your average ticket amount, and know you realistic goal for increasing your monthly volume in sales. This will help speed up the process and help processors know how to place your merchant account to meet your business needs.

Second, again know your industry. Find out if your are a high risk merchant or a standard merchant. Example, adult stores or websites are definitely high risk, while grocery stores are standard. This will change the merchant account process dramatically. It will also save you time. After 7 years in this industry, I have had hundreds of merchants not tell the whole story about there company and what they sell, just to have them declined because they were a high risk merchant. They had to fill out all of the necessary paperwork, and wait for approval, just to be declined and start all over again.

Third, understand that there is no such thing as a free account. All merchant accounts have fees and percentages taken off from transactions. Do some due diligence and find out how your rate varies from processor to processor. You will find quite a range. Also, don't fall for the rates that are way lower than the industry standard. Its simply not true. There are 2 factors when understanding the rates quoted to you by processors. 1: Processors have a "Buy Rate." A Buy Rate is the industries Visa/MasterCard rate. It is the lowest possible percentage a merchant can get for processing credit cards. 2: Rates are never given to merchants at Buy Rate. Reason, processors need to make money to stay in business. They have to raise the percentage above the Buy Rate to make money off of your transactions. There are also Statement Fees, a fee charged to the merchant for processing credit cards on a monthly basis. The merchant receives a statement showing the transactions processed, and the fees within for those transactions. The Monthly Statement Fee usually ranges from $8 to $10 a month. There is also a Monthly Minimum charge. The Monlthy Minimum is an amount set by the processor that requires the merchant to process enough transactions to equal at least the minimum amount, usually $25. If the merchant doesn't reach the Monlthy Minimum, then the merchant will owe the differnce of fees not processed to equal $25. Example, if a merchant processes $20 in fees during a month, then the merchant would owe $5 more at the end of the month to equal $25, the Monthly Minimum. Some accounts will have a Monthly Minimum, some will not. It all depends on the processor and the type of merchant account that you are setting up.

Forth, know what type of merchant account your company will require. There are 3 types of merchant accounts. 1: Retail Account, this tpe of merchant account is considered the most secure. You will receive the lowest rates from the processor. Reason, because the merchant is face to face with the customer. Cards are swiped 90% + of the time, and signatures are received by the merchant at the time of the transaction. The proecessor feels most comfortable with this so you the merchant get a low rate. 2:MO/TO Account, this type of account is mainly transactions received by phone orders, email, or catalog orders by mail. MO/TO means mail order/telephone order. Your rate will be higher for this type of account because your customer is not face to face. The processor sees a higher risk for fraud in this type of account so your rates are higher. 3: Internet Account, this type of account is exactly what it says. Transactions are processed over the Internet. This type of account is equivilant to MO/TO. You will have the same rates, because the customer is not face to face.

Familiarize yourself with these four basic categories and you should be much better equipped to understand and choose your processor. Please realize that getting a merchant account, or accepting credit cards is actually very simple, and there shouldn't be any worries about doing so. You will increase your income, and with understanding the basics of Merchant Credit Card Processing Tips, you will feel more comfortable with getting your merchant account setup. If you have any questions, please post them so I can help you, or you can go to my website and fill out your contact information, such as email, and I can help you that way.

Merchant Credit Card Processing Tips

Ideas for the future - credit card processing

Maybe some years ago no one knew what a merchant account is, because no one needed one. But now, with the development of technology and the internet a merchant account is very important. This kind of account is necessary for any internet based business, because it's the only way to use credit card processing.

If you have an online business, like an online store, and you sell products and services to people all over the world, then you should get a merchant account. It's basically a bank account for the money used in transactions. Let's say you have an item to sell. Then the payment for that item goes into that account. An internet merchant account allows credit card payment which is safer and quicker. This modern way of dealing with money is very suiting for any business as credit card processing has taken online transactions to a whole different level. The old method used for purchasing something from a store situated at a certain distance wasn't really working because it was based on a lot of trust from both parts. This made room for frauds and distrust. The credit card option, on the other hand, solves these problems. All you have to do now when buying something online is write the data from your credit card and the money will be extracted and sent to the account of the store. This credit card processing has made people trust online stores a lot more than they did in the past. Thus business flourishes.

So why do you need a merchant account if you own an online store? First of all it's a matter of trust. You can offer your customer a complex and complete business. You offer the client a diversity of products, but you also offer different ways of payment. They can now choose. Even if a person wants to pay through the old check method, he should know that you can offer him the possibility to pay through a credit card. Even though a lot of people won't pay through a credit card it's advisable to let them now what kind of business you run. A first good impression is very important and, if someone goes online and looks through your store and sees everything you have to offer (the merchandise and the services), he will be pleasantly impressed and will buy again. This is how regular customers appear.

It's easier for the merchant as well because credit card processing does the math for you and leaves little room for mistakes. After all, the utility of credit card processing is huge. It will make life easier both for you and your customers. You won't have to receive checks and then cash them in. This takes a long time, but using a merchant account all of the money will be transferred to your account immediately and you won't have to worry about anything else.

If you think that getting a merchant account is difficult then think again. Even if your business is at the beginning and you don't have too much money, the banks that offer this kind of accounts usually have an aggressive approach. If they hear or see a newly opened business they will assault you with different offers to open a merchant account. You don't even have to look for a bank. The only thing you have to look for is the best offer. You shouldn't accept the first thing that comes your way because it probably won't be the best deal you can get. Take your time and search for the offer that suits your interests best. Choose only what you feel can take your business to the next level.

The credit card is the next step forward and, probably, in a few years cash will be obsolete. All the transactions will be made electronically without having to go to the store and physically buy something. Everything will be delivered to your door and you will pay with your credit card. This method truly works and the proof is right before your eyes. Developed countries help their institutions grow and many businesses now use credit card processing.

This is the future and we cannot deny it. People that won't be able to adapt to the situation will have the faith of the dinosaurs. Of course this is not a very close future, but it isn't that far either. So it's better to start earlier and get to know the situation than be swept away. That's why all business owners, real life or online, should get a merchant account and offer customers the possibility to pay electronically. All consumers should also get a credit card and start learning how to use it.

Keeping your business ahead of others' is a though job. Competition is fierce, but with the help of credit card processing and having a merchant account , you are on the right track to success.

The Bottom Line: Credit Card Processing Capability Depends on Credit

When you apply for credit card processing capability for your website, there are a multitude of factors that underwriters take into consideration when deciding whether or not to accept your application. These factors include:

* The type of business you own
* How long you have owned your business
* Trends in your business earnings
* Trends in your industry
* Your collateral: machinery, equipment, property
* Your personal credit report

When a merchant's credit card processing application is evaluated, their personal credit rating is assessed and significantly affects the outcome of the decision. A poor credit rating may preclude an application from being accepted. But what does your personal history have to do with your business potential?

As far as your credit card processing application is concerned, everything. How you run your personal life is indicative of how you will run your business, helping the underwriters of your credit card processing application to determine whether or not you should be considered a risk. Everything that is included in your credit report is relevant information for the credit card processing underwriters. This information includes:

* Whether or not you made personal credit card payments on time or at all, over drafted your accounts, or filed for bankruptcy may indicate your ability to repay future creditors.
* Whether or not you have enough credit for your credit card processing underwriters to be able to satisfactorily discern your ability to repay debts.
* If you have multiple inquiries into your credit rating by potential creditors, this shows negatively as well. This means that others have decided you are a risk, which may indicate to your current credit card processing underwriters that they should decide the same way.

Research Your Credit Report

One way to make sure that your personal credit is an asset to your credit card processing application is to make sure that it is as high as possible before you send in your application. It is free for you to check your credit report with the three major credit agencies in the country ? Experian, TransUnion, and Equifax ? once every year. Staying up to date with your credit reports will let you know right away if there are mistakes due to inaccurate reports or identity theft. The sooner you find out, the sooner you can get started getting these things corrected and removed from your credit reports.

How To Raise Your Credit Rating

There are many ways for you to raise your credit rating if you feel that it is inadequate to get the credit card processing application results that you need. Some credit report improvement techniques take a great deal of time before they affect your credit rating. Others begin to improve your score immediately.
* Make sure that all your information is updated. Everything listed has an expiration date of seven years. It's up to you to make sure that seven year old issues are removed at that time. Also, just because you paid off a bill doesn't mean that the company reported this update to the credit reporting agency. This may be up to you.
* Pay your bills on time, every time. Every single late payment is listed on your credit report and negatively affects your credit score. This will directly affect your credit card processing application; it's a 1:1 correlation as far as how underwriters will predict your future repayment efforts when weighing the merits of your application.
* Don't apply for credit every time it's offered to you. If you are constantly applying for credit, most credit card processing application underwriters will assume that you are not managing your finances well. Keep enough credit cards to establish credit, but not so many that it's too much to handle. Three to five cards is plenty.
* Don't avoid credit cards and loans. You need a credit history to have a good credit history. Start early, make all your minimum payments and stay on top of your balances. If you go beyond your means, fix the situation as soon as possible.

The bottom line is that your personal credit reports and rating will directly affect the outcome of your credit card processing application. Maintaining the best credit possible will help you make the most of your business when it comes time to apply for credit card processing capability. And if worse comes to worst, there is an alternative solution. Many credit card processing companies allow a merchant to use a cosigner. Choosing someone with a favorable credit rating score may help you offset the negative effects of your own credit rating.

Credit Card Processing

From : website101.com.

A merchant account is a special account with a bank that is a member of the Visa and MasterCard associations. Such a bank has been certified by Visa and MasterCard associations and can provide you, the merchant, with all of the services related to your merchant account. Once your merchant account is setup and "live" on the credit card system, you can accept credit cards from customers generally as follows:

* A customer presents their credit card for payment .

* Using their credit card number, you submit an electronic request to the processing network for "authorization to capture funds" from the cardholder's credit card account in the amount of the purchase. Traditionally, one would submit this request by swiping a credit card through an electronic transaction terminal provided by the bank.

* The processing network immediately receives your electronic request and determines if the cardholder's account is valid and if the funds are available. If they are, the processing network returns an electronic response to your terminal or computer. This response is called an "authorization code", and is your guaranteed authorization to capture the funds. Typically, this code is a six-digit number. The transaction and its associated authorization are stored in a "batch", where other transactions for that day reside.

* You print a receipt for the customer using the electronic terminal or your computer and the customer signs the receipt. As far as the customer is concerned, the transaction is complete. As far as you the merchant are concerned, there is one more step to complete the transaction.

* At the end of your business day (usually), you submit a final request to the processing network to go ahead and "capture the funds" that you obtained authorizations for during the course of business that day. This is called "settlement" or "settling your batch". This request is also submitted using the electronic terminal or your computer. The processing network immediately receives your response electronically and determines if the capture amounts contained in your request match the authorizations for each item. If so, the request is granted and an "Accepted" response is returned to your electronic terminal or computer. A settlement report can be printed showing the grand totals by card type (Visa, MasterCard, American Express, Discover, etc) for the settled batch. Note: any corrections to your batch, such as voiding a transaction, must be made prior to settlement.

* Within 48 to 72 hours (usually), the funds associated with the batch you settled are deposited electronically into your business bank account. Typically, the discount rate you pay to your merchant account provider are deducted from the deposit before it transferred to your bank account, resulting in a "net deposit" of funds.

* At the end of the month, your merchant account provider will mail a statement to you, detailing the credit card activity for the month and the associated fees you have been charged for such.

Credit card processing - how credit card works

Nowadays, 80% of consumers use credit cards to pay for products and services online. If you don't have credit card payments facilities for your business, you are losing customers and profits. Customers prefer credit cards because they are safe, secure and easy to use.

The process that will check customer's credit card number, expiry date and other transactions related with credit cards is known as credit card processing. It can be achieved manually but this process is really difficult and more time consuming. The best option is to automate it. This can be done by using different types of software, buying or leasing other people's processing services or by writing a program/script.

There are different types of credit card processing software that makes merchant account more secure and improves processing speed. There three main types of online credit card processing are virtual terminal, simple integration method and advanced integration method.

A virtual terminal was used before the Internet age. A simple integration method makes direct link between your site and bank system and you can directly accept transactions through Internet. With the help of advanced integration method, you can link your system to more multifaceted systems.

The main benefits of these various systems comprises the ability to show all of your information from the internet without making manual transactions impossible, setting up recurring billing cycles and protection against fraudulent transactions. The 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.

The author presents the website on credit card processing http://www.123cheapcreditcardprocessing.com/ . It covers meaning of credit card processing, types and benefits of credit card processing. You can visit his site on http://www.getcheapcreditcardprocessing.info/

Credit Card Processing Machines

From : usamerchantsolutions.com.

Every credit card terminal has different functions and capabilities, but all of them take some investigation for your needs and price expectations. The following is a list of different options available when considering credit card machines:

IPP or Internal PIN Pad: This comes with several different models and although a nice option, you should consider the fact that this terminal is passed back and fourth between the cashier and customer. Smartcard: Another great option automatically available on some terminals, but will you utilize this option? Smartcard is used for gift and loyalty cards and unless your business is going to utilize this option, you might want to consider a less expensive terminal.

Touch Screen: This option is more for the ease of use for the cashier, but usually gives you signature capture. Signature Capture allows your customers to sign the terminal screen instead of the receipt.

Wireless Capabilities: This allows you to accept Credit Cards through a wireless or cellular connection. Most of the time this is great for merchants who are making sales away from the office, but this can be limited by the cellular service in that particular area.

RS-232 Ports: This gives you the opportunity to attach other devices to your terminal such as a check imager or check reader.

PIN Pad Port: Allows you to add an external PIN pad to your existing credit card machine.

Now there is no set rules for what type of equipment to buy or what type of equipment your processor can support, so it's up to you, the merchant, to investigate what your best options are. Just remember, if you have any questions about equipment call your processor.

Credit Card Processors

As per 2005 statistics released, on line trade grew more by more than 22% over previous year. To accept credit cards for online trade, you need a merchant account. Getting a merchant account is not easy for all. It does involve a lot of money. To solve this issue, another fast emerging choice is use of third-party factoring services, also known as credit card processors. These processors process third party orders through their own merchant accounts. A good processor provides a secure environment for sale, ensure that supplier fulfills the obligations of trade and ensure payment for the sale to the trader.

The growth of criminal methods on the net to steal information and rob off wealth is growing at alarming rate. To help these issues, these processors provide very valuable service to newbie merchants who can not afford own merchant account and are quite instrumental in fraud prevention as well as to protect the consumer interest. A good credit card processor instills a strong sense of satisfaction among consumers to protect their interests and thus at a nominal cost boosts the revenue of on-line trader.

A good processor has to be very stringent as they are answerable to their own merchant account provider. Too many dissatisfied customers or traders can make them go out of business. I came across a site, which very elaborately describes about various credit card processors. It would be a good idea to check from here.

One of such reputed and well established credit card processor is 2CheckOut (2CO), which is online distribution center for over 300,000 products and services. It provides a customizable transaction interface, multi-level customer service interaction, security features using SSL encryption network. One can get started immediately with no hassles of term contracts, additional equipment and can deal with any international suppliers, except for few prohibited products.

What does it cost?

Charges wise, it may not be cheapest one, but in terms of customers rating and appreciation, it definitely stands out. Initial set up charges include one time setup fees of $49. Besides, a commission of 5.5% per transaction and additional charges of $0.45 are levied. These transaction charges can go up on some classes of products. Charges for additional services are even higher. 2CheckOut supports 28 currencies for payment. For payments in local currency, if it is one of the supported currencies, wire option can be exercised at a cost of $5 per transfer. You can also choose to receive funds in US dollars at fees of $20 per transfer. These charges are definitely steep for small payments, but, 2CheckOut does give option to set a release level of payments and payments would be held till it reaches that level. Additionally, there are charges for stop payment of check and for charge backs.

However, being a processor with one of the lowest fraud rate, such steep rates also gel with market.

Payment to Suppliers

Generally all payments are made on 1st and 16th of the month, when all transactions that occur within 48 hours of this period will be processed, and payment remitted. However suppliers with sales volumes of over $1,000 a week qualify for weekly transfers.

Types of Products

A supplier is not allowed to sell certain types of goods as adult content, firearms, ammunition, tobacco products and multi-level marketing etc.

Protecting Consumer Interest

Protection of consumer interest is basically in own interest of a credit card processor to be able to stay in business. As the terms of agreement with 2CO, a supplier agrees to readdress all the customers complaints addressed to him directly or through 2CO, to the satisfaction of customer, proficiently and harmoniously.

To protect interests of sellers, it reserves the right to impose limits on purchase of products by specific buyers for any reason, in its sole discretion, as it may deem fit.

Payments on an account are made after 2CO's verification processes it also holds money from suppliers account to protect buyer's interest. Generally a 5% of the gross sales are kept as reserve for at least 90 days would be held and in some cases the Reserve is retained at a higher rate for period exceeding 90 days.

It has a provision for refund and charge back too. Either 2CO or supplier may ask for reversal of transaction leading to refund and return the funds to a customer's account. Credit card issuing bank may dispute the validity of transaction through the given credit card either on its own volition or on instruction of its clients and initiate reversal of funds transferred. This is called charge back. In such cases, where supplier feels victimized, he may opt to initiate a dispute and seek assistance of 2CO. 2CO would assist by way of providing any documentation that supplier may need and would charge a fee of $14 for each such dispute that supplier decides to contest.

2CO service has been rated as wonderful by most users. The only suggestions for improvement would be more in depth sales reports and the ability to have custom form fields on. It has reputation of being a company that enables businesses to receive funds from businesses and consumers internationally with zero fraud and at a much lower cost than traditional wire payments.

In fact if you are a victim of such credit card processor, you must immediately take steps, which have been very lucidly here. Do follow them; I am sure these would come handy.

R.S. Chawla owns b2bLounge.com - Global Online Trading and is Professional Accountant from India, now settled in Canada.

Deferred Credit Card Processing

From: merchantseek.com.

If you defer credit card processing, you cannot fill the orders immediately. So, this processing method is more suitable for businesses that cannot deliver their goods over the Internet.

The advantage of using deferred processing is that you can inspect your orders manually, and correct them before you ship the order. For example, a customer called you and told you that he is from a non-profit organization, and arranged a 20% discount on his purchase. He can still use the order form, and then you can correct his order. You can do any discounts or surcharges for any orders, or otherwise edit the orders, before you process them. Real-time processing doesn't provide this convenience.

When order cards are processed, the credit card issuer's network may be down. This is especially true, if your customers are in China, Brazil, or other distant countries. In these cases, the credit card processor returns the 'CALL CENTER' answer, which means that you must call the center to authorize the transaction. If you do real-time processing, these transactions will be reported to the customer as declined. Not only do you loose a sale, but the customer may be confused by the answer.

Deferred processing is much cheaper than real-time processing because you do not have to pay anybody for any special processing. All you need is a credit card processing software, which you can buy for $350-400. You can use this software for both Internet and phone orders, which is a big advantage. You do not incur any additional costs for processing. The orders are delivered to you by your storefront software and then processed. However, deferred processing requires daily attention because you need to download your orders and process them every day. This may be just a single mouse click, but it needs your attention every day.

If you use deferred processing, the orders stored on the server must be securely encrypted. If the orders are just e-mailed to you, then anyone with administrative privileges on the server can read the orders and steal card numbers. So, before you use the system, ask your ISP or storefront software vendor how the orders are encrypted to secure the orders against hackers.

It is not easy to decide which method is the best for you because you have to choose a storefront software consider integration issues. at the same time, and We will talk about storefront software in one of our next issues.

A Good Credit Card Processing Service?

It's hard to determine which credit card processing solution is best for your business with so many choices available. Below are the criteria Top Ten Reviews used to rank credit card processing services:

Average Approval Rating - This criterion, usually evaluated by percentage of approved applicants, refers to its approval rate, the processing speed and the fee to apply. An accommodating service will have a high approval rate and process your application quickly and without a fee.

Cost per Month - A low monthly cost helps keep overhead costs down. A competitive credit card processing company will require a low monthly fee with clear communication about ongoing fees and costs. Our ratings are based on 500 transactions per month with one statement, charge back and gateway fee.

Start-Up Cost - Credit card processing companies shouldn't charge you too much to set up a merchant account and a payment gateway.

Account Setup Time - A competent service will expedite your application and get you in business as quickly as possible, some can approve the application and set-up an account within a days time.

Customer Service - Accessible customer service answers inquires 24 hours a day, seven days a week. The service should offer many avenues of contact including telephone, email or instant messaging and help should be quick to respond and provide useful information. Internet Based Features - Most companies offer more than one type of virtual terminal as well as an online merchant account and payment gateway.

POS/ Swipers Features - A variety of Point of Sale options and swipers (card readers) should be available through the service. This is especially important if you are a retail business or operate from remote sales locations.

With a good credit card processing service, you can increase your sales and flexibility and give your customers many payment options

Wireless Credit Card Processing Equipments

Wireless terminals provide mobile merchants, such as taxi drivers, transportation and delivery services and merchants who sell at trade shows, sporting events, swap meets or other mobile venues with a mobile commerce payment solution. Be sure your transaction processor offers merchants on the go secure, reliable transaction processing with a top-quality wireless point-of-sale terminal or specialized payment software used with a PDA or other handheld device. And make sure it has:

* Ability to process secure ATM/debit card transactions.

* Support for Address Verification Service.

* Purchasing card capability.

* Electronic benefits transfer (EBT) capability.

* Integrated network modem (and the capability to support additional networks).

* Built-in thermal printer with drop-in paper loading.

* Support for debit, credit, charge and stored-value cards, as well as loyalty programs.

* Ability to connect to peripherals, such as bar-code wands and check readers, through an RS-232 interface.

* Easy-to-read backlit LCD display that supports non-English fonts.

* Long-lasting, rechargeable battery pack.

Wireless Credit Card Processing

New credit card processing options are available to telephone and mail order merchants that make it easy to do credit card processing by phone. A wireless credit card reader makes it easier for mobile merchants to obtain authorizations from remote locations than ever before. In most cases wireless credit card processing is even faster than for traditional landline transactions. Dedicated networks have been developed for wireless credit card processors of all types, which can transmit and receive data faster than most cell phone networks. Wireless credit card processing increases sales, saves time, and reduces operating expenses.

* Wireless is small, lightweight, and portable. Can carry in your pocket!
* Can accept cards where it previously was impossible (in a parking lot, outside a sports event, etc.)
* No second phone line needed and no need to rent phone lines at tradeshows.
* By swiping credit cards you get lower rates. This one feature alone can save you hundreds of dollars per month.
* Reduces risk. Swiping reduces chance of fraudulent or stolen card being used.
* Increased security. Wireless processing reduces the amount of cash you and your staff handle.

How a wireless credit card processing works?

1. The merchant slides the customer's card through the wireless credit card machine and enters the sale amount. Using a technology similar to a cell phone, the terminal will connect to a radio tower and send the credit card information and amount of the purchase.
2. The transaction information will be routed to Merchant account's processor.
3. Merchant account's processor will pass that information onto the bank that issued the credit card. The issuing bank will check to see if the card is valid and if the amount requested is available on the card, and set aside the amount of the purchase for the merchant.
4. The issuing bank will send back an approval number or a decline message to Merchant account's processor.
5. The information will be passed back to the mobile credit card machine, which will print a receipt for the customer to sign if the card is approved. It will take approximately 8-12 seconds to complete steps 1-5.

At the end of the day the merchant may manually "settle" their terminal which will begin the final process of the transaction. In most cases Merchant account's processor can automatically settle the transactions at a specified time each day. Once the settlement process is initiated the funds will be transferred from the card issuing bank and Merchant account's processor will electronically deposit them into the merchant's checking account. It typically takes two business days from the time of the original transaction for the funds to reach the merchant's checking account.

Online Credit Card Processing - Standard Routine

Online credit card processing is the processes that will check your customers credit card number, expiry date etc., withdraw money from his/her account and deposit it into your account.

It can be achieved manually, but this could get extremely tedious and also take too much of your time. The best option is to automate it. This can be done using different types of software, buying or leasing other people's processing services or by writing a program/script yourself. The process works as:

1) The consumers complete their orders via the merchant's web store. This should be done on a secure web page so that the consumer's personal information including banking information (credit card or check) is encrypted so that it can't be intercepted and read by third parties while being transferred over the internet. Secure pages should always be used while handling credit card processing online.

2) The shopping cart program on the web host computer gathers the order information, compiling it into a form that the credit card processing company expects.

3) The shopping cart transmits the formatted order from the web host to the credit card processor (payment gateway). The credit card processor checks that the information it received about the order to be sure it has everything it needs to continue processing the transaction. It then determines what company manages the customer's credit card and transmits a request for the card to be charged.

4) The customer's credit card company validates the card and the account. If everything checks out correctly and the credit card is clear for purchases the credit card company sends an acknowledgement back to the card processor that the amount requested can be transferred. If the credit card company denies the charge it sends a code back to the credit card processor indicating what the problem was.

5) The credit card processor now tells the shopping cart program at the web host whether or not the transaction was successful (the shopping cart then can tell the customer whether or not the order was complete and send the order on to the merchant for delivery of the product or service). The credit card processor initiates a funds transfer (settlement request) to the merchant account company for deposit into the merchant's bank account that it has on record.

6) Internet merchant accounts collect the funds for a specified period of time and make scheduled transfers to the merchant's regular bank account and the credit card processing transaction is complete.

Start Online Credit Card Processing

The savvy business owner who plans to accept payments on the Web must form an alliance with a online payment processing company. There are a multitude of firms to choose from, and one should exercise due diligence in the selection process to avoid those that are overpriced and/or do not engage in fair-minded business practices.

Among the payment processing providers, there are two distinct entities: ones that provide merchant accounts and others that proclaim themselves as "no merchant account" providers. The latter group accepts payments on the owner's behalf and offers a rather easy set-up. Payments are taken on their site (not the owner's), and owed funds are forwarded to the owner two or three times a month.

The order form, either supplied by the owner, his/her Web designer or the processing company, is simple to design.

Once created, it must be on a secure server. When any customer enters his/her credit card information, it is sent in plain, unencrypted text form to the server hosting the Web site. As it is possible to intercept this data, SSL encryption (usually 128-bit) must be employed. Many merchant account providers offer this secure server with official certificate. An owner who is going to use a payment processing provider should not have to spend money on obtaining this.

The gateway serves to transmit information from the customer to the credit card processor. At first, within seconds of the customer submitting his/her credit card information, the processor either authorizes the transaction or declines it. If an authorization code is given, the customer's account is not charged, but his/her credit limit is reduced. Subsequently, the approved customer's information becomes "captured" and the authorized amount of money is then charged to the consumer's credit card. This capture becomes part of the merchant's batch and travels through the gateway again. The processor then knows to finalize and settle the transaction, and voila, the owner is paid. So the gateway is actually the owner's gateway towards profit.

Many merchant account providers offer a shopping cart that integrates with their gateway. Even if the owner already has a shopping cart, chances are good that the gateway can work in concert with it. It is best that an owner look for a merchant account provider that can serve as a "one-stop-shop," providing its own secure server with certificate, gateway and shopping cart.

Credit Card Processing Services: Easy, Cheap and Necessary

Your online business needs to accept credit cards. That's true whether your business is the next ebay or you're just selling your old collectibles on ebay. You're simply holding your business back if you don't accept the payment method of choice of the internet. Sadly, many people think they won't qualify for a new merchant account to accept credit cards, or that it will be too expensive or complicated. That might have been true a few years ago, but not anymore.

Why Anyone Can Accept Credit Cards

* Low cost. In the US, the cost of accepting credit cards is around $10-$20/month in flat fees, plus a small percentage of your sales, called a discount rate. For an offline business, the discount rate is as low as 1.69% (lower for debit cards). For an online business, discount rates are as low as 2.19%. Yes, online businesses are considered riskier and therefore are charged more. Still, 2.19% is much less than even many offline businesses were paying just five years ago. Non-US business will likely pay significantly more, but likely not more than a few hundred dollars a month and maybe a 6% discount rate. That's still a small price to pay to build a thriving online business. * No upfront fees. There are now merchant account providers that charge nothing upfront-no application fee, no deposit. (For US businesses only.) * No minimum number of sales. If you sell nothing in a given month, that's fine. Your account won't be cancelled so long as you pay a small minimum fee in lieu of transactions (usually around $25-$35/month). * Low credit threshold. Believe it or not, qualifying for a merchant account to accept credit card payments is easier than qualifying for a credit card account. Even people who have a bankruptcy on their credit report may qualify for a merchant account (though they'll be in a more expensive higher-risk category). The credit check only takes a few minutes. Just give the representative your Social Security number or EIN and you're done. For non-US businesses, the credit check might be a little more in-depth, but not impossibly so.

Why You Need to Accept Credit Cards

1. Prestige. Admit it: you can't be a real business if you don't take credit cards. At least, that's how the average consumer or entrepreneur sees it. 2. Trust. Accepting credit cards means your name, address, and social security numbers are on file somewhere with a bank, so you're a lot less likely to be a crook. It also means that your customers can dispute the transaction if you don't put out the goods. 3. Sales. Online customers make the vast majority of their purchases with a credit card. They are not going to change their ways for you. 4. Western Union isn't enough. Bank wires offer very little consumer protection, so no one trusts them for paying online. Besides, most people have never used it before, and again, they're not going to change their ways for you. 5. PayPal isn't enough. Some people simply don't trust it. There are entire websites devoted to horror stories with PayPal. Other prospective customers worry about having to set up a PayPal account to make payment. Even a slight doubt is enough to send many visitors to the "back" button. Don't leave room for doubt.

Why Accepting Payments Online Is Easy

* Easy-to-use gateway websites. With most merchant accounts, you get a login on a website of a "gateway" which lets you manage your entire account with up-to-the-minute information. It's very similar to online banking. * Technical support. Most merchant account providers offer telephone and email technical support to help you figure out how to use your account, including how to integrate it with your website. Tip: choose a provider with 24/7/365 technical support over the phone-and that doesn't charge an additional fee. * Preconfigured shopping carts and web payment forms. You won't have to do anything to your website if you opt to use a shopping cart of payment form that's already been set up by your payment processor. Just link to it from your website and you're done.

Why Applying to Accept Credit Cards Is Easy

* Online and telephone applications. You don't have to mail anything. * Fast. You can apply for a merchant account to accept credit cards in the morning and be taking payments in the afternoon. * No contract. Some credit card merchant account providers do not require an annual contract (for US businesses). The arrangement is strictly month-to-month. Of course, there are still companies that will try to lock you into a year-long contract, so be careful.

See how easy it is to take credit card payments? Don't wait any longer. Apply for a credit card merchant gateway today. It's easy to do, and your business needs it. Once you're taking credit card payments, you won't be be just like a real business-you will be a real business.Joel Walsh is owner of the website UpMarketMerchant.com. Get more information about credit card processing services: http://www.UpMarketMerchant.com

Third Party Credit Card Processing Vs. Having Your Own Merchant Account

We all know that accepting credit cards is the key to online sales. Unfortunately, most merchants are unaware that acquiring a merchant account can actually save them money. And in many cases, big money!

For this experiment, we will use a fictional character named Bill. Bill owns and operates a great online resources for marketing tools and resources. Bills website is a membership based website, and therefore could potentially be approved for both third party processing and an internet merchant account. Bill starts off processing his business with a popular third party processor who offers him the following plan:

Start Up FeeNone
Monthly FeeNone
Transaction Fees 13.5% (Initial or One Time)
15.0% (Recurring)

Bills sets up his business with this popular third party processor and charges $30 per month. He has built an extensive reciprocal link exchange directory, has purchased some PPC advertising on a few of the best search engines, and has reached a excellent spot in the content based search listings for the top 5 search engines. His customer base has grown from zero before accepting credit cards, to 150 members, is just one month. Bill cant believe his success at internet marketing, and is planning on building even more web based resources and tools for his website, thus increasing the value and content. He is ecstatic at the initial results, so lets take a look at Bills numbers:

$30 (Per Membership Sold) x 150 (Memberships Sold)= $4,500.00

$4,500 x 13.5% (Initial or One Time Transactions) - $ 607.50

$4,500.00(In total sales)
- 607.50 (Total fees)
= $3,892.50(Net profit after all processing fees have been deducted)

Ok. Well Bill certainly had an excellent first month accepting credit cards with his new business venture. But lets see how Bill would have made out if he would have secured an internet merchant account for his new business:

Start Up FeeNone
Monthly Fee$15.00
Discount Rate 2.35% (Initial, One Time or Recurring)
Per Trans Fee.30 cents
Gateway Mo. Fee$15.00
AVS Fees.10 cents

Now the first thing we see is that the merchant account company is showing us more fees. This may be disheartening at first sight, but we should really explore what these fees are, and how they affect our bottom line.

Start Up Fee: This remains the same. Bill paid zero to get setup with his new merchant account, just as he paid zero to get setup with the third party processing account.

Monthly Fee: The third party processor offered us no monthly fees, yet we must pay $15.00 with the merchant account company.

Discount Rate: The merchant account has labeled one of their fees as discount rate. These fees are the fees Bill will pay as a percentage of each transaction. They are similar to the main fee charged by the third party processor. This fee when charged by the merchant account company is substantially smaller than the high percentage charged by the third party processor. But we will wait till the end of this experiment to see who offers the better comprehensive deal.

Per Trans Fee: The merchant account company charges Bill .30 per transaction he processes through his merchant account. Of course, we have already established that Bill will pay no per transaction fees with the package he received from the third party processor.

Gateway Monthly Fee: Because Bill will also need an internet payment gateway for his merchant account to work online with his website, he will also be paying $15.00 a month for his Gateway Monthly Fee.

AVS Fees: The AVS fee stands for Address Verification Service. Bill will want to use this service, to help reduce potential fraud, and customer chargebacks to his merchant account. He will now pay an additional per transaction fee of .10 per transaction.

Lets see the numbers behind processing with a merchant account as opposed to a third party processor:

$30 (Per Membership Sold) x 150 (Memberships Sold)= $4,500.00

$15.00 (Merchant Account Monthly Fee)- $15.00
$15.00 Gateway Monthly Fee)- $15.00
2.35% (Discount Rate) x $4,500.00- $105.75
.30 cents (Per Trans Fee) x 150 (Memberships Sold)- $45.00
.10 cents (AVS Fees) x 150 (Memberships Sold)- $15.00

Total Fees (With Merchant Account)= $195.75

$4,500.00(In total sales)
- 195.75(Total fees)
= $4,304.25(Net profit after all processing fees have been deducted)

With the merchant account, Bill was able to keep substantially more of his sales for himself, as profit. Bill could use these extra resources to advertise more, expand his operation, and even hire someone to work for him, even if only on a part time basis. The point is that that the better deal in credit card processing is always with a merchant account as opposed to using a third party processor. Most third party processors leverage the high levels of risk and chargebacks they must face everyday, by charging enormous fees and rates to their entire customer base. Third party processors are synonymous with Adult related websites. This is the reason for their increased exposure to risk. They must charge high rates to overcome the losses they are subject to by processing for a category of merchants that, unfortunate as it may be for them, falls into a certain level of risk and fraud that most other merchants do not. Because the merchant account company restricts its clientele to only companies with non adult related content, they are able to offer an entrepreneur like Bill, selling online content through his membership based marketing website, a much better deal in credit card processing.

$4,304.25(Net Profit with Merchant Account)
- 3,892.50(Net Profit with Third Party Processing)
= $411.75(Total Savings with Merchant Account)

This experiment has shown that the average website owner can save substantially by choosing wisely when it comes to their credit card processing solution. We have proved that most any entrepreneur can and will save substantial amounts of money by using a merchant account for their online credit card processing, as opposed to processing with a third party processor. In our little test, Bill saved $411.75, and that was just in the first month alone. Remember, that the third party processor will charge more, 15.0% to be exact, per transaction, once the customer is charged on a recurring basis. This means that for the second month, Bill would have paid even more to his third party processor; $675.00 to be exact! And that is just on the first months returning 150 customers. Every time Bill has a recurring payment processed through his third party processing account, he would be subject to a 15.0% transaction fee on all those sales. Not a very thrifty choice for credit card processing.

As with any business decision, be smart. Compare rates and plans, and make sure the simple setup is really worth the cost. In most cases, your Merchant Service Provider can setup your merchant account in as little as 24 hours. This is faster than your third party processor, and adds even more value to the otherwise already vastly superior deal you are receiving with your very own merchant account.

Make the decision that is best for your business, and best of luck! Please visit Josh Greth at CardStreet.com. Copyright 2003 Josh Greth. All rights reserved.

Josh Greth has developed, owns, and is the reigning CEO of CardStreet Cardservice Corp. To date, they have established over 100,000 successful merchants and helped make their dreams a reality, by creating a simple, yet cost effective, means of credit card processing. For more information on credit card processing, or to obtain your own merchant account for a retail, internet, wireless or phone/mail order business, please visit CardStreet.com.

Benefits Of Online Credit Card Processors

We have all heard of PayPal. PayPal is an online credit card processor that allows online businesses to securely accept credit cards as a form of payment. In addition to PayPal, there are additional online credit card processors.

Online shopping has dramatically increased in popularity and each day more consumers think about purchasing online. Online shopping is popular because it is generally easy and convenient. Online credit card processors help to make online shopping hassle free. Online credit card processors are used by large or small businesses. In additional to nationally known companies, online credit card processors make it easy for work-at-home individuals to successfully make a profit selling homemade or wholesale merchandise.

For individuals interested in starting their own online business, finding the perfect online credit card processing company make take sometime. Credit card number are valuable information and unfortunately many account numbers are stolen each day. In addition to protecting the assets of your business, obtaining a secure online credit card processor will also protect your customers. Consumers do not want to be shopping or handing out valuable personal information to an unsecured website or credit card processing company. The best way to determine the success of online credit card processors is by searching for customer feedback on the internet. Many times clients will post feedback when they have had a positive or negative experience with a company.

In addition to personal and business security, fully researching the various different online credit card processors is a potential way to increase your profits. For allowing you to use their services, you are charged a fee. The fee and rates will depend on the online credit card processor in question. For this reason, it is important to shop around and find the best value for your money. Although cheaper rates are nice, it is not always better. Go with your gut instinct, if something seems too good to be true it may be. Research is an important tool in keeping your profits intact.

It is not uncommon to come across online credit card processors that offer certain guidelines or restrictions on their services. For example, there may be a select few of online credit card processors that limit the amount of sales it processes. This limit may be monthly, weekly, or even daily. If your business becomes a success, this restriction could only hurt it and could cause you to lose potential profits.

Another restriction may include the type of business that you are operating. Although each online credit card processor is different and they tend to operate under different standards, some online businesses may be a violation of their standards. A few examples of the businesses that online credit card processors may refuse to service are gambling sites, adult sties, or pharmacies. Before entering into a contract with an online credit card processing company, it is important to read through their contract rules and guidelines.

Credit cards are used by consumers because they are a convenient and easy way to participate in online shopping. If you are operating an online business, whether it be large or small, consider accepting online credit cards. There a wide number of online credit card processors available to serve your needs and help your businesses grow.Matt Garrett, SEO Services http://www.Accept-Credit-Cards-Online.co.uk

A Quick Guide to Third-Party Credit Card Processors

If you've ever looked into getting your own merchant account, you already know how expensive it can be. Application fees, setup fees, standard monthly fees, transaction fees... they all add up fast! It can be too much for a business that's just getting started.

There is an alternative. Third-party credit card processing companies handle your credit card transactions for you in return for a cut of your profits. Setup is typically either free, or there's a small, one-time fee.

Here's here it works: once you've applied and/or been approved and paid any applicable setup fees, you create ordering links for your products. These ordering links lead to the third-party processor's server, where they handle orders on your behalf. Credit cards and online checks are common ordering options provided by third-party processors. Some also offer a telephone ordering option.

After your customer places an order, that sale is automatically credited to you, minus the company's commission. You are paid by the third-party processor at regular intervals, according to their pay schedule.

So what's the big deal? Why would third-party processors appeal to startup businesses? Aside from the setup fee, you are only ever charged IF and WHEN you make a sale. If you don't sell anything, you're not charged anything.

Here are a few things to consider when researching third- party processors:

* How much is the setup fee? Don't be put off if there is one; three of the four processors I use charge a setup fee, and they've been well worth the small cost.

* Transaction fees. After paying these fees, do you still make a reasonable profit? I've seen fees ranging from around 5% to about 30%, with the average somewhere in the middle.

* Are there additional fees for accepting online checks or telephone orders? Does the processor even offer these as options?

* Settlement fees. Does the company charge to cut you a check each pay period, or to wire transfer your funds to you?

* How much is the reserve? A 'reserve' is the amount held back from each pay check as a "slush fund" against future refunds, returns, or chargebacks. What percentage do they hold as a reserve, and for how long? It's commonly 10%, 10%, held for 6 months before being released back to you.

* Pay frequency. Most pay either every two weeks, or once a month.

* Reliability. Talk to others who have used the service to see if they've had any problems. If your order processor is 'down', your customers can't buy!

* Restrictions and limitations. For example, is there a minimum monthly sales quota you must reach? Is there a maximum product price you can set? Does the company restrict what the type of content you can sell? Do they handle only tangible or intangible products?

* Customer service. Does the company respond promptly and helpfully when you contact them?

* 'Extras'. For example, are there reporting or tracking capabilities? Free use of a shopping cart?

Finally, here's a short reference list of several third- party processing companies:

* Clickbank, http://clickbank.com/ * GloBill, http://globill.com/ * Digibuy, http://digibuy.com/ * Revecom, http://revecom.com/ * iBill, http://ibill.com/ * 2Checkout.com, http://2checkout.com/ * Verotel, http://verotel.com/ * CCNow, http://ccnow.com/

As you can see, there are many options, so don't let a tight budget prevent you from taking orders online! Third- party processors are both convenient and affordable -- even for startup businesses.Angela is the editor of Online Business Basics, a practical, down-to-earth guide to building an Internet business on a beginner's budget. If you enjoyed this article, you'll love the book! Visit http://onlinebusinessbasics.com/article.html or request a series of 10 free reports to get you started: mailto:businessbasics@workyourleads.com

"Transition Your Mind - From Dependant Employee to Self-Sufficient Entrepreneur"Dave Hertner

There are a great many of you out there who are poised and ready to move into the next phase of your lives but you are stuck in the starting gate!! You have dedicated a part of yourself to the romance and excitement that surrounds a new business venture but there is something holding you back.

Today, I'm going to help you see into yourself so you can take an honest look at why you're having trouble making the transition into entrepreneurship.

As you grow yourself out of your current situation towards entrepreneurship, you will pass through three phases of development.

The first phase is the DEPENDENCY PHASE. Physical dependence is the same as if you were hooked on some sort of substance. Your mind has decided that it is completely reliant on something. It doesn't have to be a substance!! It could be a family location. It could be a physical impairment. It could be that you don't own the type of clothing that your mind needs to see your body in before it can accept that you can be someone different.

The mental and emotional component of this dependence is the most important part to understand. If you cannot get a handle on your dependencies in this area you will get stuck in this phase. That said, this is also the most liberating door to walk through. You have to sit your self down and take an HONEST look at your life up to this point. Remind yourself about your dreams!! Accomplishment in the absence of dreams is impossible!! Open yourself up to the possible and focus your energy toward that goal!!

The TRANSITION PHASE is the 'get up and go' phase. Here you are with a fresh look at yourself and a great business idea. You now face the fear of starting or, if you teem it with inertia, ' Fear of Departure'. This happens often when you have a secure, well paying job that you are contemplating leaving. There are two things that can combat this fear. You need the support of your family and friends and you need to have a business plan that you have completely internalized. This will give you the courage to step away (mentally at first) from that perceived security which is exactly what is holding you back.

The business planning that you have done up to this point will kick in now to carry you on through the execution portion of the transition phase. Lots of work needs to be put forth to ensure that your business is successful. Congratulations!! You're out of the starting blocks!!!

The last phase of development is the most gratifying. This is when your mind re-learns to open up. When you were a child, your mind was wide open to new things. That is how children can absorb so much so fast. Successful people, as compared to lucky ones are those that keep their minds open to opportunities. They are also emotionally ready to capitalize upon those opportunities.

In conclusion, I will leave you with this simple thought. You are the only warden over your mind. You hold the keys that can free your mind to see all of the opportunities out there.

Remind yourself of your dreams. See yourself for what you are today. Plan for your transition to success. Execute that plan and then allow your mind to be free and open to all of the opportunities that come along.

To the success of your business!!!

5 Millionaire Information Marketers Teach You How They Pull $10,000 Or More A Month! FREE Report shows you how and tells who these "Super" Marketers are and how they can help you reach your dreams! Your FREE information packed report is at: http://www.cyberwealth-institute.com