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

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!!!

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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.