Having A Merchant Account Is No Longer An Option!

By Pat McDavitt

Setting up a merchant account makes it easy and affordable for your business to accept credit cards. Setting up merchant account services offers you:

* Improved customer satisfaction

* Larger customer base with more payment options

* Increased credibility for your business

With a merchant account you can offer your customers several payment options:

* Point of sale processing--Using physical terminals to process your sales

* Virtual terminal processing--To process telephone, fax, or Internet sales made at a web site

* Software--to make sales using your computer to process orders

Your company cannot afford to ignore the need to accept credit cards. Setting up a merchant account solves this problem. Any good merchant account representative can give you the information you need on how you can either add credit card acceptance to, or improve credit card processing for, your business.

Even if your company is considered high risk, (adult sales, gambling sites and other similar high risk business categories) a merchant account can be set up for you! Most US banks will not set up high risk merchant accounts. However, if your credit is good, offshore merchant accounts provide the perfect solution for your business needs.

When a customer says: "I would like to buy your widget. Do you accept credit cards?" A yes answer results in a sale. A no answer results in a no sale. Which answer is best for your business health? Well, that is pretty obvious!

Your merchant account services should offer a comprehensive line of payment solutions for your business--credit card acceptance, debit cards, and check acceptance--for all types of businesses including retail storefronts, restaurants, hotels, service companies, wireless merchants and mail, telephone or Internet order businesses.

Additionally, your merchant account should provide customer service 24/7/365 to provide the following information:

* Transfers of money into your designated checking account, monthly statements, chargeback and retrieval requests, and other issues that face merchant account holders very day

* Provide answers about your point of sale credit card terminal, need to schedules telephone training for you or your employees, need to replace broken equipment, or need additional supplies

Some important definitions:

What is a merchant account?

A merchant account is a special account that allows your business to accept credit cards as payment in person, over the telephone, by mail order, or over the Internet. You must have a merchant account if you want to be able to accept credit cards from your customers.

What is an acquiring bank?

An acquiring bank is the bank that holds your credit card merchant account. It is also the bank that transfers funds from your merchant account into your local bank account.

How do I apply for a merchant account and a payment gateway?

It's easy to establish a merchant account. You can submit an application online, by fax, or by meeting with a sales representative at your business location. Your application will be approved almost immediately, your account will be activated, and, if you're buying or leasing new credit card processing software or terminal equipment, it will arrive in just days.

What credit cards will I be able to accept?

You'll be able to accept Visa, MasterCard, Discover, American Express and Diners Club/Carte Blanche. In addition, you'll be able to accept debit cards that carry a Visa or MasterCard logo, purchase cards, and online checks.

What is the discount rate?

The discount rate is one of the processing fees charged to your merchant account. It is a percentage of your gross sales.

What is the "per transaction" fee?

The "per transaction fee" is a nominal charge for processing each transaction through your merchant account service.

What is a charge back?

Charge backs occur when a credit cardholder informs the credit card company that the charge was not authorized, or that goods or services were not delivered as promised.

What is a merchant account?

A merchant account is a special account that allows your business to accept credit cards as payment in person, over the telephone, by mail order, or over the Internet. You must have a merchant account if you want to be able to accept credit cards from your customers.

What is an acquiring bank?

An acquiring bank is the bank that holds your credit card merchant account. It is also the bank that transfers funds from your merchant account into your local bank account.

How do I apply for a merchant account and a payment gateway?

It's easy to establish a merchant account. You can submit an application online, by fax, or by meeting with a sales representative at your business location. Your application will be approved almost immediately, your account will be activated, and, if you're buying or leasing new credit card processing software or terminal equipment, it will arrive in just days.

What credit cards will I be able to accept?

You'll be able to accept Visa, MasterCard, Discover, American Express and Diners Club/Carte Blanche. In addition, you'll be able to accept debit cards that carry a Visa or MasterCard logo, purchase cards, and online checks.

What is the discount rate?

The discount rate is one of the processing fees charged to your merchant account. It is a percentage of your gross sales.

What is the "per transaction" fee?

The "per transaction fee" is a nominal charge for processing each transaction through your merchant account service.

What is a charge back?

Charge backs occur when a credit cardholder informs the credit card company that the charge was not authorized, or that goods or services were not delivered as promised.

How often will I receive funds from Total Merchant Services?

Total Merchant Services will transfer funds from your merchant account to any checking account you designate on a daily basis.

What type of equipment do I need to accept credit cards?

If you have a retail storefront, restaurant, hotel, or service business you can use either a hard-wired or wireless point-of-sale (POS) credit card terminal or a personal computer equipped with credit card processing software. If you have an Internet business, or a telephone order or mail order business, you can use a virtual terminal. With a virtual terminal, you do not need to load any software onto your computer. Since this is Internet-Based software, you simply need access to the internet. Other options include using credit card processing software. This is software that you load onto your computer. Authorizations are obtained by dialing into the credit card processor with your computer modem. Or, you can hand enter (key in) data into a point of sales (POS) credit card terminal.

Why do I need a separate account for orders I accept over the phone, fax, mail or Internet?

Because you never take physical possession of a credit card so that you can swipe it through a magnetic strip reader, both Visa and MasterCard use different criteria for evaluating risk and have different fee structures for card-not-present transactions.

What is a payment gateway?

A payment gateway links your web site to the credit card processing companies and your merchant account. When your customer enters his or her credit card number on your web site, the payment gateway obtains authorization for the charge and later handles the transfer of funds into your merchant account. Total Merchant Services works with the industry's most widely used and reliable gateways including the Total Pay powered by Authorize.Net, Plug N Pay, and VeriSign Payment Systems.

C. J. & Tuck Consulting, LLC owns and operates http://www.cashflownow.org. We specialize in Electronic Payment Processing Services and offer a complete package of electronic payment processing solutions. For more information, contact: Pat A. McDavitt, Author and Sole Manager of C. J. & Tuck Consulting, LLC Telephone: 512-837-1358 Fax: 512-837-0345

Article Source: http://www.artipot.com

Is It Actually Possible to Get a Merchant Account For Free?

By Chris Rempel

No beating around the bush, here. There's no such thing as a free lunch, and that applies to the merchant industry as well...

Everything has a price, whether it's in cash, time, and/or effort. Common sense tells you that no one in business to make a profit truly gives a product or service away for free. So it is important to find out exactly how the so-called "free merchant account" companies get your money...

This article is meant to educate you about the fees that the "free merchant accounts" actually charge. I hope that this will help you make an informed decision that's right for your business.

The Basics:

All credit card transactions are governed by what are called the Interchange rates. These are the fees that companies like Visa, Master Card and others impose on payments processed by a merchant. There are a number of tiers or levels in the interchange rate and each credit card will be charged according to the tier or level it qualifies for.

For example:

1. Qualified rate - This is the rate charged when the card is present physically at the point of sale.

2. Mid-qualified rate - This is the rate charged when the card is not present at the point of sale; rather, the merchant takes an imprint of the card.

3. Non-qualified rate - This is the rate charged for "MOTO" transactions (mail, Internet or telephone order).

Furthermore, there are a number of fees that are attached to the merchant accounts upfront or as back-end fees.

The following are the most common fees you might encounter:

1. Transaction Fees - this is charged each time a transaction is completed. This is a flat rate, usually ranging from $0.10 to $0.25

2. Discount Rate - this is a flat-rate percentage that is taken out of each sale processed through the merchant account. Discount rates range from 0.95% to 7% or more, depending on the merchant service and its intended use.

3. Authorization Fees - this fee is charged as soon as the transaction is processed. Even if the transaction is denied, the fee is charged.

4. Statement Fees - this is a fee that is charged routinely for the generation of a monthly transaction record.

5. Monthly Minimum Fees - there is always a minimum fee charged when the total fees of that month for a given merchant account do not equal the minimum required business transaction level. For example, if the minimum fee is $15 and the fees incurred from using the service are only $10, then an additional $5 will be charged for that month.

6. Termination Fees - this is a penalty that can range from $150 - $275 if the merchant (potentially one like you) terminates their account before the term expires, which is usually around 2 or 3 years.

7. Free Equipment - the terminals, machines and other equipment that you're "given" practically always need to be returned to the merchant account provider at the end of the term in perfect condition. It costs approximately $295 - $475 to replace (or pay for) a damaged "free" terminal.

8. Batch Fees - when a merchant settles their terminal a fee is charged. This is usually a flat-rate charge each time the terminal is settled.

As you can see, there are a number of expenses that will be incurred for any standard merchant account. There is absolutely no way anyone can provide you with a free merchant account, because the fees set in place by the issuing card companies have to be paid by someone, and someone else will certainly not be willing to pay for you to use their service at their own cost.

The truth is, these fees would be extracted in another manner, most of which would be indirect and "hidden". And in that light, it's always better to choose a company that clearly discloses its fee structure up-front, instead of being "lured in" under the premise of getting something for "free" - only to find yourself the victim of an endless barrage of hidden charges...

Though they're hard to find, there are a few merchant services that provide a great pricing plan with a low-cost fee structure. You'll be far better off looking into those types of offers, instead of chasing after the "free offers".

Bottom Line: Free merchant accounts don't exist.

It will cost you money to process credit card payments, one way or another. Always read the fine print (the terms and conditions), and realize that most merchant service providers that advertise something as being "free" will make their money by locking you into a steep contract of some kind - most of which are enforced with a steep cancellation charge.

So do your due diligence, and look for reasonable, realistic merchant account fees that make sense for your business needs.

Because an unusually "cheap" merchant account will almost certainly end up being an incredibly expensive mistake...

Chris Rempel highly recommends www.AcceptByPhone.com, which enables anyone to accept credit cards using any touch-tone phone (or cellular) for a FRACTION of the regular cost.

Additionally, click the link to discover how to find the best credit card processing rates for your business.

Article Source: http://www.artipot.com

What You Need to Know About Merchant Accounts, E-commerce, and Payment Gateways

By Chris Rempel

Whenever you read about an internet venture, you see phrases like "e-commerce payment processing" and "payment gateway". If you are just getting into the field, you should know a bit about the differences between a merchant account and a payment gateway - sometimes called an "e-commerce" payment processor.

If you are looking to peddle your wares on the net, then go ahead and read this article so you can understand more concerning the way payment processing works, what it costs, and the options that are there for you...

Here's the basic definitions:

What is a merchant account? A merchant account is a specific kind of bank account provided by a financial institution on a set contract. This will allow you to take credit card payments when conducting transactions. This is an approval-based product, that has separate fees and terms and conditions.

A merchant account allows you to take credit card payments from your clients. Depending on the merchant service, it is possible that you could also be able to accept debit cards and e-check payments.

For an online business, you will be required to get a payment gateway after you set up a merchant account. This will provide you with a shopping cart system with which your customers are able to buy and pay for whatever product they select.

The asset that a merchant account provides is that it has the capacity to automate your business - people will be able to put money into your account on the Internet, around the clock.

What is a payment gateway? - A payment gateway, exactly as the name says is the direct link between the shopping cart and the bank that processes the payment. This is generally completed online, in real time and involves authorization, processing and management of all online transactions. Immediately after the payment is authorized the organization would need to access their gateway graphical user interface in order to finish the transaction.

As you can see, the main difference between the merchant account and the payment gateway is that one is the license that allows you to take payment by credit cards, and the other is the medium through which the receiving of online payments takes place, including credit cards.

You should know that having access to payment gateway does not entitle you to take credit cards. The merchant account is an entirely different service that must be applied for and gotten before you are able to accept credit card payments. Keeping that in mind, many merchant providers also provide payment gateway services. A well liked payment gateway is Authorize.net.

Many times when you establish your business you will be given the option of opening some payment gateways or other services with which you would be able to receive credit card payments. When you accept this offer , many times you will not have to pay for set up charges that you would be required to pay when you apply for a merchant account. Sometimes, these may be beneficial when compared to a regular merchant account if you have low sales volume.

(Generally, if you are looking to do any sort of volume with your company - and I'm speculating that you are - it's better to simply obtain a merchant account of your own. It's more dependable, more affordable over the long haul, and you retain more control over the payments that are processed - also access to card/customer data)

Remember, a payment gateway will rarely include the approval of receiving credit cards, while numerous merchant accounts in reality offer the set up of payment gateways as part of the extra features affiliated with the contract with you.

Both the payment gateway and the merchant accounts are vital steps in establishing your online business on the way to complete automation. In fact, you may not understand how many sales you're forfeiting until you take the plunge and set up your own merchant account with a gateway...

Chris Rempel highly recommends www.AcceptByPhone.com, which enables anyone to accept credit cards using any touch-tone phone (or cellular) for a FRACTION of the regular cost - and it's completely mobile.

Find out why Chris and others think this service is the best way to accept credit card payments.

Article Source: http://www.artipot.com