Reviewing the Best Merchant Account Providers

When an e-business person is thinking about adding merchant services to their website they usually get the sales pitch that understandably sells on what is good for the store owner. And while that list has some really good points to it there is on essential point that any virtual business person needs to keep in mind and that is people who like to shop online love to find the option of credit card processing online. In fact they have come to expect it – and do you want to disappoint someone trying to spend money with you.

Working in retail you can figure out the game pretty easily. Everyone who walks into your store has money in their pocket. The name of the game is how much of that money are they going to leave behind. This is why every day stores have helpful people working the floor, why they keep the shelves stocked and why they try and make the checkout process fast. And this is the same reasoning why people should have credit card processing on their ecommerce sites – shoppers expect it.

Picture this: You are shopping for a new refrigerator online. Like most modern-day Internet users, you type a related term into Google and click one of the first results. When you find a refrigerator model you like, you move on to the e-checkout process and discover that the website only accepts payments through Paypal or Cashier’s check.

Do you feel confident spending hundreds of dollars on a site that only accepts Paypal or, essentially, cash? Do you feel that the company is reliable and reputable? Do you feel secure in the way your purchase will be handled?

Paypal and non-credit card forms of payment are stepping stones largely used with eBay and start-up business purchases. For new businesses, Paypal offers a convenient way for consumers to make purchases online.

However, requiring Paypal or cash payments also requires extra effort on the part of the consumer: Either the buyer must have an already-established Paypal account, or he must create one just to make a purchase on a site. If the product you offer is available elsewhere on the Internet through a simple credit card transaction, you could easily lose sales from non-Paypal users or those who do not feel confident paying through Paypal or check.

If you are tracking your website in Google Analytics, you will probably see how many people click to buy your product but leave the site before completing a purchase. This figure is an indicator of how comfortable buyers are in your checkout process, and how simple the process is for them. A quick way to improve that number is by eliminating any extra steps, like signing up for a Paypal account, that are stalling the transaction.

Establishing a merchant account to accept credit cards through a company like CardAccept, which uses your own checkout process online, is an indicator to a consumer of your business’s credibility and long-term potential. Accepting credit card payments on your own says that your company is established, well-branded, and eager to simplify the payment process for its consumers. What could possibly be a better message to send to potential buyers?

Accepting credit card payments also allows you to brand the checkout process in the same manner as the rest of your company, rather than immediately transferring the consumer over to a generic-looking checkout page or ending abruptly with a request for a snail-mail check (leading to a large drop-off rate in transactions).

As consumers become ever-more dependent on both Internet purchases and cashless “in-person” shopping, it has become vital in our society for businesses of all sizes to directly accept credit card payments.

Being a merchant account holder is quickly becoming a necessity rather than a luxury for online merchants, and in today’s economy, successful businesses will be ahead of the curve. To apply for a way to accept credit card payments through your own site or business, fill out a merchant account application at www.CardAccept.com.

Like every entrepreneur, you would want nothing more than for your business to succeed. To realize this, your business has to earn and profit. You should get a return on your investment as soon as possible. Likewise, you should be able to create and take on systems and processes that make your business easy, convenient and enjoyable.

One good system would be availing of a merchant account that will enable your business to accept credit cards online. Banks and third-party merchant account providers for online and offline establishments would create an account for you so that you can offer credit card payment options to your customers.

Finding the right merchant account provider is not difficult as long as you know exactly what you’re looking for.

First, you should scrutinize prospective companies well. Look into their background and if possible, get some testimonials or referrals. You should also take time to call them and ask questions.

Second, compare rates and fees. The amounts vary for these companies so you need to study them carefully. Of course, you also need to consider the quality of their service.

Third, do they offer customer service and technical support? It’s very important that the merchant accounts businesses choose provide reliable assistance 24/7 because you’ll never know when you encounter problems with credit card processing or other similar issues.

Taking these things into full consideration, finding the right merchant account provider should be a zilch. Now you are one step ahead of making your business a success.

For most businesses being able to accept online payments provides major benefits. Customers are expecting for this mode of payment and it can enhance significantly one’s business cash flow.

Do you think your business is now ready to accept online payment? If your answer is yes, the following are online payment options which you can use in accepting online payments.

1. Internet Merchant Account

To accept credit card or debit card payments online, you will need to set up an Internet Merchant Account (IMA). There are commercial banks and providers that are now offering such account. Though you already have a merchant account which you usually use for face-to-face transactions, you will still need the IMA to accept online payments.

2. Third Party Processing

There are charges accompanied by the IMA. If you think it’s not cost-effective or you don’t have much money for it, you can consider using the third party processing. They take payment from your customers’ credit card on your behalf and forward the money to you.

Though there are also charges in using the third party processing still, they are not as high as the charges of the IMA.

3. Online Shopping Mall

An online shopping mall is a good alternative if your business is small and your IT skills are not that good. An online shopping mall will bring together several online stores on the same website. The mall will host your online store and accept online payments for you.

With these three options available, you’ll know what is best for your business. However, it’s important to only take advantage of the one you can benefit from.

Nowadays, more and more shoppers are finding it more convenient to shop using credit cards. It’s convenient because they don’t have to bring their cash with them always when they go shopping. With the credit cards, they can buy whatever they want at any price and store.

The arrival of credit cards to the business world has created a big impact to both the entrepreneur and the consumer. Both online and offline businesses are engaging to this mode of payment as they find it easy, safe and reliable.

However, some businesses are still wondering what these credit cards are all about. They are even asking how businesses can be able to accept credit card payments.

There are actually two important ways to make it possible to accept credit card. First is the use of merchant account. Though merchant account is not always a must, it’s still important if you have a big business. The application for merchant account may differ from one bank to the other. That’s why it’s important that you must first know that principal services of a certain bank before signing up with their service.

Another way to accept credit card is through a third party credit card processor. These are the merchants that are willing to accept credit card payments on behalf of your company.

Both of these ways can be a great help in improving one’s business. However, there are instances that the first way offer great features than the latter.

Hence, whatever way is considered, it is important that you know the benefits and detriments behind it.

As a business owner, you constantly juggle many different responsibilities. Administrative, human resources and financial duties can keep you from focusing on managing and growing your business. Questions regarding the value and accuracy provided by your credit card payments processor and its dependability should not be one of your daily concerns. While errors can and do occur in processing payments, they are extremely rare and are usually easily pinpointed and resolved by any reputable and established credit card payments provider.

Errors in funding payments to a merchant account are generally traceable to unusual activity in the merchant’s daily transactions, or suspected erroneous transactions received at the merchant account provider. A call to the merchant customer service or help desk number is usually all that’s required to supply the missing information and get the funding released to the merchant account. In some instances - particularly where a transaction has been run that has an unusually high dollar value, or one that is outside the range of activities that were agreed upon at the time the merchant account was opened - funds may be held by the merchant payments processor until documentation that details the questionable transaction can be validated. In extremely rare cases, funds may be held for a period of time such that the questionable transaction has sufficient time to “clear the system”. This activity is similar to a bank holding funds from a ‘foreign’ check deposit until the issuing bank can validate funds availability for the check in question.

Merchants who have been in business for some time and have historically enjoyed the benefits of a merchant account that enables credit card acceptance are familiar with the funding processes that accepting credit cards for payments entails. For new merchants however, or those just entering the arena of credit card payment acceptance, the funding side of the transaction may represent somewhat of a mystery.

In it’s simplest form, a merchant credit card account deposits funds from credit card payments into the merchant’s checking account The depository account may be the exact same checking account that a merchant uses for his normal business operations, or it may be another account opened by the merchant specifically for the purpose of accepting funds from processing credit card payments. If you are a new merchant, or new to accepting payments by credit card, the best recommendation is to open a new, unique  checking account at your bank which should be used specifically for credit card payments proceeds.  Thus the payments proceeds are the only dollars being deposited into the account and the process of balancing the deposits to the credit card payments activities is simplified.

Have you ever wondered where to find user or regulatory data regarding payment terminals, rules and regulations and what-not relating to how to accept credit cards for payments? Here’s a convenient listing for your use. Each of these links will take the user to a specific vendor, card association or regulatory authority:

http://www.hypercom.com/
http://www.lipmanusa.com/
http://www.verifone.com/
http://ingenico-us.com/
http://www.usa.visa.com/
http://www.electran.org/
http://www.northeastacquirers.com/
http://www.southeastacquirers.com/
http://westernstatesacquirers.com/
http://www.midwestacquirers.com/
http://www.greensheet.com/
http://www.mastercard.com/us/merchant/index.html
http://nacha.org/
http://occ.treas.gov/
http://www.federalreserve.gov/
http://ncua.gov/

Having a merchant account for your online business is one of the best ways you could boost your sales. Of course an online business still needs to have the best content, products and services and the best web host. But given that all of these are already on your side, the next thing you must include in your website is its ability to accept payments online. Shoppers look for sites that provide a wide variety of payment options so that they could practice their freedom of paying and spending.

Most often, websites that accept credit cards are the ones that have the potential of maximizing their profit in a shorter period of time compared to the sites who don’t. Credit cards are vital in mankind’s finance management. Many people live and spend using their credit cards alone. If you could accept payment online then you will expose your business to more people who are willing to pay you online through their credit cards.

It is a known fact that other payment processors are also being appreciated online other than credit cards. If your business has a good payment procedure then you will be very fortunate to just concentrate on your other marketing strategies.

As the economy has consumers increasingly aware of how fragile their finances can become, credit card companies are trying new ways to reach out to get people to sign up.

For example, 30 years ago most college students carrying a credit card probably were toting one that their parents had provided. No financial services company was going to grant them a line of credit back then.

Now card companies are setting up shop on campuses and offering things like t-shirts, ball caps, mugs, etc., as an inducement to apply. As a result around 75 percent of college kids these days have at least one card – though that number factors in those who carry one connected to their parents’ account.

Other attempts to lure in customers have yielded mixed results, like cards connected to celebrities. According to CreditCards.com few of those have stood the test of time.

There is a KISS Visa card for fans of the heavy-metal group that offers holders news about the band and discounts on KISS merchandise. And fans of Elvis have been faithful to the King’s Visa, but other celebrity-connected deals have come and gone.

At one time you could have Usher, Hulk Hogan, Reba McIntire, David Bowie, Hilary Duff or Billy Ray Cyrus, among others, on your card, but all of those are kaput.

There seems to be a disconnect when it comes to famous people and credit cards. We will use their perfume or wear their clothes but we really don’t want them in our wallets. It may be like the current American Express commercial where the young business person makes a bad impression by paying for a power lunch with a card that features the image of a cartoon super hero.

Not to mention that these days consumers tend to be more impressed by a great APR, airline/hotel rewards, gasoline discounts and other perks rather than a famous face.

And then there also is the roller-coaster ride of celebrity reputations. If there had been a Lindsey Lohan credit card it might have seemed like a good idea five years ago – today, not so much.

However, CreditCard.com is also reporting that a group that has typically shunned credit cards because of religious reasons, Muslims, is being wooed by some financial services companies.

A card that would follow the dictates of Muslim religious law is being marketing. Obviously it has some significant differences from the mainstream credit cards. Like instead of the variable interest rate, prohibited by their religion, Muslim customers would pay a set monthly fee, and their card would not allow the purchase of alcohol, tobacco and other products forbidden by Islamic law.

For more info on credit card processing please visit Cardaccept.com

With approximately two weeks left before the Aug. 4 deadline for submitting public comment, officials with the Federal Reserve are reporting a massive response from consumers concerning a proposed ban on certain trade practices in the credit card industry.

According to the Fed more than 19,000 comments have been received, which to date is the second-largest response in the agency’s history.

According to CreditCards.com, card industry representatives feel the number of responses has been artificially inflated by the widespread use of form letters provided by various consumer groups that did not require much effort on the part of people to file. Indeed, the Fed’s own site, citing the thousands of form letters, is only posting a representative sampling.

The credit card industry has not filed comments but is expected to do so before the deadline, which does not mean they have been totally silent.

“The Federal Reserve’s proposal is an unprecedented regulatory intrusion into marketplace pricing and product offerings,” said American Bankers Association president/CEO Edward Yingling in a prepared statement. “We are deeply concerned that these rules will result in less competition, higher consumer prices, fewer consumer choices and reduced consumer access to credit cards.  In short, everyday consumers will bear the real cost of these proposals.”

 The proposal would, among other measures:

 Broaden the disclosure requirements on credit card offers of promotional rates

• Prohibit rate increases except in a narrow set of circumstances
• Expand the amount of time cardholders have to pay their monthly bill
• Eliminate two-cycle billing

“Credit cards provide a convenient source of credit for many consumers, but the terms of credit card loans have become more complex, which has reduced transparency,” Fed Chairman Ben Bernanke told members of the U.S. Senate Committee on Banking, Housing and Urban Affairs. “Our consumer testing has persuaded us that disclosures alone cannot solve this problem. Thus, the board’s proposed rules would require card issuers to alter their practices in ways that will allow consumers to better understand how their own decisions and actions will affect their costs.”

After all parties have been heard from and recommendations are made a decision is expected before the end of the year.

There is a lot of discussion in eCommerce circles about when a business is big enough to have credit card processing. Or that point where it is getting enough traffic to warrant merchant services. Or should it be tied to reaching a certain level of profitability.

While there may be a grain of merit in all of the above, those arguments assume that online credit card processing is something that has to be earned by a certain level of business activity. 

And none of these things take into account the perspective of the most important component in this whole equation – that being the consumer. And this is the element that trumps all of the above. 

The nature of consumerism is that they want something – most of the time they want it as fast as they can reasonably get it. While that trait may not work well in other aspects of social behavior there are many people who have made their success out of successfully meeting that need. 

As such consider your business as though you were the customer clicking on to your site for the first time. They have no idea how big you are, and they really don’t care as long as you can deliver the goods. And they are going to expect to be able to at least have the option to pay by credit card. 

Likewise, the issue of the volume of traffic on your site. Again, if you can give them what they want they really don’t give a fig if they are the 10^th person to visit, the 100^th or the 1,000,000^th. 

By now you can guess how they feel about your level of profitability. The reason this point is being stretched is because too often decisions are made about small Internet businesses that take into account what is going on in the mind of the owner, not the potential customers, and that can be a big mistake. 

Because while you may be waiting to reach a certain level of traffic, sales, profits, page views, etc., your customer simply wants their needs and desires addressed. And if you can take care of their needs often enough, the traffic, sales and profits will be there.

 
Which leads to the inescapable conclusion that you should strongly consider online credit card processing services before your business goes live on the Internet. And if you are reticent to do so, consider that many big online businesses became so because they had merchant account services when they were small. 

The more you are look at your business from the outside in, the better perspective you will have in making decisions that will take your site to where you want it to go.

Can you imagine being in a line 10 deep at a checkout lane in your favorite store, with your shopping cart full, only to be told that they are going to check out the first two people in line then close? Do you think you’d shrug your shoulders and come back another day? Or do you think you’d find a new place to shop.

Or imagine the elections later this year. What if your candidate won the election with 80 percent of the vote. Would you say he squeaked by? That he was lucky? Or would you think he beat the opposition like a drum?

Finally, what if you were able to find what you needed only 20 percent of the time at your local grocery store? Would you keep shopping there? You would probably find a store that did a whole lot better than 20 percent.

The rationale for all this talk about 80 and 20 relates directly to online shopping, and a compelling numerical reason that online business people need to add merchant services to their e-stores.

According to several online retailing studies more than 80 percent of all goods and services that are purchased over the Internet are paid for using a credit card. Getting back to the above analogy about an election, the consumer is voting overwhelmingly for e-stores to accept payments online.

Among the reasons cited most often as to why people like paying with their credit card are:

•    Credit cards make the transaction go quickly
•    Credit cards allow them to track their purchases easily
•    Using their credit card offers buyer protections/affinity points
•    Using credit cards lets them stretch the payments over several months on big-ticket purchases

Perhaps a better way to look it as an e-merchant is that regardless of the reason, they want to be able to use their credit cards when they shop online and they expect online business owners to comply with their wishes. They certainly believe that the customer is always right.

So if you are one of those business owners, and you want your online business to grow and thrive, why would you turn away 80 percent of potential customers? Because people can be impatient and fickle when they shop online – if they don’t find what they are looking for they know there are dozens of sites they can click over to.

Make the effort and add credit card processing. Your customers will appreciate that you listened. And that 80 percent who prefer credit card services is a pretty large amount of folks to make happy.

A large part of the decision as to whether an online business will add credit card processing has little to do with buying or selling as it does sound business practices.

Most people start their own business for very specific, personal reasons. Some have always wanted to try their hand at running a company. Some have thought they have cultivated a winning formula and wanted to see if it would work in the marketplace. Others simply wanted to create an extra revenue stream that might or might not turn into something fulltime.

However, what all online business people eventually realize is that having an Internet business does not, as the cliché says, make them their own boss. Because when anyone goes into selling goods and/or services they suddenly have as many bosses as they do customers.

Or to put it another way the owner of any business may be in charge, but it’s the customers that will keep the business going. No business is going to survive – no matter how smart the owner is – if what they are selling or the way they are selling it has no appeal.

If you need to put a more positive spin, you can be your own boss if one of your early decisions is to do what it takes to make the customer happy. And that leads us back to the addition of credit card online processing services.

Today’s Internet shopper – and that number grows daily – wants to find the option to pay by credit card when they shop in the virtual mall. They like the speed and ease of paying by credit card. And more and more they are looking at any site that does not accept payments online with suspicion – why would any business not have merchant services unless there was something shady going on?

So when you add credit card services it is one more weapon in your marketing arsenal; as much as having a domain name that is easy to remember, a hosting services that keeps your site up and running, great selection and competitive prices. Again, those are business decisions but they also have a marketing element.

And, of course, when you take care of your customers they return the favor by coming back to shop again and again. And several online retailing studies have established the connection between credit card online processing services and increased traffic on a shopping site, as well as its positive affect on repeat business.

It has also been shown, by the way, that being set up to accept payments online also helps in terms of sales. People who are shopping with their credit card tend, more often than not, buy what they came to your site to find, as well as additional items.

So there is a mountain of evidence supporting credit card acceptance, not only as a payment avenue for your customers, but as a powerful and multi-faceted marketing tool. In the end the final question might be – can you think of a sound business reason to ignore the positives and not have credit card processing?

When an online business owner is ready to make the move to add credit card processing services to their Internet site, they may have no experience to draw on. And often this can lead to a solution that isn’t in their best interest.

This is because they are tempted to place their merchant services with their bank. They are looking for some entity they know and are familiar with. It’s where they opened their business checking account, it’s the place that may have loaned them money to start their business, and they probably get some sound financial planning advice.

But here’s the rub when it comes to using a bank as an online credit card processing source – they are what many call a “jack of all trades and master of none.” Banks handle savings accounts, checking accounts, money market accounts, mortgages, home equity loans, investments, etc.

And while their merchant account capabilities are probably right up there, what they can’t offer is the same level of service, flexibility and cost effectiveness as companies that do nothing but credit card processing.

Some businesses have even been told by their bank that they are “too small” for merchant services. However, to a credit card processor, there are very few business entities operating online that can’t realize the benefits of being able to process credit cards.

The end result is that banks are not the best option for credit card processing. Just because they offer those services doesn’t mean they are the best place to get them for your online business.

A noteworthy company that is a leader in the credit card processing industry is Charge.com (www.charge.com). For well over a decade Charge.com has been helping businesses with their credit card processing needs. With that level of experience the company has been able to offers its services to businesses large and small, from bricks & mortar to 100% Internet-based companies. They can do this better than most other companies, even your local bank, because it is all they do.

Along the way Charge.com has shown that superior service leads to customer retention, and that has translated into a streamlined (and free) application process that has most businesses able to accept credit cards within 24 hours.

And their rates are among the most competitive in the business.

However, something that also speaks volumes about Charge.com’s reputation is that the company has been honored by Apple, Magellan, AOL and Excite for its business practices. It has also drawn positive reviews from NBC Internet, Yahoo and netcommerce.

Don’t worry about offending your bank by not using them for your merchant services. With the additional sales and profits that will come your way from doing business with a company like Charge.com, you’re going to need a place that can advise you on what to do with your financial windfall.