Merchant Account Limits and Merchant Service Providers

For most merchants, using their merchant account to process their daily business to its capacity is something that they won’t have to worry about ever, but if so maybe a couple times a year. When banks issue merchants credit card processing accounts, they place limits on processing capabilities based on criteria such as their business longevity, personal credentials, business plan and the size of the business. Even businesses that anticipate fast growth and a high volume of credit card sales almost immediately or within a short period of time such as ecommerce merchants and telephone order merchants have limited processing in the beginning. For these types of business owners limited processing capability can mean limited growth; this can even limit the planned growth of that business based on a maximum dollar amount of revenue generated. Since the ecommerce boom at its inception, merchants have struggled with sourcing stable, uninterrupted credit card processing for a reasonable rate. Many times banks and processors will assess high rates to young merchants or ones that wish to grow fast. The rates that merchants pay are not the only financial constraints that they may face; many banks will hold a portion of their revenues for impending chargeback’s, even if that merchant’s chargeback ratio may be low to begin with. For ecommerce and telephone order merchants whose primary business is done based on card not present transactions, these fees come with the territory and are accepted. For these reasons, many of these and other merchants negotiating rates and fees with banks and processors can become more complicated when the initial rate is established. A common negotiating tool that businesses use when negotiating their discount rate with a processor or merchant service provider is the promise of volume in terms of both total dollars processed and the amount of transactions processed.

Economically, high volumes are good for both parties as banks will make more based on dollars processed and merchants can profit more with lower rates; however, the empty promise of high volumes is not uncommon and is swiftly followed up by rate increases and even slow pay times. For many merchants that resort to this tactic as a savvy negotiation, frustration and dismay often follows. These processing situations are followed by banks tightening up their criteria for high volume accounts for unproven businesses. This seemingly vicious cycle of merchant and bank relations is being sorted through at the beginning of the relationship today by merchant service providers, as prequalifying and rate negotiations are often finished before the merchant is set up with their account. This added step makes for a stronger relationship for all parties due to the fact that rate scales are established and banks are not bogged down with these issues after the merchant has been established. Merchant service providers can act as a buffer for a bank which banks appreciate, but for merchants, the relationship is simplified and an easier one to foster due to a single point of contact with established constraints. As with any relationship, trust is essential and in business, especially dealing with financial issues, trust needs to be the basis of that relationship. Whether approaching a processor, merchant service provider or a bank directly, every merchant needs to feel comfortable with the person they are doing business with; in every case well defined parameters need to be established at the outset.

About Stradafee:

Stradafee Limited is a leading international merchant service provider located in New York. Stradafee specializes in placing high volume global eCommerce companies. Internet merchant accounts makes it possible for online stores to accept credit cards as a form of payment for goods sold. For information on credit card processing for card present and card-not-present transactions please visit our corporate website at www.stradafee.com.

About the author:

Sager G. Loganathan is a freelance Search Engine Optimization writer specializing in the banking and finance industry. Sager Loganathan, a United States Marine Corp Veteran, has a Bachelor of Arts degree in Communications from the State University of New York at Buffalo.

Best E-Commerce Verticals

Today, ecommerce is not just an important supplement for established brick and mortar businesses, but stands on its own as a viable entity for small through large business owners to transact business. Just as the internet has transformed the way people do business, it has transformed entire industries and even created new ones. The importance of the web in business is much more essential to us than the transactions that bring in dollars for their owners and hosts; for consumers, gathering information about products, price shopping and seeking out services that may not be available to them locally are all ways that we spend our time on the internet. For merchants, success online is a goal that has become increasingly elusive and a task harder to complete due to factors such as increased competition, the current economy and consumer loyalty to walk in businesses.
For the businesses that succeed online, the level of success easily becomes the next logical challenge to undertake. Some of the best verticals or industries both online and off cross paths when it comes to their success growth rates. It will come as no surprise that the retail industry is by far on top of the list of best ecommerce verticals; however certain types of retailers enjoy a lot of success over their competitors within the retail industry. The sporting goods industry is a great fit for the internet as overhead is usually high for their brick and mortar competitors, driving operating costs up and available selection down. Online sporting goods outlets often have no warehouse and can offer low prices due to this fact; also, consumers need to try things on less or can do their shopping locally, then make their purchase online for a significant savings. Another online business that may not be as popular with mainstream America is adult websites. While many of these websites are a sideline of magazine and film companies, others stand alone as venues for members and to advertise DVD movies for sale. As some sites are deemed illegal, others are officially permitted. VOIP or voice over internet protocol is the ability to use an internet connection as a telephone line through a converter. They work in much the same way as a standard hard line; however, it offers options such as the ability to choose your number (even with an out of state prefix), unlimited long distance, low rates on international calls and a voice message service. The United States hosts many VOIP companies that offer these services not only to Americans, but even the international community. Tech companies like these offer unlimited membership at a low cost; however, the allure and excitement of them is their ability to innovate, expand change direction so fast.
Just as ecommerce has transformed in the United States relatively quickly, the global village is developing even faster. Businesses ability to source international customers and expand their trade is a springboard for continued success and stability for many years to come. In the end, the international community is eager to process American dollars as well as pay good money for the goods and service that American merchants’ offer on the open market.

About Stradafee:

Stradafee Limited is a leading international merchant service provider located in New York. Stradafee specializes in placing high volume global eCommerce companies. Internet merchant accounts makes it possible for online stores to accept credit cards as a form of payment for goods sold. For information on credit card processing for card present and card-not-present transactions please visit our corporate website at www.stradafee.com.

About the author:

Sager G. Loganathan is a freelance Search Engine Optimization writer specializing in the banking and finance industry. Sager Loganathan, a United States Marine Corp Veteran, has a Bachelor of Arts degree in Communications from the State University of New York at Buffalo.

How To Get a Merchant Account For The Adult Industry

Have you ever thought about selling products that are adult oriented? If you have, you must think of this business much different than the way you market and sell other products.

Because of the nature of the business, adult oriented products are considered high risk. If you plan to sell in this category, you will need more than just a license. Selling in this category will require you to have a special merchant account. Most banks and credit card processors steer clear of this category. Could you imagine what kind of response that would get if they did?

With the adult business, there are two payment methods, the monthly membership fees and the one-off fees.

With the monthly membership fees, you are going to get a certain amount of money every month. The one-off fees assist to create a client base of faithful customers. This will help bring the business more revenue and people will take notice.

You may experience a glitch if you use both at the same time. However, after using them for a while, they will have the intended effect. After you’ve made some money in the adult business, you can start to increase your customer and profit base by other means of advertising and marketing. This can be done through the internet and other forms of media. You should also make plans to get a merchant account now that your business has increased in profits.

Due to the nature of this business, you may not find many takers who would want to do business with you. The ones that will accept you may charge you more than the regular rate. This is because they are taking a risk on your business anyway. The ones that will take you may charge up to 20%.

Because you are charged a hefty fee, you may have to make some adjustments with your business. Or you can start all over again. You will have to do some research online to find someone who can assist you with your adult oriented business.

Another alternative is to find an offshore merchant account provider. The advantage of using one of these is that you will be able to pay a fee that is less than what the other provider was going to charge you.

With an offshore merchant account provider, you have more flexibility, even if you are selling adult items. You receive payments quickly and the system is easy to navigate. These merchant providers are very accepting of online businesses such as adult items.

The application process is not hard and is simple to do. People who are selling these items don’t need a lot of identification. These merchant accounts will make it easy to get an account that sells women’s exotic underwear and related items. If done right, adult merchant accounts can be very profitable for the merchant.

ABOUT THE AUTHOR:

Jennifer Loganathan is the President and CEO of Stradafee Limited. Stradafee is a leading international payments company based in New York. Stradafee is a retail and ecommerce payment processing provider specializing in international and Internet merchant account solutions. Stradafee also offers check processing, high risk merchant accounts and offshore merchant account options. Stradafee can help businesses of all industries and sizes. For more information on credit card processing and check processing please visit www.stradafee.com.

Things To Know About Using an Australian Merchant Account

If you’re selling products and services online with an international internet business, you will need an avenue to collect the funds. There are different ways you can do this.

In places like Australia, merchants are defeating the purpose if they resort to having customers sending payment in the form of a cheque or sending the payment information via e-mail. Doing the latter can cause a serous breach. E-mails can be intercepted at any time and the customer’s credit card information can be compromised. Why would any merchant want to subject their customers to such an inconvenience?

With an international business, credit cards are the most used form of payment, even in places like Australia. When Australian merchants accept credit cards for payment, the money can be deposited in their merchant account quickly. Having credit cards for their merchant account provides a quick cash flow for them. When you adapt to this method of payment, you can be assured of receiving orders and payments anytime of the day and night.

The orders that are processed should be using “real time” transactions. This means that once a purchase is made, the information is processed through a gateway. It takes a brief moment to check if your payment will be accepted or not. By the time you blink your eyes twice, the process is complete.

In order for the “real time” transactions to take place, merchants should have an internet merchant account. The Australian merchant can get this account from a bank in their area. The merchant will also need a payment gateway service to process the credit cards.

Or merchants in Australia can use PayPal. PayPal is one of the popular payment processors that is used all over the world, including Australia. Even though there are no monthly fees with PayPal, the merchant’s payment can take between three to four business days before payment is deposited into their account.

If the period happens to be on weekend, merchants may have to wait longer. Then there’s the thing about having high sales volume profits within one or two transactions. Payment processors like PayPal sometimes get suspicious and place a temporary limit on your account.

Only when you send in requested documentation from them will they restore it With the account originating in Australia, it may even take a while for a merchant to get their money.

When you’re operating an international online business in places like Australia, its better if merchants have a merchant account. With a merchant account, there are no limits or holds on high sales volume profits. Merchant accounts allow Australian merchants to get their money much faster, like the same business day. If a merchant works with an Australian bank to get an account, the banks have merchant accounts for VISA, MasterCard and BankCard.

When merchants do apply for a merchant account in Australia, they should be aware that they may have a lot of paperwork to fill out. The merchants will probably be asked for everything under the sun except the kitchen sink. That’s because some Australian banks feel they are taking a risk just by providing local merchants with an account.

Once the Australian merchants get up and running, they will be free to run their business and make lots of money.

ABOUT THE AUTHOR:

Jennifer Loganathan is the President and CEO of Stradafee Limited. Stradafee is a leading international payments company based in New York. Stradafee is a retail and ecommerce payment processing provider specializing in international and Internet merchant account solutions. Stradafee also offers check processing, high risk merchant accounts and offshore merchant account options. Stradafee can help businesses of all industries and sizes. For more information on credit card processing and check processing please visit www.stradafee.com.

How the Olympics Are Affecting China's E-Commerce Merchants

As we gear up for yet another Olympic games, all eyes are on China, as this is the first time in a long time that the games have been hosted by a country that has not been as friendly with the United States and Western democratic countries as we would all like. Within the past five years, China has risen to be not only a major economic superpower but it appears to more of a spoiler where other country’s economies are concerned. In the early stages of their manufacturing ramp-up, China purchased futures for a large portion of the world’s available steel on the open market, driving the price up for everyone else that wanted or needed it. In addition to the high steel prices affecting manufacturing and transportation costs, China was now able to expand their exports and be properly compensated for the goods coming from all the factories that their steel has built. It’s no secret that China has emerged as the number one exporter and manufacturer of low cost goods to the world; the price that they have had to pay for these volumes of goods leaving even a country China’s size is the strain on the transportation, security and commerce agencies that facilitate all of these moves.

As we close in on the opening ceremonies, the affects of increased security and traffic volumes have made Chinese commerce increasingly difficult. In fact, the strains on the security and traffic for those involved in the Olympic games has been affected to the point that China has ordered numerous manufacturing facilities to pause until the closing ceremonies are commence and the games are over with. This came about from an increase of lead times for the transportation of goods from facility to facility or facility to port and even port inland due to the traffic and security stops putting traffic at a standstill. In the end, the limited infrastructure caused the Chinese government to make the difficult decision to limit exports and place a pause on certain manufacturing operations; while it is clear that the manufacturing processes have been halted on their own or by government request, it does make sense that products sitting on loading docks doesn’t make sense or money for anyone. In many ways, this slowdown in their economy has affected medium and even smaller size merchants in China by halting the flow of goods leaving the country, their customers which, in many cases are consumers and end users will be forced to seek those products elsewhere. An indicator of this slowdown can be measured as simply as referencing the price of scrap steel, which is directly related to the price of raw steel on the open market, which has gone down recently. There is a light at the end of the tunnel for Chinese manufacturers and merchants and that is the closing ceremonies of the Olympic games. Until then, the Chinese economy in a slowdown is far better off than most economies in the world.

About Stradafee:

Stradafee Limited is a leading international merchant service provider located in New York. Stradafee specializes in placing high volume global eCommerce companies. Internet merchant accounts makes it possible for online stores to accept credit cards as a form of payment for goods sold. For information on credit card processing for card present and card-not-present transactions please visit our corporate website at www.stradafee.com.

About the author:

Sager G. Loganathan is a freelance Search Engine Optimization writer specializing in the banking and finance industry. Sager Loganathan, a United States Marine Corp Veteran, has a Bachelor of Arts degree in Communications from the State University of New York at Buffalo.