Internet Merchant Account Articles

Merchant Account Limits and Merchant Service Providers

2008-08-16T12:05:00.000-07:00

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

2008-08-12T04:32:00.000-07:00

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

2008-08-11T07:42:00.000-07:00

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

2008-08-11T07:32:00.001-07:00

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

2008-08-04T15:26:00.000-07:00

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.

Merchant Accounts for Ecommerce Business

2008-07-23T11:17:00.001-07:00

Every business small, medium or large needs a merchant account. Today, it really doesn’t matter what your individual business is, if you are in retail or even low volume wholesale, then you can enjoy increased profits from the ability to accept credit cards. Markets change, however they may grow, and the internet has been hailed as the biggest contributor to their expansion. To say that the success that credit card processors and banks have had a fair shot at traditional, brick and mortar businesses is a fair assumption based on the thirty years that credit card processing has been available to businesses in the United States. The internet has made the transition for those businesses as well as new internet based businesses to thrive in international markets. Whether your business is product or service based, there is a market; in fact, some industries rely on the internet for their entire market. These types of businesses have bridged gaps between international and domestic business in that they have forced consumers to cross borders for their products and services.

The unfortunate reality of ecommerce is that while the businesses may be completely legitimate, they pay rates generally reserved for truly high risk businesses by banks and processors, daily. Domestic banks see ecommerce as high risk; their customers, a mystery and the business transcendent. The regulations’ that rule and preside over merchants and their credit card processing capabilities are antiquated to say the least. To say more is not necessary. Merchants have found ways to keep their processing fees low, or lower than traditional methods. Just as the internet brought together merchants and their customers, it has connected the very same merchants with international banks and processors that offer competitive rates while letting them enjoy higher volume limits and less restrictive regulations. Merchant service providers are a great resource when it comes to acquiring an international merchant account. Unlike many domestic banks and processors, they foster many relationships with banks worldwide with the ultimate goal of successful integration for each and every business that shows interest in their processing solutions. One of the keys to their success is no secret. With that much versatility, merchants can actually have a custom tailored credit card processing solution just for their business. They can offer full integration with the processor through them within seven days and services such as virtual terminals, third party fraud scrubbing, 3D secure processing and real-time reporting. With so many options out there, it will benefit the merchant the most by contacting a few merchant service providers and choosing the one that best fits your business and works within a time zone that you can live with. Another factor that separates certain brokers from others is that some specialize in certain industries and even businesses. For specialized industries, finding a merchant service provider that works your busy hours, can identify, help resolve and even protect your business against chargebacks is one of the greatest assets you can have as a merchant.

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.

Merchant Accounts for Ecommerce Business

2008-07-23T11:17:00.000-07:00

High Volume Merchant Account Set Up 7 Days or Less

2008-07-02T08:27:00.000-07:00

Many businesses in the United States and abroad have applied for merchant accounts within the last three to five years due, mostly in part by the inundation of new ecommerce businesses. With these new businesses starting up and performing maintenance on banks and processors current customers, set up and integration lead times have become longer. High volume, high capacity merchant accounts have become very popular among ecommerce merchants, especially; the internet boom sees no slow down in sight and the ability to get big and very quickly leaves new merchants with little choice but to apply for these high volume accounts from the inception of their business. The thought of a new business being granted a high volume merchant account is a new concept. Traditionally, businesses need to show an upward trend in sales, along with a proven track record of stability and low chargeback’s to be granted a processing limit increase. Today, many merchants are turning to banks and processors overseas for their credit card processing needs. International banks in recent years have become aggressive to gain business by offering high volume merchant accounts to new and young companies that wish to achieve high volume status from inception. The term seven days or less is a reality; processors and merchant service providers or brokers see the opportunity to enable new and young merchants to achieve high volume processing status and fill the gaps that a lot of banks cannot by funneling in business to their banks. This new way of setting up merchant accounts is proving itself to be a win win situation for the banks, processors and merchant service providers. Essentially, using a broker to prequalify customers and handle the brunt of the paperwork takes a tremendous load off of the processors and banks by handing them a willing and competent merchant. From the time a new customer’s application and documents are processed, integration and processing can take about three or four days; making a seven day window absolutely feasible. From the time a new customer is integrated, their merchant service provider’s job isn’t done. Through a merchant’s processing cycle, questions and issues always rear their heads; while they don’t offer all of the answers, a merchant service provider is a great tool and definitely the right, “first call” for a merchant to make, especially when dealing with chargeback’s. Having a high volume merchant account doesn’t mean that your account will always have a high limit. This is a little known fact that most banks and processors don’t disclose. Domestic banks offer high limit accounts and will even raise limits under the right circumstances; however if they see a lot of chargeback’s or the merchant isn’t using their account to the limit, that limit will decrease. Offshore banks typically won’t be so quick to judge an account in the short term. There is no proper or better protocol when dealing with these types account issues, just different rules for different banks. If you do have or wish to know more about how to obtain a high volume merchant account, contact a merchant service provider.

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.

High Risk Merchant Account Offshore or Not Offshore

2008-07-01T13:17:00.000-07:00

Like many industries today, the internet has affected banking in a profound way, both good and bad. A bold statement like that is arguably vague and challenging for the individuals that make up those two capitalistic icons of our time. The ability to integrate the two, both banking and internet has brought up new challenges each day on both sides of the table. With no template to go off of, innovations are calculated and the territory is uncharted, which can be both expensive and half the fun at the same time.
It’s no secret that a lot of businesses have sprung up simply because of the internet. Ecommerce is fairly anonymous, inexpensive and can be lucrative; these characteristics can be both a boon and the bane of virtual business owners as they describe most industries within ecommerce but leave the daily rigmarole up them. Due to the fact that much of the banking industry places much of the ecommerce industry in the high risk file, many business owners struggle with their ability to accept credit cards. This has become a serious and frustrating problem as the ability to accept credit cards is a hinge point for the online world. Daily issues that online business owners face deal with high discount rates, numerous fees and having a portion of their funds held in lieu of impending chargebacks. If you’re doing business online, then you face these and many other challenges every day or if you’re lucky, week. Many think it is simply unfair treatment and that honest businesses are paying the price for a few bad eggs; the bad eggs being scammers and bad business people that use the internet as a way of making quick money carelessly. As it would be great to say that there’s a solution and that banks and processors can be leveraged, they can’t and it would be unfair on them to do so. For merchants today, their processing options are more vast than ever before. Many merchants are turning to offshore banks for their credit card processing; this is an evolution brought upon by strict guidelines and outdated rules being enforced. Merchants going offshore can expect higher volume account limits, secure processing and online virtual terminals; however, payouts may take a few days longer due to time zone differences and that the money has to be wire transferred. Merchant service providers or processing brokers are experts in drawing the line between their clients going offshore and processing domestically. With bank and processing contacts all over the world, their motivations are really quite clear and transparency is easy to maintain.

Every industry is different; while an offshore may seem to be attractive for some businesses, a domestic account may be the right long term fit. Understanding their client’s business is essential to the success of both parties. Finding the right processing broker is important; brokers with experience in your specific industry or a portfolio that contains similar businesses may save you a lot of lost sleep. Knowing your businesses busy times, working similar hours and being able to effectively handling chargebacks makes it all worth it in the end.

About Stradafee:

Stradafee is a leading international payments advisor based in New York. Stradafee is a retail and ecommerce credit card processing provider specializing in global retail and internet merchant account solutions. Stradafee also offers check processing, multi-currency processing, high risk merchant account and offshore merchant account options. Stradafee can help businesses of almost all industries and sizes. For more information on check and credit card processing please visit www.stradafee.com

Written By: Sager G. Loganathan

Why Do High Risk Merchant Accounts Cost More?

2008-06-29T11:19:00.000-07:00

Today, having a merchant account is more of a necessity than a luxury geared toward your customers making impulsive versus need based purchasing decisions. Businesses, small to large, traditional or virtual are all eager customers of banks and processors the world over; the banking industry has changed regarding merchants and their credit card processing capabilities over the last few years. Due to the dominance of online storefronts merchants, banks and processors have been inundated with requests for merchant accounts for mainstream as well as specialty industries.

Banks generally classify merchant accounts into two risk categories, high and low; as there is really no in between, the only variance are terms, volume and the merchant’s discount rate. As a capitalist society, the US and even western European countries perceive ideas as opportunities and tend to mount an all out attack on industries and markets. The internet has enabled hungry businesses to achieve high volume, both in terms of sales volume and net and gross profit. As this isn’t a, “which came first, the chicken or the egg,” discussion, the reality lies in the timeline which shows that the internet has made possible a new consumer and a new merchant. With high volume sales in a virtual setting or even over the phone sales, it comes as no surprise that banks and processors place these merchants in the high risk category. There are a lot of reasons for this; lets cover the most obvious reasons that a merchant might be considered high risk. Risk factor depends on the likelihood that a chargeback might occur. As chargebacks are less likely in traditional storefronts due to customer signatures and the ability to verify the cardholder’s identity, those businesses tend to receive lower rates and be less restrictive. Ecommerce ventures and situations where card not present transactions occur pose more of a risk to banks and processors not only because of obvious consumer fraud and identity risks, but because of product and service quality, authenticity and fulfillment hazards as well. The fate most of these businesses endure is high rates, security deposits held for impending chargebacks and lower processing volume than they would like.

Merchant service providers or brokers have a foothold in these sub-markets as the rates aren’t going down and the banks and processors aren’t seem to be tightening their hold on merchants. A merchant service provider’s role is simple; find the best deal for their customer. What this means is different for each merchant and even certain industries. What it typically entails is sourcing banks and even specific processors for those industries and businesses; geographic location even plays a role. The refreshing part about dealing with a merchant service provider is the ability to custom tailor their processing. What that means for a merchant is the ability to monitor their accounts online or have a virtual terminal that can organize and batch daily or weekly submissions easily. For online merchants, whose entire business may be ran on a laptop computer, this type of flexibility is priceless. Going off shore and having an international merchant account is more popular today than it was in years past. Many merchant’s markets span the globe and the influx of currency transcends a simple geographic location. Basically, it doesn’t matter where the bank is, as the money is converted, taxes are paid and the money is available anytime. The costs for doing business internationally are not as high as you might think, but there are costs. For more information, contact a merchant service provider.

About Stradafee:

Stradafee is a leading international payments advisor based in New York. Stradafee is a retail and ecommerce credit card processing provider specializing in global retail and internet merchant account solutions. Stradafee also offers check processing, multi-currency processing, high risk merchant account and offshore merchant account options. Stradafee can help businesses of almost all industries and sizes. For more information on check and credit card processing please visit www.stradafee.com

Written By: Sager G. Loganathan

Merchant Accounts for Ecommerce Business

2008-06-29T11:13:00.002-07:00

Every business small, medium or large needs a merchant account. Today, it really doesn’t matter what your individual business is, if you are in retail or even low volume wholesale, then you can enjoy increased profits from the ability to accept credit cards. Markets change, however they may grow, and the internet has been hailed as the biggest contributor to their expansion. To say that the success that credit card processors and banks have had a fair shot at traditional, brick and mortar businesses is a fair assumption based on the thirty years that credit card processing has been available to businesses in the United States. The internet has made the transition for those businesses as well as new internet based businesses to thrive in international markets. Whether your business is product or service based, there is a market; in fact, some industries rely on the internet for their entire market. These types of businesses have bridged gaps between international and domestic business in that they have forced consumers to cross borders for their products and services.

The unfortunate reality of ecommerce is that while the businesses may be completely legitimate, they pay rates generally reserved for truly high risk businesses by banks and processors, daily. Domestic banks see ecommerce as high risk; their customers, a mystery and the business transcendent. The regulations that rule and preside over merchants and their credit card processing capabilities are antiquated to say the least. To say more is not necessary. Merchants have found ways to keep their processing fees low, or lower than traditional methods. Just as the internet brought together merchants and their customers, it has connected the very same merchants with international banks and processors that offer competitive rates while letting them enjoy higher volume limits and less restrictive regulations. Merchant service providers are a great resource when it comes to acquiring an international merchant account. Unlike many domestic banks and processors, they foster many relationships with banks worldwide with the ultimate goal of successful integration for each and every business that shows interest in their processing solutions. One of the keys to their success is no secret. With that much versatility, merchants can actually have a custom tailored credit card processing solution just for their business. They can offer full integration with the processor through them within seven days and services such as virtual terminals, third party fraud scrubbing, 3D secure processing and real-time reporting. With so many options out there, it will benefit the merchant the most by contacting a few merchant service providers and choosing the one that best fits your business and works within a time zone that you can live with. Another factor that separates certain brokers from others is that some specialize in certain industries and even businesses. For specialized industries, finding a merchant service provider that works your busy hours, can identify, help resolve and even protect your business against chargeback’s is one of the greatest assets you can have as a merchant.

About Stradafee:

Stradafee is a leading international payments advisor based in New York. Stradafee is a retail and ecommerce credit card processing provider specializing in global retail and internet merchant account solutions. Stradafee also offers check processing, multi-currency processing, high risk merchant account and offshore merchant account options. Stradafee can help businesses of almost all industries and sizes. For more information on check and credit card processing please visit www.stradafee.com

Written By: Sager G. Loganathan

ONLINE STORE HOW TO CHECKLIST

2008-06-19T06:51:00.001-07:00

So you are thinking of hosting an online store? You’re not alone as you know, and today the competition is getting stiffer. Most people that own and operate successful online retail sites have run the gauntlet of e-education the hard way for as long as online vendors made money the “easy” way. Well it’s not easy as we are trying to elaborate and there are basics that most people have nailed down; however there are the simplest of details that elude many new to the business, that don’t bear there ugly face till it’s too late.

An idea, a concept is not the most difficult of tasks to complete on the road to virtual success, but a necessary one. The question is, “Do you have a valid business plan?” Is your product or service in need by consumers? Most importantly, in starting this new online business, are you infringing on other like businesses or in conflict with a current or previous employer. If you cannot answer these questions, stop here and get them answered. Consulting with an attorney, if even for an hour or two may be sufficient. What you want to know is if your new business name or product is under copyright or contract with other companies and if there are legal restrictions on your industry, product or service. Finding the answers to these questions when it’s too late may prove to be expensive.

Securing suppliers and negotiating contracts is necessary. Shopping around for a manufacturer or supplier that allows you to vary your stock depending on your market needs is optimal; however, minimums and non-compete contracts often leave vendors with a lot of red lollypops when black licorice is all the rage. When starting out, try to negotiate the shortest term contracts you can. It leaves things open-ended, and that always benefits retailers more than their suppliers. Some industries have dominant products or little variety, so the answer is up to you, “Do you play it safe, or become an agent of change?”

My all-time favorite check to mark on the list is payment processing. I’m not talking about cash (which is king) or personal checks (hmmm), but your ability to accept credit cards. First things first, there are a lot more options available than asking the teller at the bank where you do your personal banking about a merchant account. In fact, that’s the last place I’d turn to, but that’s me. Next is what types of cards will you take. I hate it when I walk into a new store and have to look at the door to see what cards they take, if any! Yes, there are stores in my town that don’t take credit cards, some impose fees on each transaction (you can lose your merchant account for that) or require minimums for credit card usage (also a big no-no!) I don’t say much because the one is a deli and I prefer my turkey sandwich without spit and buggers. After basic card acceptance, the ability to accept Amex is definitely a plus. Believe it or not, many retailers don’t take it; number one reason being… Most US domestic banks impose higher fees on it. Quick answer? Go offshore, it’s a big world and internationally, Amex is very popular other places (hmmm, again.)

So now we’ve gone offshore; nothing wrong with it. In fact, it’s so mainstream today, that many merchants are getting paid partially or even in full in foreign currency, due to the weak US dollar. Obtaining a merchant account form a non-domestic bank is every bit as easy as a domestic one, they have proven to just as if not more secure than domestic banks due to enhanced third party fraud scrubbing and in-house processing (not farmed out.) Your tax structure is the same and all funds must be claimed, if you were wondering. A real benefit of an offshore merchant account is that international banks don’t often impose extremely high discount rates and erroneous fees that many domestic banks do. The reason is really simple; non US countries need to depend highly on purchases outside their own markets and that means a lot of credit card transactions. In my opinion, international and offshore banks are years ahead of western banks, but that’s just my opinion. Merchant service providers or merchant service brokers are a pretty good resource while you’re shopping for a merchant account. Touted more as industry insiders, they have relationships with a lot of banks and independent processors out there and can often custom tailor a processing solution just for your business.

In all, it’s a lot of information to take in, thanks for reading along and good luck in your new online venture!

About Stradafee:

Stradafee is a leading international payments company based in New York. Stradafee is a retail and ecommerce payment processing provider specializing in global retail and Internet merchant account solutions. Stradafee also offers credit card processing, 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 http://www.stradafee.com.

Written By: Sager G. Loganathan

Should you Start an Online Business?

2008-06-19T06:47:00.000-07:00

That question picks at so many small and even medium size business owners every day. If the answer was easy to answer, then the criteria for success in a virtual environment would be well defined and on a very short list. As there are so many types of businesses, the questions every merchant has to answer are as different as the businesses that they own or operate. In today’s economy, one would think that running an online business is a no-brainer compared to growing costs of traditional brick and mortar businesses.

The first two things to consider are whether the business is product or service based and is this, a spin-off from a walk-in store or going to be solely an online venture. Product based internet businesses naturally flourish in competitive environments when product supply and manufacturer variety is high. Online vendors spring up quickly enough to turn high profits due to high volume sales; some weather the storm, while others diversify, close up shop or struggle to maintain their sales relationships with the customers that they’ve done business with. For service based businesses, developing a clientele and maintaining a mutual trust is even more important than competitive pricing and service after the sale. Nothing could be more truthful in the ecommerce world that you just don’t know who is on the other side of the computer than in the internet-based service industry. It is best to leave it up the individual merchant what if any service-based internet business should be embarked on; however, the risk is lower on the product=based side of the table.

Keeping up with your clients and industry is so much of a gamble. As the internet can propel an individual, website or concept so quickly, every new merchant needs to have a plan in place for an influx of business. Pre-negotiated contracts, pertaining to volume discounts, lead times and actual inventory on hand are all tools that should be a must have going forward from conception and maintained throughout vendor-retailer relationships. Not fulfilling an order is e-suicide. Customer communication, in the event of backordering or out-of-stock items can save your e-life.
Have a multi-year plan, not necessarily a five year plan is not an outdated idea. We often like to think of the internet as a structure-less environment; however, failure to plan is a plan in stone for failure in the virtual world. It sounds cliché, but as the pre-eminent ever changing environment not researching, one-upping or tapping in on new ideas, markets or trends will leave you in the dust.

So, now you’re successful, your clients are satisfied and the future looks bright. Not bad, right? Commonly overlooked in even the long list of tasks to be completed by virtual merchants is maintaining and optimizing their merchant account. When it comes to getting paid, every merchant follows the money right to their bank; what many overlook is how much they are paying in fees and rates each month. As nearly all internet-based businesses are considered to be a moderate to high risk by banks and processors, many online merchants are turning to merchant service providers to secure them off-shore merchant accounts from international banks that offer secure, timely and inexpensive credit card processing.

As running an online business is as challenging, or even more so than running a traditional brick and mortar business; there are many obstacles and pitfalls to encounter. These were a few that we thought could be helpful. If you have any suggestions or comments, please, feel free to let us know.

About Stradafee:

Stradafee is a leading international payments company based in New York. Stradafee is a retail and ecommerce payment processing provider specializing in global retail and Internet merchant account solutions. Stradafee also offers credit card processing, 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 http://www.stradafee.com.

Written By: Sager G. Loganathan

How To Network On Myspace

2008-06-16T05:20:00.000-07:00

First there was the internet, then ebay, then google; now Myspace is quickly becoming a gateway for many internet users simply as a navigation tool. Essentially, this type of generic purposeful use of a specific URL is the epitome of what businesses and website designers strive for as it brings together a large variety of people that probably wouldn’t have otherwise met. As we all know what Myspace is; the importance of Myspace as a networking tool is that the user controls their level of interaction, accessibility and level of contact with other users from very broad to very specific.

Myspace like a few other popular meeting and self promotional web venues started with the younger generation in mind as a way for youth to associate and identify themselves with others like them and those they like. As many sites develop, the profiles of their users change as well. Today, Myspace has effectively bridged the generation gap and proved itself to be a useful tool for families, friends and classmates to keep in contact with each other as well as communicate events and other news in their lives. The future of the website and others like it is for businesses to host their own promotional webpages for their customers to visit and as a way to attract new clientele. Like advertisers have purchased ad space on websites for years in an attempt to attract specific demographics, self advertising on Myspace and its competitors may prove to be networking goldmine with the result being, creating new customers for merchants through continuous education and communication by the business and perspective clientele. There are as many possibilities as virtual commerce has no boundaries; however time and participatory levels will eventually determine how fast and far these types of networks will succeed.

Examples of networking through Myspace or other like sites may be as simple as a small business owner hosting a page that lets its customers communicate with one another about their products, or a cheap but effective way to keep clients aware of company news and direction or even an upcoming sale. More complex pages may assist merchants actually perform transactions by posting pricing and availability of products or services and the customer actually being able to make a purchase in real time through payment portals set up on the page for payment by credit card or check. As simple as it sounds many small business owners either turn to their own website construction or may want to keep or set up a Myspace page for more simple interactions. Those that may choose to set up interactive pages may find a hurdle to overcome in setting up a portal for their credit card processing. While it’s not difficult to actually find a bank that will set you up with credit card processing capabilities, the challenge is in the shopping. Nearly all online credit card transactions are considered to be high risk by banks and processors, so the concern is that high rates and excessive fees may turn the lure of a low budget ecommerce venture into an expensive headache. This type of business development is very much on the radar merchant service providers. Merchant service brokers or providers foster relationships with numerous banks and processors, giving them options for their clients when it comes to the right fit for them and their business.

As networking through and setting up business contacts through Myspace type sites is geared toward new and budding businesses, consulting with a merchant service provider may be educational and ultimately beneficial for you.

About Stradafee:

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 http://www.stradafee.com.

Written By: Sager G. Loganathan

Principles of Selling Online

2008-06-11T06:53:00.000-07:00

By this time, should we really be talking about this? This isn’t an article about online business ideas or a “How to” article on how to go about starting a successful business on the internet. This is directed more towards current ecommerce merchants and merchants that run successful businesses that see the value extending their businesses in cyberspace.

Rule number one is and will always be drawing customers into your online store. Imagination isn’t the key here anymore. Gimmicky half-baked ideas and stunts geared towards promoting a website is just tacky and seems desperate. I won’t elaborate, and you know what I am talking about. If you want legitimate success, try to be a bit more conservative. Join industry forums and blogs, or become active in your industry offline. At the end of the day, people want to see a face behind the screen. If your business is strictly virtual, then make that your battle cry; for every strictly internet based retailer, there are a lot of shop owners that wish that they had your overhead.

So now you have a stream of new and perspective customers beating down your door. I sincerely hope you can fill orders and support the products that you are selling, after the sale. I find this to be the single largest complaint about online merchants, and their brick and mortar counterparts exploit these failures till the cows come home, as well they should. The bottom line is that if you cannot provide technical assistance for, knowledgably assist your customers about or act as a liaison between the customer and manufacturer pertaining to a product that you have sold… then your fate will be sealed by those who believe you wronged in exactly the same manner that started whatever mess you find yourself in. The internet can be an unforgiving and unfair environment for the wronged; fairly or unfairly. Limit your exposure and if need be, eat a little crow; it may save your reputation and future business.

Finally, my favorite part of online sales, getting paid! High volume, high profit margins and low overhead are the reasons that we became online merchants, right? Surprisingly, many ecommerce smarty-patsies have it all figured out, with staff, infrastructure and backing, only to find out that their merchant account is a two out of ten when it comes to volume, accuracy, security and cost. Essentially, every online merchant pays a higher discount rate than their brick and mortar counterparts; this is because card not present transactions are considered high risk by banks and there’s little that can change that. The risks that online merchants take by processing cards online are far higher; consequently the rate of their chargebacks is much higher as well. As this is looking like an expensive sport, the payoff is commensurate with the risk if your merchant account is in order. High volume equals high profits; don’t overlook your processing limits. It’s an easy mistake to make. Think of your merchant account like a credit card, but in reverse. Forecasting your business growth can hurt future sales and get you in hot water with customers whose orders were not fulfilled due to their cards not being charged. Merchant service providers prove to be an irreplaceable asset to online merchants as they can move quickly and have a lot of resources at their fingertips. International and back up merchant accounts are becoming more normal than using your local bank and trusting that they’ll come through when there’s a glitch. Merchant service providers can assist in resolving issues with processors, customers and issuing banks when it comes to their merchant’s accounts. Having a first line of defense when it comes to the security of your processing capabilities is worth actual dollars; dollars that merchants are not charged when using a merchant service provider. Essentially, today online vendors can have access to very competitive rates on secure processing solutions with high volume capabilities.

As these are just a few principles of selling online; there are many more depending on specific industries. Thank you for reading.

About Stradafee:
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 http://www.stradafee.com.

Written By: Sager G. Loganathan

Online Banking for the Future

2008-06-03T14:47:00.000-07:00

How long did you think it would take for us to completely integrate our lives with the internet? It is almost too easy; today, we can research, pay for and learn to fix almost any mess we've gotten ourselves in to. In so many ways, the ability to be online has totally encompassed just about every industry. As merchants, the internet can draw customers in, help them research your business and products from the comfort of their own homes and in many cases even purchase without having to walk into your store. The last part may not be a good thing, because the probability for lost sales is higher on the internet.

If you had to say that there is a final frontier for the internet to conquer, then it may be the banking industry. Today, potential investors and customers have almost all of the tools that traditional banks as well as semi-unconventional and unconventional lending, investment and savings and loan institutions can offer. In fact, some banks prefer their customers to not see a counter person at all. With direct deposit, electronic transfers and the online loan application process being so user friendly, bank customers can assimilate themselves with online banking as they have with electronic commerce and online vendors.

For online vendors, online banking has been a godsend as well. Internet based businesses often have few if not just one employee, being the owner/customer service rep, parts person/ service man and guy that sweeps the floor at the end of the night. For them, multitasking is an understatement and the autonomy of being their own boss wears off quickly. If you're laughing, then I feel sorry for you.

For small merchants and all merchants for that matter, the ability to handle their banking online can free up valuable time that they can use to run their business more efficiently. Reviewing statements, paying bills and transferring funds are all basic tasks that merchants do without even thinking about them, but what about their credit card processing? As banks continue to place restrictions on credit for consumers and merchants, many merchants are looking to international banks for their credit card processing needs. Not only do international banks immediately give the merchant the ability to process and maintain their merchant accounts online, but in most cases, the application process is completed online as well. This differs tremendously from the outdated application process your local bank had you fill out even five years ago.

While there are domestic banks that are interested in your business; statistically, offshore or international banks tend to be more competitive, less restrictive and may not impose certain fees that domestic banks do. Merchant service providers are a great resource for merchants that are interested in getting hooked up with an international bank. Typically, merchant service providers have relationships with a number of banks as well as processors. There are even merchant service providers that specialize in certain areas of industry.

It may be beneficial to research one out that does a lot of work within yours, as they are in tune with their customer's businesses, know how to react in the busy seasons and can handle their chargebacks efficiently. Merchants can use virtual terminals to process cards, are provided with electronic processing statements and often have members of the processing, bank and merchant service providing team at the end of an instant message. If you are a merchant that is interested in an online merchant account, contact a merchant service provider today.

Jennifer Loganathan is the President and CEO of Stradafee Limited. Stradafee is an electronic payments company as well as an eCommerce and Internet merchant account provider. Merchant accounts make it possible for businesses to provide online credit card processing For more information on credit card processing visit http://www.stradafee.com

Just Where Are Our Dollars Going

2008-06-03T14:39:00.001-07:00

You know, every so often I like to sit down and write to just vent about what the hell it is that is going on in our country…being the United States of America. As a business person, it’s somewhat therapeutic to post an article and see if my views are much different than my fellow Americans. Usually they’re not; what I find is that we pretty much want the same things, more money, less drama and of course to be safe. These aren’t issues drawn on political lines, so why does every politician feel the need to let us know how safe, rich and happier we’re going to be WHEN they get elected? The answer is rhetorical and doesn’t garner a response. As I’m no professional pundit, scholar or “Objective party”, I find most of my views close to the average Jane or Joe, which I find so funny. Usually they’re the same things coming out of the mouths of the former. So, just where are our dollars going, to get back on track. Let’s start with taxes, no let’s not start with taxes, because if we go there, then I’m going to get audited. The bottom line is that they’re going up, not down or away, so there. Yes we’re all afraid of the IRS, so onto my all time favorite oxy-moron which is Wal-Mart. I actually love Wal-Mart. No I don’t but they have so much stuff, I can go in there for a quart of motor oil and come out with a turkey, some new underwear, a 36 pack of paper towels, a new shotgun, and my oil is changed. The concept of a Wal-Mart is great; however, the concept of Wal-Mart haters isn’t. If I go there once a month, that’s a lot; however, whenever I do, I notice the cars in the parking lot littered with flag, union and (my favorite) Calvin peeing on an import car logo stickers. If you don’t know what that was, Calvin is a caricature. These stickers are all patriotic; most of the cars they are on are domestics. That would be great if they were all parked at the union hall or just about anywhere else except Wal-Mart. You see, my experience with (and it is a lot!) the working class is that they (We) all want jobs to be kept in this country and the working class American is affected the most by jobs going overseas; so why are they (We) shopping at Wal-Mart? It’s just a bit hypocritical, that’s all. I HAVE seen “Buy American” bumper stickers on cars parked at Wal-Mart. Now, this isn’t a bashing session directed at Wal-Mart, they do what they have to do; but if you’re against jobs going out of this country and aren’t afraid to admit it, then don’t let us catch you there. Honestly, if my business was in the manufacturing business and had to pay someone with minimal qualifications $28 to $48 an hour to produce my product(s); then I might think of closing the doors and hiring someone in China to do it for pennies on the dollar. But I’m not, and neither are most of us. So now we have a choice, do we complain or not complain? There’s only one choice if you want to stay true to yourself. You know, the bigger issue is that we are becoming a nation of end-users, not exporters. While I like my cheap $.99 crap, I’m a realist and don’t lie to myself about why it’s so cheap, and I won’t buy more than I need because it was $.99 and I love the fact that the manufacturer made it for $.06, because as Americans that’s what we do. What I won’t do is donate $1 to an anonymous charity at the cash register (No I don’t hate kids or animals) just so my local crap vendor whoever they may be, can get a nice write off and get good press for it.

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.

Merchant Accounts for Online Dating Services

2008-06-03T14:32:00.000-07:00

Everyone just wants to find love right? Countless businesses have popped up around the internet with the sole purpose of enabling you to find that special someone to share your time with. Make no mistake this is a business, and the business of love is always a serious one. While there are no guarantees in life, and fewer in relationships, it seems like a decent gamble when you consider all of the factors involved. Most of the time the process begins with a questionnaire which puts you into a category; from there, personality tests riddled with control questions (that tell them if you’re being truthful with them) are administered to further break you down into segments where, hopefully your mate is or soon will be. Not too romantic sounding, huh? Well, if the end result is what you desire the most, then these minor hoops are a small price to pay for a lifetime of happiness. Ok, get up off the floor; if you get a few months or a year of happiness out of your spankin’ new relationship, then it was well worth it. Economically, a nominal membership fee is peanuts compared to what you’re going to spend on drinks in your ill-faded and probably drunken attempt attempts to bag a hottie. If you’re a female, then these sites are just as economically beneficial to you. If you play your cards right, you can eat out every night for free. Just joking guys. All the hoopla aside; online dating is a big and profitable business. When you look at profit margins and expenses, the picture begins to get clearer. Much of what you see on the site begins and ends in cyberspace; small staffs, outsourcing and limited office space can yield a wind fall within a quarter or two. Financially, it’s a win win situation as the fees are low and there’s no guarantee. Hey, even the guys that got suckered into buying swampland thirty years ago are not regretting that investment due to climbing commercial land prices and the fact that global warming is drying everything out. The point is that stranger things have happened than two people making a real connection via the internet. If you operate or manage one of these sites, then you know what I mean. An important part of the day to day operations in the online dating business is being able to collect funds for new customers as well as being able to renew existing customers. As 99.9% of these sites are totally legit; the fact that this is a fairly new industry coupled with it being entirely online put it in a high risk category with banks. It’s not anyone’s fault, that’s just how things are done. It’s safe to say that non-domestic banks to the US are much more progressive when it comes to E-commerce banking solutions. Merchant service providers and processors see this as a niche’ business with a bright future and work with many international banks that welcome the business. If you’re in the online dating business and are looking for or would like more information on how to obtain a merchant account for your business; seeking out a merchant service provider is not a bad place to start.

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.

Merchant Accounts for Concrete Plants

2008-06-03T14:20:00.000-07:00

As the price of fuel continues to rise, just about everything in our lives are affected. The price of the food we eat is as high as ever, services we use every day are more expensive to the point that we find ways to do without them and eventually turn ourselves off to certain industries all together. As we all know, some industries are more of a necessity than a luxury; some of these businesses are not feeling the pinch as much, but are definitely seeing a slow go of things these days. The building trades feel the brunt of the “Big money” cut backs as regional and national economies pinch pennies I hopes that unspent development dollars will lead to surpluses, which may lead to less tax hike for the next year. While the theory seems to be sound, the long term effects will be felt by tax payers and their families for years to come. One industry that spans the construction, planning and development industries is the concrete business. Concrete is used in nearly every building project; it’s literally the foundation that all projects are built on. More than an optional building product, concrete is a staple that cannot be avoided; that is unless you want to see a sea of one story, new construction buildings for the rest of your natural lives?

The increase in fuel prices affects the pricing of concrete more than many raw products, as it’s a product in itself of many other industries whose existence supports the concrete industry. As concrete is made of stone, the production of concrete graded sand and stone that meets a particular specification relies on the fuel pricing to remain at a level low enough to let those businesses control their costs, while not passing them onto their customers as much as possible. Unfortunately for the aggregate industry, fuel pricing has forced them to either raise prices or go out of business. After the hits that the concrete business has taken and prices have been raised, the construction industry has beared just about as much as they can afford, in terms of cost increases; now the money is coming directly out of the profit that the plants take. In terms of cost saving measures, monitoring their credit card processing fees and rates has become a popular way of keeping them in the black. As a lot of concrete purchases are over the phone, many banks impose higher rates to plants because the chance of fraud and theft are higher, due to these “Card not present transactions.” Many merchant service providers specialize in obtaining merchant accounts for these types of businesses through processors and banks that offer low rates and reduced fees. Taking domestic merchants offshore is a shift in processing trust that is becoming more mainstream and acceptable by US business owners, as domestic banks regulate their accounts with outdated regulations and their own need to increase their profits. It’s not that non-US banks don’t care about profits; it’s more a case of, that’s the way they have been doing business for years. If oyu’re in the concrete or aggregate business and are looking to better your processing capabilities, contact a merchant service provider today.

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.

The Banking Industry Tightens Up

2008-05-12T18:29:00.001-07:00

It is no secret that the banking industry is clamming up in the soft economy we live in today. It’s not hard for most Americans to point the finger at what or who is responsible for the shift in procedures and the banks willingness to do business with people and businesses. Today, we consumers and businesses encounter a mixed bag of reactions from the banking industry when going about our daily business; whether it’s shopping new car rates or going through the mortgage application process, or even making a capital gains purchase for our business. In all these scenarios and numerous other ones, banks have changed the rules. Some of the most common examples of this can be seen in low or zero percent interest rates on automobile loans contrasting to stringent regulations on first mortgages and home equity loans. Like any business, a bank has a memory and a lot of business is trial and error. Banks tried to be lenient with home loans for a few years and now we’re in the biggest housing market crunch in American history. Why? They took too many risks lending money to people they shouldn’t have. Not to sound mean, because we’ve heard the stories and all of them are sad; however, it’s not the banks fault that a customer willingly signs on for an adjustable rate mortgage, or sees a rate drop and immediately swings for the fences on his or her first mortgage, only to find out that they’ll have to feed their family macaroni and cheese and bologna sandwiches for the next thirty years while eating on patio furniture in their dining room. Don’t laugh! Truth is, they got sick of bologna sandwiches; not the banks fault. The fallout from a lot of this is that banks are scrutinizing every deal that comes across their desks and are forced to walk the line on qualifying criteria for loans. As well, they have been forced to lay off staff and find themselves making increasingly difficult decisions on, “the American dream” with little sleep and in a hurry.

Automobile industry, same thing; after September eleventh you could take your pick of just about any car or truck you wanted for zero percent financing for up to seventy two months. That was great for a while, but what about in 2005 and 2006, when it came time for those car owners to trade them in? What most Americans were met with is low trade in values due to low used car prices because of the huge inventory of used cars hitting the market all at once. This was not bad for banks; now they could raise rates on used cars because the prices were low and the best play the auto industry had was to lower rates on new cars. Sorry, they already played that card, so now what? Here’s an idea, source parts for American cars from China to lower costs, close American factories and bring the new car rate back down to zero percent.

The upside is that business and capital gains loans are accessible and banks are making an attempt to fix the problems created over the last six or seven years from the bottom up. Merchants and small businesses have been affected as well; banks are imposing higher discount rates and fees associated with merchant’s credit card processing capabilities to the point that some businesses are turning to merchant service providers to source them banks outside the United States for cheaper, less restrictive credit card processing. In all, we know banks aren’t perfect; however, they are taking the right steps today to ensure we have a tomorrow that is better than it was before the banking industry had to tighten up.

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.

Merchant Accounts for Skateboard shops

2008-05-12T18:26:00.000-07:00

Skateboarding is not an afterthought. For the last few years boarding has lost its skates in the public eye. Skateboarding is not a dead art; in fact it’s more popular than ever. Skaters have new things to do as well. Since surfers that needed something to do when the waves weren’t breaking or the weather was bad turned to “concrete surfing”, the basics of balance, skill and committing to a risk in a moment have been and hopefully will be the ethos that boarding enthusiasts will continue to live by. Today, as many skaters surf, so many snowboard and wake board as well. Its natural progression and the future will bring out crazier and more extremes of board sports for the new breed of athletes who are looking for more than a stick and ball experience. When I was growing up, if you didn’t want to be on the team, whether it was softball, soccer or whatever sport kids and young adults were taking part in at the time, you turned to an individualistic sport. As options were limited, tennis, track and skiing made up the short list. In a nation that has bread teamwork and forced social skill sets, the paradigm has changed and changed in a way that has created different values, goals and interactions for our kids while they grow up. Skateboarding and alternative sports may in fact be a metaphor for the new generation of a progressive society. Participation in individual sports is not for everyone; as there is no set practice to be late for, you really need to get out there and practice and be involved. From there, advancing your skills is mainly up to you and for that reason, the learning curve is what you make of it. Skateboarders and other one-participant sports love that aspect of these activities which leaves them in charge of their own future. Studies have shown that kids growing up without team related activities, who take part in sports like skateboarding, surfing and motocross were more likely to lead and less likely to succumb to peer pressures.

Like all sports, gear is essential and to think that a skateboard is a piece of wood with some wheels on it is just going to piss off skateboarders. If you’re a skateboarder, you know what I mean. As with all industries, skateboard manufacturers spend lots of time and money researching and developing new ways to make boards, trucks and wheels more durable, lighter and less expensive, in an attempt to increase their performance and help riders further the sport. Skateboard shops are not such fringe retailers anymore. Today the sale of boards and accessories still makes up a good portion of their revenues; however, many are expanding their product lines to include other extreme sports that are loosely linked to the skate scene. It’s not uncommon to see snowboards, bmx bikes and wakeboard equipment next to decks and trucks when you walk into your local shop anymore. Merchants see the trends and are preparing themselves for the next new rage. Remember, you used to buy your skateboards in a surf shop. Skateboarding is not going anywhere; however skateboarding is a sensation activity and skaters will look outside skating for a new rush. Consequently, skaters who haven’t picked it up as quickly or get sick of skating will try the next like sport quickly, and repeat until they find one that works for their lifestyle and natural ability. Shop owners need to be ready for everything. Their shops operate mainly on a walk-in basis; however, many operate websites to serve customers worldwide. A merchant account is a necessary evil, or is it. The terms that banks offer merchants is often an unreasonable proposition that they deal with but don’t have to. Merchant service providers can help small shop owners like skate shops and the like to better their situation. Getting good discount rates on credit card processing is available if you look for it. A good place to start is online. Look up merchant service provider if you’re interested.

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.