We’re going to get back to the definition later, but for now, let’s concentrate on how credit card processing can help you, the merchant. Most importantly, the ability to process credit cards is hopefully something you’re doing now, but maybe you’re unsure if you’re getting the best deal or have had issues with your current processor, bank or merchant service provider. Some of you don’t take credit cards at all; for whatever reasons they’re not good enough and you’re losing business every day that you do not. And finally, some of you had one, lost it or gave it up and realize that it is again necessary, but want to do it properly and through the proper channels. All of these circumstances my readers may be in can be answered easily; you should be dealing with a merchant service provider. The simple answer is that merchant service providers can tailor programs and services specifically to your credit card processing needs.

Whether you take cards in person and swipe them through a terminal or you receive card information via the internet or telephone, you’re looking at a minimum three day process to receive your money. At the end of the first day you’re going to close your batch of sales and submit them (this is done automatically). On the second day, probably before you wake up, the file you sent settles with the bank. By the end of day two, that settlement file is delivered to the bank. At the beginning if day three, your account is funded. This is a basic funding flow, if you process checks online as well that is a separate file and can take longer. As every business and industry has its own set of needs; merchant service providers are a great way of selecting extra services that can enhance your userability and ease of daily fund processing and tracking. Some of these services include ACH check processing, help obtaining a credit card terminal, online reporting tools, virtual terminal for card-not-present transactions, gateway for your internet business, fraud scrubbing for your internet transactions, third-party verification services, and multi-currency processing.

3 Different Credit Card Pricing Methods

There are three pricing methods that you should be aware of, so you know which one may be the best fit for you.

The first is Pass Through, which gives the merchant a choice of per item, per auth, or per basis points. It also has an interchange rate plus per item, dues as well as assessment all passed through to the merchant. There is a monthly fee for this method.

The second is the Tiered method which is for both per item and standard bumps. A 2-tier (for both credit cards and check cards), it has two rates, Qual and Non-Qual; and 3-Tier (for both credit cards and check cards), has three rates, Qual, Mid-Qual, and Non-Qual.

Lastly Bill back, which gives the merchant a choice of a blended per item fee. Merchants that choose this method get a Targeted Discount Rate (2 target rates, one for credit, one for check card) and downgraded transactions are charged by bill back.

In closing, this article doesn’t even come close to actually defining credit card processing, it would be like defining business, because it changes as fast as its customers do. You, the merchant have many choices when it comes to who and how your credit card customers’ money reaches your bank account. Spend the time to contact a merchant service provider to see what services are right for you.

For more information on echeck processing, high risk merchant accounts and online credit card processing. please visit www.stradafee.com!

Even though a merchant account is considered one of the most valuable processing assets a business owner can have, many businesses spend a small amount of time actually dissecting and learning about merchant accounts. Through hidden costs and overcharging, merchant account providers can easily manipulate small business owners into processing situations that are much worse than they need to be. Merchant providers like these depend on the fact that business owners don’t want to take the time to learn about merchant accounts themselves and would rather just have it set up and be done with it. The thing is, merchant accounts not really very complicated, and within even a few hours most people will find themselves in a much better place to make a decision on the right merchant account provider.

Though merchant accounts are considered to be an insignificant part of doing business to some, they actually impact every single transaction that is made through a credit card. Even though credit card processing may seem boring or complicated, and it may seem that there are so many other things that are more important, merchant accounts are foundational components to a successful business. The only time credit card processing usually gets some attention is when it is not working properly or the charges seem to be outrageous, and by setting up the right merchant account to begin with, these problems can be vastly diminished.

The first step is to do some research and shop around. Even taking a few hours to search the web for various pricings and charges will help you make a much better decision. In the case of a new business, it is wise to spend time researching weeks prior to an actual need for credit card processing. This will prevent yourself from being rushed into a decision that you will regret. Internet merchant account research should include topics like the different types of merchant accounts, the fees associated, common problems, initial costs, and actual rates.

When it comes time to choose, be sure you pay attention to the actual transaction charge rates. It is surprising how many customers will actually sign a merchant contract without ever seeing their rates. Even if you have already discussed the rates with a sales representative, make sure they are correctly noted in the application. Also, if the rate looks a little too amazing, make sure you read the fine print. Be on the look out for other hidden fees or charges, because as most things, if it seems too good, it probably is.

The most important part of the process is to take your time. By rushing an application you only leave yourself open to make a mistake that might cost you thousands in fees and transaction percentages. This is something your business will have for a long time, and in order for things to run smoothly and at a minimal cost, a good merchant account is extremely important.

For more information on echeck processing, high risk merchant accounts and online credit card processing. please visit www.stradafee.com!

One of the few intimidating factors of online business is security. Some business owners are timid to launch into the online retail world for fear of fraud or identity theft for themselves or their customers. That is why it is important to choose an internet merchant account provider that uses SSL encryption to protect your information as well as your clients identity and payment information. With SSL encryption, you can rest assured that your business transactions are secure and protected.

Secure Sockets Layer, or SSL is basically a way to transfer data with military grade security. This extremely popular and proven method is utilized by every browser and web server, as well as virtually every transaction website of any significance. SSL is basically a form of encryption that disguises the information transferred on the Internet. Anyone can tell that a page uses SSL encryption by looking at the prefix of the url. Those web pages with encryption will usually start with the letters “https”. When information is encrypted, it is basically written in a form of code that is extremely difficult to break without the encryption key.

Web browsers, such as Internet Explorer Firefox, utilize SSL by having digital certificates that serve as their SSL identities. These certificates are used to create public encryption keys that are sent by the browser after the initial authentication of a transaction. The website’s server then decrypts the key and another set of keys is created for simultaneous negotiations that may follow. Once the keys are generated, the transmissions or transfers begin through a secure tunnel, which is also extremely secure.

This kind of protection is extremely important for any online merchandiser, service provider, or any business that deals with private information of any kind. Not only for the protection of clients, but also for building the right kind of trust for clients to feel comfortable in making online transactions. SSL should also be considered extremely valuable to those involved in industries where fraud is quite common. Industries that people are already suspicious about need to offer some sort of security guarantee in order for customers or patrons to feel comfortable doing business with them through the web.

Secure encryption like SSL adds protection for you and your customers as well as providing legitimacy and trustworthiness amongst your clientele. Take the time to make sure your merchant account provider, or payment gateway uses the proper encryption so that you are not left vulnerable to fraud or responsible for someone else who is.

For more information on echeck processing, high risk merchant accounts and online credit card processing. please visit www.stradafee.com!

With the increase of Internet sales, thousands of people are getting started in the online retail world, seeking their fortune. Yes, there is quite a fortune to be had, but only when done correctly. Online buyers are becoming savvier by the second, and just as we have found an increasingly scrutinizing consumer eye in the real retail world, online consumers are very leery of losing their money or getting ripped off. That is why every ecommerce business must be very strategic in establishing their web presence and customer interface. Here are a few suggestions to get you started along the path of a profitable online business.

Filling your website with valuable, rich content regarding the subject matter of your business is an invaluable way to boost your site to an authority status. The better your content, the more people will link to you and the more people will become engaged. This makes them much more likely to return and spread the word to others. There is no substitute for quality verbiage and helpful content. The more unique and focused your website and its content, the more likely visitors are to consider you an authority in your niche of business. Fresh, quality content also influences your business’ branding effort. Branding is one of the most important aspects of your business image, and with the advent of ecommerce, it may very well become the single most important part of your marketing presence. Consider how your business might effectively develop your own brand name. It will go a long way.

The next very basic thing to include on your website is the ability to process credit card payments. Credit card processing decreases overhead, increase ease of purchase, and legitimizes your online store. In order to establish credit card processing you will need to obtain an Internet merchant account. There are various providers and plans, so do your homework and find an Internet merchant account that works best for you.

If you really want to be successful, you should also concentrate on the design concept and development of your website. Many online retailers under-budget or spend little time considering their website’s actual appearance. Believe it or not, this is actually a very important factor for online buyers. Just like in the real world, people like to be surrounded by nice design and organization while shopping. This is also something that will continue to shift as your business grows, which leads me to my next point. You must use some type of tracking or analytics on your website so that you can follow your visitors and see where they might be having hang-ups or where you are losing their attention. This is a constant process of improvements and is vital for maximized profits. Leave your site alone, and it will grow stagnant.

The final, most important concept when starting an ecommerce website is a long-term vision. Many retailers are looking to start turning profits immediately, but the reality is that most sites take several months if not years to develop into profitable endeavors. For this reason it is important to keep working hard to improve your site with a vision for the future. Just because you are not seeing the results you expected up front does not mean it will not develop into an extremely profitable business. So hang in there!

For more information on echeck processing, high risk merchant accounts and online credit card processing. please visit www.stradafee.com!

With the surge of the cyber world, home businesses have never flourished more than they are now. Whether you are an online retailer, artisan, craftsman, or practice any number of trades in the comfort of your own home, there has never been a better time to let your business grow. One of the most important steps in promoting your home business is being able to take credit card payments. You will be amazed at the level of legitimacy presumed from this simple ability. Accepting credit cards can increase sales, allowing customers to purchase or make payment immediately, and it can also reduce the number of bounced checks or invalid payments.

Though credit card processing can really impact the level of success a home business experiences, many business owners remain hesitant, and though the process may seem intimidated from the outside, the reality is that accepting credit cards has become an increasingly simple process. If it isn’t the process that worries home business owners, it is the fees. Many small businesses are afraid of the fees and credit card percentages that will be deducted from their sales when using credit card processing. However, with the rapid growth of ecommerce and the flourish in the number of credit card processing providers, the industry has become extremely competitive, offering much better rates to new businesses. In almost all cases, the sales increases make having the ability to take credit card payments completely worth the effort and fees.

The first step in the process that a business operator should understand is that they will need to obtain a merchant account. Merchant accounts can be secured though banks, third-party providers, as well as a number of Internet merchant account providers. Most people are turning to Internet merchant account providers because the fees and rates are far more competitive. Another advantage to establishing a merchant account in this way is that most providers also have the ability to help you set up everything else you need. They will either direct you to, or provide you with a payment gateway, recommend website tools or changes, as well as help you test an order.

There is no reason to delay in obtaining a merchant account and moving on your way towards accepting credit card payments. Many people never deal in cash any more or lug around old receipts, and paying with a credit card makes things simple while providing them with a record of their transaction. So take the time, do your research, and find the right Internet merchant account provider for you. High risk merchant accounts and offshore merchant accounts are also available through some providers.

For more information on echeck processing, high risk merchant accounts and online credit card processing. please visit www.stradafee.com!

Every merchant account agreement has its own policy on the implementation of fees associated with processing payments. The convenience of easily accepting credit card payments over the internet brings an incredible amount of freedom and opportunities to business operations, but with that convenience comes some cost which takes the form of credit card processing fees.
In order to take payments online, four different things must be in place, and each may come with their own host of fees and charges. These necessities include a merchant account, a shopping cart system, some type of web hosting service, and a payment gateway, and they can each tack on their own fees and pieces of the pie if you are not careful. With the competitive nature of merchant accounts in the US, many merchant account providers also provide some of these other services in packages or eCommerce bundles. I will describe the different types of fees that may be associated with setting up your merchant account and credit card processing. Be sure to ask about each of these fees to be certain you are aware of everything that will be charged to your account.
Some merchant account providers will first charge an application fee or processing fee to cover their expenses for looking over your credit history, business history and background. Many merchant service providers wave this fee to gather more business. This is not necessarily the best scenario, as some providers that do charge a fee, charge it because their time is valuable and thus cannot be wasted. This only adds credibility to that provider. After the application fee, there is usually some type of membership fee which is most commonly charged on an annual basis. Membership fees are most common when purchasing merchant account services for specific industries or through trade organizations. Then the Set-Up fee usually comes next. This is some type of flat fee for the activation and setup of your account and may also include gaining access to an online payment gateway. This gateway access will be the portal you use to actually make the credit card transactions online. If you are purchasing these services individually, there will certainly be some type of access fee for using the secure server for approving and processing credit card transactions through a payment gateway. As I said before, some merchant services may include this payment gateway way in their initial set-up fee.
Once the account is in place then come the monthly fees. Monthly service fees are usually in place to make sure a merchant service provider covers their maintenance expenses when the income for that account is below a certain amount. This may look like a base amount a business must pay for merchant services when there are little or no sales. Merchant account providers make the bulk of their income by collecting a percentage of every transaction. Credit card companies take their cut of that percentage, and the rest is income for the service provider. That is why other fees must be charged to cover accounts that have little or no income. It is difficult to cover their costs when they are not gaining enough in transaction percentages.
The last most common fees that many businesses will encounter with merchant services are chargeback/reversal fees. Any time a credit card payment is charged back by a consumer, the merchant service provider will usually have a predetermined fee for correcting the situation. These are very similar to overdraft fees or bounced check fees for a regular bank account.
It is important to ask about each of these types of fees that might be associated with setting up an internet merchant account for your business. As I said before, you will encounter many providers that combine or eliminate fees to increase their business and add value, but it is important to verify what that provider’s policies are regarding each type of fee so that there are no surprises.

For more information on echeck processing, high risk merchant accounts and online credit card processing. please visit www.stradafee.com!

Accepting credit cards is a fundamental part of doing business in today’s world of plastic carrying customers. Some people rarely use cash anymore, and lugging around a checkbook is out of the question. So it is vital for small business owners to have at least some means of accepting payment through credit cards, but why should they go with a merchant account? The advantages of merchant services are better understood after acquiring more information on merchant processing.

The basic function of merchant processing is to give businesses the ability to accept credit card payments. This is accomplished through a system serving as a link between the cardholder, the merchant (business), the card issuer (bank or other institution), and the acquirers (or the merchants bank). When a card holder begins a transaction by making a purchase from the merchant, the merchant submits that credit card transaction for processing. When the card issuer authorizes that transaction to merchant processing, the acquirer then pays the merchant for the amount of that purchase (or transaction).

So why is this important? With the ability to take credit card payment through merchant services comes many advantages. A retailer or merchant can increase their revenue by making payments simpler for customers. Administrative costs will decrease, making room for more profit, and the funds from payments can be accessed faster and more efficiently. These tangible advantages can mean a huge turn in the success of any business, but it doesn’t stop there. The ability to conduct business through credit cards also brings a certain intangible legitimacy to a store front. Merchant services will help project an image of professionalism and innovation to the modern customer who has many businesses and services to choose from. By improving the payment process in this way, customers will associate simplicity and safety with making their transactions.

There is of course, the possibility of accepting credit card payments through a third party credit card processor. Though this is a viable option, it is not the wisest decision in terms of cost and efficiency. With a third party, the fees and percentages are higher, making it more expensive to accept credit. It will also take longer to access payments and transfer money to the correct accounts. A third party payment system also directs customers away from your actual website store front, and will appear much less professional.

The advantages of applying for merchant services are tremendous in the world of business. Reduce payment errors, make transactions more efficient, and receive payments quicker, all the while pleasing customers by making the process more convenient. Credit card payments can be accepted in many ways through merchant services. If a business is hosted online, brick and mortar, or telephonic, merchant processing will make it possible to take credit cards quickly and efficiently, giving any business the competitive edge it needs for the modern world of commerce.

For more information on echeck processing, high risk merchant accounts and online credit card processing. please visit www.stradafee.com!

Shopping online has become extremely popular amongst adolescent teens, and even more so for those that are still without a driver’s license. Though this age group is too young to have their own credit cards, they are the largest growing demographic. And when you think about it, it just makes sense. Instead of parents having to walk around malls for hours for back to school shopping or other needs, they can sit their computer savvy teens at the computer to pick out exactly what they want. When it comes time to buy, they just hand over their credit card or go through the payment process for them. How much more simple is that than running from store to store? The kids can even take as long as they want finding the things they want, saving their shopping carts from day to day so that parents can make the purchase when it is convenient. According to ComScore, four out of five kids from the ages of twelve to seventeen spend time on retail websites. In 2006 alone, Ebay had almost six and a half million teen users. These figures are way to big to ignore, and online retailers have to be savvy to their young audience in order to take advantage of the huge opportunity. This includes advertising, layout, and simplicity.

Keeping up with product trends is an obvious necessity for any retail store desiring to compete in the teen market, and this especially goes for online stores. Utilizing trend following advertisement, product displays, language, and music is likely to keep a teen’s attention. However, you must keep a balance of trendy innovation and simplicity. It is somewhat of a misnomer that teens are super tech savvy. Yes, this age group has grown up with the advantage of many technological advances such as text messaging and mp3’s, but when it comes to monetary transactions and comprehension, their level of attention and proficiency is quite low. They cannot be expected to spend time reading lengthy explanations or follow an extremely long series of steps to make a purchase. The buying process must be very straight forward and fast.

One of the major ways to increase simplicity is to have your own Internet merchant account or credit card merchant account. Yes, you can use third party processing services to allow your customers to make a purchase, but this complicates the process by adding an extra set of instructions and pages that must be completed to finally confirm a transaction. Through the confusion you are highly likely to lose a teen shopper along the way. The same is true if a parent is making a purchase. The point of their children shopping online is to save time, so they will be looking for an extremely straightforward checkout system. In fact, the simplicity of a check out system will also cause parents to influence their children to use that site again. When parents find an easy way to do things, they are likely to repeat it, and for this reason, a credit card merchant account can greatly increase your success.

When trying to tap into the online teen shopping world, remember to keep it simple, hip, and fun. Spend plenty of time perfecting your checkout process and researching the current trends.

For more information on echeck processing, high risk merchant accounts and online credit card processing. please visit www.stradafee.com!

Most of us remember a time when Ecommerce was obsolete. Many industry professionals believed it to be a fad that would fade away just like high top sneakers or bell bottom jeans. Who would want to sit there waiting for pages to load and risk fraud or identity theft to purchase something online? In there early stages of ecommerce, this was the reality, but as the level of internet technology improved and new security measures were taken, a world of online commerce possibilities sprang into motion.

The increase in bandwidth and speed for the average user has been dramatic in the past ten years. Previously, everyone was tied to a dial-up connection, which made surfing the web, much less making a purchase, an exercise in extreme patience. Today, many users are enjoying the speed of cable, dsl, wifi, and wireless connections, providing them with almost instantaneous page search results. This has increased the usage of the Internet on every avenue, from research to email and especially with online shopping.

As connection speed began to improve, a number of hackers began to realize the fragility of non-secure online connections and began to steal the identities and money of thousands of people. This turned many customers away from online shopping, in fear of being taken advantage of and caused online venders to have new determination in finding a better way to conduct business. Thus, encryption came into the picture. Encryption is the single most effective method for transferring data securely. In order to read a file that is encrypted, the user must also have the encryption key or password, which allows the message to be decrypted. With encryption came virtually absolute privacy for important data, such as payment information, which paved the way for online retailers to set up secure and trustworthy marketplaces. There are now various ways to accept payments. Credit card merchant accounts are the most popular and effective, making it possible for individual businesses to process credit card payments without the use of a third party website.

With the possibility of online business as a safe way to do business, a flood of retailers, service providers, and other establishments began to create an online presence. The cost of an online storefront is so much less than an actual brick and mortar store because there is very little need for employees and there are no building costs or utility bills to pay. Not only is it less expensive, but it is not specific to only one area. A website can service anyone, virtually anywhere in the world. Many established retailers began to create an online shopping presence to expand their businesses to the global marketplace.

No one can foresee the future of online shopping, but it continues to rise in popularity and profits. The convenience of purchasing goods and services without leaving the comfort of your own home is becoming more appealing to many people around the world. As technology increases in efficiency, we can only assume that this will enhance the online shopping experience, thus making ecommerce more accessible, convenient, and enjoyable for everyone.

For more information on echeck processing, high risk merchant accounts and online credit card processing. please visit www.stradafee.com!

The landing page for your ecommerce website is like a retail shop window. It should give customers an idea of what your store is all about, quickly and effectively. Because some things are less obvious in an online store, it is important to display the information customers will be looking for in a clear and simple way. Customers will be asking themselves, often times without knowing it, the basic who, what, when, where, and why questions to gain a better understanding of your establishment. So creating a home page that answers these questions in a creative and persuasive way can immediately boost the sales potential of your website.

Letting potential customers know “who” you are is fundamental to establishing a client base of repeat customers as well as getting that first sale. Use descriptive titles and words to broadcast the identity of your store. Slogans are great, but accurate descriptions are even better, and they also weigh more heavily in search engine results. Part of “who your are” is also “who you are selling to.” Let people know what kinds of things you are selling and what kinds of people might be interested in those things. For example, if you sell men’s shoes, you might make the statement that “here, professional men have a variety of styles and price ranges to choose from.” The most closely related question to the “who” is “where.” In order to better know who you are, customers must know where you are located and where they can reach you. This communication can be displayed in the form of email address, phone numbers, zip codes or just regions you service or ship to.

The “what” question should be answered by communicating what it is your store provides. This includes products, but should also specifically designate whether these are products or services, what kind of shipping is use, and anything else the customer can expect. The “why” question is closely related to the “what” as the customer needs to know why they should purchase what it is you are offering, and can easily manifest itself as persuasive advertisement. Effective advertisement is a powerful tool in any sales environment.

“When” is a question less commonly asked, but may come in the form of when your office hours may be or how quickly services are given or products received. Providing this type of information clearly in various places of the website definitely adds additional clarity to a website.

The final question is possible one of the most important. That is the “how.” How do customers make a purchase? By providing a shopping cart button or application on every screen, especially the home page, you are quickly communicating which direction a customer should go in order to learn “how” to make a purchase. How customers actually follow through with a purchase is also very important. An online merchant account will allow customers to use credit cards and other electronic payment methods to make simple and easy transactions.

Trying to cover these basic questions of customer curiosity on a home page will make customers feel confident in the thorough organization of your company. The home page is the most viewed page on your website, so capturing attention and quickly answering questions on this page is very important.

For more information on echeck processing, high risk merchant accounts and online credit card processing. please visit www.stradafee.com!