For most merchants, using their credit card merchant account has not only helped their business grow, but it has been the mainstay of their cash flow. For online merchants, not being able to accept credit cards is not an option. Another great option for merchants to electronically process consumer transactions is through ACH.

ACH is Automatic Clearing House and basically an electronic wire transfer system and the transactions are settled in much the same way that traditional paper check transactions are; meaning that the bank divides the batch submissions by the originator bank and sends them off to clear, and wit for the respective deposits. Unlike paper checks, ACH transactions are usually high dollar amounts and are popular with international merchants selling products or services to clients abroad. This usually works out well because of the time and risk involved with mailing funds. Internet merchants are believed to be particularly savvy when it comes to funds acceptance diversification. ACH has been around since the early 1970’s and has always been a risk for businesses to perform due to theft and fraud. Unfortunately criminals will always find a way into the most elaborate and secure funds transfer systems; however, this cannot stop merchants from looking forward to add ACH to their stable of acceptance venues.

When ACH was born, the US Federal Reserve offered help by way of offering electronics and computer systems to aid banking institutions deal with, organize and settle ACH transactions. In 1974 NACHA, which is the National Automatic Clearing House Association, to help establish rules and guidelines as well as regulate certain portions of the ACH industry. Today they operate and maintain their website which is www.nacha.org which offers news, information, resource links and statistics for merchants that are interested in ACH. Currently ACH transactions increase an average of about 15% each year, with a 13.4% volume increase in 2007. Due to the internet revolution, ACH has grown steadily and seems to show no slowdown in sight for the near future; however it is unclear today what the effects of a slow economy or recession will have on these transactions. It is possible that ACH transactions may spike in a slow economy because of the relative low cost of a per transaction fee, no discount rate and no chargeback risk. As with any avenue in business, industry professionals work to make their products and services more mainstream and a questionable economy just may be the way to accomplish that.

Setting up an ACH account is fairly simple. Many merchant service providers that set up and assist in the maintenance of merchant credit card accounts offer ACH set up services. This is great for one stop shoppers; however there are companies that specialize in ACH set up and servicing specifically ACH customers. The application process is very similar to credit card acceptance applications and there is usually a set up fee, monthly fee and transaction fee, which is the same for credit card accounts. A great money savings for merchants is that there is no discount rate involved. This means that there is no percentage of each dollar being processed taken out for the bank or processor. Transaction fees vary, but usually fall between $.25 and $1.00 per transaction. This can mean real dollars saved for certain industries, but it would be a hard sell for many merchants that benefit from the ease of credit cards and allot for those expenses. While it may not happen tomorrow, ACH is here to stay and enjoys steady growth in a fickle and ever changing marketplace. If you are interested in information on ACH accounts, checking with your merchant service provider is not a bad place to start.

For more information on credit card processing and check processing please visit http://www.stradafee.com.

With the weak economy, the heavy equipment industry is adapting and overcoming by going global. For this and all of the construction industry, a weak economy is a frightening thought. For the larger contractors, a lack of federal and state funds for large projects like roads, bridges and infrastructure mean that they won’t be working as much and need to start liking at medium and small jobs. For the medium and small contractors, a weak or slow economy means that contract work from large contractors will dwindle or at least there will be more competition. For small specialized businesses like landscapers, loggers and tree service companies a slow economy means that businesses and homeowners won’t be spending the money that year. If you’re in the equipment retail or rental business, all of these people are your customers and if any one of those demographics are have a bad year, then so are you.

For every region in the country, their seasons break at different times. Basically no one likes working when it’s too hot or cold, that included equipment. You get the picture. The heavy equipment industry is basically at the mercy of the economy both directly and indirectly. Cost saving measures are implemented every day to make sure that their machinery maintains its equity, customers receive the service and maintenance they need and the company can be in business for another year. From the big dealerships to small equipment houses, they all do extremely well at watching their day to day costs and making sure that equipment deals pass the fairness test. A real aspect of the industry that is not given as much attention as it may should pertains to their banking and funds acceptance. As with many service industries, many dealers have card not present accounts so that they can take credit cards over the phone or on a jobsite; while they’re also set up at the store with a terminal for parts and other over the counter sales. While it may seem like a credit card driven industry, most dealers use their own credit lines established through an internal credit department that invoices customers and sets, increases and puts stops on all lines of credit within the company. What if this internal cost could be outsourced by using the customer’s credit cards to complete transactions? Many domestic banks probably won’t jump at the chance to have out low rate credit lines to the equipment and construction industry, but there are many banks and processors that look outside the box and may be willing to take a risk on credit lines for equipment, sales and rentals of heavy equipment. Merchant service providers are the best direct link to banks that are interested in that type of business. Just like contractors specialize in various skills and disciplines, doing the same thing day in, day out; merchant service providers are highly skilled in linking the right customers with the right banks. If you’re interested in a merchant account for your construction equipment sales, rental and parts business, contact a merchant service provider or find one on the internet.

For more information on credit card processing and check processing please visit http://www.stradafee.com.

Men don’t go to the barber anymore and their wives, daughters and girlfriends don’t just go to the salon, they go to the spa. With everyday life getting busier and more hectic, everyone needs a time out; the spa industry has just what you need to revitalize yourself and escape if not for just a bit. The spa has taken over the cosmetic and salon industry offering more than just haircuts. Most spas are full service; they offer services such as manicures, pedicures, massages, tanning and they’ll even do your make up for you. Five years ago, if you owned a spa or full service salon, you owned the market in your town. Today, with many to choose from, spas need to differentiate and offer services that separate themselves from their competition. Some of the most sought after services today are full body wraps, hot stone therapy and of course there’s always a line out the door for a three hundred dollar haircut. It really sounds crazy, but it’s true, people are doling out big bucks to make themselves feel better and there is really no slow down in sight for the near future.
In addition to traditional salons and spas, specialty spas and salons are popping up in major cities, except their clients are probably not who you think? Kids and pets, that’s right, pedicures, massages and fancy hair do’s for your children and prized pups currently make up a small but growing percentage of the spa industry. In addition to service and product differentiation, these small businesses need to keep up revenue and watch their profit margins as this industry is high end and its clients demand the very best in terms of atmosphere and amenities. If you’re a salon or spa owner, the banking industry may not be your best friend as of late. Banks are cutting back on business improvement loans, both in terms of the size of the loan, term of the loan and interest rates are not as good as they once were. However, businesses need to keep up with trends, change to meet consumer demands and expand to grow their businesses. These are realities that spa and salon owners cannot ignore if they want, if they want to stay in business for the long term. A great way for small businesses like these to save money is taking a good look at their credit card rates; really, what they are being charged by their bank and/or processor to accept credit cards at their business. So many business owners are just too busy running their business to take a close look at their statement every month, and just chalk up the fees and high discount rate to the cost of doing business today. If that’s the case, then please look again. Sometimes banks and processors will place a business like a salon or spa in a high risk category; they often justify this to their customers because of the nature of their business, in that these are not necessities but luxury purchases. If you find yourself in a position that you don’t want to be in for the future, you may want to contact a merchant service provider. A merchant account service provider is simply a broker that deals with a lot of different banks. Two really good reasons for dealing with them over one bank is that you can shop rates of several banks while dealing with only one person and certain processors and merchant service providers deal mainly with specific types of industries. For spa and salon owners, this means that they’re in sync with busy times of the year and know how to handle chargebacks more effectively. For a business owner, that can mean real dollars saved and sleeping better at night!

For more information on credit card processing and check processing please visit http://www.stradafee.com.

The fight is on and some people would argue; but the satellite television industry is on fire and there aren’t any signs of the cable industry gaining any headway toward offering their customers competitive products or services that will sway folks from taking down the big ugly dish on the roof. Cable television is not a bad service in as much as it has been around forever and the companies have serviced their customers well. In fact it’s doubtful that cable will ever go away. What’s most exciting about the satellite television revolution is that the services are getting so much more competitive; where two and three years ago, better receivers, monthly fees and coverage area were consumer hot buttons. Now with high fidelity digital channels being a must have as well as number and selection of high definition channels being a main bone of contention for the present and future in customer loyalty. Today, satellite companies have cornered the market on high definition selection; having more of them and better selection, which is drawing customers their way. In terms of pricing and install fees, both satellite and cable tend to be very competitive; where perspective satellite customers may not have the direct line to the satellite in the sky, cable companies don’t service everywhere, in every crevice of the countryside. What is important to stay is that where satellite companies are pulling away from the competition with great services; the cable companies aren’t helping themselves out by cashing in on regular rate increases.

The really great thing about the satellite industry is that the dissemination of innovations happens so fast. Integrating homes, businesses and entire hotels is a bit easier due to high end components and wireless ability, which makes slot of accounts for satellite companies easier to maintain. Due to increased fuel prices, the cost of installation and cost of components is a bit higher today than it was three or even five years ago. Well, when it comes to raising prices, satellite television companies need to be careful; getting lumped into the category that their competitors in the cable business is always in the back of their minds. With a lot of billing done directly by automatic billing through their customer’s credit cards, these business owners typically pay a lot to banks in terms of rates and monthly processing fees. The day to day stresses and frustrations of running a business tend to take precedence over cost control. It’s probably not the most popular thing to say to a business owner, but many satellite companies are small businesses that need to control costs, but seldom have the time due to high workloads. A great way to control your merchant service costs is just by looking to your statement! That’s right, do it once a month; what you might find is that you are paying higher rates and unnecessary fees every month. You may also find that chargebacks due to customer’s credit card issues add up and if not addressed promptly will cost you, not them. You may also find that you’re probably paying a higher rate and were placed in a high risk category due to the fact that much if not all of your business is categorized as card not present. These transactions are convenient for business owners and basically necessary in the satellite industry, but are placed in that category as a rule based on principle by the bank because of the type of transaction that they are. By doing some basic research online, you may find that international banks that are located outside your domestic region are not only very competitive but probably offer better rates than your domestic bank. This is simply because this is found business outside of their market. Banking standards, while secure, are more lenient and merchant friendly toward the small business owner. Merchant service providers are usually the best resource to getting in touch with these banks and finding a better banking solution for you.

For more information on credit card processing and check processing please visit http://www.stradafee.com.

Everyone likes to travel and get away from the hustle and bustle of their daily lives. Destination weddings, all inclusive vacation resorts and boat rentals are becoming more and more popular among the vacation jaded. Travel agencies, brokers, wholesalers and direct sales houses that have lived through the peaks and valleys of various economies know, within reason how to predict consumer confidence. Today, the western economy is slow and travel is down; you know this, so watching your costs is a must to turn any profit.

There are several ways that business savvy travel industry insiders keep in the black and in business. the first is by packaging deals that cost average several aspects of a vacation; some with inflated costs and others that are true deals. This is fine by most consumers; nobody likes to shop around for a relaxing vacation. Another good way is to wholesale packages to businesses. Companies like to give away things to their employees that help drive business, build moral and keep the employees happy. This is a great way to associate a lot of value by buying in bulk. You all know this. With the relevant demise of corner travel agencies, online travel brokerage agencies have made some headway, sourcing sought after destinations with the amenities and activities that today’s traveler demands.

The travel industry is one of the internet’s most researched topics. Whether it’s destination, hotel, flight or packaging, most, if not all decisions can be made in your own home. Internet travel business owners feel the pinch every time they read their merchant account statements. Like any industry, there is a risk involved; however, banks view the travel industry in a high risk category. There are two reasons this happens. First is that there is an inherently high number of chargebacks in travel. People’s lives change, their plans change and there is always fraud and theft. These factors drive a merchant’s discount rate high, in some cases through the roof. Online travel merchants pay on the high end of the credit card industry; which is in itself an oxymoron. Travel entails moving people from point A to point B, right? Many times, travel is international. Merchants usually do business with clients within their domestic market; meaning US merchants are most likely to sell vacations and plane tickets to US customers. Many of these tickets and vacations involve international travel. When these merchants batch and process their transactions, it’s usually at a local bank, or at least a domestic bank…charging them a high discount rate reflecting a high risk business. Merchant service providers specialize in sourcing banks or banking solutions for various clients. There are a lot of benefits to obtaining a merchant account from a merchant service provider. They can offer many services that you may either have to pay for or may not have access to at all through your current bank. Some of these services include virtual terminals, third party fraud scrubbing and high volume accounts. If you’re in the travel industry and are interested in getting a better rate on your credit card transactions, contact a merchant service provider today.

For more information on credit card processing and check processing please visit http://www.stradafee.com.

Small contractors in the United States are plentiful. Whether you’re looking for a landscaper, drywall hanger, framer, builder or general contractor, you’re covered. There’s definitely no shortage of skilled laborers and business owners that can complete the job. These types of businesses crux on the ability to get paid. Unlike other business owners, the accepted industry standard is that payment isn’t expected until the job is complete. There are exceptions like, large jobs that last over a month, where payroll needs to be met or supplies need to be purchased. Other than that, the public stigmatizes contractors to collect their money and disappear. Hence, the acceptable practice of not getting paid until the job is complete or paying only when certain portions of the job is completed.   While It’s not fair to say that these problems between contractors and their customers are unfounded, because there are and have always been a rift between expectations, implied expectations and the final product. These are things that small contractors deal with on a daily basis and it has not been getting any easier for them with the growing number of do-it-your-selfers and more importantly, the growing number of botched jobs by homeowner handymen and women.

If you’re a small contractor, it may not be a bad idea to look into getting a merchant account. Some businesses already have them, but don’t like to use them. Some have them and transfer the rate hike to their customers, because of the fact that their bank usually charges them a high rate, due to the type of business that they’re in and how the money is processed. Let’s start with how the money is processed. Typically, transactions are processed at the merchant’s home or business and over the telephone or on a jobsite. In any case, these types of transactions are classified as card not present transactions, where, the customer doesn’t swipe a merchant terminal. Due to the types of transactions being processed and the type of business that contractors engage in, banks tend to assess higher rates to them and other merchants like them. If you are a contractor and are interested in either obtaining a merchant account, or currently have a merchant account, but would like to better your rates, payment methods or processing intervals, then shopping around for a better deal may be worth your while. Merchant service providers connect processors and banks with merchants of all types every day. The phrase, “Sticking a square peg in a round hole” is very much their concern. A bad banking relationship will never benefit the bank as well as the merchant. Pairing up two parties that have the same expectations going in, is as much the same as you, the contractor explaining the scope of a job, then bringing it to life on site. Merchant service providers have relationships with many different banks; your chances of finding the right fit for you and your business are higher, dealing with a merchant service provider. If you are a small contractor and would like more information about obtaining a merchant account, contact a merchant service provider today.

For more information on credit card processing and check processing please visit http://www.stradafee.com.

Business owners have to make many decisions before they open the front door to even their first customer. The interior design of their store must be advantageous to purchasing, clutter free, well lit, and inviting. If it is a restaurant, ample comfortable seating must be provided, and the kitchen has to of course be clean as a whistle. In all the consideration of décor and hospitality, retailers must never forget they must possess the ability to accept tender from their clients, and the more forms of payment is always better, giving customers many varied options when they look in their wallets or pocketbooks. Merchants must consider a whole range of options when considering their POS (point of sale) systems, and it is a good idea to patronize their own favorite retailers and hospitality providers in order to witness POS systems in operation.

Whether you are at the grocery store, your favorite watering hole, or the movie theater, all types of businesses must have reliable POS systems in place to expedite payment from their valued customers. Everyone has experienced a long wait due to either an employee’s unfamiliarity to less than intuitive credit card machines or cash register equipment; with the right equipment and of course, training in place, customers can freely shuffle in and out, happily enjoying their experience from product or service fulfillment all the way through to their purchasing. When considering POS, every merchant must be prepared to take credit cards, ATM cards, and checks, as most purchasers, especially tourists or visitors have taken less and less to carrying cash because of its inconvenience and lack of protection if lost or stolen. Though the initial investment might seem large, an all in one system that allows for check verification, ATM card processing, cash, and credit card processing, might be the best opportunity to serve all your customers’ payment needs. Another option is starting off with a cash register for cash transactions and adding other equipment as your business and growing clientele demands change. It is necessary to find equipment that can grow with you however, so that integral parts must not be continually replaced as communication with new technology is necessary. So, that outdated cash register found at a “going out of business” sale might not prove to be an adequate option in the long run.

Many electronic providers not only allow merchants the ability to process all forms of payment, but also can supply merchants with the necessary equipment personally, or through their years of experience with retailers, are able to put merchants in touch with distributors and outfitters who provide the latest in POS technology. Providing your customers with quick and secure payment options is not only necessary for their satisfaction, but is of course essential for continued smooth operation and growth.

For more information on credit card processing and check processing please visit http://www.stradafee.com.

In California in the early 1970’s, several banks in conjunction with the regional Federal Reserve office in California began brainstorming to find a safe and secure way of transferring funds electronically between different financial institutions. Their hard work paid off with a new network labeled the Automated Clearing House coming online in 1972. Other institutions across the nation were motivated by the Californian’s success, forming their own regional Automated Clearing House networks to deal with paperless transactions in their individual states. The natural progression of these separate efforts came to its fruition in 1974, as a concerted effort of individual ACH organizations formed the National Automated Clearing House Association. The main goal of this association involving all regional ACH operations was to successfully combine them into a national network of automated clearing houses. In 1978, their goal was realized when financial institutions across the nation were securely electronically linked.

From its humble grass roots beginnings in the early 1970’s, the ACH has grown into the largest network of its kind in the world. It has truly revolutionized the way Americans and American businesses do business, providing all with the peace of mind that all transactions are made securely and safely between institutions. But what began as a way for banks to communicate with each other has bloomed into so much more. Now, practically all Americans rely upon ACH in fulfilling a financial need each and every month, if not daily. If a worker gets his or her paycheck directly deposited into a checking or savings account, this is done through an ACH transaction. April marks a time of increased ACH transactions, as it is the time of year Federal Tax Return monies are directly deposited into taxpayers’ accounts. Social Security benefits are also tendered through ACH transactions, as well as most all government benefits and payments. Many computer-savvy Americans have adopted the paperless option when paying their monthly bills, with most providers (utility, cable, mortgage providers, etc.) allowing for this time and paper saving feature. For online merchants, the ACH has proven essential in their acceptance of electronic payments and has proven a boon to online merchants in the United States. Nearly all electronic payment providers work with the ACH in order to provide protected gateways for the merchants they represent. Providers like New York’s Stradafee, effectively represent their customers by keeping up with all ACH developments, following guidelines implicitly so that their clients can keep their efforts focused on the cultivation and improvement of their individual businesses. The ACH and the network it provides has truly become an integral innovation contributing to smooth operations of commerce in America today.

Merchant accounts make it possible for businesses to provide online credit card processing. For more information on credit card processing visit www.stradafee.com.

As an internet retailer, one of the most terribly annoying aspects you will (there is no might) have to deal with are chargebacks. A chargeback occurs in any number of situations where a customer makes a claim to their credit card company or bank in order to receive their funds back after a purchase. As a merchant, not only will you be out of the initial purchase funds and possibly the product as well, you will also be charged a percentage-based fee on top of that, according to your electronic payment company’s policy guidelines, to pay for the hassle of refunding funds. Ideally, of course, merchants want to keep these situations to a minimum and by following several guidelines, chargebacks can be of rarer occurance. This article will discuss what to do when disputes are attempted against you; a successive article will discuss how to protect yourself (and your business) initially against chargeback attempts.

Trying to get something for nothing is not a new phenomenon of course. When a patron attempts this at your brick and mortar storefront, we call it shoplifting. How is it any different when a would-be purchaser attempts this very thing in various ways through your electronic gateway? Perhaps credit card companies, with their all-inclusive fraud protection policies are actually contributing to the problem by adopting a “don’t ask, customer is always right” approach; allowing customers to feel entitled to dispute any charge, knowing that their credit card company has promised to “have their back”. How can individual, small-business merchants compete with disputes rendered through large credit card companies? Most merchants believe there is nothing they can do, and this is where they are wrong. An internet retailer owes it to him or herself to voraciously defend every purchase made, because every piece of inventory and revenue lost to fraud can add up. Merchants must immediately dispute the chargeback with the bank upon first notice. Keep track of all purchase information. Email correspondence or phone conversations should be readily available as proof that a legitimate purchase was indeed attempted and made. Shipping details should be in order including confirmation of delivery for those pesky customers that might claim to have not received the product. If this initial dispute fails, you must be prepared to seek retribution from the consumer for the initial purchase fee, as well as any added fees incurred in the process. Because your bank will require you foot the bill for illegitimate purchases, you must be willing to weigh your time and effort against the compensation you might gain in a successful dispute.

Choosing an electronic payment company that uses all available tools to protect you and other clientele from internet fraud is extremely important.

Merchant accounts make it possible for businesses to provide online credit card processing. For more information on credit card processing visit www.stradafee.com.

When it comes to sporting goods, we are all convinced that cutting edge gear will increase performance. Whether it’s true or not, that’s what we all believe but are not so willing to admit. We like others to think that it’s “All us” out there. The United States is the hub for the sporting goods industry; we manufacture more specialty products, create the hype through marketing them, are the testing grounds for them, we sell more within our market and export more abroad than we take in. I guess you can say that if the GDP was determined by athletic equipment then we’d be the US. Hmmm, ok… how about, the US a few years ago.

While local sporting goods stores, outlets and specialized boutique shops that cater to one or two sports can meet most everyday needs of today’s athlete; when it comes to big ticket purchases, everyone has to shop, and the easiest way to do all your pricing and product review research is on the internet. Walk-in stores will neverdie, some may go out of business, but there necessary. Personally, I like them for my peripheral purchases, footwear, workout clothing, bats and balls and small stuff. What’s happening today is that there are so many products coming out that stores cannot stock all of them. To add to the excitement, product designers and manufacturers are their own retailers, and they’re the only place you can buy that item.
More and more people are looking to the internet to buy these higher priced and hard to find items. While they’re paying for shipping, they also are buying all of those peripheral items which pulls dollars away from the local retailers. If you’re an online sporting goods retailer or even wholesaler, you know what I’m talking about.

The Good, The Bad and The Ugly
Well, the good thing is that these E-commerce sites are killing it right now. They’re exporting to other countries, vendor distribution centers are accommodating to this industry and the profit margins can be good due to no floor planning and low overhead costs.
The downside of this is that there’s a lot of competition and pricing is slowly going down. While international exporting and high volume is good, profit margins have to be watched more closely and online vendors have to be ahead of their competition by optimizing websites, negotiating better deals with vendors and actually advertising.
Now the ugly; increasing cost of these businesses are their merchant account fees. It wasn’t so much of an issue when volume was lower and profit was high, but when you need to watch every penny, every one really counts, and you know it!

Due to these high volumes and increasing sales outside their domestic areas, banks are hiking up rates, adding to the woes of the merchant. This is just a product of getting big, fast. Merchant accounts come with rules and applications require business plans, and you all know that. Unfortunately, we had to leave out our real goal which was to make a lot of money in the shortest time possible. Your bank and/or processor may be charging you a higher discount rate and associating other fees to your account because you may be in a high risk category now. So many other merchants are in the same category and it’s not even similar to having a bad credit rating or being involved with gray market products or services, but banks assess risk and “Too big too fast” and doing volume sales outside your domestic area is high risk.

The solution may be to shop around for a new processor or bank. Give your current bank a shot, but if they’re not playing ball, don’t be afraid to stop processing through them. Personally, I wouldn’t close that merchant account, but just stop processing and leave it dormant once I got a new one. This whole process doesn’t take too long; search the internet for merchant service providers and find one that meets your needs. they’re not all the same. Some offer different services and some even specialize in specific types of industries. Ask about their portfolio and if they have experience in your type of business or industry; this means that they’ll be more in tune with your sales cycles and peak processing times. They’ll also be able to deal more effectively with your chargebacks. This can be worth its weight in gold down the line. What a lot of online merchants don’t know is that merchant service providers can provide services that you didn’t think you could get, at least without paying a lot for them; services like third-party fraud scrubbing, virtual terminals, 3 D secure processing and fraud protection. Just like your customers found value in a commitment to you, if you’re not totally satisfied with your current credit card processing solution, find value in your business and shop on the internet.

Merchant accounts make it possible for businesses to provide online credit card processing. For more information on credit card processing visit www.stradafee.com.