Evolution of the Credit Card Industry

The credit card industry has many players in it, all of which play an essential role in processing funds from customers to merchants for the goods and services or a combination of both of which they have purchased. The evolution of credit card processing development has changed over the past ten years; with the emergence of the internet as the preeminent consumables stage, credit cards are no longer a luxury, but a necessity. A consumer’s ability to transact business online is just as important as a merchant’s ability to accept the credit card; as these transactions cannot be consummated by cash or checks easily.
In the beginning, issuing banks stood alone, issuing credit lines to existing customers with either a Master Card or Visa logo on them; at the same time they sold their acceptance services to merchants, using credit as an easy path to increased revenue. Over time, Discover Card and American Express gained steam and internationally rival Master Card and even Visa in some parts of the world. The progression of the card issuing process continued as the definition of an issuing bank became a more broad and many names ended popping up on the top of credit cards that didn’t even resemble that of a lending institution. Eventually, rewards cards found their way into everyone’s wallets. A rewards card is just like every other credit card; however, the issuing bank has a partner who is willing to give you a gift for using that card. Some popular rewards cards are airline cards that reward you with plane tickets for using that card. What many people fail to see is that you need to spend a minimum of twenty five thousand dollars to receive an airfare worth maybe three hundred.

Now that we understand how banks and their partners have made the credit card industry evolve into this huge monster that the entire free world has a love, hate relationship with; let’s look at the other players and how their roles may be a saving grace for merchants and consumers alike. The role of a credit card processor is a very behind the scenes part of the credit card industry. Credit card processors are responsible for the acquisition and transfer of the card holder and transaction information within each transaction. Basically, the security and success of every transaction sits on the shoulders of a processing facility. In addition to receiving and transferring transaction information to the issuing bank; processors often assist with the set up and integration of merchants. This new merchant set up usually begins with a merchant service provider or merchant service broker. Merchant service providers, in most cases are the initial contact for the merchant. When businesses of any size shop for credit card processing capabilities you better believe that no stone is overturned; many medium and larger organizations go directly to an issuing bank or large processor, but you can believe that regardless of the size or scope of a business, at least one merchant service provider has been contacted. The benefit of using a merchant service provider is simple; they foster relationships with numerous banks and processors, both domestically and internationally. Their depth is far greater than most and their options are far more likely to suit the style and mode of your business.

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

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

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.

High Risk Merchant Account Offshore or Not Offshore

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?

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

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

What To Look For In An Online Pharmacy

There is an increase of people that cannot make it to a traditional brick and mortar pharmacy to get their medicine. Either they are bedridden or don’t have reliable help to do it for them.

So what can you do if your faced with this dilemma?

The emergence of online pharmacies continues to grow. These places are trying to go where brick and mortar pharmacies cannot. Online pharmacies are striving to fill the medical needs of those who cannot get around.

Online pharmacies that lower prices and quick delivery as incentives to purchase medications from them. More and more people are looking to these venues as a way to get their medications. It is so easy for many to get online and order what they need.

Of course, these online ventures are not without their disadvantages. There are people setting up shop who are not licensed as pharmacists or doctors. The main purpose is to make a quick buck and get a piece of the pie. This can be dangerous because one might make the mistake of having the wrong medication delivered to someone.

The result of this can have someone seriously ill or worse, succumb from the effects of taking the incorrect medication. It’s important that people who order medication from online pharmacies select their online location carefully and with scrutiny.

There are ways that people can find out whether an online pharmacy is legal or not. If you purchase medication without checking it out first, you put yourself in harm’s way for receiving fake medication. The ethics for an online pharmacy involved in this are very low. All they want is the money.

When you buy medication from a real online pharmacy, you are assured of the best quality and service money can buy. You can also receive additional information on the medication you purchase if the online venue is legal. Legitimate online pharmacies have to abide by the rules set in place to maintain standards in the medical community.

Legitimate online pharmacies will be licensed and/or certified to operate as such. The license and/or certification will come from the persons in charge or verifying their legitimacy. If the online pharmacy is real, they will have documentation or narrative stating such on their website. They will also have a link to the people in charge of verifying them to do business online.

Customers should look for this prior to placing their order online. If they don’t find it, they should ask questions and refrain from purchasing anything until you find out if they’re legitimate or not.

The online pharmacy should also have contact information listed on their website. The contact information should include a physical address in the event someone wants to send them a letter via snail mail. In addition to that, there should also be a working phone number listed in case a customer or someone else wanted to call. If the online pharmacy is legitimate, they would not hesitate having this information listed on their website. If they want to stay in business, these online venues will be glad to take inquiries from customers.

Online pharmacies should have a valid prescription to go by to fill the order. The order should not be filled without one. Just like patients can’t go up to a pharmacist and say, “I want to get this drug” but yet don’t have a prescription, the same applies for online pharmacies. If you find any that engage in that kind of breach of ethics, steer clear and you should probably report them to the proper authorities.

Beware of those online pharmacies that promise quick results or magic cures from serious health issues. These are nothing more than a scam and should be avoided at all costs.

If after all of this, you’re still in doubt about online pharmacies, consult with you physician before buying medication online.



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 To Start An Online Business

Your job does not pay you enough for you to live comfortably. You barely have enough to pay your bills. You’re living from paycheck to paycheck. Now, you’ve realized it’s time to increase your income.

You could do MLM, but that can take up a lot of time and resources. Besides, you have to be extremely motivated to keep your downline from quitting. It’s not to say that it couldn’t happen, but sometimes, it doesn’t seem like it’s worth it. You can always go out in search of customers who will buy cosmetics from you. That is also time consuming.

What if you had a business where you don’t have to dish out a lot of money upfront and could be making money within a few weeks? You can do that with an online business. It doesn’t require hundreds of dollars up front and it can be done from the comfort of your own home. The only reason you would have to use gas for your vehicle is when you need supplies for your computer and printer. Of course, you must have a valid business license.

First, you must decide what your online business will consist of. You would have to do research on whatever you plan to base your online business on. You can do this by doing an online search with Google. Or you can use software to do a keyword search. You will be able to tell what subjects are profitable and ones that have potential to make a profit.

Once you’ve decided on a subject, create a website. If you can’t create one, see if you can get someone to do it on the cheap. If you can’t do that, try bartering with someone in exchange for their services. You will also need hosting. Hosting is what maintains the website coming up everytime someone puts your website name in the browser. The cost for hosting can vary. Most of the hosting companies charge monthly, while others incorporate it into a package deal with a membership.

You will also need to get what is called an auto responder. This software is used to correspond with people who will sign up to your newsletter. Yes, just about every or at least most online business owners maintain contact with what is called a list. A list is created when you advertise your online business and people come to sign up. Depending on how you advertise your online business, it can take a matter of days or weeks before people sign up.

There are different ways you can advertise your online business. If you’re just starting out, you could advertise by submitting articles. It may not be the fastest route to take, but you won’t find yourself in the hole. Unless you have a surplus of funds available, article marketing is the way to go. However, if you are sitting on a monetary gold mine, then you can try pay-per-click or PPC as it is commonly referred to. This method involves paying for advertising to get traffic and visitors to your online business. If you’ve never ventured into the latter, it may be best if you got some information first. You don’t want to blow all of your money and have nothing to show for it.

As you correspond with your list on a regular basis, they will get to know you and you will get to know them. As the relationship progresses, they will feel comfortable enough to purchase products from you. Then you will be on your way to making money.

You can duplicate this process as many times as you want with different subjects or niches as they’re referred to. The more you duplicate, the more money you’ll make. Before you know it, you’ll be rocking with plenty of money in your own online business.

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 To Get A Merchant Account For Your Online Business

You’re looking to create an online business. You have all the paperwork you need to start it and all of the materials. Do you know how you’re going to receive your funds? You could do it the old fashioned way by snail mail, but that would take too long. You want to get your money right away. Besides, this is the era of convenience.

To make your business even more convenient for you, you will need to get a merchant account. A merchant account is what you’ll need to collect the funds from products or services that people purchased from you.

Before you decide on one, go online and check out some of them. Or, get recommendations from others who use or have used them. Usually, recommendations are your best bet.

Sometimes, when people get recommendations from others, the ones who recommended them get a percentage from the company for acting as an affiliate. Even though you get recommendations, you should still select a merchant account that will best suit your business needs.

There are several advantages to having a merchant account for your online business:

* You can have different ways of receiving payments: credit cards, checks, charge
cards and debit cards.

* You don’t have to wait to see whether or not a check will clear; credit and charge
cards take only a few minutes for payment authorization.

* You don’t have to wait for a check or money order to come in the mail. Sometimes
mail service can be slow.

Just as there are advantages to having a merchant account, there are also disadvantages:

* You have to be sure that the merchant account system you have has a very secure
system. Having this is important so that your customer’s personal information
won’t be compromised.

* You will incur fees when using a merchant account; yes, even a free merchant
account incurs fees.

* If you get a free merchant account, you may have limits imposed on your account
due to high volumes of funds.


There are other ways to get a merchant account. If you can’t find one on your own or don’t like the recommendations, you can inquire at major banks in your area. You can also inquire with the company that hosts your websites. Some of them offer deals with merchant accounts.

Some paid merchant account providers check your credit before allowing you to have a merchant account. If you don’t initially qualify, you may have to settle for a free merchant account or possibly an offshore merchant account. With the latter, you’ll probably end up incurring more fees because it would be based outside of your area.

When looking for a merchant account, ask plenty of questions. You need to know which merchant account system is going to work the best for your business. When you get one that is a good fit, be sure to read the agreement in its entirety, whether it’s online or on paper. Make sure you know what fees you will be incurring, whether it’s a one-time fee or monthly.

If you do these things, then you will have no problem having a successful online business.

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 To Set Up A Canadian Merchant Account

Obviously, having an online business in Canada is not the same as having one in the United States. Not only are they two different countries, setting up a business is different for each one.

If you’re in Canada and you want to start an online business, there are some things you must know so you won’t get frustrated. One of the things you will need is a merchant account. Otherwise, you’ll have a hard time selling products and you’ll have a hard time getting paid. As with setting up anything for a business, there are rules you must follow in order to get your merchant account in Canada.

Here are some of the things you need to know in order to get your Canadian merchant account:

* Merchant account providers want to know what type of products and/or services you are selling to the public. Since a bank is involved, there are some things that they’re not willing to take a risk on.

* They are in the business of making money, not losing it. If the bank finds out that some of the stuff you want to sell has been denied before, rest assured, your products will be denied as well. It’s better to advise them up front prior to applying for a Canadian merchant account.

* With the setup fee, most merchants account providers in Canada have them set up as non-refundable. You as a prospective merchant should seek alternatives in the event this doesn’t work out for you.

* You should provide the merchant account provider with enough information for them to base their decision on. Any little thing that you leave out can cause your merchant account to be denied.

Each bank is different as far as what products and services they accept and what they don’t accept. This is because some of these products and services are riskier than others. Each bank will be able to supply you with information regarding this.
This is a tricky situation because even though some banks favor some over others, in Canada, all transactions conducted online and considered to be high risk. That is the way the Canadian banks operate.

Here is a list of a few products and services the mass majority of Canadian banks will decline:

* Digital Downloads
* Online Prescriptions
* Money services
* Third party provider systems

There is a silver lining with selling products and services online in Canada. There are some things most if not all of the Canadian banks will probably take a chance on:

* Tourism
* Computers/software
* Jewelry
* Auctions
* Electronics purchased by consumers

If you do decide any of these things listed in Canada, the bank may require you to deposit additional funds in a security deposit or reserve. The bank also has the right to charge you higher rates. Since they feel they’re taking a high risk on you, if the business should happen to fail, they would still have their security deposit.

You should consult with the bank and make sure that you understand everything about getting a Canadian merchant account before you sign 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.

Check Your Processing Statements Before Spring

As we come into the spring season, thoughts of warm weather, yard work and spring cleaning tend to overpower our instincts to tackle indoor projects, interior and desk house cleaning. Stradafee Limited would just like to remind our customers and friends to check their processing statements from the past four to six months. This is sometimes the most overlooked part of your business and one that if not analyzed, can cost you money and aggravation down the road. With the holidays far behind us, and your Christmas statements probably stuffed in a drawer we’d like to remind you to dig them out and look at them, it will only take a minute. Depending on where you are in the country, your lives are getting busy right now and chances are you won’t get a chance to breathe for about the next eight months or so, so get it out of the way. Your bank doesn’t count on the fact that merchants will scrutinize charges and fees associated with their credit card processing during this time of year, so it is a good time to get your statements in order. Nothing can make a busy sales season more stressful and costly than dealing with housekeeping issues that you could have taken care of in the months prior. As you’re looking through your statements, pay special attention to chargebacks, a high amount of non-qualifying rates and annual fees. If everything is in order, good for you, if not and you would like to talk to someone about alternative processing solutions, call Stradafee or visit our website at Stradafee.com

About the Author: Jennifer Loganthan is the President and CEO of Stradafee Limited. Stradafee is an electronic payments company as well as eCommerce and merchant account provider. For more information on credit card processing please visit www.stradafee.com.

Why Should You Get an International Merchant Account?

Running your own business can be difficult enough when trying to work out all of the kinks in the business itself, you shouldn't have to be frustrated with the process of setting up a merchant account as well. If you are not familiar with the term merchant account, it is an account that is set up by you, the merchant in order to receive credit card payments from customers. In order to obtain a merchant account you need to find a merchant service provider who is bank or financial institution that processes the credit card transactions for you. In a time that people rarely used cash and rely heavily on credit cards a merchant account is almost vital for the survival of any business. Many business that conduct their business solely over the internet needs to have a merchant account set up in order to process any payments. Other business such as travel, mail order, telephone order, or ecommerce also find themselves processing a high number of credit card transactions on a regular basis.

Unfortunately this also leads to higher risks for both the merchant and the merchant service provider. This makes it much more difficult to be approved for the merchant account you need in order to conduct your business effectively. Plus when you add the factor that many businesses are being conducted internationally, business need to open an international merchant account in order for their business to reap any type of profit. When you conduct your business throughout the world you have to find a way to accept all types of currencies. This is where an international merchant account comes into play. When you open an international merchant account you will be able to take payments in different types of currency without the hassle of high currency conversion rates. This makes doing business with you more favorable for the customer and help them save money. By opening an international merchant account you and your customer can reap the benefits which help your business grow in leaps and bounds.

An international merchant account is desirable for many reasons to business owners. First, they offer the convenience of accepting multiple types of currency without high conversion rates. They also allow you to process high volumes without any restrictions; this is not always possible with domestic accounts. This type of merchant account is a great option for businesses that fall into the low to medium risk category. If you are a high risk business it is still possible to obtain an international merchant account, but it might not be as simple of a task. It's important to do the necessary research in order to set up an international merchant account. Merchant accounts are available in the USA, Caribbean, Panama, St. Kitts, Middle East, Germany, Switzerland, Europe, Australia and South Africa. Before setting up an international merchant account you need to communicate with your merchant service provider and understand and take care of any requirements that need to be completed prior to being able to utilize your international merchant account.


About the Author: 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 www.stradafee.com.

Merchant Accounts For Credit Card Processing

It's a fact that customers rely on business to accept all forms of payment. Nothing is more irritating for a customer than to have a shopping cart full of one type of product or another and getting up to the register to pay only to find out that they didn't bring enough cash. No problem, they can just use a credit card, right? Unfortunately the sales clerk informs them that they don't accept that certain type of credit card, or any credit cards for that matter because the business doesn't have a merchant account. The customer is then faced with the fact that they just wasted an extreme amount of time in that store and has to leave without anything they shopped for. It is reasonable to assume that it's highly unlikely that the customer will ever return to that store for any future purchases. Circumstances such as this can impact a business in terms of growth and profit. The same scenario can just as easily occur with online businesses that don't offer their customers a wide variety of payment options.

Consumers rely heavily on the use of their credit cards and since there more than one type of credit card, businesses need to be able to accept all major forms of credit card payment. In order to accept credit card payments a business needs to open a merchant account of some kind in order to process their credit card transactions. The key is finding the right type of merchant service provider that meets all of your business needs. Many merchant service providers give merchants the options of different type of merchant accounts. There are domestic and international merchant account, offshore merchant accounts, and high risk merchant accounts. No matter what type of account you choose or your business can qualify for, it's important to obtain a merchant account in order for your business to grow.

Each type of account has something that might appeal to different types of business. When looking for merchant account you should find one that accepts all major credit cards such as Visa®, MasterCard®, American Express®, and Discover®. This allows customer to choose how they wish to pay and opens sales opportunity for your business. Another aspect to look for in a merchant account is a provider that lets you have online access to your merchant account 24/7. This allows you to keep informed about what is going on with your business whenever it is convenient for you. Constant customer support is also a key element when opening a merchant account. Your business is important and if there are any issues with credit card processing for your business, you need to be able to get help as soon as possible.

Even if you have less than perfect credit, it is still possible to get a merchant account for your business. If you find the right merchant service provider, they understand that life happens and that having a merchant account is necessary for your business. Another important aspect of a great merchant account is the ability to have your money deposited quickly into your account. All of this is possible when you open a merchant account for your credit card transaction needs.


About the Author: 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 www.stradafee.com.

Credit Card Processing For Your Online Business

What do you need to open an online business? Once you have established the product or service you will be marketing for your online business you are going to need a way to accept payments. Part of the beauty of conducting business online is that payments can be made online also with the use of credit cards. This aspect of purchasing services or goods online is something that draws many customers to this means of shopping versus having to drive around town. Also it's more convenient in the aspect that customer can shop all through businesses all over the world from the comfort of their home. This fact is great for any online businesses, but also means that they will need some sort of merchant account in order to accept credit card payments.

Merchant accounts are provided by various merchant service providers who are banks that offer credit card processing to merchants. Since there are multitudes of different businesses who offer services online and in person, there are a variety of different merchant accounts available. For those that conduct the majority of their business online, an offshore merchant account might be the ideal way to go. This is largely because of the benefits that an offshore merchant account offers business who have high volumes and fast business growth.

So how do you find out what type of merchant account you need to apply for? First you need to find a good merchant service provider that offers a variety of accounts. Talk to merchant services in order to explore the different types of account offered. It might end up that your business in considered a high risk business and you might not qualify for traditional merchant accounts. Even if this is the case you can still obtain a high risk merchant account. The main difference is that considerations are taken such as how long you have been doing business, credit scores, and any previous merchant account you might have had in the past.
It might be that a domestic or international merchant account is best suited to your business needs. Domestic accounts are great for business conducted within the United States. In most cases a domestic account can be less expensive and easier to obtain. In the instance that you do business international, you will need to be able to accept all forms of currency. For this an international merchant account is more ideal for your business needs. Each business has different needs and accounts are set up to meet those needs.

No matter what type of account you choose or qualify for, it is essential to your business that you possess a merchant account that will allow you to process credit card transactions with ease. 24/7 customer service is just as important as 24/7 online access to your merchant account. Both allow you to conduct your business with ease and stay informed about your merchant account. You should find a merchant account that accepts all major credit cards, it's important that your merchant account allows your business to grow.

About the Author: 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 www.stradafee.com.

WHY DO HIGH RISK MERCHANTS NEED AN OFFSHORE MERHANT ACCOUNT?

There are several ways in which a merchant account may be categorized. A terminal based on non-terminal based merchant account, in which the distinction is based on whether a physical terminal is required to swipe the credit card or not. The terminal is connected to a phone line which connects the terminal to the credit card processing backend, in order to carry out a transaction. The growth of cellular phones and popularity of wireless options has created a new market for wireless terminals which use a CDMA or GMS chip to communicate with the processor wirelessly. This means that a merchant is not bound to his or her sales office or outlet in order to accept a customer order. Non terminal accounts include internet merchant accounts, telephone and mail order merchant accounts, in which credit card data and authorization can be transmitted electronically without swiping the card. For instance, in case of telephone merchant accounts, a touchtone telephone is used and the button presses are recorded and translated into credit card processing data.

Another way to look at merchant accounts is based on their risk profile- typically low risk and high risk merchant accounts will be treated and assessed differently by merchant account providers and third party credit card processors. Low risk merchant accounts are applicable to those merchants who are in a business that does not involve a high risk of chargebacks or are in a business that is not considered high risk by most banks. For high risk merchants, a high risk merchant account is required. These high risk merchants are usually in the high risk business classification and typically also in the high volume category. In most cases, these high volume businesses will also get flagged by a domestic bank and may need to go offshore for a merchant account that provides adequate services as well as security.
It is possible for a high risk merchant to obtain a domestic high risk merchant account, but they may need to provide a huge security deposit in the form of a cash bond or indemnity bond. For a new business, this may be nearly impossible, and even for an established merchant who is able to provide a track record, the high value of the bond may not make good business sense.

Why is a high risk business classified as such? Primarily due to the high risk of chargebacks involved. A chargeback is a reverse charge on a merchant due to a claim by the buyer, typically due to suspicion of credit card fraud or non-delivery or defective delivery of the product ordered. Especially in case of intangible products such as software, the risk of chargebacks tends to be high. In addition, some types of businesses such as online gambling are outside the regulatory purview of the law of some countries. Banks or merchant account providers in those countries will flag such businesses as high risk. Other businesses selling adult entertainment products, online dating services, tobacco, online auctions, travel agents etc are also in the high risk category. With such high risk businesses, tangibility of the product is also an issue, which leads to debates on whether the product was delivered and whether it was defective. Auction sites are most susceptible to credit card fraud, accounting for about 44% in the first half of 2005 of all internet related fraud. For instance, Ebay, the world’s leading auction site, tracks about USD 1 million per day in fraudulent auctions.

For a US citizen to open an offshore merchant account, there are certain guidelines and requirements that need to be met, as per the Fraudulent Disposition Act under the US department of Treasury. For instance, the person or company in question must not have any litigation pending. In addition, the person’s or company’s liabilities should not exceed the value of their total assets and must have sufficient funds to pay to its creditors. Furthermore, an offshore merchant account could be considered fraud if it is intended to cheat creditors or to avoid existing criminal offences. An offshore merchant account must hence be a well evaluated business decision, rather than an avoidance mechanism.

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 electronic payments provider specializing in ecommerce and Internet merchant account solutions. Stradafee also offers 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 visit www.stradafee.com.

WHAT DOES A MULTI-CURRENCY MERCHANT ACCOUNT DO?

A multi-currency merchant account allows a merchant to accept payments in multiple currencies and currencies other than his home currency. This can be an excellent advantage in the given scenario of globalization which has provided an internet merchant access to a global market for his or her products. With a multi currency account, a retailer can provide the customer the ability to pay in their own currency, while still receiving remittances in the home currency. In case an offshore merchant account is used, a number of different currencies are available to the merchant in which to settle funds. For instance, a buyer in New Zealand can buy products from a US merchant and still pay for it in New Zealand dollars. At the same time, the US online merchant will receive remittances in US dollars.

Any e-business today will be hard pressed to survive without international sales or an online presence. People in major emerging economies such India and China are increasingly interested in products from developed countries such as the US and the UK, as these countries are renowned for their high quality, which is often not available in developing nations. However, as is the case with many of these countries, the government imposes a restriction on currency exchange and their own home currencies are not freely convertible. By offering a multi-currency option, an e-merchant can not only gain a wider market access, but also gain a competitive edge in the e-tailing marketplace. An added benefit with some merchant account providers who have multi-currency capabilities is that they are able to provide localized web pages in the reader’s language that makes it even more user friendly.

There are many merchant account providers out there who offer to credit card acceptance in most global currencies, sometimes ranging from 120 to170 currencies around the world. It is important to note, however, that for the merchant, the currencies in which funds are made available finally, are more limited to the better known currencies, usually 15 major global currencies including UK Pound Sterling, US Dollars, Euro, Canadian Dollar, Japanese Yen, Swiss Francs and Australian Dollar. Foreign exchange rates are provided daily by the merchant account provider. The multi currency merchant account provider will indicate currencies on the monthly account statement.

While it is obviously beneficial to provide multi currency facilities, it does not come free, and adding more currencies will increase both monthly maintenance fees as well as monthly and set up fees. Some provides will usually provide a default currency at no additional charge and an incremental fee for each progressive currency added. In addition to the wider market access that comes with multi-currency acceptance, an online merchant may choose to maintain multiple accounts for each different currency. For instance, if an US based online merchant receives several orders from the UK, it may be wise to set up a separate Pound Sterling account offshore to maintain funds in the same currency. Conversion charges can be saved significantly using this technique, and many e-tailers opt for it. This insulates them substantially from currency exchange rate fluctuations.

While multi-currency acceptance increases market access available to an online merchant, it also increases exposure to credit card fraud, especially since the foreign buyer is not regulated by US law, and in case of a problem, the local government may not be able to provide any suitable protection. According to a survey conduct by the Merchant Risk Council, online credit card fraud causes losses of upto USD 50 million each year. In most cases, credit card fraud originates from the less developed nations, primarily the following (actual rankings differ as per different surveys):

The Ukraine
Indonesia
Yugoslavia
Lithuania
Egypt
Romania
Bulgaria
Turkey
Russia
Pakistan
Malaysia
Israel
Venezuela

In order to minimize potential losses due to such fraud, it is important for an online merchant to ensure that the merchant account provider has taken the necessary steps in terms of verification, particularly fraud scrubbing. In addition to CVV and AVS verification, a good fraud scrubbing software can be instrumental in weeding out potentially loss making sales. However, the merchant must remember that the process is not perfect, and it is likely that along with fraudulent transactions, a small percentage of legitimate sales may also be lost.

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 electronic payments provider specializing in ecommerce and Internet merchant account solutions. Stradafee also offers 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 visit www.stradafee.com.

WHO NEEDS AN INTERNET MERCHANT ACCOUNT?

The term offshore usually makes people think that something illicit is currently, or going to happen in the future. Not true; in fact, going offshore is a great way of streamlining an international client base and getting better rates, while doing it. The term offshore simply put, means that you are doing your banking in a country other than the one, your company is physically or legally registered in. For many businesses, that do a lot of business in one particular country, that is really the main option.

Merchant Service Providers specializes in finding merchant accounts for businesses throughout the world and links them with the right bank for them, depending on their geographical market and type of business. Ecommerce based businesses differ as widely as any other type of business. Five years ago, a popular, high volume, internet based retail business was Ebay. Today, Ebay is still the leader in internet based seller to seller simple transactions. Most of the business is transacted through Paypal, which is in a sense an escrow service, or entity that holds money, only to be released under terms of a pre-determined agreement. I’ve heard of them described as an organization that lets you send money to someone else’s email. I guess it’s not that easy; like all bank transactions, these are funneled through banks, while secure, simply through some bank, somewhere; maybe domestic, maybe offshore. I guess we’ll never know. The point is that when you give a business your credit card numbers, they’re processed through a number of channels that provide security, transfer funds and deliver them securely to their final destination.

Today, internet based businesses have grown from a merchant supplementing their storefront with taking orders online and over the telephone, to entirely internet and telephone based businesses. These online merchants don’t have it as easy as we may think. With the kind of exposure that the internet creates, combined with the relative ease of creating an internet based business, prices are driven down, while volume drastically increases. A good complaint? If your supply lines and logistics are in place. Maintaining and growing a profitable online business is so much of the battle today and the saying is true that the hardest test is the test of time. While good service and accessibility to your vendors and customers are key, sustainability and survival are just as important. Behind the scenes, product fulfillment and good banking keeps you out of court and out of your banker’s office applying for a second mortgage. Using a merchant service provider cannot help you with your supply chain management; however, it can help with your online banking needs, as well as specialize in not only high volume credit card processing and online check processing, but also high risk accounts, which are mostly just categorized as, “Card not present” transactions by domestic banking institutions.

Stradefee Limited, for example, works with merchants ranging from low risk, low volume, to high risk, high volume and everything In between. Just as every business owner has specific needs, merchant service providers like them have specific solutions. They can offer merchants services such as virtual terminals, third party fraud scrubbing, aggregator accounts, account signatory services and processing gateways. As not all online merchants offer hard goods, service industry vendors are very much a part of our portfolio. Companies from law firms, large event caterers and concessions providers to online music download websites and travel companies can all benefit from services that internet banking facilitators have to offer. Today, nearly any product that you can purchase in a store, from sporting goods, clothing, large home electronics, appliances and automobiles to services you can obtain like law and medical advice (usually not professional), business consulting, banking and media purchases are all mainstream internet transactions and they’re almost all high volume. In an economy, where bottom lines get smaller and personal time is at an all time and coveted low, your business needs to run more efficiently with the ability to grow and maintain that growth. Your banking needs cannot be the bottleneck of your business plan.

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 electronic payments provider specializing in ecommerce and Internet merchant account solutions. Stradafee also offers 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 visit www.stradafee.com.

PRESS RELEASE: Adam Lohr To Do Computer Animation For Stradafee Limited

Stradafee Limited will be releasing several e-commercials this upcoming year to be displayed on the internet through various search engines as another way of promoting our services and reaching out to our client base. To ensure we’re represented well, we’ve been talking with several companies and individuals that specialize in these types of applications. In the end, we decided to go with a local Computer Animation Designer, Adam Lohr. Adam is a 1998 graduate of The Art Institute of Pittsburgh, with a degree in Computer Animation. Adam Lohr’s resume speaks for itself, he is relatable and listened to our needs. We’re sure that these projects will be handled in an upmost competent manner and we’ll be able to build a lasting professional relationship with Mr. Lohr.

When we started this endeavor to branch out and proactively expand our business, the internet was really the best option for us as it’s the most efficient way to reach potential clients throughout the world. If you’re not familiar with Stradafee Limited, we’re a merchant service provider for businesses, usually very large businesses that have special needs that they usually can’t get domestically and, or from one source. We not only find banks for these businesses to establish merchant accounts, so that they can process their customer’s credit cards; but we also help establish the relationship and connections for them when they get started. It can be really scary when you’re dealing with a lot of money at once, and it’s not yours; you want to ensure accuracy and security while not having to hire an extra staff to make sense of it all. We’re really a niche’ company, as a lot of the services we offer, aren’t always available by the banks our customers dealt with before us.

The primary reason we decided to use the internet to help grow our business is that so many of our customers are ecommerce based as well. They take orders over the phone and via the internet and as so many of us know, grows businesses quickly. “It’s just natural to deal with companies that specialize in ecommerce and we’re keeping in form with how we started,” Jennifer Loganathan, CEO of Stradafee Limited. “What’s happening with the animated commercials is important for us. Instead of reading an article or one of our press releases, potential clients can see what it is that we do and how we can help them in thirty to ninety seconds. Our goal with the series is to educate people about and bring awareness to the international banking industry, because at the end of the day, merchants have so many more options than what it is that they are doing now!”


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 electronic payments provider specializing in ecommerce and Internet merchant account solutions. Stradafee also offers 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 visit www.stradafee.com.

KEY ADVANTAGES OF AN OFFSHORE MERCHANT ACCOUNT

An offshore merchant account can be your only choice if you’re in the high volume high risk business, and a domestic provider is either not accepting you for merchant account services, or is asking for a huge security deposit or cash bond. However, with the advancements in both regulatory environments as well as technology with offshore merchant account destinations, it does not have to be looked at as a last resort, but rather a convenient and beneficial choice.

In most cases, a domestic merchant account will be the most convenient option, as the e-tailer will not have to spend too much time setting up offshore, and will be familiar with the laws of the land in which it operates. Going offshore means setting up a business entity in another land, involving both time and money, more so than in the case of a domestic provider. However, with the tremendous growth of the offshore segment, Setting up a merchant account offshore can be much simpler and convenient with the right merchant account provider. If your business is categorized as high risk or it lacks a track record or has a bad credit history, an offshore merchant account is ideal, as screening processes are much less stringent offshore. Although set up, maintenance and processing fees can be higher offshore, going outside domestic borders can open up a global network of banks and processors to choose from, enabling the e-tailer to choose from a wide variety of deals in terms of fees and charges, as well as security and technology. Hence, the e-tailer has a much high probability of finding the most compatible partner for its sales volume as well as nature of business.

Offshore merchant accounts can offer substantial benefits for an e-tailer including:

1. Taxation benefits: Being set up offshore in specific tax havens can substantially reduce tax liabilities. Many countries have tax treaties in place with other less developed nations that enable business to reduce not just total tax liability but also taxes on individual transactions, which can add a significant chunk to the retailer’s bottom line.

2. No processing limits: Going offshore can be an excellent option for high risk high volume businesses, as they will not be limited by a ceiling on the volume of transactions, which may be imposed by a domestic bank, due to their relatively lower risk profile.

3. Multi-currency acceptance: Offshore merchant account providers can make it simpler to accept payments in multiple currencies as well as receiving remittances in multiple currencies. This can be beneficial for e-tailers who receive a significant amount of inward remittances in foreign currencies, and can use the offshore account to insulate the effect of currency fluctuations.

4. Excellent security: For many offshore destinations such as Bermuda, the merchant account and credit card processing are mainstays of the entire economy, and are hence investing heavily in providing dedicated ‘special economic’ zones with infrastructure specially designed for this industry. Hence, the retailer can benefit from state of the art technology and security, which indeed is being used even by many domestically located banks to outsource their credit card processing needs.

5. 24/7 live: With an offshore merchant account, the provider can offer 24/7 services to remain online and function for any time zone, thereby providing greater access to a global market. In addition, the anytime available customer services can be critical to a successful sale when an order comes in that needs to be verified in real time.

An offshore merchant account is hardly a compulsion now, as with increasing competition and propagation of providers, fees are constantly coming down and many providers offer attractive packages for online retailers. Believe it or not, the latest innovation in the industry seems to be zero fee merchant accounts, which are similar to some third party credit card processing options. With these accounts, there are no set up or maintenance fees; the provider charges a percentage of each transaction instead. However, all offers apart, the offshore merchant account must be chosen with care, and set up through an established provider such as Stradafee. It may prove to be the best choice for any type of retail business.

Jennifer Loganathan is the President and CEO of Stradafee Limited an international merchant service provider. Stradafee is a retail and an electronic payments company specializing in global eCommerce and Internet merchant accounts. Merchant accounts make it possible for businesses to provide credit card processing for card present and card-not-present transactions. For more information on credit card processing visit http://www.stradafee.com.

HOW TO OPEN A CREDIT CARD MERCHANT ACCOUNT

In this day and age of electronic commerce, the decision to open a credit card merchant account is relatively undisputed. The actual process of opening an account should begin with the retailer identifying certain key parameters about the retailer trade the merchant requires the merchant account for. The selection of an appropriate vendor for the merchant account should be the first step in the cycle, which is usually followed by an application on a prescribed form. If and when approved, certain information and documentation such as financial statements will need to be furnished to the merchant account provider. One approved, the provider will supply the equipment or in case it is an online merchant account, the retailer’s website will need to embed the merchant account software in the e-commerce website and integrate the shopping card software supplied by the merchant account provider.

Selecting a merchant account provider should take into account the volume and value of proposed transactions, nature of business, history and track record and identification of specific needs, if any apply, of the retailer. The volume of transactions and nature of business proposed to be conducted via the merchant account will have a significant bearing on the available options to choose from. For instance, if a retailer expects a high volume of transactions, a merchant account for that specific purpose will need to be obtained, which frequently fall in the high risk category. Such high risk businesses may not be able to obtain a merchant account onshore, and may need to opt for an offshore merchant account. The history and track record with a merchant account may come into question in case of a domestic account provider. In case a retailer is unable to meet certain basic requirements, for instance, if a retailer has been in business (online) for less than 2 years, the merchant account provider may ask for a cash bond (as indemnity) along with a business plan, which will further need to be approved.

In addition to choosing between an offshore or onshore provider (which in some cases may not present a choice), an e-tailer will be well advised to do some extensive number crunching when choosing a merchant account provider. Today, there is available, an extensive list of provider to choose from, with varying fees, minimum requirements and transaction fees. While intense competition has caused many providers to lower their fee structures, a merchant must beware of hidden fees and charges that may not be presented initially by providers offering ‘ZERO SETUP FEE!’ and similar catch phrases to capture attention.

The actual application process begins with filling in an online form (in case of internet merchant account) or a physical form, available through your local bank, in the case of a domestic merchant account. Many offshore account providers can be located by simply searching the internet. The application form is then screened by the merchant account provider, in order to assess feasibility, primarily from a risk point of view. As mentioned before, a high risk vendor will probably be out of favor for a domestic provider without the furnishing of a substantial indemnity bond. The provider will then approach the merchant for further documentation. Such documentation will mostly include:

 Registration certificate, incorporation certificate, memorandum and articles of association (in case the retailer is incorporated), partnership deed (in case of partnership) and other organizational material.
 Details about the directors or partners including name, place of domicile (with proof), contact information, etc.
 Identification proof of the directors, managing partners.
 Business plan and financial documentation.
 Full history with a previous merchant account along with detailed information about chargebacks.

In addition to the submitted information, the merchant account provider will typically conduct its own background checks including a credit history and rating verification, as well as a detailed analysis of the retailer’s proposed business model and revenue potential. Assuming that all is satisfactory, the provider will obtain an approval from an acquirer bank that it has a relationship with (many big banks have their own acquirer bank units). Once approved, the retailer will have to purchase a credit card terminal and in many cases, a dedicated telephone line for processing needs. In case an internet merchant account is applied for, the software is the key to operations. While many merchant account providers have their own shopping cart software, they also provide a compatibility list of 3rd party software. Such 3rd party solutions are often favored by retailers due to the usability, features and ease of management.

A final point to be noted in case of an offshore merchant account- while it is possible to go directly offshore, set up and incorporate a company in a foreign land, and do the necessary paperwork yourself, it may be more convenient and practical to approach a third party merchant account provider such as Stradafee, which specialize in providing merchant accounts and have the necessary infrastructure in place to make the whole process even easier.

In this day and age of electronic commerce, the decision to open a credit card merchant account is relatively undisputed. The actual process of opening an account should begin with the retailer identifying certain key parameters about the retailer trade the merchant requires the merchant account for. The selection of an appropriate vendor for the merchant account should be the first step in the cycle, which is usually followed by an application on a prescribed form. If and when approved, certain information and documentation such as financial statements will need to be furnished to the merchant account provider. One approved, the provider will supply the equipment or in case it is an online merchant account, the retailer’s website will need to embed the merchant account software in the e-commerce website and integrate the shopping card software supplied by the merchant account provider.

Selecting a merchant account provider should take into account the volume and value of proposed transactions, nature of business, history and track record and identification of specific needs, if any apply, of the retailer. The volume of transactions and nature of business proposed to be conducted via the merchant account will have a significant bearing on the available options to choose from. For instance, if a retailer expects a high volume of transactions, a merchant account for that specific purpose will need to be obtained, which frequently fall in the high risk category. Such high risk businesses may not be able to obtain a merchant account onshore, and may need to opt for an offshore merchant account. The history and track record with a merchant account may come into question in case of a domestic account provider. In case a retailer is unable to meet certain basic requirements, for instance, if a retailer has been in business (online) for less than 2 years, the merchant account provider may ask for a cash bond (as indemnity) along with a business plan, which will further need to be approved.

In addition to choosing between an offshore or onshore provider (which in some cases may not present a choice), an e-tailer will be well advised to do some extensive number crunching when choosing a merchant account provider. Today, there is available, an extensive list of provider to choose from, with varying fees, minimum requirements and transaction fees. While intense competition has caused many providers to lower their fee structures, a merchant must beware of hidden fees and charges that may not be presented initially by providers offering ‘ZERO SETUP FEE!’ and similar catch phrases to capture attention.

The actual application process begins with filling in an online form (in case of internet merchant account) or a physical form, available through your local bank, in the case of a domestic merchant account. Many offshore account providers can be located by simply searching the internet. The application form is then screened by the merchant account provider, in order to assess feasibility, primarily from a risk point of view. As mentioned before, a high risk vendor will probably be out of favor for a domestic provider without the furnishing of a substantial indemnity bond. The provider will then approach the merchant for further documentation. Such documentation will mostly include:

 Registration certificate, incorporation certificate, memorandum and articles of association (in case the retailer is incorporated), partnership deed (in case of partnership) and other organizational material.
 Details about the directors or partners including name, place of domicile (with proof), contact information, etc.
 Identification proof of the directors, managing partners.
 Business plan and financial documentation.
 Full history with a previous merchant account along with detailed information about chargebacks.

In addition to the submitted information, the merchant account provider will typically conduct its own background checks including a credit history and rating verification, as well as a detailed analysis of the retailer’s proposed business model and revenue potential. Assuming that all is satisfactory, the provider will obtain an approval from an acquirer bank that it has a relationship with (many big banks have their own acquirer bank units). Once approved, the retailer will have to purchase a credit card terminal and in many cases, a dedicated telephone line for processing needs. In case an internet merchant account is applied for, the software is the key to operations. While many merchant account providers have their own shopping cart software, they also provide a compatibility list of 3rd party software. Such 3rd party solutions are often favored by retailers due to the usability, features and ease of management.

A final point to be noted in case of an offshore merchant account- while it is possible to go directly offshore, set up and incorporate a company in a foreign land, and do the necessary paperwork yourself, it may be more convenient and practical to approach a third party merchant account provider such as Stradafee, which specialize in providing merchant accounts and have the necessary infrastructure in place to make the whole process even easier.

Jennifer Loganathan is the President and CEO of Stradafee Limited an international merchant service provider. Stradafee is a retail and an electronic payments company specializing in global eCommerce and Internet merchant accounts. Merchant accounts make it possible for businesses to provide credit card processing for card present and card-not-present transactions. For more information on credit card processing visit http://www.stradafee.com.

Aggregator Accounts Reduce Your Aggravation

Having trouble managing the plethora of financial accounts you’ve acquired over the years? Tired of sorting through check books and online accounts to figure out which bills you’ve paid and which ones are about to be late? These days it is not uncommon for individuals to be faced with 20 to 30, or even more separate accounts to keep track of. Even with online access to all your bank accounts, credit cards, investment accounts, cell phone, cable, utility bills, mortgage, and auto loans it becomes a task can eat up hours of your time. With everything spread out it can be maddening to wrap your brain around your financial position. Unless you are Warren Buffet, this is where online aggregator accounts can save you the aggravation.

Account aggregation is an accounting method of showing many different types of accounts in one place. Logging into one system can give you a bird’s eye view of your financial situation. These systems utilize “screen scraping” to compile data from each of your accounts and will display them on one page for you to review.

Various types of account aggregation solutions are available. With client based systems you download an application that runs from your computer. This type is more secure because all the financial data is stored on your computer. Server based systems store the data on web servers. While less secure you can access the data from anywhere in the world. Some companies offer a hybrid solution. Mobile systems download the data to a portable USB drive you can plug into a computer anywhere you go. Just don’t lose it!

Some people are concerned about possible security risks of these systems, however it may not be as great as one might suspect. Most financial institutions have rigid procedures in place for transferring money out of an account. In the rare circumstance someone is successful in initiating this type of transaction; in most cases it will not take place instantaneously. With regular use of your account aggregator you will most likely notice it before it is processed and be able to cancel it. The reality is that there is more risk handing your credit card to a dishonest store employee than someone accessing your aggregated accounts. The greater risk is to your privacy rather than financial damage.

While account aggregators still need to be setup and managed as well it is far less difficult than dealing with each account on its own. For small businesses that rely heavily on credit card processing there are professional services through internet merchant account providers that can custom tailor a plan that best meets your specific needs.


About the Author: Jennifer Loganthan is the President and CEO of Stradafee Limited. Stradafee is an electronic payments company as well as eCommerce and internet merchant account provider. Merchant account provider make it possible for businesses to use credit card merchant account processing. For more information on credit card processing please visit www.stradafee.com.

WHAT YOU NEED TO KNOW ABOUT OFFSHORE MERCHANT ACCOUNTS

As a lot of us get our initial information on many subjects from the television or at the movies, there is a stigma associated with many terms that lead us to form opinions about terms, industries and the people that make up those industries. One stigmatic term we’ve all heard about at some point or another is, “Offshore banking”. Immediately we are trained to think that something is illicit or not on the up and up; perhaps there is a man in a white suit with dark sunglasses that picks up the money in a stainless steel briefcase, that doubles as a sub-machine gun of course and drops it off at the offshore bank (probably in the Caymens). Now that I have your attention, here’s one more thing you need to know about offshore banking; it’s not bad, in fact it’s probably more commonplace than you think! An offshore merchant account is simply an account set up with a bank outside your home country that processes your credit card transactions domestic or international, while complying with the host countries’ cardholder regulations to avoid any cross-border acquiring issues.

In the era of the internet which brings buyers and sellers together with little more trouble than a time zone difference, many merchants are beginning to see the value in expanding their market internationally. This is the next logical step largely due to the amount of information available internationally, where products and services that we would never hear about may now be available at the stroke of a key. This same concept is catching on to merchants that may be doing business internationally, but processing all of their credit card transactions at the bank down the street. Some of the what these merchants are finding out is that their “card not present transactions” are putting them in a high risk category, even though they may be selling homemade fishing lures in their store, out of their catalog and of course on the internet. They’re paying a higher rate because of this and their bank may have required a security deposit for acquiring their merchant account, due to the high risk factor, and they are afraid of chargebacks. In addition to all of this, it may be impossible at all to obtain a merchant account if your business isn’t adequately established. If you’re reading this and are a little turned off by some of what happens to merchants regarding their domestic merchant account woes, keep reading, it can only get better from here.

Today’s business owner is probably finding success internationally, so the next natural step is to look offshore for their banking needs. Some of the reasons may be that they do a lot of business internationally, low or no security deposits and multi currency processing. Not to mention tax benefits. While high risk and/or offshore merchant accounts may have higher rates associated with them, offshore banks for example in St. Kits, Germany and South Africa offer highly sought after services and competitive rates. Jennifer Loganthan CEO of Stradafee.com, who has good success with her banking partners in these countries commented just the other day, “It’s really the best of both worlds for merchants. They can get reasonable terms while retaining services like multi-currency processing, virtual terminal, direct API and a hosted third party payment page.”
As more and more domestic merchants are looking into offshore merchant accounts, the offshore banking institutions are getting more competitive for US and Western European business. The pieces of the pie are just getting smaller and everyone wants a piece.

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 electronic payments provider specializing in ecommerce and Internet merchant account solutions. Stradafee also offers 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 visit www.stradafee.com.

What is Credit Card Processing?

If you were reading this article twenty, fifteen or even ten years ago, chances are you would be reading it in a magazine or an industry or trade publication and not on your computer, in your office (hopefully home office), but probably on your laptop in an airport, because your flight was delayed, again. It’s a simple concept that has been around since the inception of credit cards and that is, credit card processing.

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.

Jennifer Loganathan is the President and CEO of Stradafee Limited an international merchant service provider. Stradafee is a retail and an electronic payments company specializing in global eCommerce and Internet merchant accounts. Merchant accounts make it possible for businesses to provide credit card processing for card present and card-not-present transactions. For more information on credit card processing visit http://http://www.stradafee.com/

HOW TO OBTAIN A HIGH VOLUME MERCHANT ACCOUNT

A problem a lot of merchants have is obtaining a merchant account to process their credit cards and ACH check processing. This is nothing new, as new businesses sprout up every day, and these days, you need to accept credit cards, especially if you want to stay in business. Let me clarify that the problem isn’t in a vendor getting approved for a merchant account, but vendors that need to process card not present transactions, and/or merchants needing high volume merchant accounts not getting what they need from domestic banks and processors. To banks and processors, these high-risk categories are known as MOTO (mail order, telephone order) and online (internet) transactions and are clumped into one category.

The problem lies in the fact that most domestic processors and banks put these merchants in a high risk category, often capping their monthly volume, leaving the merchant in a position where they cannot grow their business. For this reason, these merchants are turning to merchant service providers to secure high volume merchant accounts.

Securing a high risk merchant account is important to the growth of your business and in some cases, detrimental to you if you can’t accept credit cards or ACH check transactions. Working with merchant account providers that specialize in securing high risk accounts for merchants is extremely important, as many times your local bank or current processor will take the business but with stipulations and unreasonable terms.

The next step is working with your merchant service provider to establish your processing capabilities. Does your business require high volume or even unlimited processing capabilities? Do you have volume caps? Most importantly, do you want a domestic or off-shore merchant account? Sometimes, securing a high or unlimited volume merchant account can be obtained by a domestic provider, but if you’re a high risk merchant, that may mean going off-shore. Now that it has been established, that going off shore may be the way you want to go, you will need to select a merchant service provider that specializes in off shore and high risk and high or unlimited volume merchant services.

Working with the types of merchant service providers starts with an application, similar to your domestic merchant application with basic business information including current and projected sales volumes if and when a high risk, high volume merchant account is established. Once your application has been processed, the bank will assess risk. The risk they take on you is dependent on several factors, one of which will be projected volume. They may need to know that if you go out of business, and have received payments and have to cover your chargebacks, that the risk will be as low as possible for them. Chargebacks due to consumer satisfaction or fulfillment issues also have bearing on the type of limits and conditions on your new account. Yes, there are safer products and services for banks to process merchant cards and online checks for.

More commonly and as stated in the first paragraph, high risk merchant accounts are when you the merchant processes a credit card for a transaction when it or the holder is not present to sign the sales slip. These are MOTO (mail order, telephone order) or internet sales. These types of transactions riskier to banks due to fraud and stolen credit cards as well as identity theft. A common misconception is that a high risk merchant account is obtained for illegal, black or gray market goods or illicit services. This is not true. Banks research merchants thoroughly and do not accept any risk at all on them, leaving them with no merchant account or processing capabilities.

A good merchant service provider will offer you the merchant services such as an online virtual terminal, fraud scrubbing, multi-currency processing, direct bank MID (merchant identification), third party aggregator, twenty four hour real-time reporting and the ability to accept all major credit cards that include Visa, Master Card, American Express, Discover, Switch, Solo and JCB. These services are all done in-house by your merchant service provider and offer you and your customers a safe processing environment. Not all merchant service providers can offer these services and handle your high volume business, so research is important.

Many businesses need high volume merchant accounts to keep up with consumer trends and grow their businesses. Your choice to work with a merchant service provider that specializes in high volume and high risk is well in the mainstream of card service and online check processing today. By working with an experienced and reputable merchant service provider, you can ensure the security and vitality your business for years to come.

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

Online Offshore Merchant Account

Why do you need an Offshore Merchant Account?

Many online businesses look for a merchant account offshore for various reasons, ex. have large volume requirements, fast business growth, cannot be approved at a standard processing bank due to new regulations poor credit, or the type of products or service that they sell. By processing through an offshore processing bank, your business may qualify for no monthly or yearly volume limits, and very lenient product type requirements, so your business will never be hindered by the strict guidelines of a domestic processing bank. Many businesses such as software, website hosting and electronics fall into the high risk category and must use an offshore merchant account. Some of the largest and most respected businesses in the world use offshore processors due to their growth and product types.

Increase need for Offshore Merchant Accounts

The growing need for offshore merchant accounts continues to increase. Due to US laws and regulation changes in the Untied States, banks and processors have tightened their due diligence and acceptance to merchants processing payments online. If your business is growing and due to increased sales and your U.S. acquiring bank is threatening to terminate your merchant account, then you will need to start seeking and offshore merchant account? Offshore merchant accounts have become a necessary aspect of the ecommerce world.

What to expect with an Offshore Merchant Account

• Accept MasterCard, Visa, American Express, Discover, Switch, Solo and JCB
• Multi-Currency credit card processing
• Gateway – to process your electronic payments, normally offered free by merchant service providers.
• Shopping Cart – Offshore merchant accounts are compatible with most leading shopping cart vendors.
• High approval rates, even if you do not have perfect credit you there should not be an issue with you obtaining a merchant account.
• Virtual Terminal – To enter MOTO orders
• Recurring billing – ability to auto bill recurring payments.
• Check accept – ability to accept checks online though your offshore provider,
• Online View – Ability to access your merchant account activity online 24 hours per day, 7 days a week.

Online Commerce has become an important sales source for businesses throughout the world. The internet allows an unlimited amount of customers, which makes doing business on the internet very appealing. An offshore merchant account is what you will need to grow your business. With an offshore merchant account you will not have to worry about jeopardizing your merchant account for growing your business!

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 electronic payments provider specializing in ecommerce and Internet merchant account solutions. Stradafee also offers 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 visit www.stradafee.com.

Stradafee.com Application Process

Below are details outlining what to expect with the Stradafee merchant application process.
Contact us and we can e-mail you a merchant application or click the apply now / sign up button to get started. The apply now button will open up the pre-qualifying information and will proceed from there to direct you through the merchant application process. Should our staff require further information or if there is information missing from the merchant enrollment forms then your application will be held up in underwriting.

Make sure to have the following documents hand for upload into the online merchant application =

• Corporate Documents
• 6 Months Processing Statements (if you have)
• Notarized Passport
• Bank Reference Letter
• Utility Bill
• Estimated Monthly Sales to Stradafee.com
• Currencies Required
• Merchant Type (ex. ecommerce, Retail, High Risk, High Volume, International, Offshore, etc)

Once the merchant enrollment form is completed please click on the submit button to forward on to us.

Stradafee’s due diligence takes 24 to 48 hours.

Upon approval we will notify you if you have to submit to us additional information. You may be required to sign a final contract. If this is not required then will send you the temporary log ins and pass code for the admin. From there you can log into the admin and download the instructions. We offer a third party payment page or a direct API.

After integration you may start submitting us your transactions for processing.

Depending on your specific merchant type and processing history. The entire process can take 24 / 48 hours – 2 weeks. Items that will cause a delay will be holidays, missing information & paperwork.

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 electronic payments provider specializing in ecommerce and Internet merchant account solutions. Stradafee also offers 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 visit www.stradafee.com.

YOU, ELECTRONIC PAYMENTS AND THE GLOBAL ECONOMY

As markets get bigger, marketplaces get smaller, right? Today, we regularly purchase products from other countries, sometimes without knowing we are. The internet has made it extremely easy to do a day’s worth of shopping in about an hour in front of your computer; which is often a lot more shopping than you would do normally, due to our busy lifestyles. Online merchants are finding it increasingly difficult to keep up with their online customers and electronic payments, which, in some cases, leads to sacrifices to their local storefronts and their community. As online merchants, we all know the wave of the future is keystroke marketing, online transactions and electronic payments.

Many of you who still maintain a storefront, often contemplate closing the doors and eliminating a lot of your overhead and focusing your time to grow your online business. While this is scrutinized on a daily basis in town board meetings and by small town folks, the fact still remains that businesses need to turn inventory, make a profit and grow. In some areas, the cost of maintaining a storefront is just getting to be too much to bear. In others, online business is more convenient and cheaper than traveling to the store and paying more. In almost every scenario, making purchases over the internet is easier, cheaper and more convenient. As online merchants, your electronic payment solution is very much the driving force keeping your virtual storefront afloat. Much like websites have added dimensional sizing charts, virtual inventory and proprietary chatrooms; online banking and the use of electronic payment companies have helped our customers overcome many of the hurdles that, in years past made it difficult and frustrating for them to grow their online business, while maintaining a storefront.

Stradafee is a company located in the United States that offers services to both domestic and international ecommerce vendors. For many of you, your current electronic payment service provider is your local bank or credit card processor (which can be anywhere in the world); both of these options leave you, the vendor, with limited options, many times just one. If you could draw a comparison between your electronic payment options today versus the way they were at the inception you would be left with a one size all merchant account. That idea offered by payment processors did not work and still does not work. Leaving the merchant left tailoring their business to fit into the processing solution offered by the payment processor. Now the merchant has options. Stradafee.com offers the merchant multiple solutions to fit their needs, not the needs of the credit card processor. We have multiple payment options to choose from. At stradafee.com our payment processing solutions can be tailored to fit your businesses needs. Stradafee.com offers online merchant accounts, retail merchant accounts, multi-currency processing, high risk merchant accounts, multiple payment cycles, both domestic and off-shore. Some of which include credit card virtual terminals, and unlimited processing volume.

In today’s marketplace, identity theft, chargebacks and online fraud are common pitfalls for both storefront owners and online merchants; our customers need to be prepared to deal with these issues and still get paid. Unfortunately, for the old guard, businesses have changed and adapted to the wave of internet crime that gets between honest vendors and their money.

Today, more and more people that process credit cards and accept checks online and over the telephone are bringing their business to Stradafee.com and other companies like them to achieve a custom tailored solution to their online processing needs. Stradafee.com can help you process your electronic payments in US dollars, Euros and many other foreign currencies. If you are an international business and want to concentrate on foreign non-European markets or expand to European and US markets, Stradafee.com can help you process in over 125 currencies worldwide.

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 electronic payments provider specializing in ecommerce and Internet merchant account solutions. Stradafee also offers 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 visit www.stradafee.com.

Making Online Profitability a Reality

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!

About the Author: 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 www.stradafee.com.

Credit Card Processing for Home Businesses

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.

About the Author: Jennifer Loganathan is the President and CEO of Stradafee Limited. Stradafee is an electronic payments company as well as an eCommerce and offshore merchant account provider. Merchant account providers make it possible for businesses to use credit card merchant account processing. For more information on credit card processing visit www.stradafee.com.

Offshore Merchant Accounts

Tax liability is one of the major concerns of any business, whether that is brick and mortar or through the web. Some businesses look for ways to move their assets to an offshore location while others are creating a new way of doing business with the use of the World Wide Web, and thus they need a secure, simple, reliable way to accept credit card payments. Though must have heard of offshore accounts, many businesses are reluctant to give an offshore account some thought, usually because they are unaware of how easy it is and how helpful it can be.
Internet merchant accounts are not a new concept to most retail and industrial business owners. Simply put, merchant accounts allow for businesses to accept credit card payments without the use of third part processor, which has many advantages of its own. However, upon considering an offshore merchant account, most business owners and managers have little if any experience and are not fully aware of the differences and advantages.
If you have spent any time at all examining the online credit card charging business, you will know that it has quickly become very large and very competitive in the US. Part of the reason for this drastic increase has been the lowering of charges for credit card processing. What was once a 7% charge on average has become more like 3%. This is all great, but US (domestic) merchant accounts still need much improvement in order to truly accommodate the small business owner. Application requirements and deposit requirements still burden many business owners seeking a merchant account in the United States. Some banks that offer merchant services require things like a two year business history, monthly holds to cover credit card charges, and security deposits of $2K or more depending on the predicted average charge amount. What makes doing business even more difficult with domestic merchant accounts is the level of paranoia that banks and other financial institutions have about money laundering, identity theft, and fraud. Many businesses have experienced a hold or complete closure of their merchant account due to a spike in their sales that is suspected of fraud, and this is the worst time a small business can experience such a difficulty. For many of these businesses, and large transaction may mark the their leap to a new level of business, and having to settle banking issues with a new client is the last thing that will help satisfy the customer.
For this reason, it is not uncommon for businesses to look beyond domestic soil for a credit card processor that understands their needs and their problems. Due to the flourish of global communication with things like the internet and cell phones, it is now easier than ever to people to do business with people that are on separate continents. Business can now shop for the best merchant account services throughout the world and decide on an offshore account that has the rates and services they need. Unlike the United States, many offshore merchant account providers have far fewer security regulations that may result in the holding or locking down of funds. These atmospheres are usually far more helpful to small businesses that cannot afford to have half of their revenue tied up in a security investigation.
The one draw back to some offshore merchant account providers is the actual processing fees. Because the extremely intense merchant account competition has not reached every country, some countries may still require higher fees for processing transactions.

About the Author: Jennifer Loganathan is the President and CEO of Stradafee Limited. Stradafee is an electronic payments company as well as an eCommerce and offshore merchant account provider. 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.

Fees Associated with Credit Card Processing

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.

About the Author: 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 www.stradafee.com.

Why Should Businesses Use Merchant Services?

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.

About the Author: 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 www.stradafee.com.

The Rise of Online Shopping

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.

About the Author: 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 www.stradafee.com.

Online Business Challenges

Like any business, online commerce has its own obstacles. Though they may present themselves differently than a brick and mortar establishment, many of these challenges are rooted in the same fundamental issues of trust, communication, and convenience. Creating a profitable eCommerce business with a positive reputation depends on your ability to navigate these challenges and provide customers with the best online shopping experience available.

The first thing to realize as an online business owner is that the vast majority of visitors to your site will not trust what they see. Customers are unimpressed with stylish layouts and amazing graphics when it comes down actually spending money. Most people want to see legitimacy. This can be displayed in many ways. Start by including a physical address and phone number, along with several contact emails and company bios. These things can go a long way in establishing legitimacy, but don’t stop there. Partnering up with other valued websites and becoming a member of organizations such as the Better Business Bureau are other proven ways to build trust. Beyond that, you must be good at answering the phones and responding quickly to customer inquiries. Some customers will even call just to see how quickly you respond, looking for comfort in the fact that your business is active and on top of things.

Product presentation is the second most important obstacle to overcome in online business. Unlike in a real world store, customers cannot touch and feel the product under consideration, and for this reason, the level of product showcasing must be very high. Provide several image views, elaborate descriptions, customer reviews, as well as links for other information. Most successful ecommerce sites provide at least five pictures of each product. Descriptions should be unique to your business and as clear as possible. If you or your team is not comfortable writing attractive product descriptions, hiring a writer is well worth the expense.

The last major issue in online business is security. The security of your website determines a customer’s willingness to enter their personal payment information. Part of establishing trust in your security is in having an online merchant account. A credit card merchant account will allow you to accept card payments while keeping shoppers within your website. Moving from your site to a third party processor’s site can be quite unsettling for potential buyers and can also cause a host of other problems. Once a merchant account is in place, making sure your site has adequate encryption will also reassure your customers in the level of informational security employed by your business.

The challenges of online sales are easily overcome with the investment of some time and thought. Without tackling these obstacles, the probability of sales will be very low. Of course, it doesn’t stop there. There are an infinite number of improvements you should continue to make as your business grows and develops. These major obstacles are merely the roadblocks that have a tendency to shut businesses down before they even get started.

About the Author: 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 www.stradafee.com.

Dropped Shopping Carts

Walking through the grocery store you might notice the occasional shopping cart piled high with groceries and abandoned in the middle of the store. Though this is an infrequent occurrence in physical shopping environments, you have to wonder why they jumped ship and abandoned their shopping cart. In the world of eCommerce, dropped shopping carts are far more common. Shoppers can save themselves the embarrassment of leaving a large physical cart and actually wash their hands of their shopping experience with one fast click of the button, and just like that you have lost a sale. Though it is somewhat difficult to determine the cause in some situations, statistical analysis has provided ways to decrease the amount of dropped or abandoned shopping carts by improving upon the actual checkout process.

The most common place for shoppers to drop their cart occurs upon entering the checkout process. Some of this may be do to consideration of the cost, but there are also other reasons that might discourage shoppers from continuing. A lengthy check out process is one of those reasons. Customers do not want waste time filling out laborious and unnecessary forms. The process must be short and easy to understand. An extremely helpful strategy is to continue updating the customer on how many steps remain in the process, which should also be a very small number. More than three steps is unnecessary, and fewer steps is more effective.

Determining necessary text fields for your checkout center will also improve the usability and simplicity of completing purchases. How much do you really need to know, and how much are you simply asking because you can? You must respect your customer’s privacy in order to keep an outstanding reputation of simple and secure transactions. Also, bombarding a customer’s email box with advertisements is actually not the best way to see them return for another purchase. Many shoppers are extremely turned off by spam-like campaigns. Do you really need such information as their middle name, occupation, and three different telephone numbers? Yes, this might provide interesting information, but is it interesting enough to warrant possibly losing a sale?

Security is another major issue when utilizing a merchant account to receive credit card payments. Customers must feel assured that their personal information is protected. This might be accomplished through SSL encryption or other verified protection, but it must be clear to the customer that such protection exists. This may consist of a particular seal or icon in the browser line that displays the level of security your website provides.

One more step for improving your check out clarity is to provide action-based buttons that guide customers to the end of the process. These buttons may direct the customer to “continue to checkout” or “finalize purchase” and they should be clearly visible. By spending some time to make the check out portion of your website more customer friendly, you are sure to decrease the number of dropped shopping carts, and that means more sales over all. It is well worth examination.

About the Author: 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 www.stradafee.com.