Is credit card processing service all I need to succeed in business?
I get the impression that my merchant friends attain financial success because of credit card processing service. Is this all I need to to be successful in my business?
For unknown reasons our business merchant has put a block on our account so no money is being transferred into our checking account (since the 28th). No one will talk to us regarding what is going on. They’re telling us have your lawyer call we’re not allowed to talk to you.
Is it legal that without knowing what is going on to shut down this merchant and find a new company to run our business? We have checks going out of the account and we need the money. Also any idea why a merchant company would put a hold on the funds and not willing to talk unless its through a lawyer?? thank you
Please go to http://dobermandan.com
There is access from that site to the doberman newsletter
Go to issue #3
Read it very patiently
In that letter is guidance to your question
If need be, you can send him an email direct from issue #3
Tell him a friend of Cox sent you.
How does a online Merchant account works for a E-Commerce?
Does anyone with experience on this subject… HOW DOES IT WORK??? I mean, to have an E-Commerce… Do I need a Merchant Account? a Payment Gateway?… both?
What is the difference between them, is there is any?…
It seems confusing to me, because some companies seem to explain this thing as the same … … I dont know… I am a little slow with these things…. please help.
To set up an ecommerce website you will need the following:
1) A website. I know this sounds silly but there is a lot more to it then most people understand. To have a website you will need to register a domain name and get web hosting. Then you will need someone to design and build your website for you. Naturally having a website that looks professional and is pleasing to the eye can help you convert lookers into buyers.
2) You will need a shopping cart. A shopping cart will allow you to manage your products and orders. There are many free and paid ones available and they offer many different features. You can also have a custom one made for you by a web developer. The advantages of using an existing script is that your site can get up faster and it costs less then a custom cart. The downside is you have to use what they give you and may have limited customization capabilities.
3) An SSL certificate. This allows for you to secure your order page will is necessary so your customers’ sensitive data (credit card information) is protected from thieves. You can get them cheaply at godaddy.com.
4) A merchant account. This is what will allow you to accept credit card payments. There are lot of merchant account providers out there so make sure you shop around as their rates will vary. Naturally lower rates are better. For an Internet business do your best to get rates as close to 2.00% as possible.
5) A payment gateway. This connects your shopping cart and order form to your merchant account. Basically it acts just like a credit card machine does in a retail store. The most popular gateway is Authorize.Net.
Some companies can actually provide all five services for you. Or you can choose to get them separately and try to save money or get exactly what you want feature-wise.
Is that a good thing or bad thing ? And I don’t write it on a piece of paper . I memorize just one passwords for all my accounts like yahoo email, youtube account, ebay, forums, merchant site.
What are my options ?
Thanks
it’s not a bad thing unless the password is very obvious to all who know you. I do the same thing because i am in so many stuff that i forget where to put which.So nothing to worry about.
Just keep the password a bit complex.
If someone is starting a store online, how much is the average fee for a credit card processor? Thank you?
I might have the wrong name. When I say card processor, I mean companies like Google checkout, 2Co, Clickbank, e.t.c., people who you need to process your customers credit cards. I think another name for them is merchant account.
I ask this question bcz I heard it can cost thousands just to set up, and yet I’ve heard it’s not that expensive. For example I saw Google is only $50 to set up then couple cents off each item sold. So I want to know is it thousands one time or not. Thanks.
True, it depends which service you take.
Try Charge
They offer lower rates and free services that other
companies charge for.
Google is also amongst the lesser expensive.
PayPal is another popular solution: https://www.paypal.com/us/mrb/pal=L7UGTG34FPGRW
How t get American bank account and merchant account having American corporation?
Hello,
I have registered in USA Corporation and physically I am in France, selling online laptops and memory sticks, I was wondering how to get American bank account and merchant account for Credit Cards processing.I would be happy with a bank account on my personal name or on the name of corporation .
Regards,
There are many merchant account providers offering US card processing services. You can Google “merchant account” or “credit card processing” or a similar term. For tips on what to look for in a processing proposal, click on the first link below. Once you select your provider you can go ahead with the application process. Generally the following documents will be required during a merchant account application process:
1. A merchant application – you will have to complete and sign this form. It includes general information about you and your business.
2. A copy of your organization’s Articles of Incorporation, unless you are a sole proprietor.
3. A copy of a voided check for the account that you will want your money to be deposited into.
4. Business or personal financials. Your tax returns for the last two years may be requested if your business is new.
Once all required paperwork is submitted, the set up of your merchant account should take no longer than two business days.
I would like to know the exact procedures for setting up my own merchant account on my e-commerce website without passing through a third party merchant account provider.
I know I have to open a merchant account with a bank. But how to I integrate it on my website??
Thank you
There are lots of merchant account account providers out there so shop around and get several quotes before choosing a provider. You’ll save yourself a lot of money that way. My first link below is a comparison worksheet to make organizing their rates easier. I also link to a calculator that does the comparison for you so you can see who is the cheapest in the long run.
When applying for a merchant account you’ll need the following items:
1) Verification of a US business checking account (a voided check works just fine)
2) Verification your business is legal (any document from the local, state, or Federal government works just fine. This includes Articles of Incorporation, LLC paperwork, Federal Tax ID, Occupancy License, State Tax ID, Fictitious Name Certificate)
3) A signed contract (provided by your merchant account provider)
Additional documentation is usually only required if your merchandise or account is considered high risk (e.g. there is a high risk for chargebacks). But this is rare. Personal financial documents should never be asked for, even for new businesses, as they are unnecessary.
You do not need to be a US based business but your business does need to have a legal US address and a US checking account. Otherwise it may be based on foreign soil.
Being approved will be based on the overall risk of your account. The higher the risk, the less likely it will be approved. Conversely, the less risk you present to the bank, the more likely you will be approved.
Risk is determined by several factors including:
1) Environment: The Internet is the highest risk and retail stores are the lowest risk.
2) Product sold: High stereo equipment is high risk, coffee mugs are low risk.
3) Personal credit: The better your credit the better your chances of opening a merchant account.
They balance the risk associated will all three areas and determine if it is worth it for them to take on your account.
Establishing a merchant account can be anywhere from a smooth and easy process to a nightmare. Where it falls is both the product of the merchant account provider and the merchant themselves. The better the communication between the two the smoother and faster the process is.
An account can be opened in as little as four hours or as long as a few days depending on when the application is submitted and the underwriting guidelines of the processing bank. The application process should never take longer then that without a clear and legitimate reason. If your application is taking two weeks to be approved and you’ve had little to no communication with your sales agent, something is wrong and you should consider canceling your application.
All merchant account providers require that every business sign a contract when establishing their merchant account. At the very least this contract will specify what the merchant’s responsibilities are as well as those of the merchant account provider. The entire contract should be made available to you before you sign it.
To integrate your merchant account into your website you will need to use a payment gateway. A payment gateway basically acts like a credit card terminal for your website. It’s software that runs on someone else’s server and they have an API for connecting to it. All shopping carts have built in support for at least one payment gateway and usually have the ability to support more so you don’t have to do any work to make the gateway work.
I recommend the Authorize.Net payment gateway as they are the most popular, best priced, and easiest to use. Plus they are enabled in every shopping cart by default so you don’t have to go find plug ins or anything for it to work. And if you want to integrate into your website yourself their API is extremely easy to work with. I linked to some free code with a tutorial that should help you along.
Setting Up an Offshore Company
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Is a wireless terminal for a high risk merchant account better than a manual imprinter?
Wireless terminals are more expensive than manual imprinters but are greatly useful to high risk merchants. They are efficient credit card terminals that let you know immediately whether a transaction is authorized or not. Manual imprinters are rather cheaper but work best with bulk orders.
my score two months ago was 690 697 700.one of my credit card payments is do, its an 8,000 limit and im maxed out, my two others at 0 balance i dont use them,im going to apply for a line of credit,if i lower it to 7,000 before my payment is do, will my score raise by me lowering my balance when they run my credit that same week,my debt to ratio will be around 40% i pay all my bills on time:rent,car note, cc bills,student loans, with other merchant accounts are at 0 balance with a nice limit.my bank just offerd me an up to 10,000 loan at 8% for 18months but i want a line of credit instead of loan can i tell them i want a line instead,i need acually 15 to 20,000 shouldnt i be able to receive that line amount with my scores and debt to ratio.
The way it works is your total debt divided by your total credit limit equals your debt to credit ratio any time this number exceeds 30% your score takes a hit.
This does not include vehicle or mortgage loans only credit cards.
As far as the line of credit is concerned that will be determined by your debt to income ratio and ability to repay.
Any input from folks who have or have had offshore merchant accounts would be helpful. Thanks.
Surely, the existence of merchant accounts overseas is normal, but I’d be cautious about working with someone who is offering services as an offshore entity unless you’re confident they are a legitimate entity. There’s lots of room for fraud, going this route.
How long does a merchant have to post a debit-card transaction? Must I keep funds available indefinitely?
I recently purchased an item with my debit card but have not yet seen record of the transaction. A friend of mine purchased an item with a similar card from the same vendor and saw a post to her account immediately. I realize a transaction can take a few days to clear but how long am I required to wait? Is there a time period in which merchants have to submit transactions or not? Similarly, if I write a check that is never cashed, is someone allowed to cash that check years later or is there legal protection for consumers?
There is no record at all on my online statement of a merchant request: no hold, no pending transaction, nothing… this is why I’m curious.
As soon as you purchase the item, the merchant sends an authorization request. Your card issuer will put a “hold” on the funds immediately. When the merchants sends through the clearing draft – anywhere between 1 and 5 days, usually, the amounts will be debited from your account and posted to the merchants account. Because of the “hold”, the bank will decline any transaction that exceeds your “open to buy”. That being the amount in your checking account, AFTER “holds” are deducted.
-MM
Edited – the ethical thing would be to call the merchant and find out why they didn’t put it through.
-MM
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