If you make your living by selling services and/or merchandise over the Internet, you really need a dependable payment gateway, such as Authorize.net, to help your business complete transactions as smoothly as possible.  Consequently, you may be galvanized to find an Authorize.net reseller – one that can provide the gateway to you in the most cost-effective manner.  The purpose of this article/blog entry is to better acquaint you with one of the most prominent gateways available and its related fees so that you can best decide which Authorize.net reseller to use.

A payment gateway is an e-commerce application or Internet-based mechanism that allows you to conduct business transactions online. The gateway basically gathers all of the information sent to you by the customer and then makes sure their credit card is able to cover the costs. Once this information is confirmed, the payment gateway ensures the authorized funds are deposited into your bank account.

While there are numerous payment gateway companies out there, one of the most popular and largest is Authorize.net. They are one of the most experienced gateway providers in the business as they’ve been around since 1996 and have an exemplary reputation as one of the leaders when it comes to Internet payment services. CyberSource Corporation, another quality Internet business, purchased Authorize.net in 2007 for $565 million.

The gateway system is quite easy to use with ecommerce web sites and it offers several free customer support options, including live chat, just in case you have any trouble using the application. It’s also an ideal tool for call centers, offline retail sites, mobile devices, mail orders and telephone orders. Another bonus of Authorize.net is its scalability, which allows businesses to scale up or down with relative ease.

Authorize.net is generally sold through a wide variety of companies which are known as Authorize.net resellers. This means you can buy their services from any one of the resellers you choose. This will allow you to shop around to find the reseller who can offer the best deal as their prices will vary.

While each Authorize.net reseller is an independent business, there are several fees that all of the companies will charge for the service and some optional ones. As a business person, your job is to compare them and try to find the best fees out there, but to also make sure you buy the service from a reputable seller and not a fly-by-night company that won’t be around to help you when you need it.

Set up fee

On old forums, some merchants have pointed out that that a gateway set up fee reminds them of death and taxes as there’s no real way to avoid it.  This is no longer true as many vendors now waive the start up or set up fee.  However, most Authorize.net resellers charge about $150, but if you look hard enough, you might be able to get it done for as low as $100, and of course if you look in the wrong places, you might be asked to fork out as much as $200 for the set up.

Monthly gateway fee

Just about every reseller will charge you a monthly fee. The cost typically depends on the type of services you include in the package and the reseller. The cost is generally between $10 and $50 each month.

Transaction fee

Again, this will vary from with each Authorize.net reseller, but you can expect to be hit between five and 20 cents for each transaction you complete.  Some companies waive any gateway transaction fee, and others stipulate that it is free up to a certain number of transactions (typically 250 transactions).

Fraud Detection Suite

The Authorize.net payment gateway offers a few fraud prevention tools at no cost, but you have the option of upgrading to the suite for about $5 a month if you choose.

Automated recurring billing

This service is helpful when it comes to collecting regular payments, such as subscriptions for example. It usually costs $10 a month.

Virtual terminal

A virtual terminal will let you accept phone, email, mail, and fax orders and will then use your computer access to manually process the transactions.  Some merchant account providers offer a virtual terminal at no additional expense; others may increase their set up and/or monthly fees by providing a virtual terminal in conjunction with the payment gateway.

eCheck.net

This service will let a customer designate an electronic check from their checking account. It usually costs a merchant between $10 and $30 each month for this service. Be aware that you might be charged a start up fee if you want to accept echecks.  (The processing rate to process an echeck should be less than that to process a credit card.)

Customer Information Manager

This service allows you to securely store important customer information in a database for $20 a month.

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Typically, a vendor who offers Auth.net has liberty to change the set up, monthly, and transaction fees.  (The others rates fall under the domain of Auth.net.)

While there are a myriad of companies that may provide Authoriz.net, by contrasting the aforementioned rates, you’ll be able to locate the best Authorize.net reseller.  

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To learn more about our merchant services, please visit http://www.intelli-collect.com

If your business is accepting credit cards for its transactions, you need to try and find the discount merchant account that will offer you the best services for the most competitive price. You need to take into account all of the various fees, not just the qualified discount percentage. While the discount rate is important, make sure you don’t overlook all of the other “incidental fees” while searching for the best deal to match your needs and budget.

Below are some of the other fees you should be looking at when you’re searching for a good discount merchant account. If you’re not careful you could be nickel and dimed to death.

Authorization/Transaction Fees

The authorization fee is charged when you log onto the merchant account network through a phone line or the Internet to verify that a credit card is valid and has enough credit available on it. There shouldn’t be any charge by your phone company for these calls as most terminals use local or toll free numbers. However, make sure you verify this before signing up or you could end up with an astronomical phone bill at the end of the month.

A transaction rate for retail accounts is usually anywhere from 20 to 40 cents. Remember, the transaction fee will be added on to the discount rate. However, some merchant service companies will combine the discount and transaction rates as one fee. This is generally known as a bundled rate.

Batch Fee

This is typically a small fee which is charged every day to batch or close out all of your transactions for that 24-hour period. These fees usually cost the same as your transaction fee. It is also known as a batch header fee.  Remember, if no transactions take place on a given day, you will not be accessed a batch fee for that day.

Monthly Fee (Statement Fee)

This fee is will usually run you anywhere from $5 to $20. The charge is used to supply you with a monthly statement that summarizes, breaks down and shows each one of your credit card transactions over that time period. The statements will be automatically sent to you at the end of each month. Make sure look it over very carefully just in case it doesn’t match up with your records. If you’re lucky, your discount merchant account provider will offer you online transaction reporting. This allows you to view up to the minute information regarding your merchant account.

Be aware that some companies may charge other monthly fees, such as the gateway fee, applicable if you conduct Internet/e-commerce sales.  It’s best to find out what the total monthly fee as you compare vendors.   

Monthly Minimum Fee 

This fee comes into effect only when your monthly sales are very low or you didn’t sell anything at all. The merchant account provider will calculate the charge by multiplying your total sales for the time period by your discount rate and then adding on your transaction fees. It may sound a little more complicated than it actually is. But for example, if your minimum monthly fee is $25 and your discount and transaction fees only add up to $20, then you will have to pay the $5 difference to reach the agreed upon $25 minimum. Therefore if you didn’t sell anything at all for the month, you would have to pay the whole $25 to keep the provider happy. Needless to say, a discount merchant account should have a low monthly minimum fee or even choose to waive it.

 Return Fee

A return occurs when a customer who has already paid for their purchase by credit card wants to return the goods. This means the transaction will be reversed on their monthly credit card statement and the money will appear as a credit. Most merchant account providers will charge you a return fee and a transaction fee when this happens.

You need to pay close attention to how your provider handles returns. Unless you don't pay a separate return fee on your merchant account, you have to add the transaction fee to the return fee to see how much you’re being charged to credit card returns.

Address Verification Service (AVS) Fees

 Most credit card processors will offer the address verification service (AVS). This will match up the cardholder's billing address (zip code and/or street address) with the information encoded on the cardholder’s credit card.

 There are various AVS codes that are used to show partial or complete matches. If the credit card address doesn’t match up with the customer’s billing address, you should verify everything with the customer before shipping the goods out to make sure they are headed to the right place. In fact, you should always verify this anyway. The AVS can be very helpful to you in these circumstances, especially if you’re selling goods or services over the phone or Internet. It’s also a useful tool to help detect fraud. At the moment AVS primarily works with American-issued cards, but can also be a functional tool for the United Kingdom and parts of Canada.  

 Termination Fee

 This is also known as a cancellation fee. And yes, in today’s world you even have to pay a fee to cancel your working contract with a merchant account provider when you want to switch to a different provider or opt to go out of business. Be aware of this and make sure you inquire about any potential termination fee before you sign on as you may be surprised how high it can go. In general, the longer you have been with the provider, the lower the fee.  Many vendors waive cancellation fees, providing reassurance to merchants who don’t want to get locked into a contract.

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In these difficult economic times, business owners need to find bargains – and that includes discovering lower fees for credit card processing.  It is very possible to gain big savings by knowing the little fees that exist in the merchant account field in your quest to find a true discount merchant account.

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To learn more about our merchant services, please visit http://www.intelli-collect.com

“Do you provide a high risk merchant account?” a gentleman anxiously inquired yesterday.  He seemed puzzled that he would have difficultly gaining credit card processing capability for his collection agency.

It’s just a fact of life that some people and their businesses are considered to be a higher risk when it comes to trying to obtaining services such as insurance and loans. Well, you can also add merchant account to that list as some vendors have a hard time obtaining a provider because of various factors that categorize them as a high risk.  (Merchants who are deemed a high risk need to open a high risk merchant account.)  

Some examples of high risk businesses include internet marketing, the travel industry, membership clubs, telemarketing, and debt collection. However, being considered high risk doesn’t mean you can’t set up a merchant account, but it will probably be a little more difficult because the providers are taking a chance on you as it could lead to financial losses for them.

What makes these businesses high risk in the first place is the fact that statistically they often have a lot of chargebacks and are sometimes susceptible to fraud and criminal activity. High risk accounts are usually necessary for vendors who can’t get a standard merchant account because of their type of business, monthly volume, and target markets.

Most merchant account companies and banks will look at your business carefully before signing you on and weigh the following information: previous merchant accounts, your credit history and how long you’ve been in business. They may also want to see items such as your business license, current processing statements, bank statements, and current profit-loss statements.

The amount of time you’ve been in business is important to merchant account providers as they like to know that you understand how the system works, especially relevant if you’ve previously accepted credit cards. This means you are able to identify and solve possible risks such as fraud and can manage credit card transactions with few problems.

If you’re familiar with merchant accounts it will be in your favor but any previously-terminated accounts will definitely show up on your file, which could scare prospective providers away – especially if the merchant account provider initiated closure of the account.  

A credit report tells the account providers if you pay your bills and if you pay them on time. It will also show if there have been any judgments, liens, or bankruptcies filed against you. Of course, a good credit report will definitely help you out if you’re opening a high risk merchant account.

If you are involved in a high risk business, there are a few strategies that you can employ to help your cause, however it’s still no guarantee that you’ll get an account without any problems.

Again, the most important task is to make sure you have a good credit rating. It’s pretty easy to get hold of your credit report by speaking to a credit reporting bureau or a business that supplies merged credit reports from major agencies. It’s best to check out your report before applying for a merchant account. This way, you can see exactly what’s on it and if it’s good enough to use when applying. If it’s not too flattering, see if it’s possible to get rid of any negative items such as past bankruptcies, late payments, or liens against you.

No matter what your business is, a good credit rating could go a long way when you’re trying to secure a merchant account. Make sure you’re always honest when it comes to your credit report, and past merchant accounts, as you can’t hide anything. In addition, if you encountered difficulties in the past and overcame them, it will improve your credibility.

Be aware that high risk businesses often have to pay higher fees and/or follow special account requirements. So if this is the case, you will have to agree to the terms or forfeit the opportunity to secure a high risk merchant account. Even if you have to dole out a bit more cash to the provider, it will benefit you as it means you’re able to offer customers other options instead of just cash or check. This should help your sales due to higher purchases and impulse buying.  (Of course, as you look for reputable vendors, still scrutinize the complete spectrum of credit card processing rates.)

If you have a sketchy credit report but manage to find a provider, you may also have to set up a reserve account to protect them from possible losses. A reserve account is typically calculated as a percentage of your sales, and the funds are held in your name by the bank for a period of time.

So if you’re running a high risk business, it’s not all doom and gloom out there, but prepare to pay a little bit more money and possibly follow some stricter rules that are laid down by the merchant account provider. In the long run, it should be well worth opening a high risk merchant account.

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To learn more about our merchant services, please visit http://www.intelli-collect.com

Here is a typical question that a new business owner asks: Should I accept American Express?  Let’s briefly explore the issue.

It’s a dog eat dog business world out there today, especially with the present state of the economy. The last thing you want to do is lose sales because you don’t wish to pay a few extra dollars on your monthly bills. It could actually cost you big time in the long run.

A prime example of this is the American Express credit card. You may be debating over whether or not you should accept American Express because the credit card processing costs are higher – particularly compared with the rates assessed when you accept credit cards with Visa or MasterCard logos.

However, you should do a little research before making a decision. Keep in mind that American Express is used by a lot of business professionals, so if you’re dealing with these types of customers or selling business-related items it’s a good idea to accept the card, especially since American Express transactions are generally 30 to 50 per cent higher than others.  In other words, customers tend to spend more when using an American Express card.

But if you’re running a comic book store or something more in the lines of “blue collar” items or services, then you may not need to take American Express. But just remember, you may ultimately be losing a customer, and with all of the competition today, such a potential customer will certainly find somebody else who will take their form of payment.

If you’d like to take Amex cards, you will need to set up an American Express merchant account. To be considered for an account you must be a registered business and/or licensed in your state as a partnership, corporation or proprietorship. You will also need to have a good merchant credit rating. If you run a travel agency, you need to supply a valid ARC/IATA number.

American Express offers two main plans to merchants and you should make sure to take the one that best suits your needs and budget.

There is a discount-rate plan that assesses a percentage of every transaction. There are no monthly fees and annual fees with this option and you are encouraged to manage your account online.

There is also a flat monthly fee plan ($5.95 per month) which is aimed at small businesses that usually process less than $5,000 in American Express sales per year

If you’d like to take American Express, but don’t want any monthly fees, the discount rate plan could be the one for you, as you don’t have to pay anything unless you take an American Express card for a transaction. It’s always there just in case you need it and it won’t cost you anything if it isn’t being used.

However, before making your final decision as to whether to accept American Express, be aware that many online vendors don’t accept Amex because of the company’s perceived chargeback policy. When a chargeback occurs, many merchants believe the company often sides with the customer. A customer-friendly (merchant unfriendly) chargeback policy can often lead to fraud, as many consumers buy online products and charge them back. This means the merchant is basically out of luck and out of pocket on the transaction.  Still, many business owners assert that Amex chargebacks are winnable so there is definitely a perspective divide as it relates to Amex’s chargeback policy. 

Therefore, before getting an American Express merchant account, you should make sure you fully understand the company’s chargeback policy and have it in writing.

All factors considered, it still appears worthwhile to become an Amex merchant.  You can expand your customer base, take in more money for these transactions, and possibly be able to satisfy some of your business’s needs.  Indeed, accepting American Express cards can help you develop relationships with other businesses as the company has its own network of companies that may be able to help you simplify your supply chain, or get access to various types of professional services.

The pros seem to outweigh the cons so I am giving a lukewarm endorsement to accept American Express.

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To learn more about our merchant services, please visit http://www.intelli-collect.com

Hypercom has been one of the world's top suppliers of electronic payment products since getting into the business in 1978. In 1987, the Australian company expanded to the USA and relocated to Phoenix, Arizona in 1990. Since then, the Hypercom Corporation has opened up shop in Latin America as well as Europe. They now have regional sales offices in China, Hungary, Brazil, Mexico, and the United Kingdom. 

The company offers a complete range of high security, end-to-end electronic payment solutions and services to a wide variety of customers including banks and large international and local financial institutions, electronic payment processors, popular retailers, independent sales organizations, and distributors.

Hypercom's experience and innovation allows businesses around the world to safely expand their revenues and profits. The company’s solutions include countertop and mobile card payment terminals, landline terminals, IP terminals, wireless terminals, unattended payment products, EMV and PCI-approved PIN Pads, network access controllers, gateway converters and transaction transport services.

Hypercom has been recognized globally as a top notch business by garnering various awards for its innovative technologies, high quality solutions, product quality, reliability, and functionality, and customer service and support.

Some of Hypercom's top products include the Hypercom:

Optimum T4210 

This countertop device has several high-end features including 24MB of memory, an ARM9 processor for fast transactions and also multi-application. It's also PCI PED approved to handle debit with and without an external PIN pad. It can also accept chip card transactions with the optional EMV-approved reader, making it ideal for magnetic stripe and chip card transactions. The 4210 is also MasterCard PTSP approved, Interac certified, and RoHS & China RoHS Compliant. It's an ideal product for retail and restaurants, small ticket sales, e-commerce, dynamic check conversion, check verification, and gift and loyalty cards, etc.

T7 Plus

This compact countertop POS terminal is ideal for those who are looking for a machine that takes all magnetic stripe cards and delivers authorizations very quickly. The unit offers bilingual screen displays as it can show Chinese and English at the same time. It is PED certified and EMV approved and is ideal for general retail, restaurants, pharmacies, and grocery stores, etc. The T7 comes in both 35 and 19-key configurations and can hold up to 20 unique merchant IDs in one terminal. The SureLoad thermal printer alerts cashiers when the paper is low and also eliminates paper jams. The terminal's multi-loader lets you download up to 12 terminals simultaneously.

ICE 5500

This compact, interactive POS terminal comes with an integrated printer and is designed to quickly process all kinds of credit, debit, and charge cards. The unit takes signature and receipt information to help cut down on chargebacks. The web-enabled machine features touch-screen graphics, electronic signature and receipt capture along with customer loyalty programs. It supports both smart card and traditional payment transactions. The ICE modem comes with the fastest dial-up capability available to help reduce transaction costs. The terminal also comes with 1 MB of memory and has 12 water-resistant keys.

ICE 5700

The 5700 terminal features electronic check reading and processing and provides web-based and e-commerce information via ePOS-infocommerce. The unit magnetically reads the MICR line at the bottom of checks for increased speed and accuracy. The 5700 has a high success rate of reading checks, even damaged ones. It gives you simultaneous card reader support for smart cards and magnetic stripe cards, electronic signature and receipt capture (ERC), virtual store hosting, e-mail, electronic bank statements, touch-screen graphic display, onscreen advertising, electronic couponing and loyalty programs. The modem has the fastest dial-up capability available (like its ICE 5500 counterpart) and the fast, removable thermal printer comes with an optional paper cutter to help stop paper jams.

P1300
  

This is a PCI-approved PIN entry device that is designed to meet the PCI PED security standards for PIN entry. The device gives clear instructions for easy transactions and comes with easily identifiable function keys. It is a compact unit that easily fits in your hand and allows users to hide their PIN entry with their body or hand. The P1300 also supports both DES and triple DES DUKPT encryption to help protect cardholder PIN information. It comes with a tamper-proof design that secures it from external attacks and meets new PCI PED security guidelines.

The aforementioned list only highlights only several of the myriad devices offered by the Hypercom Corporation.  While the company reported a net loss of almost 10 million in the first quarter of 2009, its fortunes will be on the rise as market conditions improve as its own brand of technology advances.  Long live Hypercom!

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To learn more about our merchant services, please visit http://www.intelli-collect.com

One of the most popular questions that I am asked by prospective clients is: “What is the difference between a qualified, mid-qualified, and non-qualified fee.”  First, I am impressed that the merchant is revealing an awareness of the components of a tiered rate structure.  Next, I forewarn the merchant that there are several conditions associated with each type of fee and that at the end of our discussion, a test will be given. 

Of course, I’m just joking but this blog entry / article may serve as a “cheat sheet” when gaining insight on the topic (i.e., becoming acquainted with the differences between the qualified, mid-qualified, and non-qualified rates).

Perhaps the best way to explore the subject is through an exchange between merchant and merchant account provider (MAP).  The first scenario is a dialogue between a retail merchant (RM) and MAP:

RM: I am just opening a small car dealership and plan to swipe just about all my customers’ cards.  I heard that it is cheaper to swipe cards than key them into the terminal.  I suppose then that all my transactions will be considered “qualified?”

MAP: Unfortunately, not all your transactions will be at the lower qualified rate.  It is likely that most of the cards you process will be in the qualified category, assuming that a given credit card’s magnetic strip is properly read by the terminal at the time of transaction and the customer’s signature is obtained.

RM: I anticipate very few problems where a credit card will not be able to be successfully swiped.  Assuming I encounter no difficulty with swiping cards, are there still certain credit cards that won’t be considered qualified?

MAP: Yes, typically rewards cards will be assessed a mid-qualified rate when one has a retail account.  Some rewards cards can downgrade to the non-qualified rate, too where you will incur the highest fee.  Corporate and International cards may also fall to the non-qualified rate.

RM: What if I swipe for an authorization?  Can I still receive the lowest cost when finalizing the sale?

MAP: As long as the authorized amount equals the deposit amount, and the transaction is batch transmitted electronically within a day of the authorization, you can still receive the lowest cost.  The transaction has to be authorized electronically as well (not called in, for example).

RM: What if I key in the transaction?  How does that affect my rate?

MAP: Generally, a keyed in transaction will be categorized as a mid-qualified transaction or non-qualified transaction, depending on several factors.  Again, the type of card you receive is all-important.  Check cards and standard cards will prevent the transaction from downgrading to the non-qualified rate.  Also, be sure to use an Address Verification Service (AVS) and key in the customer’s address because if there is an AVS mismatch where the customer’s billing address does not match the address listed on the card, the transaction will downgrade.

RM: How can I avoid the non-qualified fee?

MAP: As a reminder, try to swipe credit cards whenever feasible.  Use the AVS system and batch out within 24 hours after a card has been authorized.  While you won’t have total control over which credit cards your customers will use, remember to take advantage of “level 2 processing.”  Here, you would input additional information into the terminal when you accept commercial or corporate cards, including customer’s reference number, tax amount, and destination zip code.

RM: Thanks for explaining how qualified, mid-qualified, and non-qualified transactions are determined.  I’m going to hand the phone to a friend who plans to open an E-commerce Internet- based business as he may have additional questions on the subject.  Here he (IM) is:

IM: I just overheard about trying to contain the cost of corporate cards by using level 2 processing.  Can I use that system, too?

MAP: Yes, our payment gateway, Authorize.net, enables you to use level 2 processing.  As an Internet merchant, if you don’t employ level 2 processing, corporate cards will be valued at a non-qualified rate.

IM: As an Internet merchant, how can I avoid the non-qualified transaction category?

MAP: Similar to a retail merchant, ensure that you use AVS and batch out the same day, if possible, after card authorization.  Please note that the transaction amount has to be equal to the authorized amount, and the transaction shipping date should be within seven days of the authorization date.  Again, use level 2 processing for commercial or corporate cards.

IM: What about rewards cards and International cards?  Will they go to the non-qualified transaction bucket?

MAP: Typically, they would.  Some rewards cards may go to the mid-qualified category, but most would tend to fall to non-qualified status.  The better the rewards card, the more likely it is to fall to the non-qualified bucket.

IM: Can I get the same qualified rate as my friend (RM)?

MAP: Unfortunately, no, as your friend is swiping the card and you or your customer are keying in the information for your business.  All merchant account providers charge less for swiped transactions than keyed in transactions.

IM: So I can’t ever get a qualified rate?

MAP: You have to be careful with terminology.  Your “qualified rate” is tantamount to a retail merchant’s “mid-qualified rate.”  If your business is run via the mail, telephone, or Internet, and transactions are made without the credit/debit card being present, then there are different merchant processing terms used.

IM: Thanks for explaining the differences between these categories.  I now understand these tiers.

MAP: I’m so glad to be of service.  It’s so important to understand the nuances between the qualified, mid-qualified, and non-qualified transaction buckets and their associated rates.      

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A prospective retail merchant called me earlier in the week to ask me whether it was worth it to purchase a pin pad so that she could facilitate debit card processing.  This blog entry is dedicated to her. 

With the economy the way it is at the moment, a lot of people are wary about going into debt, or going deeper into debt.  Consequently, many people have cut up their credit cards or have hidden them away for the time being, and prefer to pay with cash.

However, you can still technically pay for items and services by cash without having to actually carry the money around with you. The simplest way is to pay by a debit card. A debit card is just as easy to use as a credit card as it can be swiped through a terminal, but the funds are taken directly out of your bank account instead of being added up on a monthly statement.

This way you can’t get carried away on a shopping spree and pay for things you can’t afford, as you need enough money in the account to cover the bill. I guess the simplest way to describe a debit card would be by calling it a plastic check, but without the aggravation of actually having to write one out. In fact, debit card processing is becoming the fastest growing method customers are using to pay for orders.

Debit cards are a lot more convenient than carrying around cash or checks and are also secure as a PIN number is needed to use the card to pay for a transaction. If you happen to lose a $100 bill, you’re out of luck, but if you misplace your debit card, it can easily be replaced and can’t be used without the proper PIN number. In addition, statements are itemized with the location and time of the debit card transaction.  Check cards are also available from companies such as Visa and MasterCard and they are similar to debit cards, but you don’t have to use a PIN number with them.

Because so many shoppers are using debit cards to pay for purchases, it goes without saying that businesses should be equipped to handle debit card processing. By accepting debit cards with a PIN pad, you can also save quite a bit of money on processing costs.. 

If you process debit/check cards as a regular credit card transaction you may end up paying twice the amount for processing. If you use a PIN pad for debit card processing, you only pay a per-transaction-fee and no discount rate of any kind.

But you need to make sure your customers input their PIN number during the transaction, if not, the per-transaction and discount rate will be charged for people using check cards who don’t enter their PIN numbers. Since entering a PIN number with a check card is optional for shoppers, it’s a good idea to encourage them to do so.  

If you run your business over the Internet, you typically have to pay the same fees for debit card processing as you do with credit card processing.  (Some merchant account providers provide a discount for the online use of debit cards.)  However, you can also save money by using an electronic checks system for your website sales.

Because the costs are so low using the debit card processing method using a PIN pad, (usually 50-95 cents) per transaction, you can save a substantial amount of money per order.

There are also several other benefits to using debit card processing, including the following: 1) There are no charge backs; 2) You have the option to offer cash-back to customers; 3) Your revenues will increase; 4) Sales are deposited into your account quickly; 5) All transactions appear on your statements; and 6) There’s no risk of accepting a bad check.

While it’s easy to see that using a PIN pad will save you money in debit card processing, you need to decide whether to use an internal or external pad. An internal pad is ideal if you want an all-in-one unit and it will also save you space. With an external PIN pad, it’s usually easier for the customer to access and enter their number on a hand held unit and there’s less strain put on electrical cables.

If you’d like to make money and save money at the same time, set up a system where you can accept pin-based debit cards.  The only caveat is if your average ticket is less than about $20-30.  In that scenario, the average credit card processing rate should be less than the flat debit card processing rate.

Retail merchants with higher tickets would be pennywise to employ debit card processing.

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To learn more about our merchant services, please visit http://www.intell-collect.com

It’s pretty hard to run a business these days without a credit card terminal. In fact, it’s almost impossible. If you’re selling goods and/or services, it’s important that you’re able to process credit and debit cards proficiently and safely.

Credit card terminals don’t cost that much in the grand scheme of things, but are very important when it comes to keeping your business running smoothly.

You need to make sure your equipment is up to date and reading cards properly as merchant account providers generally charge slightly more for keyed-in transactions than for swiped ones.   Remember, any credit card machine can be used with any merchant account as long as it’s programmed to connect to the right provider.    

Here are seven questions to ask as you research myriad credit card terminal offers:

1-What types of terminals are available?

There are a few types on the market. These are traditional models which can come with or without printers, wireless terminals, and virtual or software-based devices. 

A basic model comes with a magnetic stripe reader, keypad for entering prices and other data, and a small display area. The printer can be separate or built into the device and the terminals work the same way with either. However, when combing hardware, you need to make sure all pieces are compatible and work together properly.

There are several types of displays available and naturally, bigger ones can show more information at once. The display areas are typically measured in lines and columns: For example, an 8 x 20 display area means it has eight lines of text that is 20 columns wide.

Credit card machines with backlit displays are ideal for use in all lighting conditions and most models come with these. 

The keypads vary in their number of keys, and the more available, means you can allocate frequently used tasks their own keys. 

Wireless terminals

Wireless machines are ideal for people who conduct transactions while they’re mobile or in temporary locations. They allow you to conduct business without the necessary phone and electrical lines needed for basic models. These units come with built-in printers. When shopping for a wireless tool, be sure to consider its battery life, range, weight, and shock-resistance. 

Virtual terminals

If all of your business transactions are conducted by phone and/or via the Internet, you don’t really need a physical machine. Ask your merchant account provider for a virtual terminal that can process transactions. All you need to do is enter the credit card number and the web-based interface does the rest.  (You can also obtain software that offers credit card processing capability.) 

2-Will my equipment accept debit cards, gift cards and other types of payment cards?

It’s a good idea to get an apparatus that also accepts debit cards. Most do, but you need to let customers enter their personal identification numbers (PIN). Some terminals have this feature built in, where others require a separate pin pad.  When using a separate pin pad, the credit card terminal does not have to move from its location. 

Being able to issue and accept gift cards is a bonus, but not all terminals have the capability. Some models also let you take payment by phone cards, electronic bank transfers (EBT), and paper checks (run through a check reader).

3-Are there any security devices available?

You need to make sure you’re protected against fraud, so an address verification system (AVS) is essential for security. This system compares customers’ ID addresses with their credit card billing addresses. The system is standard on most units and I wouldn’t buy a machine without it.  You should also be able to utilize a CVV2 check (the 3 or 4 digit number indicated on the card) to ensure that customers have their credit card in their possession at the time of sale.

4-What type of printers are there?

You need a reliable built-in or separate printer with the terminal so you can give receipts to customers. There are three types of credit card terminal printers, which are dot matrix (impact), thermal and inkjet. Make sure the one you pick is fast and dependable.

Dot matrix printers employ pins and an ink ribbon to print on regular paper. They generally cost between $200 and $400. However, they can be pretty slow as they print one to four lines per second.

Thermal printers utilize heat and special heat-sensitive paper to produce receipts. They cost a little more, between $300 and $500, but are quicker and quieter as they typically print 10 to 15 lines per second. They’re usually more reliable than dot matrix printers as they possess fewer moving parts.

Inkjet printers are pretty rare with credit card terminals and the only bonus they offer is they can print in a variety of colors. They aren’t very fast and their cost is high. 

While thermal printers and paper may cost more than dot matrix, they usually cost the same in the long run as you have to buy paper and ribbons to run dot matrix printers. 

5-How much does payment processing equipment cost?

Credit card terminals won’t cost you an arm and a leg. Basic models generally sell between $150 and $300. Terminals with printers are usually $200 to $600, and wireless devices are usually between $600 and $1,000.

It’s a good idea to buy a terminal instead of leasing one as it will definitely save you some money.  It’s also a good idea to make sure you get a reliable model that can handle all of your needs even if it costs a little more.

Please note that some merchant account providers offer equipment at no initial expense although conditions may apply.

6-Where can I buy one?

You can easily buy processing contraption from your merchant account provider and they will pre-program the terminal for you. They usually give a decent price as they hope you will be working with them for several years.

If you’d rather buy the machine elsewhere, then be sure to consider the price, manufacturer's warranty, the type of business you do and what your terminal needs are.

If you’re considering buying a machine over the Internet, make sure you are buying from a reputable seller, understand any return policies and restocking fees, along with any warranties and service agreements that come with it.

7-What else should I know?

Make sure the credit card instrument meets all of your business needs. If your device can’t connect to the merchant account provider, the unit’s memory may store transactions for later verification. A model with 256k memory can store about 1000 transactions. 

Make sure you keep the equipment clean as printers and credit card stripe readers can easily get clogged up. A can of compressed air is ideal for cleaning a credit card terminal.

Some models use flash memory to store their operating software. This means system updates can be easily downloaded and installed and can extend the life of the terminal.

Finally, make certain that your selected machine is PCI compliant, conforming to the most up-to-date Visa and Mastercard security standings.  Refurbished machines may be considered (to lower your cost), but again, ensure that any device is PCI compliant.

In summary, by raising the aforementioned questions and discovering the answers, you will be able to obtain the “best” credit card terminal.

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Many merchants who are selling products and services while on the road are equipped to handle cash transactions only as they don’t have the phone lines and electrical outlets needed for credit and debit card sales. However, if you’d like to do your business electronically and conduct credit and debit card sales while you’re mobile or in a temporary location, there’s a simple solution for you: the Nurit 8000.

The Nurit 8000 wireless terminal is ideal for merchants who are always on the move and who conduct their business from locations that don’t have the necessary phone and electrical capabilities. This portable POS terminal allows you to conduct credit and debit card transactions from just about anyplace at anytime as its wireless modem accesses the AT&T GPRS cellular wireless network. It can also work on a Wi-Fi system.

The Nurit 8000 terminal can complete a transaction as fast as two to five seconds and is Payment Card Industry PIN Entry Device (PCI PED) approved so it meets the latest standards set for security and fraud protection. If for some reason you’re conducting business in an area with no or limited wireless cellular coverage, the terminal has a store-and-forward feature which lets you upload the transaction later. 

With a built-in PIN pad, the mobile Nurit 8000 terminal accepts PIN and signature debit cards, credit cards (including American Express, Discover and Diners Club) and checks.  It also allows for gift and loyalty card transactions.

The terminal processes your sales transactions via a wireless connection that has dial backup. The unit has a high-quality backlit keyboard and large LCD on it which makes it simple to read in all lighting conditions. The device also comes with a built-in rechargeable and replaceable lithium ion battery that lasts for about 12 hours at a time. 

If this compact and lightweight hand-sized device sounds like it’s the answer for your business needs, then you’ll be glad to know that the Nurit 8020 has since been released, which is the updated version of the 8000 model. It’s basically the same as the 8000, but has a new sleek design, making it even easier to carry around and use.

The Nurit 8020 offers an easy and quick way of completing transactions when you’re away from the office. The unit has 18 programmable keys, a dual-track bidirectional magnetic card reader, and comes with a built-in, high-speed graphical thermal printer which allows your customers to sign for the sale and have their receipts printed instantly.

The terminal also comes with enough memory to support several applications simultaneously and has a large removable memory card for extra data storage. It’s also a very secure system to use as the internal PIN pad and advanced encryption features protect you against credit and debit card fraud.

If you’re looking for a small, flexible, handheld payment terminal to take with you when out in the field conducting business, the Nurit 8020 is one of the best deals around as you pay the lower swiped rate instead of the higher keyed rate. And because you can complete the sale immediately with the card reader, you don’t have to worry about accepting bad cards.

It’s a great little state of the art unit for all types of businesses such as limousines and taxis, mobile vendors, delivery people, stadium and arena sales, tradeshows, tow trucks, plumbers, and electricians etc. The terminal is also usable with external landline modems. 

Several merchant account providers are offering the Nurit 8020 at no initial charge.  (Ask about conditions that pertain to any "free terminal.") Any mobile merchant with 2020 business vision can now obtain the affordable, durable, and useful Nurit 8020.

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To learn more about our merchant services, please visit http://www.intell-collect.com   

Merchants who need to open a wireless merchant account are often surprised to learn that they need not solely rely on a physical credit card terminal.  Indeed, they can transform any Internet-connected computer into a virtual point of sale or VPOS.  Technology has its benefits!

As with everything else in this world, technology has been evolving and improving the way in which we do business. More and more transactions are now being processed electronically, which ultimately saves time and money for most merchants. A prime example of this is the evolution of credit card sales.

First there were manual credit card machines, where you had to enter the card and a carbon receipt into the contraption and pull with all your might to get the machine to make an imprint of the card. This was great if you had all the time in the world and were trying to develop your biceps.

Our present-day credit card swipe machine simplified payment processing.  Here, all you have to do is simply swipe the magnetic strip of the card through the machine to complete the sale. But it seems the best was yet to come as many businesses are now completing their sales via VPOS, which stands for Virtual Point of Sale, using a virtual terminal.

The virtual terminal is basically an easy-to-use, real time online version of credit card swipe and read machines. This means you can use the system and save money at the same time as you don’t have to buy any expensive equipment.

You will, of course, need to have a computer though. And once you have this in place you’re off to the races as you can then process the necessary credit card transactions from any online computer on the planet. All you need to do to use the system and perform your transaction is login to  a secure website and enter the data.

This will allow you to charge cards, authorize payments and credits. As a bonus, the VPOS keeps an online record of all your transactions in a centralized data center, not on your computer, so it’s impossible to accidentally wipe out your records or lose them due to computer crash. The virtual terminal can be utilized on any number of computer desk tops, laptops included.

If you’re selling goods or services in a mobile fashion, all you need to do is type in the necessary transaction details into the virtual terminal or swipe it in if you have an attached credit card reader on your computer. The VPOS then seals the deal and payment is on the way.

As you know by now though, nothing comes for free these days, and the virtual point of sale necessitates a monthly fee, supplying you with 24-hour customer service and future upgrades. Because, there’s no software and hardware to install, the VPOS is quite easy, affordable, and convenient to use.

Your computer will have to be compatible with the system however, and meet the necessary requirements and you will need a printer and valid merchant account. If you are going to be handling credit cards in person you’ll need a card reader too. The system is ideal for all types of businesses including mall kiosks, clinics, doctors and lawyers’ offices, and trade shows, etc. It’s truly great for any merchant on the go as the VPOS goes everywhere you do.

Some other benefits of the system include: re-authorizing existing transactions for a new amount, re-billing older transactions for new amounts without having to retrieve the customer’s credit card number, and applying fraud screening tools to each transaction.  You can also submit, review, and void transactions, and issue refunds while online – in as quick as three seconds.

VPOS is very secure as the application will lock the compatible card reader device, which will prevent any other open computer applications from receiving the credit card data.

There are several suppliers to choose from and like anything else you should take the time to do a little research and find the company that best suits your needs, both financially and technically when you’re ready to launch a virtual point of sale or VPOS.

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 To learn more about our merchant services, please visit http://www.intell-collect.com  

If you’re ready to launch an e-commerce enterprise, you’re going to have to obtain a credit card processing service.  The question arises: Can you secure credit card processing capability without a merchant account?

The answer is “Yes” as another option exists.  While most online merchants opt to open their own merchant account, the trend has been changing slightly over the past few years as some are touting the derived benefits from third party processors.

However, after doing some research on the costs, using a third party credit card processing service instead of a merchant account is really only the best option for businesses that have low monthly sales volume.  (Many third party processors waive fixed costs, such as the setup and monthly fees.)  If you plan on selling a fair amount of products or services, make sure you do your homework to find the best deal for your venture, particularly keeping an eye on the discount percentage that is assessed for each transaction.

Upon closer examination, using a third party credit card processing service instead of your own merchant account has its advantages and disadvantages, and you will need to see which outweighs the other when deciding which credit card processor to choose. 

First off we will look at the benefits of third party services:

It’s often faster and simpler to sign with a third party than a merchant account and it generally requires no initial investment to do so;

Merchants with bad credit can readily secure third party processing services;

If your business has a low volume of monthly sales, it’s likely that you’ll save a bit of money by using a third party service in the absence of monthly and monthly minimum fees.

These services generally handle a decent percentage of any customer support credit card processing requirements and most services will refund any processing fees you have paid if customers decide to return any products. 

However, on the other side of the coin, there are several disadvantages of going with a third party service:

The credit card processing fees are usually higher than merchant accounts as they often fall in the 4 to 10 per cent range, compared with 2 to 4 per cent charged by merchant account providers. This means once your business takes off and monthly sales increase, you’ll likely end up paying higher fees with a third party service;

Third party services often pay your net sales proceeds every few weeks, while merchant account providers usually pay them within a few days;

Some third party services hold back a percentage of your sales to cover themselves in case of any chargeback claims from customers. Merchant account providers may do this, but it’s generally only implemented with high risk merchants;

Third party processors are more likely to freeze accounts (and for a longer period of time) when returns, and especially chargebacks, materialize; 

What you’re selling may also affect your decision as third party services generally only like to involve themselves with tangible products and/or digital products that customers can download directly from a seller’s website. They don’t usually get involved with services; 

Some third party services may also charge a membership fee along with a fee for each new product you decide to sell;  

Merchant accounts allow you to gather and access more customer information as they supply the personal details to you.  Customer information is more limited with third party services;

In most instances, you will have to use a third party’s shopping cart system. This means you won’t really have any input over the system’s overall look and feel.

Most customers don’t like to be transferred out of a seller’s site to enter their credit card and personal information to third party services. Some customer’s would rather cancel their order than go through this process as they are often worried about adequate security.

All in all, the disadvantages seem to outweigh the advantages when it comes to using third party services. However, if you’re only planning on selling a few items per month or are treating it as a part time business this option may be a viable one.

In your final analysis, when you include and figure out all of the percentages, charges and fees on items sold, businesses that plan on selling a fair amount of goods are better off with a merchant account provider as it should definitely save some money in the long run.  Indeed, you may incur a long term loss should you opt to obtain credit card processing without a merchant account.

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 To learn more about our merchant services, please visit http://www.intell-collect.com   

If you are a merchant who accepts credit card payments for goods or services, you may have noticed a PCI compliance fee on your merchant account statement recently.

When you first noticed this additional charge, you probably asked yourself, “What is this fee and what service does it cover?” If you are a merchant who has taken the necessary steps to ensure your business is PCI-DSS (Payment Card Industry Data Security Standard) compliant, this charge may appear to be a misnomer. Should it, or more appropriately does it, still apply to you?

Before looking at this issue further, it is important to first address what PCI compliance is and what affect it has on you, the business owner. 

PCI Compliance and what it Means for Your Business

You may or may not be aware of the fact that since June of 2008 it has been required that all merchants who accept credit card payments for purchases must be PCI-DSS compliant. In a nutshell, this is a security measure developed by the PCI Security Standards Council to curtail the loss of cardholder data.

At the most elemental level, it is now mandatory that you fill out a questionnaire and have your networks scanned quarterly for vulnerabilities. However, this is just the tip of the iceberg.

According to the PCI Security Standards Council website, PCI DSS is “a set of comprehensive requirements for enhancing payment account data security…developed by the founding payment brands of the PCI Security Standards Council, including American Express, Discover Financial Services, JCB International, MasterCard Worldwide and Visa Inc. International, to help facilitate the broad adoption of consistent data security measures on a global basis.”

To ensure this “broad adoption of consistent data security on a global basis” the PCI Security Standards Council has set in motion a 12-step program if you will that must be followed by all who except plastic for goods or services. For you, the business owner, this would entail:

• Building and maintaining a secure network
• Protecting cardholder data
• Maintaining a vulnerability management program
• Implementing strong access control measures
• Regularly monitoring and testing your networks
• Maintaining an information security policy

For a complete breakdown of the requirements necessary to ensure your business is PCI-DSS compliant, visit https://www.pcisecuritystandards.org/security_standards/pci_dss.shtml

To Be or Not to Be PCI Compliant, That is the Question

The real question is, “Can you afford not to be?” Although ensuring PCI compliance requires due diligence on your end as well as additional resources in time and money, the alternative could be catastrophic.

Bottom line, if it were discovered that your company was leaking credit card information from your processing network you would be faced with crippling, possibly business busting fines.

Currently, it is left up to the discretion of each credit card company as to what fines will be incurred when data is breached. Although MasterCard and American Express remain “hush-hush” about their fines, Visa has made theirs well known.

Presently, they charge $50,000 if a business exposes one credit card number due to unsecured networks. However, this is only the starting point. Fines could escalate to the half million-dollar mark if Visa deems it appropriate. They would also charge an additional $100,000 fine if you did not notify their fraud department about the leak.

It is safe to say that most businesses – especially in today’s economy – would crumble if faced with a financial hit of this magnitude. Therefore, becoming PCI compliant is essential to your business’ survival.

Anyway, would you really want to take that chance? 

PCI Compliance Fees

It is not only mandatory that all merchants comply with the regulations set forth by the PCI Standards Security Council to provide safe storage, processing and transmission of cardholder data, but merchant account providers (MAPs) as well. To offset expenses incurred to ensure compliance, various MAPs are currently charging PCI-DSS compliance fees.

Although it may be considered a “pass through” fee, it can also be viewed as a necessary expense that allows MAPs to stay in business and provide a needed service. If security were breached due to non-compliance, they too would face stiff fines that could potentially put them out of business.

However, if you have taken all steps to ensure PCI compliance and you are charged a compliance fee, you may want to ask your MAP if this charge could be waived. After all, your business should not be considered a potential liability.

Also, as with any fee charged by a MAP, it should be “fair and reasonable”. Make a point to call various MAPs and ask about their PCI compliance fees. Is yours comparable to what others are charging?  Are other MAPs waiving this fee?

In today’s uncertain economy, everyone is pinching their pennies and taking a hard look at their bottom line. Therefore, it is paramount to take the time to understand all fees on your merchant account statement and shop around to make sure you are getting the best deal possible – including the fee assessed for PCI compliance.

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 To learn more about our merchant services, please visit http://www.intell-collect.com   

Everybody’s faced with choices in life such as the daily decisions of what to have for dinner, what to wear or what CD to listen to on the way to work, etc. And then there are the more important options we have to deal with, which include marriage, banking, insurance, and housing etc.

If you’re an online merchant there’s usually another important decision to make and that’s which Internet merchant account to select. This is an important choice as you need to balance the cost with good service and dependability. Let’s face it, you’re not in business to lose money, but you also need to sleep at night knowing your merchant account provider is somebody you can depend upon.

If you have a hard time deciding what socks to put on in the morning, then you’re going to be blown away when you see how many Internet merchant account providers are out there competing for your business.

While accepting credit card payments via your web-based business doesn’t seem too difficult, you still need to understand the process so you can make an educated choice when choosing a provider. 

There are three general components to the process

Payment Gateway: This code transmits customer's orders back and forth to an Internet merchant account provider. It allows you to take all of their credit card billing information and the amount of payment. It also validates the transaction before the credit card is charged.

Because Internet credit card fraud is quite common these days you need to make sure the Internet merchant account provider has the proper security measures in place to combat it.

Internet Merchant Account: This is a deal you make with a financial institution or bank. It allows you to take credit card payments for goods and services from customers. The payment gateway sends all of the pertinent billing details to the Internet merchant account provider and they handle the transaction

Shopping cart: This is a crucial component for an online store and facilitates the e-commerce process.  When examining shopping carts, one should look for the feature set, ease of use, including ease of implementation, its appearance, fee structure, etc. 

It is important to note that the payment gateway must be compatible with the shopping cart.  Authorize.net, for example, is a popular payment gateway that is compatible with the vast majority of shopping carts. 

Now that you are aware of the pieces surrounding the implementation of an online account, it is important to decide on the vendor.  Of course one of the top things to consider when seeking an account provider is the price, so make sure you understand all of the costs and don’t be afraid to ask questions until you are fully aware of what you’re getting into.

Most online merchant account providers have these fees

Up Front Application Fees

On Going Fixed Fee

Discount Rate

Fixed Transaction Fee

Cancellation Fees

Miscellaneous Fees

Many providers will ask for some up-front money to cover the costs of processing your application. However, try to find a company that doesn’t require any up front cash if possible.

The ongoing fixed fee is generally a monthly statement fee to cover the provider’s costs of doing business with you. It’s a common practice, but shop around and compare fees as $10 should be the standard statement fee.  A monthly payment gateway fee will also likely be assessed ($10-$15 per month) and you may also be paying a monthly minimum on top of it..

The discount rate charged is usually between two and four per cent. This is basically a sales commission that the Internet merchant account provider charges for each sales transaction. The lower the discount rate, the better for you, as it means you owe the provider less money.

A fixed transaction fee is generally between 20 and 30 cents for each sale. This means you pay that rate no matter how much the transaction is worth.

Make sure you understand the provider’s cancellation fee as it may be in the small print of the contract. This is something you have to pay if you stop doing business with your Internet merchant account provider within a set period of time. It’s a good idea to not commit to a long-term contract until you’re satisfied the company can meet your needs.

Miscellaneous fees may be charged for items such as batching, address verification, authorization, debit pin pad fees, etc.  You should also be aware of the chargeback and/or retrieval request fees should any customer dispute a charge.  If you see fees listed in the contact and don’t understand them make sure you ask for clarification before committing to anything.

Once you get the hang of the fees charged you’ll have a better idea of how much it’s going to cost on a monthly and ongoing basis, depending on your sales. Just remember they will all be included in the total cost. Of course the bonus is the more transaction fees you pay means the more goods and services you’re selling to customers. However, you want to keep the percentage of total sales owing to the provider as low as possible.

The main thing to remember when choosing an Internet merchant account provider is to get value for your money, so factor in customer service, reliability, professionalism, and flexibility. It doesn’t matter how inexpensive the provider is if they can’t offer you what you need to run a successful business.

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To learn more about our merchant services, please visit http://www.intell-collect.com    

A merchant may only be a “yahoo” click away from finding a rather easy and relatively inexpensive solution to set up an e-commerce enterprise.  Yahoo Merchant Solutions offers a “paint by the numbers” program but one may look outside Yahoo to obtain their merchant account.

You’ve finally realized the stone-age ended long ago and have now started living in the high-tech computer era. You’ve read and heard all about the fantastic things you can accomplish by running your own business and how rich you can become. Well, obviously nothing is guaranteed in life, of course the old line about death and taxes being excluded. But if you want go get a good start in the world of business or continue being successful, there are a few ways of saving money on necessary expenses.

In this day and age, you really need a good e-commerce and merchant account solution to survive in the dog-eat-dog life of competitive business. While there are many fine companies to choose from, it seems that Yahoo Merchant Solutions is one of the most popular.

This could be because Yahoo Merchant Solutions can help you create your custom online business from scratch, starting with its professional online store designs and web hosting packages. The company also has programs to help take care of your email, promotion, marketing, inventory, product catalogue, security, order and payment processing, shipping and taxes, and customer service. There are also discounts available on various marketing services. If there’s anything you need creating and/or maintaining your business, you can bet they have it covered somewhere in one of their plans.

If you’re new to online business, are a little confused and aren’t really sure of how to set things up and finish them off, you’ll be glad to hear that Yahoo Merchant Solutions is one of the simplest programs to create, use, and maintain. If you encounter any difficulties with your website, help is just a phone call away as you can always dial up Yahoo’s 24-hour toll-free support line.

Everything about Yahoo Merchant Solutions may sound pretty attractive, but you still need to get down to the nitty gritty and have a good look at the specifics.

At present, the company offers three different plans: the starter plan, standard plan, and professional option. These plans are designed for merchants with different volumes of sales, from the guy selling merchandise from his basement to those moving thousands of products a week.

One important fact here is to know that with any plan you can only sell up to 50,000 units with Yahoo. This is quite a few and is sure to satisfy most businesses needs, but if you dream big, you need to take this into consideration. All plans allow you to create websites in easy to use programs such as Dreamweaver and Frontpage, and other HTML editors. 

You'll need a merchant account if you choose to use Yahoo Merchant Solutions and even though they recommend one, you’re free to choose any merchant account provider you like, so make sure you check a few others out. It’s important to note that the merchant account provider be compatible with Yahoo stores.  Yahoo Merchant Solutions offers First Data Merchant Services (FDMS) both as their gateway and payment processor/platform.  In essence, the merchant account provider that you select must run on the FDMS network.    

Credit card verification and validation tools are in place as is offline credit card processing. You can also take payment through Paypal as well as checks, money orders, pay orders and good old cash on delivery.

The one-time setup cost is $50 for all three plans and per transaction fees are less with the professional version. The transaction fee is 1.5% for the starter plan, 1% for the standard and .75% for the professional.  These costs do not include the merchant account. 

The monthly fees also vary from low (starter) to higher (professional).  The starter plan costs less, but beware that it doesn’t offer all the features of the standard and professional versions.  While the professional plan may cost you more on a monthly basis, it could work out less expensive, depending on how many transactions you’re processing per month. You’re never stuck with a plan as you can always upgrade.

The company hosts more top 500 Internet retailers than any other e-commerce provider and there’s obviously a good reason for this. They also offer many pricing specials on their plans, and provide the merchant with an easy to set up and maintain online business site. 

Yahoo Merchant Solutions enables the user to exercise flexibility in establishing an Internet presence, reflective of the latitude that the merchant has in selecting a merchant account provider.  (If you’ve already got a merchant account with somebody else, don’t sweat it as you can also switch over to Yahoo Merchant Solutions’ credit card processing partner with relative ease.)

If you opt to purchase Yahoo Merchant Solutions and find the ideal merchant account provider of your choice, you may already be half way towards your destination: business success.  

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To learn more about our merchant services, please visit http://www.intell-collect.com   

Once a mobile merchant decides to obtain credit card processing capability, he/she must become more aware of the various alternatives that exist to accept credit cards.

A plumber recently performed a repair job at our house (why does home maintenance have to cost so much?), and reported the amount due.  As I reached in my wallet for my credit card, he announced that he only accepts checks or cash.  “Accepting credit cards can only help to expand your business and many of your customers would prefer to pay with a credit card,” I declared.  He politely countered that credit card processing fees are exorbitant and that a wireless terminal is “too much money.”

I encouraged the plumber to conduct further investigation because mobile credit card processing need not be so expensive.  (Although tempted, I did not tell him that I’m in the merchant account field.)  Moreover, there are a couple of other ways in which to accept your customers’ plastic if you’re an on-the-go business owner.

Increasing in popularity is the utilization of touch tone or dial pay processing.  Here, the handy-dandy touch tone phone serves as a conduit to transfer funds from customer to merchant.  The business owner calls a toll free number, and following voice prompts, inputs the customer’s payment information.  The transaction takes about 2 - 3 minutes to facilitate, and the merchant receives a confirmation number when the transaction has been captured.

Many merchant account providers waive many fees when accessing rates for touch tone / dial pay processing, including startup, batch, AVS, monthly minimum, and termination fees.  The monthly expense averages about $10 - $15 in the merchant account field, and the processing cost is typically between 2% - 3.5%, depending on the type of credit card you receive from your customer.  A transaction fee (approximately 20 cents – 50 cents) should be factored in as well.

Some providers include the use of a virtual terminal with their touch tone / dial pay program.  (Other vendors offer the virtual terminal as a standalone item.)  The virtual terminal is a secure Internet-based interface that enables merchants to input payment information on behalf of their customers.  Merchants log on a secure payment site, type in their username and password, and begin inputting the customer’s credit card information in self-explanatory fields.

Mobile merchants may use a laptop to access their virtual terminal or can call the credit card information on to someone who may be at the home office.  The credit card processing rates for the virtual terminal mirror those assessed for the touch tone / dial pay program.  Please note that because the customer’s card is called or keyed in, it is considered “not present” which necessitates a higher credit card processing fee than a “card present” transaction”  (i.e., when a credit card is swiped).

Merchants who need mobile credit card processing may want to take advantage of the lower swiped per transaction processing costs by purchasing a wireless terminal.  Wireless machines (even refurbished models) may run anywhere from $200 up to $1,000 so it is an investment in capital to obtain one.  If you opt to buy a wireless device, make sure that you also obtain a printer and a pin pad, if necessary, to accept pin-based debit cards.  The Nurit 8000 and the Way Systems MTT 1581 are two dependable wireless units.

The caveat of using a wireless terminal is that it generally necessitates a higher monthly cost (as high as $30).  In the scenario that this monthly cost is prohibitive, mobile merchants may still accrue the benefits of a lower swiped rate by buying a gateway, such as Authorize.net, and using a virtual point of sale system.  A Magtek card reader may be used to swipe the customer’s card, and the payment information populates the gateway’s fields.  The sales amount is registered, and the transaction is soon captured and eventually settled.

All merchant account providers offer variations of the aforementioned programs.  Indeed, there are several options when it comes to mobile credit card processing so merchants must evaluate their business’s individual needs, the ease of use for each system, and the associated costs for each option.  Every mobile merchant should be able to find his/her own ideal credit card processing solution! 

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To learn more about our merchant services, please visit http://www.intell-collect.com