Many Internet merchants desire to expand their businesses and potential profitability by going global, and engage in the practice of international credit card processing.  While aware of the greater risks that they may  be victimized by fraud, such business folks do not want to lose possible worldwide orders and choose to accept credit cards from outside the United States.

In the course of doing business, merchants who sell internationally may very well run into suspicious orders.  Confronted by uncertainty, these owners must perform their due diligence and need to put a microscope on any order that arouses the “hmmm mindset.”  One of my clients, for example, just called this week to ask about a series of orders she received from Norway.  I was actually relieved that the client wanted to know what to do – especially before she shipped out the product.

The following lists advisable safety protocols to enact when decided whether to fulfill a suspicious International order:

-          Compare the IP address country with the billing address country – The IP address associated with the transaction may be obtained and should ideally match the country where the product is to be shipped.  (I understand that an anonymous proxy server can be used to place the order, hiding the IP address, but it’s still worth investigating.)   Of course, in rare circumstances, the two will not match, but it’s unlikely that someone would place an order while away from home.  This is especially true when expensive items are ordered. 

-          Look at the card issuing bank’s country and compare it to the billing address.  Again, based on the information passed by the “customer’s” credit card, the merchant account provider may be able to report the card issuing bank.  In the case above, our technical department representative was able to tell me that the card issuing bank was Teller As, located in Oslo, Norway (a match).

-          Check to see the email address that was used in the transaction – A free email address, obtained from hotmail or yahoo, for instance, is associated with a greater likelihood of fraud.  It’s virtually impossible to trace an individual who uses an anonymous, free email address.

-          Investigate where the product is to be shipped.  Think at least twice before sending merchandise to a PO Box or a ship-forward service.  Sending product to a home address is safest but by no means a guarantee that the order is legitimate

-          Contact the alleged customer and ask him/her to fax or scan a copy of their credit card and a picture ID.  The name on the card and the name on the picture ID document should match.  Many business folks, like my client mentioned above, are reluctant to ask for this type of information, believing that it is an encroachment on the customer’s privacy.  However, the motto that it’s better to be safe than sorry is apropos – especially when facilitating International credit card processing.

-          Finally, you can contact your processor and request the customer’s full credit card number.  It may take a day or two to receive the information but once you have it, you can connect with the customer’s card issuing bank and inquire directly with them.  It’s very possible that the card issuing bank will cooperate and let you know whether the name associated with the cc number matches your records.  The bank can also tell you if the card has been reported stolen or has been flagged as a result of suspicious activity.  Such developments may have occurred after the transaction.

            International credit card processing offers greater rewards but definitely more risk.  By following the aforementioned suggestions, you’ll be in a much better position when evaluating the authenticity of an International transaction.       

During my eight years working in the merchant account field, there are business owners who perform little if any examination when selecting a processor.  Others spend countless hours assessing proposals, favoring Excel spreadsheets and independent reviews.  Regardless of the amount of research performed, it is easy to get sucked into a quagmire when needing to gain credit card processing capability.

There are several potential minefields in the “merchant processing” industry.  Here is a quick list and brief description of five glowing mistakes committed by many seekers of merchant processing.

1)      I signed what? – Of course, you may have to enroll in law school to understand all the facets written in the contract.  However, it is imperative to know whether or not a cancellation or termination fee is imposed should you close the merchant account.  When I receive phone calls from folks who are thinking of switching to our service, I’m always a little surprised when some tell me that they have to investigate whether there is a closing penalty fee.  The time to find out about any possible merchant processing termination fee is before you sign any contract.

2)      What is your mid-qualified or non-qualified rate? – These related questions may surface well after business owners sign a contract and open an account.  Merchant processing typically entails tiered rates, and too often processors disclosed the lower qualified rate and leave out the more expensive mid and non-qualified rates.  (A retail account will have at least three tiers and an Internet or keyed in account will have at least two.)    

3)      What are your hidden fees? –  Merchant processing, at times, is enveloped in a cloak of secrecy as too many credit card processing companies fail to disclose a litany of rates.  Before considering any vendor, business owners must try to gain a firm grasp of all possible rates in the merchant account industry (including batch fees, AVS fees, chargeback and retrieval recovery fees, gateway fees, PCI compliance fees, etc.) so they can better compare and contrast offerings and perhaps even reward those merchant processing providers who demonstrate full disclosure.

4)      How long is this lease? – Blurry-eyed merchants who are launching a business, saddled with so many other concerns when opening their doors, are especially vulnerable to signing an equipment lease where they will pay unnecessary hundreds – some even, thousands – of dollars for inventory that they can buy much cheaper upfront.  Retail merchants who just need stationary terminals should avoid leasing at all costs.  There are plenty of affordable machines; some merchant processors will even provide free equipment although you should know all the caveats.  Wireless merchants can even find great deals for more expensive wireless machines.  The only time to even think about equipment leasing is if you’re in the market for very expensive POS systems (as you may find in restaurants) to process credit cards or if there is absolutely no money left from other business-related expenses.

5)      Where is the support? – Merchant processing is unfortunately notorious for inept support with some notable exceptions. J  Some agents are very fastidious when courting a merchant but then choose to ignore merchant questions or concerns when they arise at a later juncture.  Many merchant account providers also are lackadaisical returning phone calls or extending a high degree of courtesy and sense of professionalism – especially if disagreements with business owners surface.  Successful merchant processing truly depends on great service … as well as great rates.

Please keep the above list in mind to avoid becoming a casualty in the sometimes murky field of merchant processing.

I recently called Pagebuzz (http://www.pagebuzz.com) and inquired about their website building service as I was tinkering with the notion of adding another credit card processing-related website and, on a personal level, constructing several affiliate sites to highlight other products or services.  A gentleman by the name of Mark, the owner, answered the phone and did his best to convince me that I did not need Pagebuzz’s offering.

We’re all accustomed to receiving the standard sales pitch – why a particular company is the only logical choice among a myriad of options.  Some sales folks employ the “hard sell” and dogmatically try to convince the prospective client why their program is best.  Others use a softer approach, serve as bearers of information, but tout the advantages of their product or service.

Few in the sales field actually listen to the prospective client, address their needs, if possible, and respond accordingly.  When a company cannot suitably address such needs, too many sales folks try to “change” or modify the potential customer’s needs so that there is a possibility of landing the account.

Well, Mark of Pagebuzz attentively listened to my intended objectives and plans – and without any hesitation – talked me out of using his company’s product.  He explained that PageBuzz was more suitable for small business endeavors or for family/personal sites than affiliates sites.  He was adamant that I would not see a favorable return on investment and he proceeded to provide an all-encompassing overview of the affiliate marketing field.    

Mark spent about 45 minutes with me over the phone, generously sharing ideas on affiliate marketing, and detailing his experiences – both positive and negative – in this realm.  His only purpose was to educate and enlighten me on all aspects of affiliate marketing without any other agenda or for self-interest purposes.  The allocation of time was not going to directly profit Pagebuzz; Mark just wanted to see another person succeed online.

The experience reminded me of the movie, Miracle on 34^th Street, where Kris Kringle, played by Edmund Gwenn, told Macy’s customers to go to other stores, even rival Gimbels, when they did not have the toy in stock.  Customers who were advised where to look elsewhere were impressed with Macy’s generosity of spirit and open and candid stance.

I, too, was so impressed with PageBuzz and their honest and forthright manner regarding my needs vs. their product.  (The added affiliate marketing lesson was just the proverbial icing on the cake.)  Moreover, the more I examined the PageBuzz site, the more I realized that this company has the small business owner and individual in mind, and full disclosure as to “who” they are only reinforces the notion that they are company that manifests complete integrity.

I think that all business owners can learn valuable lessons from Mark’s frank discussion with me:  Listen to the prospective customer, assess needs, and if a viable option is not available, don’t pretend that there is one.  By doing what’s best for the customer, one’s company will always prosper – even if it’s not monetarily.  But good will can even generate income eventually, if not from the potential customer who made initial contact – well, at least from that person’s referrals.

I always try to look from the customer’s perspective, too.  I took a call last week, for example, from a merchant who was looking to switch to our service in order to save on credit card processing-related costs.  I asked the merchant to look into any possible termination fee assessed by his present provider.  He just called me back and told me that he would have to pay a $300 termination fee by switching.  He was grateful that I asked him about this fee, and while he cannot afford to switch now, he told me that he cannot afford NOT to switch after the termination fee is no longer valid.

In the future, should I have projects that more readily fit with Pagebuzz’s product, I will call Mark again.  At the very least, I can just encourage readers of the blog to contact Pagebuzz should they need to build a website, obtain hosting, or just need to speak with a friendly, honest person whose had much business, Internet-related experience.