Credit Cards - How to take them for your business
Merchant Accounts - how to take credit cards for your business. You
probably need Paypal PLUS a merchant account. You will increase orders
when taking credit cards. The fees are a tax write off. The liability is
charge backs if a customer denies charges.
PAYPAL - this is the easiest to get.
1. Take checks
2. Need the business/premier account to take credit cards
3. Fees 2.9% plus 30 cents per transaction
4. Join at https://www.paypal.com/affil/pal=74N9QPNX7BQUQ
Connect Merchant Payment Services - My choice for my business
1. Accept Visa, MasterCard, Discover and American Express
2. 2.30% plus 29 cents per transaction
3. $5 statement fee
4. Take cards in person or online
5. Gateway $25 signup and $15 a month (optional)
6. NO contract. NO minimum. NO set up fee
NOTICE: Tell them MPK001 code for these special rates & no contract
Contact Connect Merchant Payment Services for these special rates at
sales@cmps.com , or call 951-905-5950.
2Checkout - a beginning option
1. Take Visa and MasterCard through your web site only
2. $49 set up
3. 5.5% plus 45 cents per transaction
4. Automatically processes in shopping cart (gateway).
5. Need premium mals cart $6 a month or other cart
6. No phone order processing
7. Join at http://www.2checkout.com/cgi-bin/aff.2c?affid=68084
Propay - a beginning option
1. Take Visa or MasterCard
2. $1000 maximum per month in processing allowed
3. Take cards in person or online
4. 3.50% plus 35 cents per transaction
5. $35 activation fee
6. $10 statement fee per month
7. Several other small fees for use
8. Join at http://www.propay.com
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MERCHANT ACCOUNTS 101
By Kay Green
Copyright 2005 - 2008
1. WHAT is a Merchant Account?
A merchant account is the service you hire to enable you to accept
credit card payments for your site. It can be through paypal (limited
processing), your local bank, or a processing company like Concord. Most
will allow you to accept Visa, MasterCard, Discover, and American
Express.
2. WHY do I need an merchant account?
Without it you can not accept cards for payments to your business.
Studies show that customers spend up to 36% more when they pay with a
credit card. I highly suggest accepting paypal and also having a regular
merchant account to accept all other cards.
3. WHERE do I set up with a merchant account?
Apply with a merchant account (there will be a list at the end). Usually
there is a credit check. You will need to give them your bank account
numbers since they will deposit your funds into your account?
4. FEES of a merchant account
One is the discount rate. This is the percentage of the sale they take
out before depositing into your bank account. This is usually 2.5-5.5%
of each transactions. Ask the merchant account service what there rate
will be for you. It will vary depending whether you take cards that are
in your presence or just cards online or over the phone..
Then there are transaction fees. These are usually 15-30 cents per
transactions. These are taken out of your bank account at the end of the
month.
Then there is usually a statement fee. This is usually $5-20 per month.
Some services may also have a minimum in fees each month. Ask your
service if they require a minimum in fees.
There will also be an added rate when you take business credit cards and
other "mid-qualifying" cards. This is usually an extra 1% on some
transactions. This is also taken out at the end of the month.
5. CONTRACT - Is it required?
I suggest NOT signing up for a merchant account that requires a
contract. You want to be able to shop around if fees change. Fees can
change when visa/MasterCard makes an increase. The merchant company then
passes that on to you.
6. PROCESSING - How do I process the cards?
Most merchant account allows processing one of three ways.
TERMINAL - A terminal allows you to punch in the credit card numbers
into a terminal on your desk. This is plugged into a phone line and it
set up to automatically go to your merchant account number. AT the need
of each day I do a batch processing (entering numbers) and the amount
for the day is deposited into my bank account minus the discount rate.
The fee for the terminal may be one time or may be a monthly machine
lease. I bought by first refurbished terminal from the processing
company for $100.
GATEWAY - A gateway service is in addition to your merchant account. It
allows you to take and process credit cards in real time online. When
your customer buys and enters their credit card info on your web site it
processes it immediately. If your customer puts in wrong information
then the card is denied and the customer knows immediately. With a gate
way there is no need for a terminal. The gateway usually also comes with
an online terminal where you can enter numbers and transactions of cards
to take for phone orders or at away events. The gateway will have a set
up fee ($25-250) plus a monthly fee ($10-30).
TOUCH TONE - punching the numbers, and your merchant account number into
the telephone. Not all merchant accounts allow this option because of
the possibility for error in entering numbers.
7. GATEWAY - What are the benefits?
WRONG INFO - no need to track down a customer who entered wrong info
when paying. It will not let the transaction go thru until the customer
corrects the info
FAKE INFO - the people making fake orders with fake numbers will no
longer be able to
KEY STROKES - When you have 20-30 orders a day entering each of those
transactions be hand can take a lot of time. The auto processing of the
gateway eliminate that for you. The processing happens and is deposited
into your bank account even if you are not home.
VERIFICATION - The gateway verifies that the card is real, matches the
persons billing address and has the card in hand (CVC code on the back
of the card).
8. WHO should I sign up with?
Do your home work. Compare rates. Ask questions? Do not sign a contract.
Check above for my suggestions.
Articles written by Kay Green, Christian mom to Melissa
27, Jordan 25, Allison 22, Haley 10. Kay and Russell, her
husband of 31 years live in rural Oregon. Kay's first
granddaughter MADISON KAY was born December 2006. TWIN
grandsons MICAH and MASON were born May 2009.
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COPYRIGHT 2000-2010 My Precious Kid, Kay Green.
All rights reserved. Reprinting is only with permission and with this author's box and copyright intact.
