Main Merchant is online

Selecting the perfect Payment Service Provider for your business can be time consuming.  Although paying transaction fees is inevitable, you might come across additional fees that can slowly eat up your profits.

Below are a number of tips to help you avoid any additional costs and save your business money with your UK merchant account.

1.  Avoid chargebacks

Chargebacks occur when a card issuer is asked by your customer to get a refund from you; apart from refunding the amount, other processing fees will also be charged.  The most common cause of a chargeback request is where the customer does not recognise your company’s name on their statement. You can negate this by ensuring that your trading name will be recognised by your customer by highlighting it on your checkout page, terms & conditions and confirmation pages.

2. Improve your after sales service

If you accept refunds, clearly state your refund policy and stick to it. Avoiding delays will save you money. It’s better to issue a refund and lose that sale than it is to deal not only with a lost sale but also additional chargeback fees.

3. Get cost effective settlement terms

Make sure your Payment Service Provider settles your funds in the most cost effective way for you. Many Internet Merchant Account providers will offer to settle your funds with a cheque but there is often an extra fee for this. Clarify your settlement terms and, if possible, set up a BACS transfer so that your funds go directly into your clearing account. This is usually the most economical way to have your funds released.

4. Get e-statements

If your monthly statements are sent to you by post, sign up for electronic statements if they are offered. Generally, Internet Merchant Account providers will charge you for posting your monthly statements (up to 10p a month).

By following these simple tips, you can avoid paying too much for your UK Internet Merchant Account.

Paynet Systems facilitates internet, retail, mail/phone order, wireless/mobile and home based merchant accounts for businesses worldwide. Paynet system has formed lasting partnerships with established banks and affiliates to provide one of the world’s top merchant account services. Paynet Systems is well known as a provider of complete, yet flexible solutions for merchant accounts.

Besides comprehensive credit card processing solutions, Paynet Systems offers a great affiliate program! The Affiliate program at Paynet System includes and offers:-

• An opportunity to make $50-$100 for every approved merchant account generated by your website or referred to us verbally.

• A “No Monthly Minimum” program

• $50 for each referral that signs up for the “No Monthly Minimum” option.

• An “Option 2″- lower rates, a lower statement fee and transaction fee, but includes a $25 monthly minimum.

• A $100 referral fee if your referral signs up for “Option 2″ pricing.

• Reliability – We have been paying affiliates on time, every month.

• Professional 24/7 customer support, sales support and full accounting support.

• Real-time statistics for sales and traffic directed to the Paynet website.

• Pending payout details

• Earning reports

• Account management, and much more!

There is no cost to sign up with Paynet Systems Affiliate program, and no risk to get started – so why not join today? The affiliate program at Paynet Systems is a profit sharing platform, ideal for anyone looking for great ways to make money on the internet. Sign Up now to become a Paynet Systems value added affiliate!

Perhaps one of oldest institutions in the financial world is the pawn shop. During medieval times, people would have no place to borrow money fast and easy except from pawn shops. Pawn shops allow them to make an emergency loan without going through hefty paper work. Ironically, the only thing that has changed is that people no longer need to go to a land-based pawn shop to pawn or buy goodies that have been pawned. They can easily do it online. Although comparably slow, many pawn shops today have made a leap from being merely brick and mortar to having a website of their own. The advantages far outnumber the pitfalls.

Why would anyone want to put up an online pawn shop anyways? Don’t so many people already distrust pawn shops with the notion that most of the merchandise on display are stolen? It’s unfortunate that people still believe in this myth. In reality, pawn shops are licensed and are being regulated by government agencies. Pawn shops selling various pawned goods online also have land-based stores to complement their websites. The only difference is that with the online shop, people pay using their credit cards.

The best reason to establish your own online pawn shop is the fact that with the perfectly targeted customer base, you have so much to offer and can earn good money. A quick visit to any pawn shop will tell you that people from all walks of life pawn their merchandise which people from elsewhere in the world may want to buy. At a much lower price, these items may still be in good condition and be a part of a hobbyist’s collection.

The bottom line is that a pawn shop can be reputable as any type of business. Like a virtual flea market, it boasts of a huge variety of items which may hardly be found anywhere. And with the right online merchant account services to back you up, handling an online pawn shop becomes actually more fun than fatiguing.

The variety of items you can sell can range from car parts, appliances, electronic gadgets (computers, gaming systems, cellphones), CDs/DVDs, toys, rare jewelry (gold chains, brooches, scrap gold, watches, etc.), musical instruments, and hard to find items of good value. Even vintage items like LPs and unusual collections like rare beach shells are also sold or auctioned online.

One encouraging thing about building an online pawn shop is that you get more exposure and thus more chances of earning good income. The Internet is fraught with advertising possibilities and cutting edge technology to assist you in your business. For example, whether you are a start up online pawn shop or already have an established store processing high volume of credit card transactions monthly, acquiring a high risk merchant account can be a big help in your business.

A high risk merchant account provider gives start up pawn shops the ability to process credit cards through an efficient payment gateway and a choice of their international bank. On the other hand, it also allows high volume merchants to accept as much as millions of dollars on monthly transactions using multiple currencies.

Most importantly, pawn shops cannot operate online if they are not able assure their customers that their transactions are secure. One of the most important aspects of high risk merchant account services is the ability to provide credit card security using SSL, 128-bit server encryption, and a host of anti-fraud tools. The real risk lies in the credit card transaction. More than having likely bought a fake merchandise, pawn shop customers should be wary of identity theft. As a merchant, it is your duty to give your customers peace of mind. This is the best way to establish a good merchant reputation, whether you are doing business online or offline.

Online businesses that accept credit cards can see an increase of at least 14% in sales so you can increase your profit margins by simply offering potential customers the opportunity to pay by card . Having an Internet Merchant Account will allow you to process credit card payments and take advantage of the benefits associated with this method of payment.

Reasons why you need an Internet Merchant Account:

1. Encourages impulse buying.

By giving your customers the ability to pay with a credit card, you are allowing them to buy on the spur of the moment. Your customers can complete their transactions from wherever they access the Internet, speeding up their deliberation time before committing to a purchase.

2. Enhances user experience.
Many businesses would obtain Internet Merchant Accounts not only to increase their sales but to also speed up the check out process; which would ultimatelly improve your customers experience and buying process.

3. Indispensable for online businesses.

The majority of consumers expect to be able to use their credit card directly online; they are generally not interested in paying by cheque or reciting their credit card numbers out over the phone. Online shoppers know what they want to be able to order their goods there and then and receive them promptly. If you are not catering to their needs, they will shop elsewhere.

4. Promotes customer confidence

If you have an online business and you do not accept credit cards, it gives the impression that you are not serious about selling online. Customers also like to shop online because of the added insurance and security benefits that their card companies provide.

5. Streamline reporting

Accepting online credit card payments allows you to streamline your accounting processes. Many online Internet Merchant Accounts will even offer integration with popular accounting software packages.

The process of setting up online payment may appear confusing at first, but the hard work is choosing the right service provider.  In my search I spoke to everyone from sales agents to bank representatives and I now have a collection of contracts with very tiny print.  I put together a summary of the process, things to watch out for, and a comparison of rates. I hope this helps.

How it works: Credit Card Payment Flow

Customer enters payment information into our secure site (aka Shopping Cart/Checkout).

The payment details are sent to the Payment Gateway for approval. Gateway forwards the transaction to our Merchant Bank. Our Merchant Bank forwards the transaction to the Credit Card Issuing Bank for verification. Credit card bank verifies transaction and sends response code (Approve, Deny) back to our Merchant Bank. Our Merchant Bank forwards the response to the payment gateway. Payment gateway stores the results and response back to our online store. Payment information is displayed to the customer; i.e. “credit card was charged”, “credit card was denied”, etc.

This process happens in a matter of seconds.

Where Do We Get a Merchant Account?

Banks. Most banks use First Data Corporation network for their credit card payment process. FDC network clears about 80% of all credit card transaction. Here’s a list of banks that are FDC Alliance Partners.

Merchant Service Providers (MSPs). I refer to them as Vendors in this article. Advantages of MSP over Banks:

MSP have many bank affiliates and third-party account database, which mean higher approval rates (especially if your business is considered high risk). MSP will make recommendation on the best suited solutions or packages. Banks are limited on options. Better chances of negotiating lowers rates and contract terms with vendors than at a bank.

What are the requirements?
Requirements vary depending on the provider and the amount of risk they are willing take. Three vendors told me they only needed a Tax ID or SS#, business checking account, and an address (which is not completely accurate). I later found out that the vendor submits our application to the underwriter and the underwriter will request additional information for approval. Most underwriters will ask for both application and website information as follow:

The Applicant & Business Info:

Applicant must be a principal owner of the business Business License (Tax ID) or DBA (SS#) Checking Account Address Driver’s License and Contact Info of Principal Credit check – for new business, the personal credit history is a influential element

On the Website:

Must be a live site Company name or DBA name on the site Shows Product and Price Terms of Service Return/Refund Policy Shipping Methods Privacy Policy Contact info for support (email, form, etc.) Working Shopping Cart/Check out page Secure

Alternatives Service Providers
Alternative payment service such as PayPal, Google Checkout and Amazon FPS are becoming more and more popular with new small businesses. These companies provide packages that fit most business model, they are simple to implement, low cost, and you can get started almost immediately.

RATING AND RATES

Read the Tiny Print
Vendors use the same pool of financial institutions and gateways. It is a very competitive and lucrative market. They make money from markups to the fees, and additional service charges. In my talks with vendors, only if asked, did a few of the reps disclose the additional costs. One rep told me to read the contract carefully, but he can’t give me the contract or discuss rates until he has my application.

Varying fees and rates can be applied to specific card type (MC, Visa, AMEX, Discover, personal, business, and rewards card). The industry term for this is Qualified vs. Unqualified cards (unqualified having the higher unadvertised rates of course). Read your contracts carefully, especially the footnotes.

What’s important?
Keep in mind rates are not fixed, most companies can change the rate with 30 days notice. Finding a service provider with a solid reputation, flexible policy, provides good customer service, and 24/7 technical support is more important than the fees. An indicator of a good vendor is transparency into their company and if they ask in-depth questions about your business.

New Business Recommendation
For new a business with unknown sales volume, the per transaction rates may not make a difference early on. I might go with PayPal or Google Checkout for a few months just to collect some information around sales. Because there is no start-up cost, no monthly fees, an immediate sign up and use process, and low development time, there is very little risk and out-of-pocket cost. The only disadvantages are that customers will be redirected from your site during the transaction and the possible perception of not being as ‘professional’. That said, until you understand your volume, the flexibility and ease are the way to go.

Searching for a UK Internet Merchant Account provider can be a very long and frustrating process, and there are a few things that you should learn before you decide to sign up for one. It’s very important that you learn what will be required from you and how providers evaluate applications. We have put together the most important factors to consider when choosing a merchant account to suit your business needs.

Generally, you can obtain an Internet Merchant Account from banks, independent online payment providers and third party processors. These solutions tend to evaluate applications similarly, but you will find that banks usually focus more on your personal credit history (yes, it does matter) and the size of your business.  Online payment providers and third party processors, however, will be more interested in your turnover figures and your anticipated volume of transactions.

Therefore you should request quotes from the companies that specialise in meeting the needs of your business. For example: if you know that your credit history is less than perfect it is not advisable to get a quote from one of the major high streets banks as it is unlikely that your application will be approved. However, you should focus on online payment providers with a high acceptance rate that either provide flexible terms according to credit history or that do not evaluate credit history at all.

If you have been trading for a while and have a high turnover or high volume of transactions most companies will be happy to work with you. As rates are very competitive across the sector, ensure you get quotes from all companies offering better deals.  For example, PayPoint.net is offering to speak to their acquiring banks on your behalf to get you a better deal on your Internet Merchant Account.

Another potential issue is if you are running a specialty site that is considered high risk. By targeting the most appropriate payment processor, you can increase your chances of getting approved. For company owners that have a decent credit history, there are many more options available, especially if their credit card processing needs are small.

Ultimately, the secret to getting an Internet Merchant Account that suits your business requirements is to target providers that specialise in your business circumstances. This will increase your chances of having your application approved and save you time and money.

The Credit card Networks of Visa and MasterCard have restricted certain types of businesses from establishing US-based merchant account services. These restrictions are mandatory and are enforced by the merchant banks (also called Acquiring Banks or simply Acquirers) which comprisa the Visa and MasterCard Networks. What this decision means is that no US merchant bank or a merchant service provider is allowed to acquire transactions from blacklisted entities.

There are several criteria that are taken into account in making the list but the biggest factor in determining whether a particular type of business should be prohibited from establishing a US-based credit card payment processing service is the chargeback generation potential. In some industries, historical data show that it the chargeback rate simply unacceptably high. You should be advised that, even when a card payment processing service is established, chargeback levels are still closely monitored and, if they exceed 1% of the total volume for three consecutive months, you will lose your credit card processing account.

Applications for card payment processing services from merchants engaged in the following activities will not be considered for US-based merchant processing account, regardless of exception:

Any merchant engaged in illegal activity.
Adult oriented products or services (all media types: internet, telephone, printed material etc.).
Internet/MOTO pharmacies (where fulfillment of medication is performed with an internet or telephone consultation, absent a physical visit with a physician).
Re-importation of pharmaceuticals from foreign countries.
Internet/MOTO firearm or weapons sales (including ammunition).
Internet/MOTO cigarette tobacco sales.
Occult materials.
Online gambling.
Lotteries, raffles, gambling.
Escort services.
Collection agencies engaged in the collection of uncollectible debt, as defined by the Associations.
Credit repair agencies.
Sports forecasting or odds making.

Typically, the first question that merchants ask when they contact a merchant service provider to inquire about a merchant account service is regarding their rates and fees. Then they would call another and ask the same question. Perhaps many would also go online and search for the lowest possible merchant account pricing. There might be a definite answer to be found and, if one could go through the pricing pages of all individual merchant account providers, the answer could emerge. I have seen adds for 1.59% eCommerce merchant account rates and probably this is the lowest one I’ve encountered. Now, in order to make an informative decision, it is important that you understand exactly what is being offered at the advertised rate.

Generally, when you see a card processing rate that is substantially lower than the rest on the list, you will be well advised to read the fine print notes that are likely to accompany the add. In the above example, a 1.59% processing rate will apply to debit card transactions which make up a small percentage of the overall card volume. What you really need to know is what the credit card payment processing rate is. Here the rates will be above 2% and I am yet to see one lower than 2.15%. You will need to make sure that your merchant processing provider does provide separate rates for debit and credit cards, in order to take advantage of the lower debit card acceptance cost.

Keep in mind that the payment card processing rate is just one component of the processing cost, although the most important one. Also be advised that your pricing model may provide for different processing rates for the different types of credit cards. Some types of business-to-business, commercial and rewards credit cards will be processed at substantially higher rates.There are a host of other fees and charges and you will need to be aware what all of them are and make sure that the low card rates are not offset by high charges elsewhere. There are tools available out there to help you estimate the overall cost of credit card processing for business.

Merchant accounts that allow business owners to accept a variety of customer preferred payment methods have become commonplace in traditional business settings. Even small businesses, such as fast food providers, convenience stores and kiosk sized retailers have accepted the fact that allowing for multiple popular payment options is a wise decision. Far few consumers are carrying cash these days, and even those who are often prefer the safety and security of paying via credit card or check, if for no other reason than to have an accurate, detailed account of each purchase. Slowly but surely, online vendors are realizing this as well.

The popularity of Paypal, a service which requires consumers to set up accounts similar to an online banking institution, kept many online businesses from opening merchant accounts for the benefit of their customers. Disadvantages to using the Paypal system were soon evident, however, as bad experiences with the system were publicized by both merchants and consumers. The stigma of a flawed system was not the only consideration for Internet shoppers and online businesses, however. Many consumers were unwilling to use a system that required setting up an account, memorizing yet another password and using a third party to transmit credit card or bank account information. The level of convenience available to consumers declined sharply as a result of having to navigate a completely new and often confusing separate web site in order to make a simple transaction. On the merchant side of the equation, the realization that Paypal offered no additional fraud protection and charged rates very similar to and often higher than merchant services providers has caused many to second guess it’s usefulness. Of particular concern is that there is simply no way to determine the amount of lost sales due to consumer hesitation aimed at opening a Paypal account.

Consumers generally feel more comfortable using payment formats that mirror those used by their neighborhood retailers. When purchasing small items especially, many will not go through the trouble of spending an additional five to ten minutes online in order to purchase an item that only costs a few dollars. While the prices of these items may be small, the losses incurred by business owners who don’t offer a tried and true merchant account system can be substantial.

Merchant accounts enable you, the merchant, to accept credit cards, debit cards, gift cards, electronic checks, EBT cards, and other electronic payments. It is proven that accepting credit cards can increase your sales by 40 to 50%. Having a merchant account is a necessity for any credible business.

Although credit card acceptance can boost your business, you need to be aware of the costs associated with having a merchant account. One such cost is a chargebacks which is when a credit card processor charges you the cost of crediting a customer’s account for a questioned transaction.

A chargeback occurs when your customer has called the credit card company and disputed an item on their bill. The bank that issued their credit card is required by law to resolve the matter for the customer. Their credit card company or credit card issuing bank is then supposed to investigate the transaction. But because of the high cost to conduct a thorough investigation, most disputes are decided in favor of the customer.

A chargeback can also be initiated by a credit card issuing bank. These chargebacks require no investigation by the bank and are the result of processing or authorization issues.

Therefore, the costs and responsibilities associated with chargebacks are pass-down to the merchant. The average cost of a chargeback to the merchant exceeds $50. This accounts for more than 0.2% of total sales receipts. These are significant numbers and a burden for a business of any size.

The total cost of chargebacks is an enormous problem merchants must face. As always, it is up to the merchant to develop solutions, procedures, and policies that will help them combat and reduce chargebacks and their associated costs.