| If you want to sell on the internet, you need | | | | If an order looks dodgy, it probably is. |
| to accept credit cards. To accept credit | | | | Contact the customer by 'phone or email. If |
| cards, you need a merchant account, or access | | | | you don't get a satisfactory reply, refund |
| to one. There're two ways of getting this: | | | | the card. |
| Get your own merchant account, or 'pimp' off | | | | |
| someone else's. | | | | When you're making $1000+ a month, get your |
| | | | own merchant account. |
| The latter is the option most new merchants | | | | |
| choose. You use a third-party to process your | | | | MerchantSeek ( ) |
| payments, and they take percentage. Here are | | | | |
| a few popular ones: | | | | A useful collection of affiliate links to |
| | | | merchant account and processing providers. |
| ( ) | | | | Scroll down their front page to their search |
| | | | tool. You can find an account that suits your |
| I don't recommend them as your main | | | | needs. This is most helpful to non-U.S. |
| processor. See PayPal is popular because it | | | | merchants, or those seeking 'international |
| was 'firstest with the mostest' on auction | | | | merchant accounts'. |
| sites. For this reason, eBay bought them out. | | | | |
| alleges that if you have a bad order they | | | | In the UK, look for 'merchant services' at: |
| freeze your account, and can even dip into | | | | |
| your bank account to make up any shortfalls. | | | | Barclays bank ( ) |
| Mitigating circumstances are not taken into | | | | |
| account. I've read enough complaints about | | | | NatWest ( ) |
| PayPal on webmaster forums to heed them. | | | | |
| | | | Bank Of Scotland ( ) |
| The usual rejoinder is; "But I've never had | | | | |
| any problems with PayPal". To which is | | | | Royal Bank Of Scotland ( ) |
| usually retorted "Just wait 'till you get a | | | | |
| chargeback!" | | | | Streamline ( ) |
| | | | |
| A chargeback occurs when someone asks their | | | | UK processing services are: |
| credit-card company for a refund. They say | | | | |
| they didn't get the goods, or they never made | | | | Secpay ( ) |
| the order, or the goods were not as | | | | |
| advertised. This is passed on to the | | | | Netbanx ( ) |
| processor, who in turn debits the merchant. | | | | |
| Or drops him entirely. You don't want too | | | | Protx ( ) |
| many of these. | | | | |
| | | | Having one's own merchant account means |
| I've used them for years for small amounts, | | | | paying less in processing fees. |
| with no problem, but on the basis of others' | | | | |
| complaints in webmaster forums, I wouldn't | | | | IMPORTANT: You should specify up-front that |
| use them for large ones. Don't leave large | | | | you are looking for an internet merchant |
| amounts 'on deposit' in any internet-based | | | | account. Internet transactions are viewed as |
| company; they're not banks, and even banks go | | | | higher risk than those by bricks-and-mortar |
| bust occasionally. | | | | businesses. The technical term is 'card not |
| | | | present'. |
| The best use for PayPal is to entice | | | | |
| customers who already use it. Find another | | | | Some things you may need, if applying for an |
| provider to be your main one. One like ... | | | | internet merchant account of your own: |
| | | | |
| ( ) | | | | Business bank account; |
| | | | |
| This is a factoring service like PayPal. | | | | Photocopy of a voided cheque for said |
| Unlike them, they have a pretty good | | | | account; |
| reputation with webmasters. Like PayPal, they | | | | |
| don't provide you with a merchant account; | | | | Copy of the articles of incorporation of your |
| they process your orders through their own. | | | | company; |
| | | | |
| This is why such sites have to be very | | | | Photocopy of your return policy information; |
| stringent; they are answerable to their own | | | | |
| merchant account provider. Too many bogus | | | | Trade references; |
| orders, and they go out of business. | | | | |
| | | | Photocopy of your driver's license or |
| This is why third-party factoring services | | | | passport. |
| like 2Checkout are very useful to a newbie | | | | |
| merchant: fraud prevention. They can screen | | | | In short, you need to prove that both you and |
| out suspicious orders. | | | | your company are what you say they are. Your |
| | | | account provider is taking a chance on you. |
| Most merchants would like to think they can | | | | You might send them a ton of bogus orders. A |
| sell worldwide. The fact is most of the world | | | | bank is a business too, not a community |
| is poor; MOST countries can't afford your | | | | service. Help them to make the right |
| goods. So some citizens try to get them | | | | decision! The more you can establish that you |
| fraudulently. | | | | are bona-fide, the lower the cost of your |
| | | | account. |
| A smart merchant would bar most of the world | | | | |
| from accessing his cart, and only accept | | | | Things to avoid, if you can:a) Expensive |
| orders from the USA, Canada, western Europe, | | | | credit-card processing software rental or |
| Australia and New Zealand, and his home | | | | hire-purchase.b) Monthly fees.c) High |
| country. Harsh, but you'll sleep better at | | | | discounts ( the % of your sales they keep |
| night. | | | | ).d) Fat fees up front ( anything over $500 |
| | | | is a joke ).e) Salesmen calling you up with a |
| WorldPay ( ) | | | | spiel.f) Getting lumbered with hiring their |
| | | | shopping cart as well. |
| A well-regarded service. I found adding it to | | | | |
| the Oscommerce cart ( ) a bit of a chore, | | | | Things to look out for at sites offering |
| but it worked. More expensive to join than | | | | merchant accounts: |
| 2Checkout. You don't hear many gripes about | | | | |
| WorldPay, which is rare in webmaster circles. | | | | If you need to maintain a U.S. presence - |
| | | | full U.S. incorporation, U.S. server, U.S. |
| ( ) | | | | offices, U.S. bank account - or NOT. |
| | | | |
| Handy if you're selling a few items of | | | | Also if they want a deposit, and the size of |
| inexpensive software to start off your | | | | their application fee. And the usual monthly |
| business. They'll let you up the price once | | | | minimums, discounts etc. |
| they're sure of you. I managed to get them to | | | | |
| go up to $150 ( whoo! ). I was very jealous | | | | Avoid getting into any software purchase or |
| of their system. It's well designed and | | | | equipment rental. You can sort all that out |
| extremely 'viral'; they're basically a huge | | | | later, for less money. There are plenty of |
| affiliate program. Join ClickBank, and others | | | | good payment gateways, like Authorize.net ( |
| will try and sell your product for you. | | | | ) just itching for your business. |
| | | | |
| They allow you to block whole continents from | | | | PS: Don't accept a merchant account from an |
| trying to buy your product, and that is good. | | | | Eastern European bank. I did, some years ago. |
| The odds are that a $25 order for an ebook, | | | | The bank went bust. One guy wailed on Usenet |
| from a third-world country, is fraudulent. | | | | that he'd lost $10,000 dollars. Luckily for |
| | | | me, business was bad that year! |