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