What
is a merchant account?
A
merchant account is like a bank account that enables your
business to accept payments via credit card from your clients
and customers, both online and offline. Credit card payments
can only be processed through a "merchant account"
through a third party credit card processing company, much
like MyPaymentServices.com and Authorize.net.
How does a merchant account work, exactly?
[A]
Your customer visits your web site and places an
order through your shopping cart via a secure server (SSL
Encrypted Data). Your customers' payment is processed through
your shopping cart's web server, also known as a Merchant
Web Server. The customer has made their payment with their
credit card and now the journey begins!
[B]
Once the money is collected via credit card, it is then
passed through to an financial merchant organization such
as AuthorizeNet.com for final processing.
[C]
The monies collected from your customer are now deposited
in your business checking account, normally, within 72 hours
from the transaction.
Do
I need a merchant account?
You
need a merchant account if you want to accept credit card
payments over the telephone, via fax, through the mail and
online; from your customers.
This
is for both retail and online transactions. Again,
you'll need a merchant account if you are going to accept
telephone, fax and in-person orders for products and/or
services.
How
do I apply for a merchant account?
You
can apply
online today
at our web site. Once you complete the pre-application online
form, a representative from our office will contact you,
ask you a few more questions, assist you in filling in some
paperwork and the stage is set for you to start accepting
credit card payments from your clients/customers soon thereafter.
Apply
online today and your application can be pre-completed
online and ready for review in minutes. You may also contact
us. Call us at
(781) 202-1066 [EST] and ask for Richard Davis.
This way you get the "family treatment!"
What
credit cards can I accept?
You
will be able to accept VISA, Mastercard, American Express,
and Discover. You can also process checking account debit
cards with the VISA and Master Card logo.
Can I accept credit cards from international customers?
Yes.
There is a nominal "foreign card" surcharge added
by the processing bank to complete these transactions. But,
they're typically nominal in nature.
How do I know I'm ready to start accepting credit cards?
Some
people open their merchant account as soon as they begin
their businesses as a way of creating greater attraction.
Others do so when they regularly have at least 2 or 3 paying
clients.
What is a "discount rate?"
The
"discount rate," also called the "processing
rate" or "processing fee," is the percentage
deducted from each transaction by the processing bank before
the funds are deposited into your account. (Fees are subject
to change at any time, of course.)
Typically,
you can expect to pay the following credit card processing
fees, on average:
- Visa/Mastercard
Processing Rate: 2.20% of the dollar amount/transaction.
($100=$2.20)
- Visa/Mastercard
Per Transaction Fee: $0.25, on average.
- American
Express Processing Rate: Established by American Express.
- American
Express Per Transaction Fee: $0.05, on average.
- Discover
Processing Rate: Set by Discover based on average transaction
size.
- Discover
Per Transaction Fee: 0.08¢, on average.
I
know someone whose rate is only 1.65%. Why so low?
Pricing,
in almost every instance regarding credit card processing,
has a lot to do with "risk" and "fraud!"
Whereas, if a merchant can see the customer in front of
them, and swipe their card (as they just took it out of
their wallet/purse), then the "safety net" or
"fraud factor" is less than it would be for an
online Internet transaction, where the customer could be
living in Asia. Summary, the lower the risk, the lower the
rate. Retail stores have lower risk, hence lower fees. Online
businesses have higher levels for risk in any transaction,
hence the higher fees. No way around it! The banks must
cover themselves.
What is a Virtual Terminal?
A
virtual terminal is an online credit card processing system
that ties into your merchant account, which you get through
us. When you have a credit card order or a refund to make,
or a transaction to void, simply login to your merchant
account online, click on the virtual terminal link and proceed
to enter the customer's credit card and billing information.
If you're charging a credit card, the money will appear
in your bank account within 3-4 business days. If you're
voiding a transaction, this will prevent someone's card
from being charged. A good thing, when you need to void
a transaction.
Click here
to learn how to use a virtual terminal!
Do
I need to be a U.S. citizen to get a merchant account?
In order to apply
for a merchant account with MyPaymentServices.com
you will need to have a business that is located inside
the United
States of America (USA).
Applicants must provide a US mailing address; a US issued
Social Security Number, and have a US checking account.
Do
I need to have a U.S. bank account?
Yes,
if you are a resident of the United States of America (USA).
International applicants may also apply. We have a special
department to serve your needs for a merchant account.
Do
I need a site inspection?
Typically,
yes. But, it's not a requirement. A visible web site (if
you have one) will serve as an acceptable "site inspection."
Your web site should properly identify your business, a
description of what you are selling, your contact information,
the price you are charging, return policy and your contact
information so customers know how to reach you with regard
to their order.
Do I need a secure certificate for my
web site?
In
most cases, you do not. If you use a shopping cart system,
like MyMarketingCart.com,
the shopping cart company will supply that for you. When
an order is placed from your web site, it switches to their
secure server so your customer knows their order online
is safe and secure.
Do
I have to make an order form?
No,
the order form is usually provided for you through your
shopping cart, much like that supplied by MyMarketingCart.com.
If you have questions about this, simply contact
us. We're glad to help.
My
financial history isn't perfect. Can I still get approved
for a merchant account? And what are my alternatives?
Yes,
as long as you are not in active bankruptcy. Not
a problem! While credit is a factor in determining approval,
It is not the only factor. MyPaymentServices.com
has a 99% approval rate. Apply
online today and let us work with you towards your approval
today!
When
it comes to alternatives to getting your own merchant account
- you can still accepting credit cards for payment on the
Internet, or for your business in general. Here are a few
alternative solutions to keep in mind:
| TYPE
OF ACCOUNT |
CREDIT
CARDS ACCEPTED |
DESCRIPTIONS
AND RESTRICTIONS |
| Merchant
Account |
Visa,
Amex, MC,
JCB, Discover and Online Checks |
With
a merchant account from
MyPaymentServices.com, you can sell both products
and services, online and offline. You can accept phone
orders, fax orders, orders via regular mail, in person
and online orders. Requires an application. |
| PayPal.com |
Visa,
Amex, MC,
JCB, Discover and Online Checks. |
No
credit approval necessary. Anyone can open a PayPal
account and sell "WEB-BASED" ONLY products here. Yes,
you can still charge for both products and services
on and offline. But, all payments go through PayPal.
If you have a PayPal debit card, you can withdraw
your money instantly. If you choose to get a merchant
account through PayPal, or a PayPal Virtual Terminal,
which they now have, watch out for higher fees and
monthly minimums. |
| ClickBank.com |
Visa,
Amex, MC,
JCB, Discover and Online Checks |
No
credit application required. Can only sell DIGITAL
goods delivered electronically. NO tangible goods
can be sold. Cannot charge for services like coaching
and seminar registrations. Anyone can open an account
and sell "web-based" products here that must be delivered
electronically. $50 setup fee, rather high transaction
fees (because it's not "your name" on the line.) |
What should you take away from all this?
- If
you want to transact business that involves the selling
of real products and consulting services along with digital
goods, then a merchant account is
what you need, for sure.
- PayPal
now offers a merchant account / virtual terminal account,
so compare monthly rates and fees to see if your business
would benefit from a PayPal
merchant account or a standard
merchant account.
- If
your credit isn't that great and you get turned down for
your own merchant account, go with PayPal
to get you started. Sure their fees are higher, and not
everyone has a PayPal account, but at least you can get
started.
What do I need to qualify?
A
business in the United States of America, a business
checking account, a valid photo ID (i.e., drivers license
or passport) and a web site if you are doing online
sales transactions.
Can I use a personal checking
account?
Yes,
you can if you provide a copy of a business licence,
DBA (Doing Business As) form or Corporate certificate
that shows you're in business, yet simply using your
personal checking account for all business transactions.
Can
I use a savings account?
No.
Your merchant account bank needs to be able to ACH funds
to and from your account and that is not possible with a
savings account.
How
long does it take to get my money?
The
merchant account bank will deposit your credit card money
into your existing checking account normally within 72 hours.
Can
I use my account on multiple web sites?
Yes,
you can use the same merchant account on multiple web
sites, ultimately depositing customers' "payment" into
one bank account.
How
do I get started with my own merchant account?
Click here to Apply
Now. Your application can be pre-completed online
and ready for review in minutes. Would you like us to
contact you, let us know.
You can also call us TOLL FREE at
(781)
202-1066 [EST] and ask for Richard Davisfor
answers to any questions you might have.
Mention "Bart Smith, TheMarketingMan.com and MyPaymentServices.com"
referred you and they'll treat you like one of the family.
Their hours of operation are MON-FRI from 10AM-5PM EST.
How long does account set-up and approval
take?
Once
we receive your application, your account is activated
for VISA and Mastercard within 3 to 4 business days and
for American Express and Discover within 5 to 7 business
days.
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