by Lena Crossan © 2007, All Rights Reserved

It’s probably one of the most misunderstood aspects of Internet business. While others make it seem so scary, truly, there’s
nothing to fear. Getting an online merchant account can be one of the easiest steps in setting up your ecommerce business, if
you know what to look for and what to avoid.

It used to be - in order to get a merchant account - you had to fill out mounds of paperwork at a stodgy old bank, then try and
convince the branch manager that small businesses deserved merchant accounts, too. If you were an Internet-based business, the uphill battle was even steeper. Today, however, site owners have many other options including merchant account providers, independent sales organizations and more. Because the marketplace has opened so widely, getting an online merchant account is quite a simple process.

THE APPLICATION

Tip: You should never pay an application fee.

This is an old-school practice many institutions used to use to bring in a little extra cash. While applying for an online merchant account these days still requires an application to be completed, account providers stopped charging application fees long ago.

You’ll be expected to provide the basic information (company name, principle’s name, address, phone, fax, type of ownership, website address, etc.). You may also be asked for information such as estimated average credit card transaction, estimatedmonthly sales volume, federal tax ID number or Social Securitynumber, bank account number, routing number and other financialinformation. This is typical in order to allow the onlinemerchant account provider to assess your qualification for theservice, and to determine your credit rating.

Warning: Never fill out an unsecured online application. Look inthe address bar for a URL that begins with https:// to be sureyour information remains safe.

THE FEES

Tip: Calculate a set number of fictitious monthly charges (forexample, 50 charges at $55.00 each) using the fees each merchantaccount provider you’re considering charges. This way you cancompare apples to apples.

Merchant account providers make money by charging for the use ofthe service. Certain flat and percentage-based fees are imposedon everyone who transacts business via credit card online.Let’s look at the fees you can expect and find out what each onerepresents.

· Discount Rate - The percentage of each sale due to themerchant account provider.
· Transaction Fee - A flat-rate amount charged for eachtransaction you process.
· Statement Fee - A flat-rate amount charge for generatingmonthly statements of your account.
· Monthly Minimum - A fee collected if your monthly sales don’texceed this amount.
· Annual Fee - As the name implies, this fee is charged annuallyfor use of the online merchant account.
· Set Up Fee - A flat-rate fee charged for setting up your newmerchant account.

Warning: Many merchant account providers require no contract atall. Others offer discounts for committing to a long-termcontract. If the provider you’re applying with requires alengthy contract without offering a discount, reconsider.

LOOK FOR FLEXIBILITY

Watch for flexibility in online merchant account providers.You’ll want to work with someone who allows you to use theirshopping cart or your own or to use their Internet gateway oryour own. Being forced into using everything the provideroffers can get complicated and expensive. The same goes forflexibility in service. You want a merchant account providerwho will be there if you have questions or need advice.

THE PROCESS

Once your application has been approved, you’ll be ready toaccept credit cards online! Your customers can process theirorders via your site and make purchases immediately. How doesit work? Once the customer enters their credit cardinformation, that data is whisked over to the processing center.The processing center requests authorization from the issuingbank of the credit card. When everything is approved, the salegoes through. It all happens in real time at the blink of aneye!

Just remember:

1) never pay an application fee
2) make sure online merchant account applications are secure
3) use a set number of sample transactions to compare various merchant providers
4) look for flexibility

Before you know it, you’ll be raking in sale after sale on your website thanks to the benefits of online merchant accounts.

Lena Crossan is Marketing Manager of GoEmerchant.com that hasoffered affordable award-winning ecommerce services since 1995.Discover their proven, innovative online merchant account andother solutions today at http://www.GoEmerchant.com.

by Lena Crossan © 2007, All Rights Reserved

You’ve read the headlines. You’ve seen the buzz. In 2004,
holiday spending surged higher than anyone expected, reaching a
total of $23.6 billion. 2005: U.S. shoppers spent a total of
$30 billion online. 2006: One-day online sales records were
crushed. twice. to the tune of $667 million. What will 2007
hold? Sources like Goldman Sachs & Co., Nielsen/NetRatings,
Harris Interactive Inc., and ComScore aren’t speculating just
yet. If past years are any indication, however, you’d better
have your merchant accounts and shopping carts revved up and
ready to go!

Don’t Leave Without Me!

For retailers who have been hem hawing about getting into the
‘Net game, it’s not too late. Like anything else, developing an
ecommerce website *can* be a complicated venture, but it doesn’t
have to be. If you aren’t sure you want to jump into the online
scene with both feet just yet, test the waters.

It takes very little time to upload product photos and
descriptions to a website. Make 2007 an experiment. Take your
best-selling items and create an ecommerce site with limited
inventory. With very little effort on your part, you can find
out firsthand whether developing a full-fledged Internet sales
site will be beneficial for your company. Here’s what you’ll
need.

1) A Website - Most companies these days already have a site.

2) Product Photos - These can be obtained using a good digital
camera, with the assistance of a professional photographer or
oftentimes directly from the manufacturer (if you’re a
reseller).

3) Product Copy - Descriptions of your products need to be
included to help visitors in making their decisions. You can
hire a professional copywriter, write the descriptions yourself
or ask the manufacturers if they have existing copy you can use.

4) Shopping Carts - Shopping carts are pieces of software that
allow visitors to collect items as they shop. You’ve most
likely used these while doing your own shopping online. Anytime
you’ve clicked a button that says, “add to cart” or “add to
basket” you’ve used a shopping cart. Without shopping carts,
your customers would have to pay for one product at a time!

5) Merchant Accounts - In order for visitors to pay for their
purchases using credit cards, your business must have a merchant
account. Chances are you already have one. However, not all
merchant accounts are created equal. A few special
considerations must be met for offline merchant accounts to
function in real time on the Internet, including the need for an
Internet gateway.

What’s It Going To Cost Me?

You’ll find wide variations in pricing for everything mentioned.
Web hosting can range from $5 a month to $50 a month for
practically the same services. Shopping carts and merchant
accounts are the same way. Don’t base your decision on price
alone. You’ll be wise to compare all the aspects of these
items. Go beyond functionality, too. Ask about service,
reputation and setup assistance before making your decision.

That’s pretty much it! With just these five elements in place,
you can toss your hat into the Internet shopping ring and see
how you do. What does this holiday season hold in store? Right
now it’s anybody’s guess. One thing is certain, however. If you
don’t play, you can’t win!

Lena Crossan is Marketing Manager of GoEmerchant.com that has
offered affordable award-winning ecommerce services since 1995.
Discover their proven, innovative online shopping cart and other
solutions today at http://www.GoEmerchant.com.