Can You Really Do Business Without a Merchant Account? by Michael Rupkalvis
It is probably long past time to realize that trying to do business without a merchant account can be like shooting yourself in the foot. Not only do customers expect to be able to pay with a credit or debit card, but you also have to wonder how much business you are loosing by failing to offer customers what has become a ubiquitous payment option. The question then becomes: "How much business will I lose by failing to offer the option of credit card payment?" This depends largely on the type of business you operate. You may be concerned about the fees that would be charged for credit card transactions cutting into your profit margin, but you also have to consider the effect that credit card sales would have on your sales volume.
In today's economic climate, you really can not afford to be turning down sales due to lack of a payment option. It is not simply a matter of customers choosing to do business with you or not; without the option of using a credit card, a customer may choose not to spend as much. The amount of money a customer spends may be dependant on the amount of cash is at hand. There may be an ATM just around the corner, but why would you send a customer out of your store to get cash? Not only could it be considered poor customer service, but it also decreases the likelihood for an impulse purchase. It may be that yours is one of the very few businesses that can not benefit by having a credit card merchant account. But, all things considered, is this really the case? Take a look at your natural competitors to see how they benefit from the ability to accept credit cards. If you have not already done so it is worth investigating.
To find out about a cost effective merchant account solution for your business click here.
Visit us at http://www.thetransactiongroup.net
Showing posts with label getting a mobile merchant account for your ecommerce business. Show all posts
Showing posts with label getting a mobile merchant account for your ecommerce business. Show all posts
Monday, August 31, 2009
Sunday, August 23, 2009
Merchant Account Services for your business
Merchant Account Services for your Business by Matt Taggart
There are many ways of accepting debit and credit card transactions from your customers; however obtaining a merchant account from a UK based bank is by far the least expensive method. These banks, such as Streamline, HBOS etc., issue Merchant Account which allow you to process credit cards and debit cards through a variety of methods. Traditionally debit and credit card processing would have been organised via a credit card machine, sometimes referred to as a PDQ machine. However in recent years the Internet has opened other sales channels requiring secure payment facilities.
The humble credit card machine has been joined by virtual terminals and full Ecommerce with shopping carts as more and more people are buying online and banks have to introduce stringent measures to prevent rogue traders from obtaining credit and debit card accepting payment facilities. Due to these efforts the problem from UK based rogue merchants has been all but eradicated but the problem continues to exist with non-UK based traders.
Verified by Visa (VbV) and MasterCard SecurCode are becoming more common in Ecommerce (Internet) credit card processing and have been introduced to negate the fear factor amongst consumers when purchasing via the Internet. It is a simple password-protected identity-checking service which takes a good proportion of risk out of buying on-line and gives the same level of fraud protection as chip and pin. Cardholders can register a password with their card issuer, which they will be prompted to enter every time they use the card online (rather like entering a PIN number into a credit card machine) and they are then protected from fraudulent transactions using their payment card and thus gain the reassurance needed to spend with confidence.
Companies such as Protx provide secure online credit card processing payment facilities for thousands of bona-fide online and mail-order business across the UK. However, a merchant account is still necessary in order to keep credit card processing cost to a minimum.
Applying for a Merchant Account can be something of a minefield and it is worthwhile doing some research before making any application particularly with regard to the rates offered as these can vary considerably and you may find too late that there are some expensive hidden or unexpected costs. The most time-efficient means of looking into the market is through use of a third party organisation such as Seymour Direct who specialise in obtaining the best rates for their customers depending on the type of business, area of trade and current or forecasted turnover on cards. They have access to rates offered by a number of banks and can advise the best available in a given situation. For further information on low charges telephone 0800 980 4007 or visit Semour Direct website.
Once you’ve decided or been advised which bank or financial organization best suits your business’ requirements there is a certain amount of preparatory work to do in collating the paperwork that will be required to obtain your card processing facility. These may include financial information regarding your business (if your business is less than 12 months old this would take the form of a business plan or forecast), any printed literature regarding your products or services, written details of any guarantees or warranties you offer your customers, proof of identity and if you already hold a merchant account with another bank of financial organisation it can help to have available 3 months current processing statements.
If all this information is at hand you will find that the application process will be much smoother and simpler. It takes on average about three weeks to set up a merchant account from the date you return the Merchant Agreement to your chosen financial institution but could take longer if your business is deemed as high risk by the bank.
Matt Taggart is a specialist in merchant account credit card processing at Seymour Direct. For more information, contact Merchant Account Services providers at Seymour Direct.
There are many ways of accepting debit and credit card transactions from your customers; however obtaining a merchant account from a UK based bank is by far the least expensive method. These banks, such as Streamline, HBOS etc., issue Merchant Account which allow you to process credit cards and debit cards through a variety of methods. Traditionally debit and credit card processing would have been organised via a credit card machine, sometimes referred to as a PDQ machine. However in recent years the Internet has opened other sales channels requiring secure payment facilities.
The humble credit card machine has been joined by virtual terminals and full Ecommerce with shopping carts as more and more people are buying online and banks have to introduce stringent measures to prevent rogue traders from obtaining credit and debit card accepting payment facilities. Due to these efforts the problem from UK based rogue merchants has been all but eradicated but the problem continues to exist with non-UK based traders.
Verified by Visa (VbV) and MasterCard SecurCode are becoming more common in Ecommerce (Internet) credit card processing and have been introduced to negate the fear factor amongst consumers when purchasing via the Internet. It is a simple password-protected identity-checking service which takes a good proportion of risk out of buying on-line and gives the same level of fraud protection as chip and pin. Cardholders can register a password with their card issuer, which they will be prompted to enter every time they use the card online (rather like entering a PIN number into a credit card machine) and they are then protected from fraudulent transactions using their payment card and thus gain the reassurance needed to spend with confidence.
Companies such as Protx provide secure online credit card processing payment facilities for thousands of bona-fide online and mail-order business across the UK. However, a merchant account is still necessary in order to keep credit card processing cost to a minimum.
Applying for a Merchant Account can be something of a minefield and it is worthwhile doing some research before making any application particularly with regard to the rates offered as these can vary considerably and you may find too late that there are some expensive hidden or unexpected costs. The most time-efficient means of looking into the market is through use of a third party organisation such as Seymour Direct who specialise in obtaining the best rates for their customers depending on the type of business, area of trade and current or forecasted turnover on cards. They have access to rates offered by a number of banks and can advise the best available in a given situation. For further information on low charges telephone 0800 980 4007 or visit Semour Direct website.
Once you’ve decided or been advised which bank or financial organization best suits your business’ requirements there is a certain amount of preparatory work to do in collating the paperwork that will be required to obtain your card processing facility. These may include financial information regarding your business (if your business is less than 12 months old this would take the form of a business plan or forecast), any printed literature regarding your products or services, written details of any guarantees or warranties you offer your customers, proof of identity and if you already hold a merchant account with another bank of financial organisation it can help to have available 3 months current processing statements.
If all this information is at hand you will find that the application process will be much smoother and simpler. It takes on average about three weeks to set up a merchant account from the date you return the Merchant Agreement to your chosen financial institution but could take longer if your business is deemed as high risk by the bank.
Matt Taggart is a specialist in merchant account credit card processing at Seymour Direct. For more information, contact Merchant Account Services providers at Seymour Direct.
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