7 Questions to Ask A Potential Internet Merchant Account Provider – Merchant Account
7 Questions to Ask A Potential Internet Merchant Account Provider
Bobette Kyle
Recently, I went looking for an Internet Merchant Account. My mission was two-fold:
1. Open an account for myself and
2. Research options for my new ecommerce information site Take-Payments-Online.com.
After some research, I thought Id found an attractive Merchant Account offered through a reputable reseller. As it turns out, I learned the hard way that I was wrong.
Fortunately, my experience can help you avoid the same trap. Based on my own experience, I developed a list of questions to ask a potential merchant account provider. Understanding the answers to these questions before signing an application or agreement will help make for a solid partnership between you and your account provider.
But first, the story:
My Internet Merchant Account Experience
I found what looked to be a competitive Merchant Account offered through a program at a popular reseller. Fees were summarized on the resellers site and applying was simple. I paid an $89 set-up fee, which took me to an online application I was required to submit to get the process going.
Thats when things got interesting. Submitting an application meant agreeing to a previously undisclosed 45 page merchant agreement. An unmentioned termination fee was buried on page 11.
If I ever cancelled the account, Id be hit with a $295 termination fee. I knew from my research that the large termination fee was not competitive with other merchant accounts and other aspects of the account were not attractive enough to compensate.
Suddenly, this merchant account was not such a good deal.
More critically, however, the termination fee was not disclosed before I was required to pay for set-up. I immediately asked for a refund.
Non-Refundable
Then things got even more interesting. I was told the $89 fee was non-refundable. Id seen a footnote that the fee was non-refundable, but interpreted it to mean only if they actually did some work and processed an application. I had not completed an application and did not intend to after learning of the extra $295.
Using the email support system so I would have documented proof if I needed it, I insisted on a refund. Still no go.
When I explained there had been no set-up to justify a set-up fee, they responded that the fee was really an application fee - non-refundable, as explained in the footnote on the order page.
Basically, they were telling me Id paid $89 for a link to an online application, which I had not and did not intend to submit.
Finally, A Refund
I explained I would not take no for an answer. If we couldnt work this out Id report them to the Better Business Bureau for undisclosed fees, file a complaint with my credit card company, and copy the company president on each. My complaint was sent to the next level.
Finally, after an additional three day wait, the refund was approved.
Avoid An Internet Merchant Account Trap
I made the mistake of taking information at face value and relying on the resellers good reputation in other areas.
To avoid unpleasant surprises such as mine, insist on all information and agreements up front, before committing to the account or paying initial fees.
Having all of the documentation may not be enough. Be sure you understand all aspects of your Internet Merchant Account agreement as well as fees and equipment required.
If you find incomplete, unclear, or conflicting information, ask questions.
If your sales representative is more interested in getting your signature than helping you understand your commitments, ask for another representative or go elsewhere. There are many, many Internet merchant account options available. You need not be trapped into one that is uncomfortable for you.
Based on my own experience, I developed a list of seven multi-part questions to ask a potential merchant account provider. Before contacting a provider about fees and agreement details, you may also want to familiarize yourself with all of the potential fees associated with an Internet Merchant Account. There is a list here, about half way down the page: http://www.take-payments-online.com/InternetMerchantAccount.html
7 Questions to Ask
Understanding the answers to these questions before signing an application or agreement will help make for a solid partnership between you and your account provider:
1. Can I accept credit cards both online and offline
Do I need to get separate authorizations or permissions when setting up my account for different types of transaction Internet, retail, phone orders, etc.
What other additional fees are involved if I accept both online and offline credit card charges
2. Can I accept online payments using methods other than Mastercard and Visa Discover, American Express, Diners Club, online checks, debit cards, etc.
If so, what are the fees and do I need to do anything to "activate" those payment methods
3. What are the different discount rates and fees for different types of charges Internet, in person, telephone, mail, etc.
4. What are the other fees related to this account - yearly, set-up, application, monthly minimum, statement, support, cancellation, discount, per-transaction, gateway access fees, card reject fee
Are these subject to change
Are there any other fees
5. Do I process charges manually or automatically
If manually, is it possible to get automatic processing
If so, do you provide a secure online payment gateway
How do I do it and what extra charges will I pay
6. What other software and services do I need to become fully ecommerce enabled online such as secure gateway provider, etc.
Do you have a list of compatible or preferred providers
7. Do I need additional hardware or software
If so, what is the cost and how do I get it
Ask these questions and establishing a mutually comfortable relationship with your Internet Merchant Account provider from the start. It will help you avoid "traps" and lay the groundwork for a long, solid partnership.
About The Author
Bobette Kyle draws upon 10+ years of Marketing/Executive experience, Marketing MBA, and online marketing research in her writing. Her book, "How Much for Just the Spider Strategic Web Site Marketing for Small-Budget Businesses", shows how to better find, target, and attract Web customers. Read about it at WebSiteMarketingPlan.com - http://WebSiteMarketingPlan.com.
Copyright 2003 Bobette Kyle. All rights reserved.
5 Quickest Ways To Massive Windfalls Of Cash Online – Merchant Account
5 Quickest Ways To Massive Windfalls Of Cash Online
Ewen Chia
These days everyone wants to know how to make money online.
Yet, for some, this lifestyle seems out of reach. Does this describe you at all
If you
5 Things About Offshore Asset Protection Every Internet Marketer Should Know – Merchant Account
5 Things About Offshore Asset Protection Every Internet Marketer Should Know
James Allen
Offshore instruments of asset protection no longer belong in the realm of the wealthiest individuals with high paid financial advisors. Thanks to the internet and globalization of financial markets, there are plenty of firms that can help just about anyone "go offshore". What follows is a brief introduction to some of the most popular tools of offshore asset protection and how they can be used by online business people and internet marketers like yourself to protect and grow your business.
1. Offshore Trusts
An offshore trust is a very simple agreement that helps put some distance between you and your hard earned assets. A trust is simply a legally binding agreement between two parties - the grantor and the trustee. The grantor "grants" control over specified assest and property to the trustee, who is then responsible for them. Beneficiaries are listed in the trust, who will "benefit" from the assests being entrusted. Often this is in the form of receiving the assets upon the death of the grantor, or by receiving the profits generated by the assets listed.
The main point is that this agreement helps separate the grantor - you - from these assets in a legal sense, making it more difficult for someone to take them from you. By moving the trust offshore, there is an added layer of protection. If youve ever worried about a frivolous lawsuit destroying all youve worked for in your internet business, this is certainly a form of asset protection youll want to look into.
2. Offshore Incorporation
There are many benefits for the internet marketer who chooses to incorporate offshore. Protecting your privacy from the prying eyes of an ever more invasive government - especially in the area of online information, legally limiting the amount of taxes you pay on your online income, and protecting your business against lawsuits are just a few of the ways an offshore corporation or IBC can benefit the internet marketer.
Properly planned and executed, forming an offshore corporation need not be any more expensive or time consuming than forming a corporation within your own borders. Be sure to deal with a legitimate and established firm when establishing your IBC, make sure your asset protection needs are being met and that all of your questions are answered.
3. Offshore Bank Accounts
Again, keeping with the theme of protecting the internet marketers wealth from both lawsuits and privacy invasion, the offshore bank account will also help address these issues.
Most companies that offer offshore incorporation will also help you set up an offshore bank account. Choose a country where information privacy laws are respected and enforced, and preferably keep the account in non-US funds. The acccounts are usually offered with an international debit card, so you can access your funds from ATMs around the globe.
4. Offshore Merchant Accounts
Of particular interest to those who create their income online is the option of establishing an offshore merchant account for handling all of your credit card transactions.
Besides addressing privacy issues, an offshore merchant account may be more suitable for those offering items, information, or subscriptions for sale online that are more difficult to procure a domestic merchant account for. These include higher risk services such as you might find in the adult website or online gambling arenas.
5. Offshore Webhosting
Although often considered home to the worst internet has to offer, such as spammers and hackers, offshore webhosting certainly has its place for legitimate online marketers and should not be dismissed outright.
Few would disagree that new internet laws, especially those related to spam are having an adverse affect on those it should least be harming. On top of that, the privacy invasion allowed by legislation such as the Patriot Act further increase the need for protecting your online information outside the borders of the USA.
Yes there are plenty of scam artists in the offshore webhosting arena. Do your research though, and you will find secure, well-staffed offshore webhosting operations with high-uptime, fast connections, good support and reasonable prices to suit your needs.
With all the new laws that allow for invasion of your privacy, including your financial information, combined with the fact that the USA is one of the most lawsuit prone countries in the world, every internet marketer and individual doing business online owes it to themselves to at least consider how going offshore can benefit you and your business.
About The Author
James Allen is the creator of GatesToWealth.com, a website which introduces tools of offshore asset protection and wealth generation. To learn more about going offshore and to subscribe to "Mind the Beach" the newsletter of offshore living and lifestyles, swing on by:
http://www.gatestowealth.com
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Copyright © 2004 James Allen.