Merchant Accounts
- What does it mean to "process" a credit card?
- What is an Internet Merchant Account?
- How do I get an Internet Merchant Account?
- Can I use my existing Merchant Account with PaymentNet?
- What banks will work with me to help me establish an Internet Merchant
Account?
- I have a checking account with my local bank but they cannot provide me
with an Internet Merchant Account. Can I still work with my bank?
- What kind of bank fees can I expect to pay for an Internet Merchant
Account?
- How long does it take to get an Internet Merchant Account?
- I am an international merchant. Will I be able to use PaymentNet Services?
- Can I process transactions in non-US currency?
- Even though my transactions are processed in US dollars, can I accept
international credit cards?
Effective Credit Card-Based Sales
- Why should I automate the acceptance of credit cards at my Web site?
- What kind of sales volumes are businesses achieving on the World Wide Web?
- Are there Web businesses like mine that are successfully accepting credit
cards?
- I’m having trouble attracting customers to my Web site to make
purchases. What am I doing wrong?
1. What does it mean to "process" a credit card?
To process a credit card means to accept the card number for payment and have the
transaction immediately authorized through a credit card processing network much like in a
retail store when a merchant accepts your card and "swipes" it through a credit
card terminal. In order for a merchant to accept credit cards for payment on the Internet,
the merchant must have an Internet Merchant Account with an acquirer (usually a bank).
2. What is an Internet Merchant Account?
In order for a merchant to accept credit cards for payment on the Internet, the merchant
must have an Internet Merchant Account with an acquirer (usually a bank). The acquirer
takes on the job of processing the card and making sure the funds are deposited into the
merchant's bank account. PaymentNet acts as the channel to move the credit card
transaction from the merchant's web site to the acquirer's processing network, receive the
results and post them back to the merchant's site.
3. How do I get an Internet Merchant Account?
To qualify for an Internet Merchant Account, you must have a checking account with a US
bank. If you currently do not have an account with a bank, many acquiring institutions can
assist you. Your acquiring institution must have the ability to set up your account to use
the First Data Corporation Nashville processing platform or Nova Information Systems. Your
account must be set up with the bank to use PaymentNet as the software type or payment
gateway.
4. Can I use my existing Merchant Account with PaymentNet?
You must have a Merchant Account that is specifically designated for Internet
transactions. If you currently have a Merchant Account, check with your acquiring
institution to see if they can provide you with an Internet Merchant Account.
5. What banks will work with me to help me establish an Internet
Merchant Account?
Any bank that can process credit card transactions through the First Data Corporation
Nashville (also known as Envoy) platform or through Nova Information Systems, and supports
Internet transactions should be able to work with you to set up your Internet Merchant
Account. We can supply a list of banks that work with Internet merchants.
6. I have a checking account with my local bank but they cannot provide
me with an Internet Merchant Account. Can I still work with my bank?
Absolutely. There are several acquiring institutions that can provide you with an Internet
Merchant Account, and deposit the funds from Internet transactions directly into your
business checking account.
7. What kind of bank fees can I expect to pay for an Internet Merchant
Account?
Fees will vary, so ask up front what type of fees are involved. Most acquirers charge an
application fee that may range from $50 to $300. Some (but not all) acquirers will charge
a minimum monthly fee, and/or a monthly statement fee. All acquirers will charge a
discount rate, which is a percentage of the transaction, and can range from 1.5% to 4% per
transaction. Many acquirers also charge an additional per transaction fee that is from
$0.10 to $0.40 per transaction.
8. How long does it take to get an Internet Merchant Account?
That will depend on the completeness of the information that you provide to the acquirer.
The process can take from two days to one month, and sometimes longer.
9. I am an international merchant. Will I be able to use PaymentNet
Services?
Any merchant who can qualify for an Internet Merchant Account with a US acquirer can use
PaymentNet Services. A merchant must have a checking account with a US bank to qualify for
a merchant account. If you are an international merchant looking to use PaymentNet
Services, and you do not currently have a US banking relationship, PaymentNet has
partnerships with organizations that can assist you in obtaining a US Internet merchant
account.
10. Can I process transactions in non-US currency?
Currently all transactions processed through PaymentNet are in US dollars only.
11. Even though my transactions are processed in US dollars, can I
accept international credit cards?
Any credit card (Visa, MasterCard, etc) that you are qualified to accept through your
acquirer, that is also issued in foreign countries can be accepted at your site. This
includes MasterCard, Visa and JCB.
1. Why should I automate the acceptance of credit cards at my Web
site?
This kind of automation fulfills part of the promise of the Web, putting small merchants
and large merchants on a more level playing field from a resource perspective. Any
function that can be effectively automated on your commercial Web site should be, simply
because it simplifies management of your business, minimizes time consumed in manual
operations and allows you to focus more energy on the crucial task of marketing and
attracting customers to your site.
2. What kind of sales volumes are businesses achieving on the World
Wide Web?
PaymentNet is serving merchants with monthly transaction volumes that range from just a
few per month up to tens and even hundreds of thousands of transactions per month. The
customers are already there, and projections by leading industry analysts suggest they are
going to keep coming to the Web to shop in increasing numbers. Getting your sales volumes
to grow is a function of the appropriateness of your product or service for Web-based
sale, and your skill and determination as a business person and Web marketer.
3. Are there Web businesses like mine that are successfully accepting
credit cards?
Yes. Thousands. On the other hand, there are even more Web-based businesses that have
merchant ambitions but haven’t begun to realize their potential because they are
either not accepting credit cards, or they are accepting payment in non-automated ways,
such as manual processing via phone, fax or email. Accepting credit card payments in an
automated fashion is a competitive advantage to Web merchants at this stage of the
market’s development.
4. I’m having trouble attracting customers to my Web site to make
purchases. What am I doing wrong?
Marketing your product or service in the "virtual world" is a major challenge,
just like it is in the physical world. A couple of keys are: 1) offering a product or
service that customers can reasonably decide to purchase on the Web (that doesn’t
need to be physically seen or "tried out" to overcome purchase resistance), and
2) taking every strategic and tactical step possible to effectively market your site and
your product. One excellent Web site where you can learn a lot about marketing your own
site is www.wilsonweb.com. |
