Robert R. Brady asked:




Many intelligent and aware online business owners often tend to forget a particular aspect of owning and conducting an e-commerce enterprise. Although they may spend a great amount of time setting up their website, inventorying their services and products and posting photographs of the same, they sometimes forget about spending time on the eventual result, which is making the transaction easy for the customers they are targeting.

The most popular as well as the most convenient method of payment online is by credit card. Several other options available to customers and sellers, but this article focuses on setting your business up to receive credit card payments. Since it has been established as the most popular choice of payment method for online consumers, it is no longer an option on your site, but essential for your business.

The Internet, by design, provides instantaneous access to various kinds of information and other services, which may even be your business. Consumers who like the ease of access the Internet provides, do not want to be hassled with making telephonic orders or with writing out and mailing checks drawn on their accounts. If your business doesn’t provide them with a quicker option, they will look elsewhere. Also, since your retail outlet is no a store in the tangible sense, accepting credit cards make it seem more real to the customers. Additionally, if you accept cards then you don’t have to make frequent trips to the bank and worry about checks bouncing.

The first step in equipping your business to accept credit card payments is to contact providers of merchant accounts, who can give you such services. This involves an application process, which has certain qualifications and eligibility criteria, for both your business and you.

Merchant account providers are of three types:

1. Direct Processors:

These are usually banks, allowing you to directly access processing centers for credit cards. You require an order form, which once completed is sent from your site to a secure server, which absorbs credit card information, subsequently transmitting it to the bank involved.

This type has a distinct disadvantage in that banks don’t like to be involved with online e-commerce businesses. The prime cause for this is that they do not have access to any transaction slips which the cardholder signs.

2. Brokers:

Brokers are middlemen such as PayPal and Monster Merchant Account. They act as intermediate agents between the direct processor and you. A system known as the discount rate system pays for their involvement.

A discount rate is the amount on each sake that you are charged by the intermediary for their services for the payment. For instance, on a sale of $500, for a discount rate of 5%, you receive 5% less than that amount, i.e. you receive $475 and the broker receives $25. If you have a large profit margin and you make smart deals on your wholesale purchase, then you receive a pretty good deal with this system.

3. Third-party processors

This system is similar to the broker service, but they also have some additional services. Third party processors are fundamentally of two types:

Fulfillment houses – Webgistix and National Fulfillment Services are companies that take orders for the products that you sell through a live operator who uses a toll-free number and then ship the packaged goods for you to the customer while providing you with an online transaction record. It is a pretty neat process. These houses too charge a discount rate of 5%.

Service providers – If you have a credit history that is not too reliable, then you can use these services as they allow you to bypass the requirements of a merchant account, since the payments made by your customers are processed from the service provider’s merchant account. The service provider acts as the legal retailer and you are known as the agent. The only drawback to this system is that the fees are higher than normal.

There is one more thing to note: A lot of these services provide different kinds of services and are not protected against fraud. Thus, if a consumer purchases your goods using stolen credit cards, you will probably be liable for the entire cost of the goods. An example of such a service provider is iBill, and another is Vantage Card Services. These companies allow you to set up services or accepting card payments along with telephonic payments and online checks.

Roberta

Carrie Reeder asked:




If you’re a college student, you know how expensive books, movies and tuition can be. And if you only work during the summer break, you may be looking for a way to stretch your funds through the cold winter months. Fortunately, a student credit card can help. Find one with low interest and good terms, and you can charge during the lean times and then pay it off when you’re making money on your summer job. To get a student credit card, follow these guidelines:

1. Find some cards for comparison.

It’s easier than you think. Credit card companies often set up tables and booths at college fairs. You may even find fliers or applications around campus. And you can always find a student credit card with an online search. Be sure that the cards you’re considering are specifically student cards. Credit cards aimed at students tend to have more lenient credit score and credit history criteria, and they also tend to have lower interest rates.

2. Pick the one with the best terms.

Not all credit cards are created equal! Since your student credit card is probably your first, educate yourself a bit about the terms and jargon you’ll encounter. Choose one with a low interest rate, since that’s the “extra” amount your credit card will tack onto your balance each month. Look for one with a longer grace period, too, which is the amount of time you have to make a payment before interest begins accruing. Other things you should look for is a card with no annual fee and a low late payment fee.

3. Apply!

Simply fill out the application–either on paper, online or on the phone–and answer the questions on the form. You’ll need to reveal all the basics, like your name, current address and phone number. You’ll also need to provide them with a “permanent” address and phone number. The application will include lines for information about your school, your school’s address, your enrollment status and your year of graduation. It’s possible they’ll ask about your bank accounts and employment.

If you’re currently employed or have significant savings in the bank, chances are your line of credit–the maximum balance you can hold on your card–will be higher. But even if you only have a summer job, you should still be able to qualify for $500 – $1,000 in credit.

Thelma