Are you a little confused? Viewed too
many sites? Seen many offers and still don't understand what is
REALLY going on with accepting credit cards on your website? We
are here to help!
To begin with, we feel it's necessary to explain
the basic plan of how this Credit Card Merchant Account operates.
There are a lot of fingers in this pie, so you really need to understand
the flow of things.
The basic elements are:
1) A Business Bank Account This can be your regular business bank account, opened by you in your
business name. Yes, this IS necessary to obtain a Credit Card Merchant Account (CCMA). MasterCard/Visa
wants to work with businesses ... so you need to look and operate as a legitimate business entity.
You must also be a United States Business, with a United States Business Account and Social Security
Number to gain the CCMA Account.
2) A Credit Card Merchant Account Here
is where the confusion begins. The Credit Card Merchant Account
is granted by a bank(generally called the Acquiring BanK), but not
necessarily your business bank. The CCMA is the banking instrument
that allows you to move funds from the customers credit card account
into your business bank account. Everyone needs their own merchant
account. Rates and acceptance depend on your credit rating.
You are probably wondering why the bank needs to
check your credit to accept credit cards? After all, you are receiving
money into their institution ... right? Right and wrong. Credit
Card charges can be disputed by the credit card holder for 180 days
from the date of transaction. (it may be changed to one year) The
funds are deposited into your business bank account within 48 hours
of the closing of your daily charges (batch). The 48 hours comes
from the bank's computer updates only taking place at midnight each
night. Two banks ... two updates ... 48 hours.
Now who would "be on the hook" if you were to sell thousands of dollars in goods and services, remove your
money from the bank in 48 hours and go out of business? The bank has no idea the customer never received
their goods, and probably won't find out for 45 - 60 days later. You see, the bank is actually "lending"
you the funds created by your sales, even though the time has not lapsed whereas the customer can reverse
(ChargeBack) the transaction. Remember, the customer can reverse this charge for six months (180 days). For
this service, the bank charges you a percentage (discount rate). Why they call this a discount, when it's
actually an expense to you is beyond us.
So you can see. The bank really needs to know who they
are doing business with. It could cost them MILLIONS ... and it
does! Many merchants before you have gone out of business, cheated
customers, and submitted fraudulent transactions. Now every new
merchant will feel the pressure in obtaining a new CCMA. So be patient
and "go with the flow." 99.5% of our applications are APPROVED.
Some take a little longer, some have higher charges (adult), but
almost all of them get approved in some manner.
And yes there are gateway fees, bank fees, transaction
fees, statement fees ...don't sweat the small stuff. If you are
not planning on your internet business venture making you enough
money to pay a $25.00 min monthly service charge, go back to work
and save your time and money. Most business people spend more at
happy hour or one business lunch than most credit card charges.
It's all part of doing business, go with it.
Don't be fooled by "Third Party Billing Systems."
In many cases, that is a fancy word for Credit Card Factoring.
(using your account to accept charges for others) Credit Card Factoring
is illegal in most states and some countries ..and supposedly, against
MasterCard rules and regulations. Large dollar figures may cause
temporary blindness here. If you get caught accepting transactions
for other merchants, you will instantly be placed on the Terminated
Merchant List (TML) and never be able to open another CCMA. But
if you are doing millions per month in transactions, they seem to
look the other way as they do with these 3rd Party Billing companies.
Come on, let's face it. If you went into the corner electronics store and told the owner you want to accept
all of his credit card purchases
hold the funds for 45 days
then send him a check less 15%, he would
throw you out. That is just not a legitimate way to do business. Do business like millions of other
legitimate merchants ... get your own Credit Card Merchant Account!
3) A Processing Method
Now you have your Credit Card Merchant Account and you are ready to make the big bucks on the Internet.
Your choices here are simple:
Isn't it worth a few cents per transaction to have someone there for you 24 hours per day, seven days per week,
while you're asleep and on vacation? Could you possibly hire a 24 hour employee, pay for a full-time Internet
connection and purchase software less expensive than the small cost of a transaction fee.
LEASE - LEASE - LEASE
What is all the talk about leases, monthly payments
and such? It's NONSENSE! With the record number of new merchants
flocking to the Internet to increase their sales, or have a business
for the first time, it is a virtual candy store for people taking
advantage of these merchants. Some agents will try and hook you
on four-year leases for equipment you really don't need, software
you won't use, or in some cases "right to use." (air in our book)
Other agents will just get you what you need, a Credit Card Merchant
Account for a small (less than $100.00) fee for their services.
With your Right Connection Payment Processing Account,
you get FREE use of a "Virtual Terminal." (manual transactions for
call/fax orders) Why would you need to buy or lease anything? A
Virtual Terminal makes a credit card machine out of your home or
business computer. Do your transactions right on your computer screen.
With your Right Connection Payment Processing Account,
you get full access to IPPS, our On-Line Payment Processing software.
So why would you need to lease "air," or some software package you
will never use?
What is happening here is you are being exposed to the ways of the past. Merchant operating from real store
fronts in your local city needed these machines and software to accept credit cards, but the Internet is a
whole new arena for business. Unfortunately, the old ways of some of these sales people don't change with
the times. Whereas street merchants need machines, stickers for the windows, business card holders and closed
Internet merchants don't need these things! So why sell them? PROFIT - PROFIT - PROFIT
You don't need anything except a Credit Card Merchant
Account and Right Connection to do business on the Internet.
We supply you use of all of the software, shopping carts, password
management systems, virtual terminals, complex searching and reporting
of all transactions, fraud filters, Address Verification Service
(AVS) and much more for just transactional fees!
So don't get caught up in those four-year lease deals ... you simply don't need them.
All you need is a Credit Card Merchant Account.
Currently, we have alliances with ISO Bank Agents that will write
you a CCMA for under a hundred bucks. High-volume accounts are even
free of set-up charges. No lease, nothing to buy, no commitment
time ... nothing. They will have this account approved within 24
hours (sometimes the same day) and operating in a couple of days.
Yes there are FEES for Credit Card Merchant Accounts.
Remember, they charge a percentage to cover their profits for floating
you money during the 180 "chargeback" period. This is a VERY competitive
market. The agents can make money from you in two ways. They can
get you for a huge up-front fee ($899.00), sign you on a lease ($800
profit), or make a profit on the percentage rate. The higher the
percentage rate the more profit they make as long as you're in business.
Current competitive Internet fees are: 2.29% transaction discount
.30 per transaction fee- $10.00 statement fee -$25.00 minimum monthly
service charge. (if you are only paying the minimum, go back to
your day job)
These are Internet Rates, called Electonic Transaction
(ECI) and Mail Order, Telephone Order (MOTO) rates. They are higher
than machine "Card Present" rates because the credit card is not
present (card not present transaction).
The transaction fee is because the bank doesn't
process their own transactions. They are processed by large "clearing
houses" (back-end processors) The .30 transaction fee is their payment
for handling the transaction.
Now many people share the 2.29% The card issuing bank, MasterCard/Visa and the CCMA bank all split this fee up.
This is where they make their money. And technically ... it's worth every penny you pay them for this service.
Without them, you would loose thousands/millions.
So the bottom line is you only need a CCMA account ... nothing else. Then if you desire, Right Connection can
process your transactions 24 hours per day, 7 days per week for a small transaction fee (much less than an