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Casual Articles - Ecommerce: Merchant Account and Credit Card Processing
Internet Marketing: the Autoresponder Feature
Internet Marketing is one of the hottest and fastest growing e-business of our days. But as any other business, there are some key features and elements that need to be in place in order to be a successful internet marketer. One of the most important key elements of a successful internet marketing business is the ability to capture the e-mail address of your website visitors. This means that when you create your webpage you should have in place an efficient mechanism to capture the name and e-mail address of your potential customers.The assumption behind this suggestion lies in the fact that the majority of people that visit your webpage will not buy from your site in their fist visit. Research has shown that it takes at least 7 communications with your potential customer before they buy from your website. The idea behind this feature is that you should be able to send carefully planned marketing promotions to your potential clients in order to lead them to purchase your products. This is where the autoresponder
rmation, the transaction amount is debited from the buyers account (bank or credit card) and deposited into the seller’s bank account.Internet Marketing is one of the hottest and fastest growing e-business of our days. But as any other business, there are some key features and elements that need to be in place in order to be a successful internet marketer. One of the most important key elements of a successful internet marketing business is the ability to capture the e-mail address of your website visitors. This means that when you create your webpage you should have in place an efficient mechanism to capture the name and e-mail address of your potential customers.The assumption behind this suggestion lies in the fact that the majority of people that visit your webpage will not buy from your site in their fist visit. Research has shown that it takes at least 7 communications with your potential customer before they buy from your website. The idea behind this feature is that you should be able to send carefully planned marketing promotions to your potential clients in order to lead them to purchase your products. This is where the autoresponder
6. The buyer receives a payment confirmation via the website.
Account Fees & Charges:
There are two basic charges associated with a merchant account. These are:
• Administrative Fee: This is usually a monthly fee that is assessed for all administrative fees.
• Discount Rate: This is a fee (percentage based) that is imposed based on the total amount of the sale.
• Per Transaction: This is a payment gateway fee that is charged with each transaction that comes from your website.
The way this fee system works is the same, no matter what merchant account provider you use. For instance, let’s say you have a tran
Five Steps to Create a Budget for your Small Business
How I hate budgets!Every time an accountant told me to put together a budget for my company, my response was - “When I get the time I will!” I just never seem to get the time.For several years when I first started my company I never paid attention to a budget. I knew if I made money by looking at my financial statements and that was good enough for me. Also, every time I tried to put something together I never compared my actual financials to the budget numbers I created.Two years ago, I decided to take a different approach. I developed a forecast for a quarter of what I expected income and expenses to be. I came up with the figures based on the previous year's actual numbers. It was easy to look at last year and just add a percentage increase to the numbers. Then I took the time to review once a month the forecast with where we were at that point.By using this system of creating a forecast and comparing that to actual financials on a monthly basis I was able to focus on income areas that we
Having an online business that takes in money over the internet requires the ability to accept credit cards directly from your website. This is commonly known as “ecommerce”, or electronic commerce. This tutorial will help explain all there is to know about processing credit cards over the internet.
How I hate budgets!Every time an accountant told me to put together a budget for my company, my response was - “When I get the time I will!” I just never seem to get the time.For several years when I first started my company I never paid attention to a budget. I knew if I made money by looking at my financial statements and that was good enough for me. Also, every time I tried to put something together I never compared my actual financials to the budget numbers I created.Two years ago, I decided to take a different approach. I developed a forecast for a quarter of what I expected income and expenses to be. I came up with the figures based on the previous year's actual numbers. It was easy to look at last year and just add a percentage increase to the numbers. Then I took the time to review once a month the forecast with where we were at that point.By using this system of creating a forecast and comparing that to actual financials on a monthly basis I was able to focus on income areas that we
The Basics
Terms to Know:
• Shopping Cart: An online application that collects all your products and gets them ready for checkout, passing the information about the transaction to the payment gateway.
• Merchant Account: The bank or financial institution that actually processes and handles the transaction of debiting one account and crediting another.
• Payment Gateway: The program or application that communicates between the website and merchant account, verifying the credit card information and executing the transaction.
• Web Hosting: Serving your website or web page from a web server to any requesting client browser.
• Secured Socket Layer (SSL): The process by which information is securely exchanged between the web server and the client browser. 128-bit encryption is the most secure.
• Secure Certificate: A certificate of authentication that assures website visitors that the website being used is safe, secure and tested and up-to-date.
• IP Address (internet protocol address): The physical, numerical address that is associated with the domain name. There are two types of IP addresses:
1. Static IP: There is one IP address that is associated with a domain name, and it never changes.
2. Dynamic IP: The IP address can change at any time, depending on the need and whenever necessary, as determined by the hosting company.
There are 3 things required for credit card processing:
1. A web hosting account with a static IP address
2. A merchant account with a reputable company
3. A current, secure SSL certificate
Web Hosting
There are many web hosting companies that operate online, and choosing one is not too difficult. However, there are a couple requirements that you need to look for when choosing your company. The hosting account must have a static IP address because a secure SSL certificate is required when transferring confidential information over the internet through the payment gateway.
Merchant Account
A merchant account is required for credit card processing because this is how the payment will be processed; money must be taken out the buyer’s account and deposited into the seller’s account. The merchant account is the generic name for the process by which all transactions are handled. This is explained in detail:
1. The website visitor selects the product or service to purchase and initiates the sale.
2. The website takes the visitor to secure area of website (with gold lock on bottom of browser) and requests payment information (credit card info).
3. The visitor completes the required information and clicks ‘submit’.
4. The information is sent securely through the payment gateway for the information to be verified as valid or invalid.
5. After verifying the accuracy of the credit card information, the transaction amount is debited from the buyers account (bank or credit card) and deposited into the seller’s bank account.
6. The buyer receives a payment confirmation via the website.
Account Fees & Charges:
There are two basic charges associated with a merchant account. These are:
• Administrative Fee: This is usually a monthly fee that is assessed for all administrative fees.
• Discount Rate: This is a fee (percentage based) that is imposed based on the total amount of the sale.
• Per Transaction: This is a payment gateway fee that is charged with each transaction that comes from your website.
The way this fee system works is the same, no matter what merchant account provider you use. For instance, let’s say you have a trans
Setting Up Appointments When You Need A Career Change
The key is to job hunt smarter not harder. There is no point spending all day applying to over 50 companies and get so frustrated at the end of the day because non of the employers have responded to your applications.Don't join the rat race. Many are called but few are chosen. Why join the many when you can be among the few chosen ones without joining the crowd.A bird at hand is better than 10,000 in the forest. You can always use that one bird to catch the many thousands in the forest because birds of the same feather flock together.The same applies to the job market. Why apply for the thousands of jobs on job boards when you can use a contact person to attract or be introduced to many other key contacts that could help you attain the job you are looking for.For example, if you want to start a career in project management, start networking among your friends. There must be someone you know who knows a project manager. Build rapport and create a network ladder to get to your main contact person.count, verifying the credit card information and executing the transaction.
• Web Hosting: Serving your website or web page from a web server to any requesting client browser.
• Secured Socket Layer (SSL): The process by which information is securely exchanged between the web server and the client browser. 128-bit encryption is the most secure.
• Secure Certificate: A certificate of authentication that assures website visitors that the website being used is safe, secure and tested and up-to-date.
• IP Address (internet protocol address): The physical, numerical address that is associated with the domain name. There are two types of IP addresses:
1. Static IP: There is one IP address that is associated with a domain name, and it never changes.
2. Dynamic IP: The IP address can change at any time, depending on the need and whenever necessary, as determined by the hosting company.
There are 3 things required for credit card processing:
1. A web hosting account with a static IP address
2. A merchant account with a reputable company
3. A current, secure SSL certificate
Web Hosting
There are many web hosting companies that operate online, and choosing one is not too difficult. However, there are a couple requirements that you need to look for when choosing your company. The hosting account must have a static IP address because a secure SSL certificate is required when transferring confidential information over the internet through the payment gateway.
Merchant Account
A merchant account is required for credit card processing because this is how the payment will be processed; money must be taken out the buyer’s account and deposited into the seller’s account. The merchant account is the generic name for the process by which all transactions are handled. This is explained in detail:
1. The website visitor selects the product or service to purchase and initiates the sale.
2. The website takes the visitor to secure area of website (with gold lock on bottom of browser) and requests payment information (credit card info).
3. The visitor completes the required information and clicks ‘submit’.
4. The information is sent securely through the payment gateway for the information to be verified as valid or invalid.
5. After verifying the accuracy of the credit card information, the transaction amount is debited from the buyers account (bank or credit card) and deposited into the seller’s bank account.
6. The buyer receives a payment confirmation via the website.
Account Fees & Charges:
There are two basic charges associated with a merchant account. These are:
• Administrative Fee: This is usually a monthly fee that is assessed for all administrative fees.
• Discount Rate: This is a fee (percentage based) that is imposed based on the total amount of the sale.
• Per Transaction: This is a payment gateway fee that is charged with each transaction that comes from your website.
The way this fee system works is the same, no matter what merchant account provider you use. For instance, let’s say you have a tran
There are 3 things required for credit card processing:
1. A web hosting account with a static IP address
2. A merchant account with a reputable company
3. A current, secure SSL certificate
Web Hosting
There are many web hosting companies that operate online, and choosing one is not too difficult. However, there are a couple requirements that you need to look for when choosing your company. The hosting account must have a static IP address because a secure SSL certificate is required when transferring confidential information over the internet through the payment gateway.
Merchant Account
A merchant account is required for credit card processing because this is how the payment will be processed; money must be taken out the buyer’s account and deposited into the seller’s account. The merchant account is the generic name for the process by which all transactions are handled. This is explained in detail:
1. The website visitor selects the product or service to purchase and initiates the sale.
2. The website takes the visitor to secure area of website (with gold lock on bottom of browser) and requests payment information (credit card info).
3. The visitor completes the required information and clicks ‘submit’.
4. The information is sent securely through the payment gateway for the information to be verified as valid or invalid.
5. After verifying the accuracy of the credit card information, the transaction amount is debited from the buyers account (bank or credit card) and deposited into the seller’s bank account.
6. The buyer receives a payment confirmation via the website.
Account Fees & Charges:
There are two basic charges associated with a merchant account. These are:
• Administrative Fee: This is usually a monthly fee that is assessed for all administrative fees.
• Discount Rate: This is a fee (percentage based) that is imposed based on the total amount of the sale.
• Per Transaction: This is a payment gateway fee that is charged with each transaction that comes from your website.
The way this fee system works is the same, no matter what merchant account provider you use. For instance, let’s say you have a tran
1. The website visitor selects the product or service to purchase and initiates the sale.
2. The website takes the visitor to secure area of website (with gold lock on bottom of browser) and requests payment information (credit card info).
3. The visitor completes the required information and clicks ‘submit’.
4. The information is sent securely through the payment gateway for the information to be verified as valid or invalid.
5. After verifying the accuracy of the credit card information, the transaction amount is debited from the buyers account (bank or credit card) and deposited into the seller’s bank account.
6. The buyer receives a payment confirmation via the website.
Account Fees & Charges:
There are two basic charges associated with a merchant account. These are:
• Administrative Fee: This is usually a monthly fee that is assessed for all administrative fees.
• Discount Rate: This is a fee (percentage based) that is imposed based on the total amount of the sale.
• Per Transaction: This is a payment gateway fee that is charged with each transaction that comes from your website.
The way this fee system works is the same, no matter what merchant account provider you use. For instance, let’s say you have a tran
6. The buyer receives a payment confirmation via the website.
Account Fees & Charges:
There are two basic charges associated with a merchant account. These are:
• Administrative Fee: This is usually a monthly fee that is assessed for all administrative fees.
• Discount Rate: This is a fee (percentage based) that is imposed based on the total amount of the sale.
• Per Transaction: This is a payment gateway fee that is charged with each transaction that comes from your website.
The way this fee system works is the same, no matter what merchant account provider you use. For instance, let’s say you have a transaction rate of $0.25 and a discount rate of 2.5%. If you have a product that you sell for $10 from your website, each time the product is purchased you will receive $10 deposited into your account. You will also be charged $0.25 for the transaction, and $0.25 discount rate (computed at the end of the month). That’s a total of $0.50 in fees for the $10 sale of your product.
Most merchant account providers will impose a monthly base (minimum) fee for the account. Let’s say the base fee is $15. This base rate is an either/or charge, meaning you are charged that amount unless your discount rate and per transaction fee amount to more than the base amount.
For example, through the course of business, you sell your $10 product to 20 buyers. At the discount rate and per transaction rate used above ($0.25 transaction and 2.5% discount), your fees amount to $10 on $300 ($10 x 30) in sales. Since this amount is less than the base rate ($15), you will be charged the base rate for the month. However, if you sell your $10 product to 90 buyers, your fees amount to $45 dollars for the month. Since your fees amount to more than the base rate ($45 vs. $15), you will be charged $45 on $900 in sales.
Types of Transactions
There are two basic types of transactions when purchasing goods or services online:
1. One-time Purchase
2. Recurring Subscription
Most online stores and catalogs deal with ‘one-time’ purchases, meaning you find a product online and purchase it. After confirmation of sale, this ends the relationship between buyer and seller.
The other type, ‘recurring subscription’, is based on interval billing. This type of purchase can be for membership fees, or for any other type of fee that is billed on intervals.
Payment Gateway
The payment gateway is an application that you integrate into your website. Most payment gateways have an API that allows for easy, seamless integration into your website, meaning the user’s experience on your website remains consistent, even through the credit card processing phase. The payment gateway is responsible for validating the credit card information provided, such as address verification and security code matching. There are many payment gateways available on the market, but to ensure compatibility, it’s recommended that you use the one provided at the time of your merchant account setup.
SSL Certificate
The secure digital certificate validates the site as being secure, letting the buyer know that the information exchanged over the internet will be sent using the best possible encryption. In other words, the personal, confidential information sent will be scrambled to avoid interception by a 3rd party and used fraudulently. An SSL certificate requires a static IP address, but does not have to be associated with your website. You can link the transaction to another website (sharing a certificate) to handle the transaction. However, it is recommended that your website have its own static IP and secure certificate to maintain site continuity. Think of it this way; you're at the supermarket, and when you go to checkout, you are either taken across the street to handle the transaction, or the transaction can be handled at the
The key is to job hunt smarter not harder. There is no point spending all day applying to over 50 companies and get so frustrated at the end of the day because non of the employers have responded to your applications.Don't join the rat race. Many are called but few are chosen. Why join the many when you can be among the few chosen ones without joining the crowd.A bird at hand is better than 10,000 in the forest. You can always use that one bird to catch the many thousands in the forest because birds of the same feather flock together.The same applies to the job market. Why apply for the thousands of jobs on job boards when you can use a contact person to attract or be introduced to many other key contacts that could help you attain the job you are looking for.For example, if you want to start a career in project management, start networking among your friends. There must be someone you know who knows a project manager. Build rapport and create a network ladder to get to your main contact person.count, verifying the credit card information and executing the transaction.
• Web Hosting: Serving your website or web page from a web server to any requesting client browser.
• Secured Socket Layer (SSL): The process by which information is securely exchanged between the web server and the client browser. 128-bit encryption is the most secure.
• Secure Certificate: A certificate of authentication that assures website visitors that the website being used is safe, secure and tested and up-to-date.
• IP Address (internet protocol address): The physical, numerical address that is associated with the domain name. There are two types of IP addresses:
1. Static IP: There is one IP address that is associated with a domain name, and it never changes.
2. Dynamic IP: The IP address can change at any time, depending on the need and whenever necessary, as determined by the hosting company.
There are 3 things required for credit card processing:
1. A web hosting account with a static IP address
2. A merchant account with a reputable company
3. A current, secure SSL certificate
Web Hosting
There are many web hosting companies that operate online, and choosing one is not too difficult. However, there are a couple requirements that you need to look for when choosing your company. The hosting account must have a static IP address because a secure SSL certificate is required when transferring confidential information over the internet through the payment gateway.
Merchant Account
A merchant account is required for credit card processing because this is how the payment will be processed; money must be taken out the buyer’s account and deposited into the seller’s account. The merchant account is the generic name for the process by which all transactions are handled. This is explained in detail:
1. The website visitor selects the product or service to purchase and initiates the sale.
2. The website takes the visitor to secure area of website (with gold lock on bottom of browser) and requests payment information (credit card info).
3. The visitor completes the required information and clicks ‘submit’.
4. The information is sent securely through the payment gateway for the information to be verified as valid or invalid.
5. After verifying the accuracy of the credit card information, the transaction amount is debited from the buyers account (bank or credit card) and deposited into the seller’s bank account.
6. The buyer receives a payment confirmation via the website.
Account Fees & Charges:
There are two basic charges associated with a merchant account. These are:
• Administrative Fee: This is usually a monthly fee that is assessed for all administrative fees.
• Discount Rate: This is a fee (percentage based) that is imposed based on the total amount of the sale.
• Per Transaction: This is a payment gateway fee that is charged with each transaction that comes from your website.
The way this fee system works is the same, no matter what merchant account provider you use. For instance, let’s say you have a tran
Ways to Achieve Printing Quotes Online
Mostly, we often encounter many promotional materials on our way. They are either distributed by the hand or delivered via mail. This advertising materials like the postcards and business cards are said to be businesses frontline of their service. It is a simple way of expanding their company without the need to talk personally with their clients or do a house to house campaign.Moreover, we too can never deny the fact that online services had helped us much with our daily lives. For, we can immediately get what we want without any hassles. Like for instance if we are after printing our own business cards and postcards we could easily get the specs that we want by simply browsing the net and rendering online services.In terms of purchasing or ordering the materials there are ways on how to achieve printing quotes online.1. Through the assistance of customer service representatives – most representatives of a commercial printer are well trained to provide you with features that you can have for your materia
>Dynamic IP: The IP address can change at any time, depending on the need and whenever necessary, as determined by the hosting company.Mostly, we often encounter many promotional materials on our way. They are either distributed by the hand or delivered via mail. This advertising materials like the postcards and business cards are said to be businesses frontline of their service. It is a simple way of expanding their company without the need to talk personally with their clients or do a house to house campaign.Moreover, we too can never deny the fact that online services had helped us much with our daily lives. For, we can immediately get what we want without any hassles. Like for instance if we are after printing our own business cards and postcards we could easily get the specs that we want by simply browsing the net and rendering online services.In terms of purchasing or ordering the materials there are ways on how to achieve printing quotes online.1. Through the assistance of customer service representatives – most representatives of a commercial printer are well trained to provide you with features that you can have for your materia
There are 3 things required for credit card processing:
1. A web hosting account with a static IP address
2. A merchant account with a reputable company
3. A current, secure SSL certificate
Web Hosting
There are many web hosting companies that operate online, and choosing one is not too difficult. However, there are a couple requirements that you need to look for when choosing your company. The hosting account must have a static IP address because a secure SSL certificate is required when transferring confidential information over the internet through the payment gateway.
Merchant Account
A merchant account is required for credit card processing because this is how the payment will be processed; money must be taken out the buyer’s account and deposited into the seller’s account. The merchant account is the generic name for the process by which all transactions are handled. This is explained in detail:
1. The website visitor selects the product or service to purchase and initiates the sale.
2. The website takes the visitor to secure area of website (with gold lock on bottom of browser) and requests payment information (credit card info).
3. The visitor completes the required information and clicks ‘submit’.
4. The information is sent securely through the payment gateway for the information to be verified as valid or invalid.
5. After verifying the accuracy of the credit card information, the transaction amount is debited from the buyers account (bank or credit card) and deposited into the seller’s bank account.
6. The buyer receives a payment confirmation via the website.
Account Fees & Charges:
There are two basic charges associated with a merchant account. These are:
• Administrative Fee: This is usually a monthly fee that is assessed for all administrative fees.
• Discount Rate: This is a fee (percentage based) that is imposed based on the total amount of the sale.
• Per Transaction: This is a payment gateway fee that is charged with each transaction that comes from your website.
The way this fee system works is the same, no matter what merchant account provider you use. For instance, let’s say you have a tran
To Drop Ship or Not: What You Need To Know About Wholesale Dropshipping
As ecommerce grows everyday, people are looking for ways to benefit from the great potential the internet has to offer. For newcomers to e-commerce or ebay selling, the hardest step is to find legit and reliable wholesale products suppliers. Drop shipping is a quick and easy solution that can get you up and running fast, but you have to do it right or you can easily fail. In many cases, ecommerce start-ups fail miserably for lack of research and planning. My goal in this article is to explain how drop shipping works. I'm also going to explain the pros and cons of dropshipping, What you need to do before even contacting your first supplier, and how you can avoid the most common mistakes that beginners make.But what is drop shipping anyways?When you dropship products, you essentially have an arrangement with your wholesale supplier where by they ship your orders directly to your customers. In most cases, they will include your company name on the shipping labels instead of theirs
erchant account is required for credit card processing because this is how the payment will be processed; money must be taken out the buyer’s account and deposited into the seller’s account. The merchant account is the generic name for the process by which all transactions are handled. This is explained in detail:
As ecommerce grows everyday, people are looking for ways to benefit from the great potential the internet has to offer. For newcomers to e-commerce or ebay selling, the hardest step is to find legit and reliable wholesale products suppliers. Drop shipping is a quick and easy solution that can get you up and running fast, but you have to do it right or you can easily fail. In many cases, ecommerce start-ups fail miserably for lack of research and planning. My goal in this article is to explain how drop shipping works. I'm also going to explain the pros and cons of dropshipping, What you need to do before even contacting your first supplier, and how you can avoid the most common mistakes that beginners make.But what is drop shipping anyways?When you dropship products, you essentially have an arrangement with your wholesale supplier where by they ship your orders directly to your customers. In most cases, they will include your company name on the shipping labels instead of theirs
1. The website visitor selects the product or service to purchase and initiates the sale.
2. The website takes the visitor to secure area of website (with gold lock on bottom of browser) and requests payment information (credit card info).
3. The visitor completes the required information and clicks ‘submit’.
4. The information is sent securely through the payment gateway for the information to be verified as valid or invalid.
5. After verifying the accuracy of the credit card information, the transaction amount is debited from the buyers account (bank or credit card) and deposited into the seller’s bank account.
6. The buyer receives a payment confirmation via the website.
Account Fees & Charges:
There are two basic charges associated with a merchant account. These are:
• Administrative Fee: This is usually a monthly fee that is assessed for all administrative fees.
• Discount Rate: This is a fee (percentage based) that is imposed based on the total amount of the sale.
• Per Transaction: This is a payment gateway fee that is charged with each transaction that comes from your website.
The way this fee system works is the same, no matter what merchant account provider you use. For instance, let’s say you have a tran
Boss - Secretary Relationships: The New Norms
THE CHANGING BOSS-SECRETARY RELATIONSHIP: Imagine a partnership at work. One member is outlining the agenda for the annual stockholders’ meeting, the other is managing the logistics. The last decade has brought many changes to the traditional boss/secretary relationship. We now see powers and responsibilities delegated to “executive assistants” that only ten years ago would have been the sole province of the boss. And there has been a corresponding rise in the prestige and influence of those secretaries chosen to fill such positions. The fact is that fewer women are willing to be career secretaries.QUALIFIED SECRETARIES: Qualified secretaries are hard to find and even harder to keep satisfied for any appreciable period of time. The most talented and enterprising are voicing the same concerns as a burgeoning number of their fellow employees: “What are the opportunities for growth and advancement?” That has become a popular question. Women who were secretaries in the 1960’s are now managers and vice presidents who functi
rmation, the transaction amount is debited from the buyers account (bank or credit card) and deposited into the seller’s bank account.THE CHANGING BOSS-SECRETARY RELATIONSHIP: Imagine a partnership at work. One member is outlining the agenda for the annual stockholders’ meeting, the other is managing the logistics. The last decade has brought many changes to the traditional boss/secretary relationship. We now see powers and responsibilities delegated to “executive assistants” that only ten years ago would have been the sole province of the boss. And there has been a corresponding rise in the prestige and influence of those secretaries chosen to fill such positions. The fact is that fewer women are willing to be career secretaries.QUALIFIED SECRETARIES: Qualified secretaries are hard to find and even harder to keep satisfied for any appreciable period of time. The most talented and enterprising are voicing the same concerns as a burgeoning number of their fellow employees: “What are the opportunities for growth and advancement?” That has become a popular question. Women who were secretaries in the 1960’s are now managers and vice presidents who functi
6. The buyer receives a payment confirmation via the website.
Account Fees & Charges:
There are two basic charges associated with a merchant account. These are:
• Administrative Fee: This is usually a monthly fee that is assessed for all administrative fees.
• Discount Rate: This is a fee (percentage based) that is imposed based on the total amount of the sale.
• Per Transaction: This is a payment gateway fee that is charged with each transaction that comes from your website.
The way this fee system works is the same, no matter what merchant account provider you use. For instance, let’s say you have a transaction rate of $0.25 and a discount rate of 2.5%. If you have a product that you sell for $10 from your website, each time the product is purchased you will receive $10 deposited into your account. You will also be charged $0.25 for the transaction, and $0.25 discount rate (computed at the end of the month). That’s a total of $0.50 in fees for the $10 sale of your product.
Most merchant account providers will impose a monthly base (minimum) fee for the account. Let’s say the base fee is $15. This base rate is an either/or charge, meaning you are charged that amount unless your discount rate and per transaction fee amount to more than the base amount.
For example, through the course of business, you sell your $10 product to 20 buyers. At the discount rate and per transaction rate used above ($0.25 transaction and 2.5% discount), your fees amount to $10 on $300 ($10 x 30) in sales. Since this amount is less than the base rate ($15), you will be charged the base rate for the month. However, if you sell your $10 product to 90 buyers, your fees amount to $45 dollars for the month. Since your fees amount to more than the base rate ($45 vs. $15), you will be charged $45 on $900 in sales.
Types of Transactions
There are two basic types of transactions when purchasing goods or services online:
1. One-time Purchase
2. Recurring Subscription
Most online stores and catalogs deal with ‘one-time’ purchases, meaning you find a product online and purchase it. After confirmation of sale, this ends the relationship between buyer and seller.
The other type, ‘recurring subscription’, is based on interval billing. This type of purchase can be for membership fees, or for any other type of fee that is billed on intervals.
Payment Gateway
The payment gateway is an application that you integrate into your website. Most payment gateways have an API that allows for easy, seamless integration into your website, meaning the user’s experience on your website remains consistent, even through the credit card processing phase. The payment gateway is responsible for validating the credit card information provided, such as address verification and security code matching. There are many payment gateways available on the market, but to ensure compatibility, it’s recommended that you use the one provided at the time of your merchant account setup.
SSL Certificate
The secure digital certificate validates the site as being secure, letting the buyer know that the information exchanged over the internet will be sent using the best possible encryption. In other words, the personal, confidential information sent will be scrambled to avoid interception by a 3rd party and used fraudulently. An SSL certificate requires a static IP address, but does not have to be associated with your website. You can link the transaction to another website (sharing a certificate) to handle the transaction. However, it is recommended that your website have its own static IP and secure certificate to maintain site continuity. Think of it this way; you're at the supermarket, and when you go to checkout, you are either taken across the street to handle the transaction, or the transaction can be handled at the
HTTP = HTML link (for blogs, profiles,phorums):
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