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Casual Articles - How Merchant Accounts Can Save You Money
Have you been blogging, but not too many people are visiting it? Are you waiting for those comments to come flooding in, but all you get is spam comments? I am going to tell you just a few things you can do, to bring in steady traffic to your blog.Many new bloggers start a blog but get easily discouraged because they have no readers reading it. Well, the readers can't read your blog, if they can't it. They also won't read it, if it's not something they want to read.My biggest tip I will give here is, give your readers something they want to read. If you write a post that people enjoy reading, they are going to reward you by coming back. Never forget that your readers are real people, make your posts conversational. When you are blogging, remember to keep each post to one topic only and include keyword rich words in your title. Be sure to post to your blog often. Search engines love blogs and if you are posti
10 cents (AVS Fees) x 150 (Memberships Sold) - $15.00
Total Fees (With Merchant Account) = $195.75
$4,500.00 (In total sales)
- 195.75 (Total fees)
= $4,304.25 (Net profit after all processing fees have been deducted)
With the merchant account, Bill was able to keep substantially more of his sales for himself, as profit. Bill could use these extra resources to advertise more, expand his operation, and even hire someone to work for him, even if only on a part time basis. The point is that that the better deal in credit card processing is always with a merchant account as opposed to using a third party processor.
Most third party processors leverage the high levels of risk and chargebacks they must face everyday, by charging enormous fees and rates to their entire customer base. Third party processors are synonymous with Adult related websites. This is the reason for their increased exposure to risk. They must charge high rates to overcome the losses they are subject to by processing for a category of merchants that,
IntroductionLearning is a development and formative process, evolving and changing over time due to various influencing factors like criticism received, self-analytical processes and other forms of feedback. Eaton (1938), as quoted by Snelbecker (1974) stated that “when a man has learned anything he is, for a time at least, changed in his readiness to deal with this or that in his environment. He has become, with respect to certain things, events, meanings, as the case may be, differently sensitive, differently percipient, differently disposed as to the forms of his responsive behaviour, whether in action, in understanding, or in feeling”. It can occur largely, independent of institutional education, guided primarily by self-directed learning or what McNiff (1993) termed “institution-unbound” learning. In this way learning is related to the self.Roots of learningIn this section an atte
For this experiment, we will use a fictional character named Bill. Bill owns and operates a great online resources for marketing tools and resources. Bills website is a membership based website, and therefore could potentially be approved for both third party processing and an internet merchant account. Bill starts off processing his business with a popular third party processor who offers him the following plan:
Start Up Fee - None
Monthly Fee - None
Transaction Fees - 13.5% (Initial or One Time), 15.0% (Recurring)
Bills sets up his business with this popular third party processor and charges $30 per month. He has built an extensive reciprocal link exchange directory, has purchased some PPC advertising on a few of the best search engines, and has reached a excellent spot in the content based search listings for the top 5 search engines. His customer base has grown from zero before accepting credit cards, to 150 members, is just one month. Bill can’t believe his success at internet marketing, and is planning on building even more web based resources and tools for his website, thus increasing the value and content. He is ecstatic at the initial results, so let’s take a look at Bills numbers:
$30 (Per Membership Sold) x 150 (Memberships Sold) = $4,500.00
$4,500 x 13.5% (Initial or One Time Transactions) - $ 607.50
$4,500.00 (In total sales)
- 607.50 (Total fees)
= $3,892.50 (Net profit after all processing fees have been deducted)
Ok. Well Bill certainly had an excellent first month accepting credit cards with his new business venture. But let’s see how Bill would have made out if he would have secured an internet merchant account for his new business:
Start Up Fee None
Monthly Fee $15.00
Discount Rate 2.35% (Initial, One Time or Recurring)
Per Trans Fee .30 cents
Gateway Mo. Fee $15.00
AVS Fees .10 cents
Now the first thing we see is that the merchant account company is showing us more fees. This may be disheartening at first sight, but we should really explore what these fees are, and how they affect our bottom line.
Start Up Fee: This remains the same. Bill paid zero to get setup with his new merchant account, just as he paid zero to get setup with the third party processing account.
Monthly Fee: The third party processor offered us no monthly fees, yet we must pay $15.00 with the merchant account company.
Discount Rate: The merchant account has labeled one of their fees as “discount rate.” These fees are the fees Bill will pay as a percentage of each transaction. They are similar to the main fee charged by the third party processor. This fee when charged by the merchant account company is substantially smaller than the high percentage charged by the third party processor. But we will wait till the end of this experiment to see who offers the better comprehensive deal.
Per Trans Fee: The merchant account company charges Bill .30 per transaction he processes through his merchant account. Of course, we have already established that Bill will pay no per transaction fees with the package he received from the third party processor.
Gateway Monthly Fee: Because Bill will also need an internet payment gateway for his merchant account to work online with his website, he will also be paying $15.00 a month for his Gateway Monthly Fee.
AVS Fees: The AVS fee stands for Address Verification Service. Bill will want to use this service, to help reduce potential fraud, and customer chargebacks to his merchant account. He will now pay an additional per transaction fee of .10 per transaction.
Let’s see the numbers behind processing with a merchant account as opposed to a third party processor:
$30 (Per Membership Sold) x 150 (Memberships Sold) = $4,500.00
$15.00 (Merchant Account Monthly Fee) - $15.00
$15.00 Gateway Monthly Fee) - $15.00
2.35% (Discount Rate) x $4,500.00 - $105.75
30 cents (Per Trans Fee) x 150 (Memberships Sold) - $45.00
10 cents (AVS Fees) x 150 (Memberships Sold) - $15.00
Total Fees (With Merchant Account) = $195.75
$4,500.00 (In total sales)
- 195.75 (Total fees)
= $4,304.25 (Net profit after all processing fees have been deducted)
With the merchant account, Bill was able to keep substantially more of his sales for himself, as profit. Bill could use these extra resources to advertise more, expand his operation, and even hire someone to work for him, even if only on a part time basis. The point is that that the better deal in credit card processing is always with a merchant account as opposed to using a third party processor.
Most third party processors leverage the high levels of risk and chargebacks they must face everyday, by charging enormous fees and rates to their entire customer base. Third party processors are synonymous with Adult related websites. This is the reason for their increased exposure to risk. They must charge high rates to overcome the losses they are subject to by processing for a category of merchants that,
As I have the opportunity to speak around the country at different Internet Marketing and Business conferences, I am amazed at the number of intelligent people I meet who seem to be desperate to earn some extra cash.The common challenge with most of these people is in their thinking. They don’t get that success comes from duplication, not innovation! They all seem to be trying to come up with the latest greatest widget, ebook, or software product. If I am describing you, I encourage you to STOP! The answer is right in front of your nose, the Facts speak for themselves, and only a fool argues with facts!DID YOU KNOW? "More than 724,000* people report that eBay is their primary or secondary source of income and another 1.5 million say eBay is a supplemental source of income. (*An increase of 68% since the last study done in 2003.)"AND"With over 1/3 of Internet users visiting eBay, that leaves
$30 (Per Membership Sold) x 150 (Memberships Sold) = $4,500.00
$4,500 x 13.5% (Initial or One Time Transactions) - $ 607.50
$4,500.00 (In total sales)
- 607.50 (Total fees)
= $3,892.50 (Net profit after all processing fees have been deducted)
Ok. Well Bill certainly had an excellent first month accepting credit cards with his new business venture. But let’s see how Bill would have made out if he would have secured an internet merchant account for his new business:
Start Up Fee None
Monthly Fee $15.00
Discount Rate 2.35% (Initial, One Time or Recurring)
Per Trans Fee .30 cents
Gateway Mo. Fee $15.00
AVS Fees .10 cents
Now the first thing we see is that the merchant account company is showing us more fees. This may be disheartening at first sight, but we should really explore what these fees are, and how they affect our bottom line.
Start Up Fee: This remains the same. Bill paid zero to get setup with his new merchant account, just as he paid zero to get setup with the third party processing account.
Monthly Fee: The third party processor offered us no monthly fees, yet we must pay $15.00 with the merchant account company.
Discount Rate: The merchant account has labeled one of their fees as “discount rate.” These fees are the fees Bill will pay as a percentage of each transaction. They are similar to the main fee charged by the third party processor. This fee when charged by the merchant account company is substantially smaller than the high percentage charged by the third party processor. But we will wait till the end of this experiment to see who offers the better comprehensive deal.
Per Trans Fee: The merchant account company charges Bill .30 per transaction he processes through his merchant account. Of course, we have already established that Bill will pay no per transaction fees with the package he received from the third party processor.
Gateway Monthly Fee: Because Bill will also need an internet payment gateway for his merchant account to work online with his website, he will also be paying $15.00 a month for his Gateway Monthly Fee.
AVS Fees: The AVS fee stands for Address Verification Service. Bill will want to use this service, to help reduce potential fraud, and customer chargebacks to his merchant account. He will now pay an additional per transaction fee of .10 per transaction.
Let’s see the numbers behind processing with a merchant account as opposed to a third party processor:
$30 (Per Membership Sold) x 150 (Memberships Sold) = $4,500.00
$15.00 (Merchant Account Monthly Fee) - $15.00
$15.00 Gateway Monthly Fee) - $15.00
2.35% (Discount Rate) x $4,500.00 - $105.75
30 cents (Per Trans Fee) x 150 (Memberships Sold) - $45.00
10 cents (AVS Fees) x 150 (Memberships Sold) - $15.00
Total Fees (With Merchant Account) = $195.75
$4,500.00 (In total sales)
- 195.75 (Total fees)
= $4,304.25 (Net profit after all processing fees have been deducted)
With the merchant account, Bill was able to keep substantially more of his sales for himself, as profit. Bill could use these extra resources to advertise more, expand his operation, and even hire someone to work for him, even if only on a part time basis. The point is that that the better deal in credit card processing is always with a merchant account as opposed to using a third party processor.
Most third party processors leverage the high levels of risk and chargebacks they must face everyday, by charging enormous fees and rates to their entire customer base. Third party processors are synonymous with Adult related websites. This is the reason for their increased exposure to risk. They must charge high rates to overcome the losses they are subject to by processing for a category of merchants that,
The quick answer is, PR helps managers manage when it (1) moves business, non-profit, government agency and association managers away from a preoccupation with simple tactics like press releases, special events, broadcast plugs and brochures. Then (2), moves them on to PR that creates the kind of external stakeholder behavior change that leads directly to achieving their managerial objectives.But it does beget a question: how do those managers shakeoff that tactical orientation?A good first step might be to digest public relation’s underlying premise: people act on their own perception of the facts before them, which leads to predictable behaviors about which something can be done. When we create, change or reinforce that opinion by reaching, persuading and moving-to-desired-action the very people whose behaviors affect the organization the most, the public relations mission is usua
Now the first thing we see is that the merchant account company is showing us more fees. This may be disheartening at first sight, but we should really explore what these fees are, and how they affect our bottom line.
Start Up Fee: This remains the same. Bill paid zero to get setup with his new merchant account, just as he paid zero to get setup with the third party processing account.
Monthly Fee: The third party processor offered us no monthly fees, yet we must pay $15.00 with the merchant account company.
Discount Rate: The merchant account has labeled one of their fees as “discount rate.” These fees are the fees Bill will pay as a percentage of each transaction. They are similar to the main fee charged by the third party processor. This fee when charged by the merchant account company is substantially smaller than the high percentage charged by the third party processor. But we will wait till the end of this experiment to see who offers the better comprehensive deal.
Per Trans Fee: The merchant account company charges Bill .30 per transaction he processes through his merchant account. Of course, we have already established that Bill will pay no per transaction fees with the package he received from the third party processor.
Gateway Monthly Fee: Because Bill will also need an internet payment gateway for his merchant account to work online with his website, he will also be paying $15.00 a month for his Gateway Monthly Fee.
AVS Fees: The AVS fee stands for Address Verification Service. Bill will want to use this service, to help reduce potential fraud, and customer chargebacks to his merchant account. He will now pay an additional per transaction fee of .10 per transaction.
Let’s see the numbers behind processing with a merchant account as opposed to a third party processor:
$30 (Per Membership Sold) x 150 (Memberships Sold) = $4,500.00
$15.00 (Merchant Account Monthly Fee) - $15.00
$15.00 Gateway Monthly Fee) - $15.00
2.35% (Discount Rate) x $4,500.00 - $105.75
30 cents (Per Trans Fee) x 150 (Memberships Sold) - $45.00
10 cents (AVS Fees) x 150 (Memberships Sold) - $15.00
Total Fees (With Merchant Account) = $195.75
$4,500.00 (In total sales)
- 195.75 (Total fees)
= $4,304.25 (Net profit after all processing fees have been deducted)
With the merchant account, Bill was able to keep substantially more of his sales for himself, as profit. Bill could use these extra resources to advertise more, expand his operation, and even hire someone to work for him, even if only on a part time basis. The point is that that the better deal in credit card processing is always with a merchant account as opposed to using a third party processor.
Most third party processors leverage the high levels of risk and chargebacks they must face everyday, by charging enormous fees and rates to their entire customer base. Third party processors are synonymous with Adult related websites. This is the reason for their increased exposure to risk. They must charge high rates to overcome the losses they are subject to by processing for a category of merchants that,
In recent years the opportunity to extend your influence, develop connections and build relationships beyond your immediate circle of associates, colleagues and friends has been made a lot easier thanks to the development of multiple online networks and the proliferation of clubs, societies and groups on your doorstep. Indeed, just in the last month, three new "networks" have launched in my town creating three new opportunities for me to eat breakfast, lunch and dinner with local business owners, discussing opportunities, sharing knowledge and making referrals. Alternatively, I could look at them as three new opportunities to distract me from the short-term objective of getting money into my business.So, where to start? The answer, as is often the case when a strategic problem arises, is at the end. You need to decide what you want to achieve out of your networking? Is it a 50% improvement to the bottom-line or is i
Gateway Monthly Fee: Because Bill will also need an internet payment gateway for his merchant account to work online with his website, he will also be paying $15.00 a month for his Gateway Monthly Fee.
AVS Fees: The AVS fee stands for Address Verification Service. Bill will want to use this service, to help reduce potential fraud, and customer chargebacks to his merchant account. He will now pay an additional per transaction fee of .10 per transaction.
Let’s see the numbers behind processing with a merchant account as opposed to a third party processor:
$30 (Per Membership Sold) x 150 (Memberships Sold) = $4,500.00
$15.00 (Merchant Account Monthly Fee) - $15.00
$15.00 Gateway Monthly Fee) - $15.00
2.35% (Discount Rate) x $4,500.00 - $105.75
30 cents (Per Trans Fee) x 150 (Memberships Sold) - $45.00
10 cents (AVS Fees) x 150 (Memberships Sold) - $15.00
Total Fees (With Merchant Account) = $195.75
$4,500.00 (In total sales)
- 195.75 (Total fees)
= $4,304.25 (Net profit after all processing fees have been deducted)
With the merchant account, Bill was able to keep substantially more of his sales for himself, as profit. Bill could use these extra resources to advertise more, expand his operation, and even hire someone to work for him, even if only on a part time basis. The point is that that the better deal in credit card processing is always with a merchant account as opposed to using a third party processor.
Most third party processors leverage the high levels of risk and chargebacks they must face everyday, by charging enormous fees and rates to their entire customer base. Third party processors are synonymous with Adult related websites. This is the reason for their increased exposure to risk. They must charge high rates to overcome the losses they are subject to by processing for a category of merchants that,
There are a great many things that sales managers are called upon to handle in the course of business. Along the way, there are a couple of serious traps that lie in wait for the sales manager who lets his or her ego distort sound business judgment. This will result in sales teams being torn apart.The first trap I refer to as the 'take power by humiliation' trap. I know that you have seen it at some point in either your working or shopping experience. It's where a manager actually berates an employee in public, in front of other employees and in many cases in front of clients or potential customers.The employee may have done something that deserved disciplinary action or even dismissal. But, at no time does anyone deserve the humiliation of that type of behavior. Furthermore, customers that see this type of behavior will walk away, never to return.I've seen weak managers use this actio
10 cents (AVS Fees) x 150 (Memberships Sold) - $15.00
Total Fees (With Merchant Account) = $195.75
$4,500.00 (In total sales)
- 195.75 (Total fees)
= $4,304.25 (Net profit after all processing fees have been deducted)
With the merchant account, Bill was able to keep substantially more of his sales for himself, as profit. Bill could use these extra resources to advertise more, expand his operation, and even hire someone to work for him, even if only on a part time basis. The point is that that the better deal in credit card processing is always with a merchant account as opposed to using a third party processor.
Most third party processors leverage the high levels of risk and chargebacks they must face everyday, by charging enormous fees and rates to their entire customer base. Third party processors are synonymous with Adult related websites. This is the reason for their increased exposure to risk. They must charge high rates to overcome the losses they are subject to by processing for a category of merchants that, unfortunate as it may be for them, falls into a certain level of risk and fraud that most other merchants do not. Because the merchant account company restricts its clientele to only companies with non adult related content, they are able to offer an entrepreneur like Bill, selling online content through his membership based marketing website, a much better deal in credit card processing.
$4,304.25 (Net Profit with Merchant Account)
- 3,892.50 (Net Profit with Third Party Processing)
= $411.75 (Total Savings with Merchant Account)
This experiment has shown that the average website owner can save substantially by choosing wisely when it comes to their credit card processing solution. We have proved that most any entrepreneur can and will save substantial amounts of money by using a merchant account for their online credit card processing, as opposed to processing with a third party processor. In our little test, Bill saved $411.75, and that was just in the first month alone.
Remember, that the third party processor will charge more, 15.0% to be exact, per transaction, once the customer is charged on a recurring basis. This means that for the second month, Bill would have paid even more to his third party processor; $675.00 to be exact! And that is just on the first months returning 150 customers. Every time Bill has a recurring payment processed through his third party processing account, he would be subject to a 15.0% transaction fee on all those sales. Not a very thrifty choice for credit card processing.
As with any business decision, be smart. Compare rates and plans, and make sure the “simple” setup is really worth the cost. In most cases, your Merchant Service Provider can setup your merchant account in as little as 24 hours. This is faster than your third party processor, and adds even more value to the otherwise already vastly superior deal you are receiving with your very own merchant account.
Make the decision that is best for your business, and best of luck! Please visit Josh Greth at CardStreet.com.
Copyright 2003 Josh Greth. All rights reserved.
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