by: Oliver Stevens
1.Whats all the fuss about credit card acceptance as a way of becoming a hit in the ecommerce scene?
By accepting credit cards as a form of payment you are a step ahead to becoming a full fledged ecommerce merchant. This is because for every credit card transaction there is a 450% increase in sales. Without giving your customers the convenience of accepting payment via credit cards, your sales are going to be far less than your competitors that do accept credit cards. This is a basic fact of business.
2.Should I worry about the cost of equipment?
The costs per equipment will indeed vary as this is open for leasing or purchasing. This is going to vary depending on the kind of equipment you choose. For an online merchant, an additional shopping cart would entail charges as well. For those who wish to lease the equipment, payments will tantamount anywhere from $35.00 to $49.00 per month for your complete processing system which includes a terminal, an automatic printer, and in most cases software.
3.Is there any difference between a retail Vs. home based business.?
Always remember the line “The Greater The Risk, The Higher The Cost.” If all business transactions are done over the Internet, this would invite a great deal of charge backs.
4.Just what exactly am I selling?
The main reason is that not all sponsored banks are able to accept every type of business there is. With the onset of charge backs and credit card fraud, more banks are hesitant in giving instant approval of certain online business especially those that are in the category of high risk. If your company falls into this category, be prepared to be asked a lot of questions. Most sponsored banks have already developed a criteria for the kind of businesses they will and will not accept. If you are anything but retail, chances are you will get denied.
5.Since I am no retail store, what do I use?
Work with a company that can approve such high risk businesses. Find a company that will actually meet the criteria and requirements of Visa or Master Card.
6.Just what is the criteria for approval?
Remember the saying “The greater the risk, the higher the cost”. Less risk means greater chances for acceptance. The bank sees the retail store as a far more secure investment than your home based business.
7.What are the basic costs that I should be prepared for?
Be able to expect a start up investment between $190.00 – $300.00. These amounts can include application, setup, equipment rental lease deposits as well as additional costs for poor credit, higher risk, etc.
(Oliver Stevens loves reading medical books and is at the moment fascinated with on line business. He graduated from NYU with a degree in business management but sees himself more of a doctor instead of a businessman. He lives in New Jersey with his family.)
http://www.creditcardmerchantaccountcompany.com/
