Web Hosting Geeks' Blog » merchant account

Electronic Payment Processing: The Key to a Successful Business

Art — Tue, 14 Dec 2010 19:41:40 +0000

Electronic payment processing is a must for any up and coming small business owner. Today’s ecommerce business’s viability is directly related to its ability to stay on top of technological trends. Almost every business accepts online payments. Because of this, any new small business that wants to be successful needs to as well.

Do the Research

To accept electronic payments, a business must have a merchant account as well as a payment gateway. When looking for a company to do business with, it is important to spend some quality time doing the research. Every company has a different set of fees associated with service. Don’t be fooled into thinking the lowest fee is the best. Often times, these budget merchant accounts give out budget service. Look for reputable companies with good track records.

Encrypt the Transmission

An added cost associated with electronic payment processing is encryption. Almost all credit card companies, as well as the merchant account companies, require the transmission of sensitive financial information to be encrypted. This is an added expense that requires a business owner to purchase a security certificate, which has to be installed on the web hosting server to encrypt and protect the transmission of credit card information during the payment process. These fees can range from 50-300 dollars annually depending on the business owner’s needs.

The Dangers of Reoccurring Billing

A lot of small business owners may need to establish reoccurring, or monthly, billing for their customers. This can make the electronic payment processing system a bit more complicated, and it can narrow down the field of available merchant account vendors that can be used. The business owner must decide if they are going to store the sensitive data themselves, or if a third party will. Often times, storing financial data can be so technical and expensive, that it is much cheaper to have a third party do it. A lot of merchant account and payment gateway companies can and do store financial information for reoccurring billing for a small fee.

Summary

Regardless of the reason, electronic payment processing is a necessary step for an up and coming small business. Just be sure to pay close attention to all the details of any agreements you accept. It’s also a good idea to look for and ask for any and all documentation, governing fees and rates to include penalties and charge backs.

Establish Credibility and Trust with Private SSL

Art — Thu, 07 Jan 2010 17:05:11 +0000

E-commerce has become an integral part of today’s business economy. To no surprise, a number of web hosting companies have emerged to cater to the demand. These firms specialize in services that are specially designed for people who want to sell goods and services online. They generally offer features such as shopping carts, merchant accounts and payment gateways. However, those looking to indulge in e-commerce need to be far more selective when it comes to choosing a web hosting provider. With credit card numbers and personal data involved, the consequences of a security breach can be far more catastrophic than someone running a personal website. For this reason, the use of security features such as SSL is a must.

SSL is one of the most widely used tools for website security. Short for Secure Sockets Layer, SSL is a protocol that protects transactions between the buyer and seller with a cryptographic technology known as encryption. Anyone who sells products or services online is required to implement SSL or higher for security. This is why you see online services such as PayPal and various e-commerce sites with security seals representing that they are protected by SSL encryption.

Shared vs. Private

Most e-commerce hosting companies provide their customers with shared SSL certificates. This basically means that a company purchases their own private SSL certificate, and shares it with all customers residing on its server. While this does not mean that your site is lacking in security, it can be make potential customers very suspicious. When someone visits your site and checks for an SSL certificate, they will see that the certificate is owned by the web hosting company. This could either cause the visitor to question your credibility, or conclude that your site has been compromised by a hacker. You have to keep in mind that many consumers have no idea about web hosting, what company provides you with service, or the difference between shared and private SSL.

Although a private SSL certificate isn’t exactly cheap, it can be very advantageous for your online store and web presence. Once you purchase it from a CA (Certificate Authority), the certificate is yours and yours alone. Now when potential customers visit your site, they will see that you own the certificate, giving them reassurance and the confidence they need to feel safe when shopping on your site. There are fewer questions about whether your website is secure and no questions about who owns the certificate. And because it requires a dedicated IP address, you can ensure that you do not endure penalties as a result of sharing a server with spammers that cause trouble for the shared IP.

Summary

Almost all web hosting companies that specialize in e-commerce solutions offer support for private SSL certificates. As we mentioned above, there is nothing wrong with the shared variety, but having your own certificate can work wonders for your credibility. It could be considered a small investment that shows your audience that you are a serious business owner who can be depended on. Rewards for this investment could be customer loyalty and long-term profits.

Five Steps to Owning a Thriving E-business

Art — Tue, 29 Dec 2009 19:08:10 +0000

If you want to have your very own e-business, take note that there are several things that must be done in order to get up and running online. Not to worry, we have listed the five simple steps you can take to do just that.

Register a Domain Name

A domain name is simply a URL that acts as the name for your website. You can register one with registrars such as Dotster, GoDaddy or Yahoo. Registration is good for a year, but you typically have the option to register for up five years depending on the registrar. A domain name doesn’t cost much these days as you can easily find them for under $10 per year. When registering the name, think of something that will be easy for people to remember and one that perfectly suits your business.

Find a Web Host

If you intend to run your e-business through a website, then you will need to sign up with a web host. Web hosting companies offer the service you need to create and maintain a website. They offer the server that will serve your content and the connectivity that allows your site to be accessible by internet users. There are thousands of companies that can provide you with this type of service. What you have to do is perform the necessary reach to ensure you land a reliable service provider.

Site Design

Once you have registered a domain name and signed up with a web host, the next step is to create your website. For this step, you essentially have two choices: hire a professional web designer, or build the site yourself. Hiring a professional designer can be very expensive depending on the requirements of your website. And while creating a website can be difficult for someone with no experience, many tools exist to simply the process. There are a number of special programs that make it easy to create a website through a variety of templates and pre-built components.

Payment Method

If you plan to sell products or services from your website, then you will need to find a way to accept payments from your customers. In order to accomplish this, three key components are required: a shopping cart, merchant account and payment gateway. These components may be obtained separately or together in a bundled service. For example, PayPal is a service that can provide you with a shopping cart, merchant account and payment gateway, everything you need to accept and process payments in a secure, and efficient manner.

Promote Your Site

Once your site has been created and integrated with the necessary features, it’s time to promote it to drum up some business. There are many ways you can go about promoting your site, including online advertising, PPC campaigning, and search engine optimization. Everyone has their own preferred method, so it is up to you to find out what works best for your site. Just remember that site promotion is critical, because without traffic, your e-business can’t survive.

WebNet Hosting offers Holiday Bargains for New E-commerce Customers

Art — Wed, 02 Dec 2009 20:09:30 +0000

WebNet Hosting shows that it is in the holiday spirit of giving back by extending a number of exclusive deals to all new clients from now until December 31. These incredible bargains include receiving the first month free on any of its Miva Merchant hosting plans, free setup for all shared and dedicated hosting plans, and a free copy of Miva Merchant 5.5, a product that has a value of $995.00. The leading solution in PCI and PA-DSS compliant e-commerce shopping carts, Miva Merchant 5.5 offers a variety of new features that can help WebNet customers take their online business to the next level of efficiency.

Based in the metro Washington, DC area, WebNet Hosting is an industry leading e-commerce hosting provider that specializes in Miva Merchant solutions. Its state of the art data center facility is equipped with fully redundant features, which has enabled customers to enjoy a fast and reliable network boasting an incredible 100% uptime guarantee. Since the company’s inception in 2002, WebNet Hostng has left a positive impression on the web hosting industry, putting a special focus on e-commerce with its world-class 24/7 technical support and unmatched, personalized customer service.

WebNet Hosting has assembled some very attractive bargains for new customers to coincide with the 2009 holiday season. Up until December 31, new clients can take advantage of the following deals:

Purchase any Miva Merchant web hosting package and receive the first month free. This includes WebNet Hosting’s E-Starter, E-Customized and E-Semi-Dedicated packages.

Free setup on all shared and dedicated server hosting plans. (setup fee normally $99)

Free Miva Merchant 5.5 software with a $995 value.

Free upgrade to Miva Merchant 5.5 with the purchase of any Miva Merchant hosting plan.

Free migration to Miva Merchant from previous web hosting company – no downtime guaranteed!

Miva Merchant 5.5 is the latest version of the popular e-commerce software designed for merchants who sell products and services on the internet. WebNet Hosting has been a premiere Miva Merchant partner since 2004, offering fully managed, highly customizable Miva Hosting plans starting from the low price of $24.95 per month. The company also offers dedicated server packages through Dedicated Miva Hosting for as low as $199 a month. In addition, WebNet Hosting promises that migrating existing stores from previous hosts to its servers is a fast and seamless process that can be done without incurring any downtime. Its team walks with online merchants through the migration process every step of the way, ensuring a fast deployment for both new and existing storefronts.

About WebNet Hosting LCC

In addition to traditional web hosting services, WebNet Hosting specializes in easy to use Miva Merchant web hosting solutions designed for businesses of all sizes. Its highly skilled team of experts make it a priority to keep themselves available while ensuring that the customer always comes first. A leading provider in the e-commerce hosting sector, WebNet Hosting has become a premier choice for web hosting and hosted shopping cart solutions.

Cashing in on the E-commerce Phenomenon

Art — Thu, 29 Oct 2009 14:51:23 +0000

A few years ago, credibility and fear were major roadblocks for companies and entrepreneurs looking to establish themselves online. Times have changed for the best as more consumers feel comfortable conducting business over the internet and the e-commerce revolution is in full swing. That does not give you any room to coast. You must still take all the necessary steps to ensure that your website appeals to potential customers through professionalism and credibility.

The tips in this article will help you capitalize on this surging market and avoid the mistakes made by so may others.

Creating a Credible Presence

There are many ways to establish credibility and trust within your audience. You can start by making your contact information easily accessible as this lets customers know they can get in touch with you if need be. Testimonials can be effective, but you should be careful when using them. A testimonial could end up working to your disadvantage by prompting skepticism in the visitor, especially if these references appear too obscure with no contact info or other form of validation. The overall look of your site will determine its credibility so do not hesitate to check out some of the major e-commerce players and even the competition to find a good working model.

E-commerce Tools

Before starting your e-commerce venture, you should know that in order to accept credit cards, which is the preferred method of payment among consumers, your site will require a few specific elements. This includes a shopping cart program, payment gateway, and possiby a merchant account. All-in-one solutions do exist on the market, but these systems are often far too complex and geared more towards businesses that do not generate a lot of monthly sales. While there is nothing wrong starting out with a popular service such as Payal or AlertPay, you should not view them as long-term options. If your site becomes a success fast, you will definitely need to upgrade your e-commerce system in a jiffy.

Stay on the Grind

Even if you have never seen the movie, you are probably familiar with Kevin Costner’s famous quote from the motion picture Field of Dreams: “If you build it, they will come.” While very inspiring, this simply is not the case when it comes to obtaining success with an e-commerce site. In fact, if you build it, your site will just sit there lonely unless you actively market it to the right audience. Therefore, perhaps the correct saying for the online business world would be: “If you promote it, they will come.” Evaluate all the available options to find out what methods are most effective for drawing potential customers to your site.

There is no guarantee that you will become a millionaire by selling items online. You could actually end up losing money in the beginning and find yourself forced to ride a bumpy learning curve. On the other hand, you will never know how much money you could make if you do not invest the effort in turning your e-commerce site into a success.

Chargeback Defense Strategies

Art — Fri, 14 Aug 2009 18:45:47 +0000

As annoying as they may be, chargebacks are something that many online business owners just have to deal with. They have simply become another common element of e-commerce. It may not be fair, but in many cases, customers can back their way out of a purchase and leave you stuck to bear the financial burden. Adding to the problem is the aspect of less scrupulous characters looking to commit fraud with someone else’s credit card. It can be a frustrating ordeal, but this article will provide some strategic tips to help you combat the dreaded chargeback.

Common Chargeback Claims

Most chargebacks originate from fraudulent transactions and customers who make the claim of never receiving the items they purchased or even making a purchase at all. Because many of the credit card policies today are designed in favor of the consumer, as the merchant, you are generally required to pay the costs of the merchandise along with a penalty fee for the chargeback. This may occur whether the claim is legitimate or not. Merchant account providers having varying fees on chargebacks, typically factoring in the percentage of total monthly sales as well as your history of incurring such claims. So what is an online merchant to do in this seemingly no-win situation? Fortunately, there are several proven methods for minimizing the frequency of these claims and dramatically reducing their overall impact on your bottom line.

Obtain Your Merchant Account from a Reputable Provider

Chargeback defense starts by selecting a reputable merchant account provider for your business needs. Sadly, a large number of companies have blemished the market by delivering less than stellar support and pouring salt into the wound with hefty penalties and astronomical fees. Therefore, when choosing your merchant account provider, it is imperative that you learn more about their policies in regard to chargebacks. Keep in mind that not all providers are the same but the more reputable ones will be willingly to help you resolve matters and only charge moderate fees.

Select a Dependable Payment Processing Solution

When choosing your payment processing solution, put strong emphasis on a service that provides efficient, state of the art security mechanisms. Though a solution equipped with SSL encryption would be a good start, you also need to have something in place that ensures the legitimacy of credit card purchases to protect your business from fraudulent transactions. AVS (address verification) and CCV (credit card verification) are two viable anti-fraud features that should be applied to authorize all purchases on your site.

Stay on Alert

The best way to fight chargebacks is to remain proactive and look for signs of suspicious activity. Keep an eye out for inconsistency in the usual ordering logic and customer behavior. If you start to suspect that something is not right, further investigate the matter to determine if fraudulent activity is occurring. Whether it is something fishy with a home address, email address, IP address or phone number, whenever in doubt, take the necessary actions to find out what is going on. Like most offensives, one of the most effective ways to deal with chargebacks is prevention.

Securing Your Business Website in Three Easy Steps

Art — Fri, 17 Jul 2009 17:29:27 +0000

Whether it’s the local shopping market, airport or online, thieves are lurking and just waiting for you to make a critical mistake. In fact, much of the internet community is in a state of panic as data theft is at an all-time high. Credit card numbers, bank account information and identities are being stolen from companies who don’t know how to properly secure their website and transactions. Assuming you don’t want to be the next victim, we have provided three simple tips to keep you one step ahead of the attackers.

1.) Make Use of Encryption

In order to protect the monetary transactions occurring on your site, you at least need to have an SSL certificate with no less than 128-bit encryption. This security tool can be installed and managed by a third-party vendor such as VeriSign or you can choose to handle the configuration yourself. What SSL does is scramble the data being sent over the internet in a code that is unreadable to hackers. Thus, when sales on your website are made, the financial details of your customers is encrypted, securely transmitted and then decrypted by your payment processor. By placing an SSL certificate seal on your website, you can calm the nerves of consumers and encourage them to shop your store in confidence.

2.) Check Your Buyers

Although you don’t want to look as if you are suspicious of everyone, the prevalence of credit card payments increases the probability of a customer using someone’s financial information without their knowledge or approval. To minimize situations like this, you should check the identity of your customers. This can be done by not only obtaining their name and credit card number, but also their home address, telephone numbers and the security code located on the back of the actual credit card. By doing so, you can better assure that the financial details submitted actually belong to the individual making the purchase. If the card comes back as stolen, you could end up playing a role in helping authorities track down the criminal.

3.) Research Your Merchant

To ensure that financial information will not be stolen following the transaction, it is imperative that you run a thorough check of the merchant account provider processing your credit card payments. You can start by reading reviews to learn if they have a history of fraud or security issues. Don’t hesitate to speak to the company directly about the security measures they employ and most importantly, to make sure you are completely confident in their services. If you have any doubts about the provider, follow your instinct and move on to the next option.

Security is a hot topic in seemingly every industry these days. If you are using the internet as a medium for your business, these certainly are not times when you can just sit back and simply hope for the best. Hackers and their attacking mechanisms grow more advanced everyday, so it is critical that you take the appropriate actions to keep both you and your customers out of harm’s way.

What You Should Know About Merchant Accounts

Art — Wed, 06 May 2009 15:34:28 +0000

If you want to delve into the world of e-commerce and sell your own products or services online, you will need way to collect credit cards, which is the preferred method of payment for most customers. There are numerous ways to accomplish this but the most practical and effective is a merchant account.

Why a Merchant Account?

A merchant account is the easiest way to accept both credit and debit card payments on your website. Sure, you could sign up for a free PayPal account, but there are disadvantages that could hinder your success. It may not be fair but some customers feel like PayPal isn’t credible enough and they will look down on your inability to process payments like other larger corporations. There are other options you can take but most charge up to 10% of the transaction along with other fees that cut into your profits. These factors make the merchant account the best option.

Considering the level of importance, you might think that obtaining a merchant account is a smooth and painless process. Simply find a provider, sign up for an account and get an approval in a matter of days, right? Unfortunately, the process isn’t quite that seamless for most applicants. In fact, getting a merchant account can prove to be lengthy, complex process, especially for the new or small business owner enduring the process for the first time. In order to ensure as few complications as possible, one should no one to expect when applying for an account.

How Long Does it Take?

Obtaining a merchant account can actually take anywhere from a few days to a couple of months, with the latter mainly applying to a situation where mistakes were made. It is these mistakes that lead to delays that could end up costing you in sales, forcing you to wait it out when customers are reading to buy now. This is why you need to initiate the process as soon as possible. Don’t just assume that because someone you know got approved in a matter of days that the same will hold true for you. When compared to the fast paced internet world, some banks are incredibly slow at processing merchant account applications. The sooner you get on it, the sooner you can get rolling with your plans.

Tricky Numbers and Fine Print

Merchant account providers have been known to introduce complex fees that don’t necessarily match up with the offers from other banks. More unscrupulous ones will even throw in a bit of trickery that hike up the fees when you least expect. Others might come at you with ridiculous fees up-front, suggest that you wait an ungodly amount of time to receive your money and the list goes on. To avoid a rude awakening, you need to make yourself familiar with the numbers and go over all the fine print before turning in your application. Rates aren’t all difficult to understand so the most important thing is finding out how long you have to wait for your money. As an online business owner, consistent cash flow is the key to longevity.

In Closing

Going through the merchant account process can be a real nightmare the first time. However, it doesn’t have to be. As with most services, the best advice is to research providers, compare services and most importantly, ask questions and gather all the information you can. If not, you may never get a merchant account or at best, end up with a terrible service.

Do You Need a Merchant Account?

Art — Wed, 28 Jan 2009 19:31:57 +0000

When it comes to e-commerce, businesses large and small require a method that allows them to collect and process credit card payments. If this sounds like your business, then you need a payment gateway which is generally provided by a merchant account. Finding a merchant account provider can be somewhat of a challenge yet anything can be overcome when doing a little research.

How Much Will it Cost?

For the most part, merchant account providers will charge you a fixed rate per month along with a certain percentage for each sale. Keep in mind that there may be other fees as well. When dealing with a reputable provider, these fees will be for maintaining your shopping cart, verifying customers, processing monthly statement, etc. Having a merchant account is vital in the realm of e-commerce as most consumers today prefer to shop online with their credit cards. If you can’t accept this form of payment, you may as well not even open up a storefront.

How Can I Get One?

When searching for a merchant account, you will find that most providers are pretty reasonably priced. The catch is that you must qualify. Some of the qualifications for a merchant account include background checks, credit checks and proof that you are actually running a legitimate business. Additionally, some will require that you commit to their service for a certain amount of time and charge cancellation fees for breaching the contract. Others do not have stipulations and will allow you to part ways at any given time without taxing on fees. This is why it is very important to look into a particular merchant account provider before deciding on a service. As with most web-related processes, it is best to find a company that is in good standings and has been in the industry for a while. This gives you better assurance that the provider will be around and won’t cause you to miss out on crucial sales.

What Should I Look For?

When comparing merchant account providers, don’t hesitate to grill them with hard questions. One thing you definitely want to known is the estimated time frame for depositing funds into your account following a sale. Retail sales generally do not take long to process, therefore, there is no need to wait an ungodly amount of time for your money. You should look over the merchant account contract with a fine-tooth comb because the sooner you get paid, the better. Always keep your eyes peeled for all the standard charges such as monthly fees, setup fees and cancellation fees if they apply. You also want to look for any hidden fees that might deduct from your bottom line. After all the fees have been tallied, you should then calculate the overall cost of service to find out if this solution actually works for your business.

A merchant account is a vital tool in the world of e-commerce and when signing up with the right service, you will find that it can save you noteworthy fees in comparison to a service like PayPal. The key is finding a reliable provider that is going to be around and won’t try to nickel and dime you to death.

The Essentials of E-commerce

Art — Mon, 12 Jan 2009 21:12:28 +0000

You may have been proficient at getting customers to buy products from your store in town, but online business is an entirely different game. Similar to the traditional business, you must literally build your store yet take a different approach towards drawing in customers and accepting payments. The essentials of e-commerce should go a long way in helping you succeed with your online business endeavors.

Building the Site

Obviously, creating your website is the first essential step. There are several tools available to help with this process from simple web building programs to dynamic programming languages. While a piece of cake for the experienced webmaster, this could present a huge challenge for someone who lacks web design skills. In this case, you should strongly consider hiring a qualified designer to build your site. A costly investment? Perhaps, but look at it from this perspective – it will cost far less than paying the architecture and construction company to build the facility for a traditional storefront.

Collecting Payments

Whether you’re dealing in goods or services, you need a way for customers to select items and take them to checkout. To accomplish this your e-commerce site will need a shopping cart. A quality program will allow you to add different products and categories, add taxes and shipping options, accept payment in various methods and more. When it comes to shopping carts you generally have to options: you can purchase a commercial product or go with an open-source solution.

Open-source shopping carts like osCommerce are widely available and may be offered at no additional cost with your web hosting package. Such a program will provide all the features you need to set up an online storefront. The disadvantage of open-source shopping cart is that some are not easy to customize and don’t cater to inexperienced users. Additionally, stores created with open-source software tend to look very similar to one another.

Commercial solutions are generally easier to customize and offer more features. This type of shopping cart will provide the uniqueness that allows you to standout from all the other store owners on the web. The downside here is that a program like Miva Merchant carries a high-end price tag that ranges from hundreds to thousands of dollars. You also need to make sure that your web host supports the software so it can be easily incorporated into your e-commerce platform.

Selecting a Payment Gateway

In addition to the shopping cart, you will require a payment gateway that enables credit card payments to be transferred to your banking account. To accomplish this task you can either sign up for a merchant account or use a third-party payment processor. Merchant accounts have setup fees, transaction fees and strict qualifications. However, the transaction fees are lower than using a service such as PayPal. In either instance, the overall cost are typically less when your monthly sales are over $1,000. Keep in mind that you will also need to secure the payment environment and protect your online transactions. The best way to ensure this security is with an encryption protocol known as SSL. You may have to purchase a certificate with a merchant account while PayPal takes care of securing your transactions.

Bringing in Customers

After creating the site and setting up the store, it’s time to generate some traffic and sell your items. There are many ways to go about this including advertising, getting your visitors to sign up for a newsletter, pay-per-click campaigns and specially crafted landing pages. Succeeding with e-commere is no easy task, but when laying a solid foundation, you can give yourself a much better chance of making continuous sales.

Web Hosting Geeks' Blog » merchant account

Electronic Payment Processing: The Key to a Successful Business

Related posts:

Establish Credibility and Trust with Private SSL

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Five Steps to Owning a Thriving E-business

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WebNet Hosting offers Holiday Bargains for New E-commerce Customers

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Cashing in on the E-commerce Phenomenon

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Chargeback Defense Strategies

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Securing Your Business Website in Three Easy Steps

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What You Should Know About Merchant Accounts

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Do You Need a Merchant Account?

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The Essentials of E-commerce

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