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What You Should Know About Merchant Accounts

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.

Open-source Shopping Cart Options

If you are looking to get up and running with your own online store, then a shopping cart is what you need to make it happen.  A shopping cart is a type of software application that allows you to incorporate a storefront into your e-commerce website.  This software can help you customize your store with tons of products attached with thumbnails, multiple shipping methods and payment options.  With a good program, you can start selling products immediately by accepting payments via credit card or popular alternatives such as PayPal.  Some of the most popular shopping carts are open-source programs and this article will introduce you to several popular choices.

osCommerce

As open-source software, the osCommerce shopping cart is free to use.  The program is integrated with a number of features that can easily be enabled and configured.  The osCommerce shopping cart gives you the ability to add multiple items to your store, organize them in categories, give out discounts, run special promotions and much more.  It also offers built-in shipping and tax capabilities to ensure accuracy.  With this shopping cart, you can set prices in different currencies and accept payment through methods such as credit cards, Payal and e-checks.  osCommerce is extremely popular and currently powers a large number of stores on the web.

CREloaded

The CREloaded shopping cart is a fork built on the source code of osCommerce.  This feature-rich platform caters to beginners and professionals alike, offering the ability to process credit card payments via PayPal or Authorize.net.  You can list a large number of products, set discounts and shipping costs.  CREloaded’s greatest attribute is the wide variety of themes that allow you to customize the look of your storefront.  This software is tailored to help you create a store that fully brands your identity and enhances the customer’s shopping experience.

Zen Cart

Zen Cart is another open-source shopping cart freely distributed under the GNU General Public License.  This software was designed with simplicity in mind but offers some very powerful features.  Zen Cart lets you set up an unlimited amount of products and organize them in numerous categories.  The program supports multiple payment options and different currencies as well as top-notch security mechanisms such as SSL certificates.  The built-in control panel allows you to mange products and all related items from a centralized area.

Magento

Magento is one of the latest open-source shopping cart applications.  This e-commerce platform offers a lot exclusive features geared towards managing customer relations and marketing your store.  The user-friendly interface allows you to control virtually every aspect of the store from listing and organizing products to setting up browser options and special promotions.   This shopping cart software sets itself a part from the competition with built-in analytics, reporting and promotion tools.  Magento is completely scalable and backed by an extensive support team.  Though cost effective in comparison to premium shopping carts, Magento isn’t free like the other software mentioned in this article.

Conclusion

These are just a few of several highly functional open-source shopping carts.  Like most open-source technologies, these programs can be easily incorporated into your existing e-commerce site.

Domain Keys in the Fight Against Phishing

Anybody with an email address is likely to have countless amounts of phishing messages in their inbox, and they may not even realize it.  This type of threat usually doesn’t come at you with the attention-grabbing headlines of advertising spam or the unbelievable plots attached to the fraudulent messages carrying Nigerian scams.  In many cases, a phishing message doesn’t look much like spam at all, even though it is a well crafted plan to steal your money.  Believe it or not, a large number of people have fallen victim to this clever scam so it is important that you know how to recognize and avoid it.

What is Phishing?

Phishing is a sophisticated scam based on social networking.  Unlike other attacks where intruders rely on vulnerabilities in a server or website application, these scam artists would prefer that the system remain intact.   Instead, they look for vulnerabilities in the actual person themselves, hoping they can find someone who is trusting enough to believe the alarming message in their inbox and respond or follow the provided link.

There are essentially two types of phishing.  One approach involves a scam artist sending you an email and purporting as a representative of an institution you do business with.  This could be any type of company from a bank to someone pretending to be affiliated with PayPal or eBay.  They will inform you that there is problem with your existing account and that your login credentials are needed to fix it.

The second approach is similar yet distinct from the method above.  A phony representative attempts to alarm you by stating that there is a problem with your account.  However, they don’t ask for you to respond with your login credentials, but simply follow the provided link so they can either verify your personal information or correct the problem.  After clicking the link, you are not redirected to an official online banking or PayPal website, yet a rogue site that looks strikingly similar, so much that distinguishing it from the real deal might be difficult.  Upon entering the requested information, you are essentially handing over the keys to your valuable assets and possibly your identity.

So, what role will DomainKeys play in the fight against phishing?  As a product owned by Yahoo and integrated into its web-based mail system, the technology will help to protect you against email scams in the following ways:

Website owners register their Domain Name Servers with the DomainKeys system from which emails are required to be transmitted from a registered server.

DomainKeys incorporates an additional header to message, identifying the sender’s domain name server to verify where the message originated.

The message is then verified by the web-based mail system which analyzes the header to ensure that it originates from where it claims.  If the header isn’t validated, the message is automatically sent to a spam folder.

Yahoo has been working to push DomainKeys as a standard for web-based anti-phishing for sometime now.  With Gmail recently picking up the technology, it’s very likely that it will become standardized in the very near future.  Unfortunately, internet criminals are quite persistent and seem to find a way around the most efficient security mechanisms.  Whether you use a free web-based mail system by Yahoo, Gmail or through your own website, the best advice is to never respond to a suspicious email or click on any links.  If a message appears legitimate, contact the company personally and speak with an official representative.  This will determine if someone was trying to bait you with a phishing scam.