What Information Marketers Should Know About Merchant Accounts
- Date: 2007-09-06 - Word Count: 451
Share This!
If you're involved in marketing information products on-line then there's no disputing the need for you to accept credit cards in order to increase your overall sales. Typically in a retail environment your sales will increase anywhere from 15 to 40% when you have the ability to accept credit cards. This article is part 1 in a series of what information marketers should know about merchant accounts.
Visa and MasterCard account for over 90% of all credit card transactions, so the acceptance of those two card types is mandatory. Amex and Discover are the other two significant players, but account for only 5-7% of the market. If you're selling higher priced information products acceptance of Amex is highly recommended.
There are four primary components involved in the processing of credit cards. The first is the actual card issuing entity, be it Visa, MasterCard, or other. The second is the company that sets you up to be able to accept credit cards, which is called the Merchant Account Provider. The third component needed for online processing of cards is a payment gateway, such as Authorize.net or Plug 'n Pay. And the fourth is your online shopping cart system. All are required to do business on the Internet.
When a new information marketer applies for a merchant account the primary thing the merchant account provider is looking at is the personal credit of the requestor. The underwriters for the company will be looking to see if you pay your bills on time first and foremost. Then they'll be looking to see if you own real estate. In the processing industry, owning real estate and having decent credit says to them this is a stable merchant.
Another big component of the underwriting process is your refund warranty policy. What type of refund policy are you giving? From the viewpoint of the merchant account provider the longer the guarantee period the less desirable it is. Why? Because it stretches out the risk of a refund even longer. The greater the length of potential liability the increased chances there are for a chargeback of the sale.
There can be many different reasons for a chargeback, but the bottom line is the customer is saying they don't agree with something regarding that transaction. It could range from the product not being received to the wrong product received, to the product not being as described to any number of other reasons.
Chargebacks can typically be made anytime from six months up to a year. In fact, on international sales there are some regions that may allow customers up to a year and a half to request a chargeback on a purchase. Next Month - Part 2 of What Information Marketers Should Know About Merchant Accounts.
Visa and MasterCard account for over 90% of all credit card transactions, so the acceptance of those two card types is mandatory. Amex and Discover are the other two significant players, but account for only 5-7% of the market. If you're selling higher priced information products acceptance of Amex is highly recommended.
There are four primary components involved in the processing of credit cards. The first is the actual card issuing entity, be it Visa, MasterCard, or other. The second is the company that sets you up to be able to accept credit cards, which is called the Merchant Account Provider. The third component needed for online processing of cards is a payment gateway, such as Authorize.net or Plug 'n Pay. And the fourth is your online shopping cart system. All are required to do business on the Internet.
When a new information marketer applies for a merchant account the primary thing the merchant account provider is looking at is the personal credit of the requestor. The underwriters for the company will be looking to see if you pay your bills on time first and foremost. Then they'll be looking to see if you own real estate. In the processing industry, owning real estate and having decent credit says to them this is a stable merchant.
Another big component of the underwriting process is your refund warranty policy. What type of refund policy are you giving? From the viewpoint of the merchant account provider the longer the guarantee period the less desirable it is. Why? Because it stretches out the risk of a refund even longer. The greater the length of potential liability the increased chances there are for a chargeback of the sale.
There can be many different reasons for a chargeback, but the bottom line is the customer is saying they don't agree with something regarding that transaction. It could range from the product not being received to the wrong product received, to the product not being as described to any number of other reasons.
Chargebacks can typically be made anytime from six months up to a year. In fact, on international sales there are some regions that may allow customers up to a year and a half to request a chargeback on a purchase. Next Month - Part 2 of What Information Marketers Should Know About Merchant Accounts.
Related Tags: credit cards, chargebacks, information marketing, merchant accounts
Tired of trying to do it all yourself? Bret RIdgway is co-founder of Speaker Fulfillment Services, a company dedicated to working with authors, speakers and information marketers. We provide product duplication and fulfillment services so that you can focus your efforts on the more important sales/marketing and product creation activities. For more information visit http://www.SpeakerFulfillmentServices.com or call 812-877-7100. Your Article Search Directory : Find in Articles
Recent articles in this category:
- Many Different Content Management Systems Are Available ( Cms)
At this time the rule is that going to the content management system open source and a commercial. H - Establish Your Credibility Online
Shoppers are now careful these days. They are more conscious that there are fraud sellers lurking on - Make Money Online Fast - Is It Possible?!
When you see the phrase "make money online fast" you may wonder to yourself, is this for real?! And - What Is Auto Traffic Avalanche?
Many people is talking about this great tool, and that became an excellent software, that can genera - Beginners Guide To Blogging
A blog is basically an online journal wherein you can digitally pen down your thoughts, ideas, opini - Say No To Just Having Enough To Get By...look For Wealth After A Fixed Paycheck
For the last year, I am proud to say that my regular weekly salary was earned through direct deposit - How Outsourcing Works - Hiring An Outsourced Virtual Assistant
Outsourcing is a proven means of helping businesses cut resource costs while getting the same level - How, Where Should You Start And Get Paid In Affiliate Marketing?
Before internet, freelance jobs like insurance, network marketing and real estate used to be the onl - Saratoga Builders Help You Make Informed Decisions
Numerous American central heating designs implement a furnace which blows forced hot air by means of - Basic Features Of A Good Web Hosting Plan
There are a few features that you should look for when you are picking a good web hosting plan, ther
Most viewed articles in this category:
- Tools for Adsense
If you're just boarding on the AdSense train, and looking to find a quick way to make the profits yo - Information Products - Your Action Plan
If you've been thinking of writing your own information product, here are a few tips to help you get - Are You Missing Out On This Method Of Generating Instant Cash?
If you have not yet heard of Bum Marketing, you're missing out. It's a great online marketing metho - How to Find a Home Based Business Internet Opportunity Thats Right for you
Copyright © Jagraj Gill http://www.payitforward4profits.com/jaggiegill Finding the right hom - Can It Be True? Can You Really Use The Internet to Create Money?
Is it hype? Or is it real? Is dramatized and exaggerated? Or can I really use the internet to cre - How to Create a Virtual Grand Opening
Copyright © 2007 Donna Gunter Grand openings and ribbon cuttings don't have to be limited to bu - What Is The Hottest Product To Sell Online
After going through a survey from all the internet Guru Alex Mandossian, Armand Morin, Derek Gehl an - Web Based Employee Time Clock
The power of the internet is in its connectivity. Many people think that the internet is great becau - Driving Hordes of Traffic to your Site
Getting enough traffic to your site is the overwhelming problem for anyone new to Internet or Affili - So You Want to Start an Online Business Part Two - Analyzing Keywords
Analyzing Keywords Continuing on from Part One of 'So You Want to Start an Online Business'; we wil