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The
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Welcome
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net's #1 internet marketing ebooks. "eBook" is short for
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Getting started guides
How to Implement a Merchant Account
Before you apply for an e-commerce
merchant account, you need to establish a strategy for your new
venture. Are you selling memberships? A wide range of products? A
single product? An ongoing service? Whatever your situation, you'll
need to approach the task from a certain direction. Decide what your
goals are, and stick with them until you're established.
Choose suitable software for your e-commerce site
You're probably going to need
software to run your e-commerce site, especially if you have a large
catalogue of items to sell. The software will act as an electronic
catalogue, allowing you to enter your wares, categorize them and
price them accordingly. E-commerce software usually allows you to
enter your own design templates so that your site looks the way you
want it to.
Even if you're only going to be
operating a simple membership service, you will need a program to
handle new subscribers and supplying passwords, although there are
some specialist providers who can supply these services directly on
their own servers.
How an e-commerce site works
To establish what needs to be done
before applying for your merchant account, let's run through a
sample e-commerce site. Your customer arrives at your site, and is
invited to browse a database of items. Product descriptions,
pictures , and prices are all displayed to the customer by the
database driven e-commerce software. They pick and choose from a
variety of products and these are placed into their 'shopping
basket'.
Now the user clicks on the Checkout
button. Having decided to purchase their chosen items, the user
fills out a delivery and payment form, handing over their credit
card details, address, and other relevant information. Where do
things go from here?
This is the point where different
systems / methods can be used. If you are using an online
authorization company who provides a secure server for your orders
to be sent to, then once the user submits their payment details, it
will go to the processors secure Web site, they will pass through
the instruction to debit the card, and e-mail you the rest of the
details (delivery address, product choices, etc.).
On the other hand, if you run your
own secure server, the details will be sent to your own server.
Then, depending on the setup, forwarded onto your credit card
processor via programs installed on your server, or stored on the
server for you to send, or process, manually.
Most Merchant Account Providers can
provide you with equipment and software to allow you to process all
credit card orders yourself, saving you from paying an online credit
card processor to do it. However, this means you will have to
provide the secure server for accepting the credit card information,
and then you'll have to take each order and run it through your
software or credit card terminal. Using an online credit card
processor simplifies matters by sending the details straight to
them, and they process the orders automatically.
After Processing
After the card has been processed by
yourself, or your online authorization company, the customer's card
will be debited, and your Merchant Account credited within usually a
couple of days. The Merchant Account Provider will also take a
commission of approximately 5% per transaction.
Once you have the details of the
order, the products selected and the delivery address, you must take
action straight away and e-mail your customer a digital invoice, or
at least a confirmation of the order. Many e-commerce software
packages will deal with this for you, so there shouldn't be a need
to worry.
You will want to arrange dispatch of
the product promptly, to reduce the risk of 'chargebacks' when
people become dissatisfied with waiting for their orders.
Chargebacks cost you money, and won't put you in good favor with
your Merchant Account Provider.
Linking your Credit Card Processor with your Merchant Account
If you opt to use an online credit
card processor in conjunction with your e-commerce software, you
will need to supply the credit card processor with details to link
transactions to your merchant account. When you get a merchant
account, you will be provided with a e-commerce merchant account
number, which you can supply to the credit card processor. When a
transaction comes through on your account, it merely delivers the
money (minus commission) to the specified merchant account.
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