Web Business 101
An introduction to opening your own
business on the web.
How Good Is Your Credit?
Did I mention credit? As in your personal credit rating? Hate to
say it, but its often a big determining factor in acceptance for merchant
services. If you have impaired credit you will have higher monthly fees, or
possibly not be able to get a merchant's account at all. Often your best rates
can be found within your own bank, but they also tend to require the highest
credit ratings. Fear not though, as there is one more option for those of
tarnished financial standing.
There are several companies out there that act as "Agents" for
credit card acceptance. The way this works is that you agree to "sell" your
products to them for resale. In effect, you pay 8% to have them sell your items
and process the credit card transactions. Thats it. No other fees, just 8% off
the top. Your personal credit does not enter into the picture, as you are not
the one making the transactions. One such company is
CCNow, but there
are other sources out there. Down sides include limitations on items sold,
minimum costs for individual items, and the 8% you lose off your total profit.
Worth checking into for a new business though, as it allows you to build
capital, or just test the waters so to speak.
Currently I am using First Bank of Beverly Hills, with
Authorizenet handling my real time card transactions. All of this is routed
through my storefront on Freemerchant.com from my website on Hypermart.net.
Clear as mud, eh? Sad thing is that this is the simplest method I have found as
yet.
All right, a summary. Shop around, a lot! There are hundreds of
people out there who want to handle your credit card transactions. Contact a lot
of them, wheel and deal with them. Quote their competitor's rates, haggle, and
don't be afraid to walk away from someone if they are completely out in left
field. Take your time and get the best deal you can.
Some Resources
Any major search engine: look for "Merchant Services" or "Credit
Card"
Thats all folks! I will continue this as I make my way in the
business world!
Feel free to contact me at:
2Cool@2cooltek.com
Or the 2Cool snail mail address:
2CoolTek
P.O. Box 254407
Patrick AFB, FL 32925-4407
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