Help me please...

[FDR]

Hi folks. I'm an ecommerce newcomer and am just starting. I'm sure you know how that feels.

I have decided that I would like to use Authorize.net for my gateway. It also works well with the shopping cart I have chose. I hope I did alright so far. Now comes the questions,

1) Who do I go to? www.merchantexpress.com or www.charge.com? Or is there better? I don't think I can acquire a Merchant Account and what I need directly through Athoriznet according to what I see.

www.merchantexpress.com is cheaper per transaction according to their site, but http://www.charge.com looks alright also but a bit higher. I'm not sure what I should be expecting. I've talked to both on the phone. Virtual Terminal is $195.00 at charge.com but doesn't show a price at merchantexpress.com. In fact, they mention that it is part of Authoriznet and shouldn't be sold seperately. I'm a we bit confused to say the least and need your advise. I would sure like to get going on the right foot. I, as most, cannot afford a costly mistake. I started thinking maybe a third party like Revecom would be alright, but found here at Sitepoint articles that it is a real good idea to get a merchant account if possible.

I would prefer to start out with what I need.

Any help at getting started is much appreciated. I'm at the point I'm ready to integrate my site and cart with authorizenet. I would like to apply for the Merchant Account through the right party though.

I've also read that with Authorize.net I woudln't need my own SSL. Is this correct? Does Authorize.net provide me with a SSL?

[hurtdidit]

First off, welcome to Sitepoint!!

That's correct, with Authorize.net you wouldn't need SSL on your site (so long as no sensitive info is being collected there, of course). Authorize.net has an awesome secure order form where the customer can enter his/her payment information. I love Authorize.net especially for its reporting tools and address verification (which has saved us from dozens of bogus purchases).

There ARE cheaper providers out there that can provide the same service of a merchant account with an Authorize.net payment gateway, you just got to look a little sometimes. If you have any questions, just drop me a line or check out the link in my signature.

Whoever you do decide to go with, choosing Authorize.net as your gateway is a wise choice. Verisign and others just don't come close in offering the kinds of features and functionality that Authorize.net does, IMHO.

Best of luck in the decision-making process!

[izaak]

Just a quick question...

What does FDR stand for?

In merchant account terms it means "First Data Corp." which is in business relations with Charge.com. Not saying that you have anything to do with either one I just thought that it was a coincidence and wanted to tell you.

Regards,

Izaak

[FDR]

Franklin D Roosevelt

Couldn't think of anything.

"First Data Corp." which is in business relations with Charge.com.

Dunno nuttin about it. I asked an honest question.

I hope your post didn't scare people off from helping me.

[beley]

If you're thinking of using Authorize.NET to do credit card processing through a virtual payment gateway using a merchant account you have to go through one of their resellers. I just got a quote for a client today for their payment processing services.

The quote was $99 setup, $29 a month, 2.5% + $0.31 per transaction fee for the payment processing AND the merchant account! That was through Wells Fargo Financial.

That's cheaper than my Verisign payment processing ALONE, without my merchant account!

It seems they do it all in one step, AND integrate well with most popular shopping carts and e-commerce systems. I'd reccommend talking to one of their resellers.

[hurtdidit]

Brandon, please check your PMs; I can get something even better.

Wells Fargo has really come down with their rates since I was with them. That was two years ago though, and the whole CC processing industry has gotten a lot more competitive, so I suppose that is to be expected. Does Wells Fargo include echeck processing yet?

[beley]

I just looked at what they sent me and it is 2.29%... my mistake

[izaak]

FDR please accept my apologies if I have offened you. I just didn't see any information in your profile so I thought maybe you were running an ad survey or something to that affect. I was looking up your profile to see what the letters FDR means, sometimes a coincidence get's the best of people.

Regards,

Izaak

[hurtdidit]

Sounds like a pretty good deal, Brandon...I don't think you'll find anything much cheaper than that. I'm really surprised at how competitive they've become recently; they used to be so expensive, even as recently as four or five months ago.

Are they including e-check processing as well?

[FDR]

Hi Guys.

Oh no problem to the above. I assure you that you didn't hurt my feelings. .

Well, I was sent a package and filled it all out from a merchant account vendor. If I'm not denied (which is something I'm worried about) then I should be getting a virtual terminal that will hook up with authorize.net. I'm working hard on the site and am ready to integrate the CC processor through the store software. One gentleman from another company emailed me and told me that he couldn't access my site. I asked him why he would want to. I told him it was .htacessed until I could get the integration done. He went long and hard at it about the .com bust and how it's hard to get a merchant account because of it. He sent me to an online merchant application and guess what, the fee's were all different than his site advertised. He went on to tell me that it cost $95.00 for the application fee for that package and that I would have to be approved to gain access to that package. I threw his printed out agreement in the trash.

I went ahead and created a Coming Soon page for my site, but I am a we bit nervous now about this. I mean, it appears from the conversation I had with this gentleman that the bank underwriters are wanting to see that you have a full fledged store up and running before it is even possible. The above mentioned party told me I had to have a phone number for support accessable. I mentioned to him that I have a 24/7 professional support desk ready to go. Didn't seem to make a difference to him.

I wrote him back and told him that I was not the cause of the .Com bust and I didn't see why this should be a factor. Come on guys, this is just a small start up business and a 35 dollar a month bill for being able to accept credit cards on the web. If you don't sell anything isn't going to cause a dot com bust, Just a monthly bill of around 25-35.

I'm not having a very pleasant experience starting out. You would think that the company would want my business whether I sold an item or not. I'll see if I get accepted by the other company. Surely not all companies out there are going to treat a potential client like crap.

[hurtdidit]

Actually, FDR, I hate to burst your bubble, but you will likely find that anywhere you go for a merchant account you will experience the same situation. That's the same thing I had to go through to get mine; they want to see a working ecommerce site, complete with the return policy, contact information (including phone number), etc. The underwriters will probably call your phone number to make sure it's legitimate and that you answer the phone as your DBA name.

And why not? They are extending a line of credit to you (i.e. the merchant account), so certain safeguards will have to be in place. They will probably expect you to have a business checking account already set up as well, so don't be surprised if they ask you about that.

If you're not prepared for a serious, true merchant account, you may want to consider setting up your storefront with PayPal as your means of accepting credit cards, until you can get the entire site set up at least.

Probably not what you wanted to hear, but that's the facts bud!

[FDR]

Actually I've been in business for over 10 years, Just not online nor did I accept credit cards.
My business banking is already hooked up with my business and my site DBA.

"they want to see a working ecommerce site, complete with the return policy, contact information (including phone number), etc. The underwriters will probably call your phone number to make sure it's legitimate and that you answer the phone as your DBA name."

I have all of the above with the exception of a completed eccomerce site. I have the return/refund and contact pages as well. No phone number listed.


"If you're not prepared for a serious, true merchant account, you may want to consider setting up your storefront with PayPal as your means of accepting credit cards, until you can get the entire site set up at least."


I've had a business paypal account setup for over a year. It won't do the trick for what I need although I have enjoyed using the service.

[hurtdidit]

Why not allow them to check out your site then? Just include a "Coming Soon" note on the front page (or on top of every page for that matter) to prevent a casual shopper from trying to order, yet it would enable the underwriters to review your site.

One way or another, they're going to have to see the site you wish to implement the merchant account on, I don't think there's any way around it, sorry!

[FDR]

This seems logical. They are welcome to review it. I just need to give them a page so they can. I hope they at least contact me with the needs and requirements before being denied.

I have no problem with rules. I have them for my business. I just don't like being treated like a nobody from a merchant company simply because I've never accepted credit cards before. That's all. I won't do business with that type. If they care to talk nicely to us and give us the requirements needed for the process to begin. No problem. But as I mentioned above (not giving any names), that wasn't the case.

[hurtdidit]

I guess merchant account providers are the same as any other industry; there are good companies, and there are...well, not so good ones!

Best of luck to you!

[FDR]

I really appreciate your support. Engaging in e-commerce can be taxing on your nerves. But we shall see what comes out of it. I appreicate your best wishes also, and same to you. I'll post here how my progress goes. So far, everything is turned in and should be there. Hoping to hear something this week.

Thank you,

[beley]

To be perfectly honest, I've never heard of anyone "making it" with an e-commerce site that didn't invest a little to begin with.

When we started we invested about $100,000 total in the first year. About half was spent on inventory and the other half on the facility (6500 sq. ft. warehouse), office equipment, advertising, website and merchant accounts, and other usual expenses.

We didn't even go as far as we wanted to, we were just limited by the amount of funding we received (we only received 1/2 of the money in funding and it was a loan that we had to pay back monthly)

All I am saying is that it's much harder than it looks to succeed. Ever heard the old saying "It takes money to make money." It's true in most cases.

About the merchant account... It's completely understandable that financial institutions do background checks on your business before giving you a merchant account. They want to make sure you aren't out to rip customers off, because then they would lose a large amount of money doing "chargebacks" to the customers cards (they would have to by law). That is why they require most businesses to have a legitimate business address, phone number and registered business name and bank account. You may even need a federal taxpayer ID number and/or DUNS number.

They're just trying to lower their risks, which is completely understandable. Personally, I wouldn't buy anything from a site if I couldn't even call the company, or if they were located out of their basement or apartment. It doesn't show that they have "staying power."

Anyway, I hope my rambling has made a little sense. Good luck!

[Curtis Stevens]

I use to recommend Charge.com on my site: www.gotmerchant.com But I now recommend Echo Inc for several reasons.

1. They own their own stuff, they are not a reseller, so they don't charge you a gateway fee, monthly minimum, etc.. All those fees that make taking credit cards a monthly bill.

2. With Echo, you don't pay a dime if you don't make a dime, and that is what I really love. Just $10 in monthly fees, your statement fee if you sale something in one month, and your CC and transaction fee, that's it! (don't forget your one time setup fee of just $99).

3. I setup an old friend with Charge.com, Authorize.net and the payment process Charge.com uses, man he has a VERY hard time with his bills or statements. They are really unorganized and very hard to read and understand. Looks like faxed paper.

4. Echo is stock held, so you have a company that has the power, been in this business a very long time with over 62,000 customers.

That is why I recommend them. I think they have their stuff down pretty good.

PS: If you are ever wanting to use the Dansie shopping cart and Echo, then you better come see me, as we are the only ones that have a compatible version. We couldn't get those two companies to work together, so we made a script ourselves and I have to admit, it is one sweet script, does it all automatically for the customers.

Curtis

[Mike]

But ECHO can only be used by US based a business, correct?

[Curtis Stevens]

Yes. But I don't know of any good companies that offer International accounts.

[izaak]

Echo Inc. has a great set-up price for payment gateway software or if you would like to glorify the term by saying virtual terminal either way they both amount to the same thing. $99 dollars is really low for such a set-up, but I have seen lower. Call me a lair I dare you !

[Curtis Stevens]

I was referring to their real time processing, which you also have a virtual terminal to use.

Yes, there are a few, but then it boils down to you get what you pay for. I would go with a company that has a reputation, not a one man operation. They can be good, but I have seen too many bad ones. A lot of them are just people trying to make some quick money and really don't care or know about what customer service is and what really drives a real business. You have to treat your customers like royalty.

Curtis

[izaak]

Curtis Stevens,

How many independent merchant services do you know of? I am willing to bet you cannot even name one company that has a one man operation in the merchant service industry that is certified by a processor or a bank. However had said that you may find smaller companies which are out for a quick buck, but the ones out for a quick buck are not those that offer lower prices more so then ones that offer incredibly high prices and build value by adding to much content and high pressured sales people. I know this industry all to well.

Why would any company in this world want to lower prices to earn a quick buck, does that really make a lot of sense? The purpose to lowering prices is to show people that you here for the long term of a business relationship rather then a quick onetime commission. Now sometimes bad things happen to good companies and you know what that even goes for larger corporation as well "you know" with your so called reputation. Now when you said a reputation is better to go with, how so? Are you saying that new entrepreneur's should give up and get regular jobs because they don't have the 100 year old reputation as the corperate america dream boats hold? I am willing to bet you that if you broke it down with the actual statistics of how large corporations treat their clients as oppose to small businesses, you will find your so called "treat them like royalty" in the small business corner.

Let me ask you a question before I go. If you wanted a new desk for your office and you saw the one you like at John's Office Supplies for $79.95 then you decided to shop around and saw the same desk at wal-mart for $129.95 who would you buy from?


Izaak,

[Curtis Stevens]

I wouldn't go with that start up company until they have some reputation going for them, talk to their clients, etc.. Find out what kind of system they have, how reliable it is. If their stuff is always down, then the customers are loosing business.

You will be surprised, people in web hosting do it, so they can make quick cash and sell out. Cheap prices sell like hot cakes. Just like hostsave.com started for $6.95 a month and within a year or so they sold it. That is what I mean.

This is the Internet, don't befouled on who is a small company and who isn't. I know of a lot of one or few many operations.

It depends on who it is. Like it has always been know, things that can be made cheaper, mechanical things, Wal-Mart has everyone build a cheaper version of everything so they will be the lowest. Food etc, you can't.

Curtis

[FDR]

Thank you for the replies. I'm enjoying the feedback.

Can anyone tell me why I am not receiving any emails when someone posts to this thread? I checked and I have mail turned on.