HOW TO SECURE A MERCHANT ACCOUNT TO ACCEPT VISA & MASTERCARD

April 25th, 2008   Filed Under "How to", Business Credit, Business Options, Free resources, Resources  

You can seriously increase your orders by accepting credit cards as payment.
It’s easy and convenient for the customer, and that makes it more likely for
them to order.  The only problem is that it’s hard for a business,
especially a small mail order business, to gain the ability to accept credit
cards.

Banks are very reluctant to authorize credit card acceptance, mainly
because they have been burned too many times by fraudulent businesses.  So,
many businesses go on, accepting only checks or money orders for payment,
and miss out on the added sales they would get through credit cards.  There
is a way, though, for businesses that can’t get bank authorization to accept
credit cards.

The easiest way to get a merchant account is to work with an Independent
Sales Organization (ISO), which acts as a middleman between small businesses
and banks.  They will charge an additional fee for each transaction, so you
will be paying a bit more than the standard percentage charged for credit
card transactions.  There will also be an application fee.  Here are the
typical charges to expect, as of this writing.

Application fees:  Usually, these range from $95 to $400 and may or may not
be refundable.

Point of sale terminal purchase or lease:  The terminal you
use to process the charge and check for fraudulent numbers is usually
available from a bank for around $300.  You will only be able to get this
price, though, if a bank authorizes you.  If working through an ISO, prices
will range from $400 to even as high as $1500!  You can usually lease the
terminal, though, at an average of $45/month.  The best thing to do, though,
is to find an ISO that will provide computer software that can be used in
place of a terminal.  This will usually cost only around $150.

Concerning service fees:  Banks charge between 2% and 5% for processing a
credit card purchase.  ISO’s charge higher, usually 3% to 7%.  They also
usually charge a per transaction fee of 20 to 25 cents, and a monthly
statement fee of $5 to $10.

Why all these fees?  ISO’s only want to work with legitimate businesses
and ones that will stay with them for a long period of time.  If a business
can afford these fees, they are considered less of a risk.  Thus, the
important thing to do is to shop around for an ISO.  Get as much
information as you can about each ISO you are considering, and READ it
thoroughly.  Look for hidden charges and unreasonable requirements.

Here is a list of some of the ISO’s you may want to consider.  This is
not an endorsement of any or all of them, these are just the most prominent
ones.

Bancard, Inc., 1233 Sherman Drive, Longmont, CO  80501  (800) 666-7575

Data Capture Systems, 231 Quincy St., Rapid City SD  57701  (605) 341-6461

Electronic Bankcard Systems, 2554 Lincoln Blvd., Suite 1088, Marina Del Rey,
CA  90291  (213) 827-5772

Gold Coast Bankcard Center, Ft. Lauderdale, FL  (305) 492-0303

Harbridge Merchant Services, 681 Andersen Dr., 4th Flr., Bldg. 6, Pittsburgh,
PA  15220  (412) 937-1272

Teleflora Creditline, 12233 West Olympic Blvd., Los Angeles, CA  90064
(800) 325-4849

US Merchant Services, 775 Park Avenue, Huntington, NY  11743  (516) 427-9700

A final word:  All of these services will require you to fill out an
application.  Be 100% truthful with everything on the application and
don’t let the representative talk you into putting anything false down.

The reason is, if the banks affiliated with the ISO you use were to find
out that any information on your application is false, you would probably
be immediately cancelled and your business name and address would go on a
“black list.”

This would prevent you from being able to accept credit cards
for an indefinite period of time.  Don’t let this happen to you.  Most of
the ISO’s out there are legitimate, but there are a few that may put down
spurious information, rather than lose the fees they’d receive.  Be sure to
look everything over twice.  If you do, you’ll probably find an ISO that
will work with you to expand your business through the acceptance of credit
cards.

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THE FREE CREDIT CARD TRAP

April 22nd, 2008   Filed Under "How to", Business Credit, Free resources, Resources  

Credit Cards 

They arrive in your mail - a conspicuous looking mail piece from some
“official looking” bank claiming that you have been Pre-Approved for a
Mastercard or VISA credit card.

Of course, you don’t have to have any credit. You can even have bad credit
or have just filed bankruptcy or even be rated as a “slow payer.” It doesn’t
matter because these companies want to give you a second chance!
These companies want to make it easy for you to obtain a credit card because
they  only want your money!

How the thing works is that you must send $35 to receive an application that
provides you with a name and address listing of banks willing to give you a
VISA and/or Mastercard without any credit approval. That’s a stiff price to
pay for a sheet of paper, don’t you think? The instructions that come with
the application will let you know how the scheme works. You must open up a
bank account with the bank once that bank approves you. Big deal! They make
it appear that you have won some contest or something and people will feel
“good inside” that someone has approved them.

But that’s not all. The minimum amount you must deposit is $200 but you can
deposit as much as you want. In return, you get a Mastercard or VISA credit
card with a credit limit up to the amount you deposit. Wow! What a great
honor! This is no break! Think about it. If a stranger gave you $200 to hold
for him until Friday wouldn’t you feel safe in granting them a $200 loan?
I mean _ it’s their own money you’ve got. If they default, you’ve got the
full amount to pay off the loan. It takes a twisted mind to take $200 from
you, grant you $200 credit with your own money plus charge you astronomical
interest rates just to take the money from your hand and give it back to you.
That’s insane!

Of course _ to combat this insanity, the great and wonderful banks claim to
help fix your credit report. They say that if you maintain payments in a
correct fashion, this information will be reported to the credit bureau.
Yea, right! When Shell calls the credit bureau to check your credit for a
gas credit card, your report shows 47 defaulted loans and a bankruptcy.
However, there is one company that you make payments to on-time. Big deal.
Don’t you think the rest of your bad credit will still be the deciding factor
in Shell’s final decision. You bet you bottom dollar!

Look at this: the bank makes money from the interest of your deposit.
The bank also makes money by charging you 18% to 22% interest for the right
to use their Mastercard or VISA. Plus the bank is guaranteed their money
because if you don’t pay on time, they take the money out of the bank account
you opened with them along with any interest you have accumulated.

Why would anyone with $200 to deposit want a credit card with a $200 limit?
If you have $200 and want to buy an item for $200 _ go out and purchase it.
That way, you’ll own it lock, stock and barrel. No interest, no payments, no
hassle! Plus, you won’t owe your soul to the company store _ sort-of-speak.

Credit is a wonderful thing if you use it intelligently. I know people who
charge $100 at the beginning of the month and use that $100 to make $300.
It’s free money for 30 days. Then, when the bill comes, they immediately pay
the entire balance and come out smelling like a rose with $200 to the good.
Credit is also needed in certain circumstances for establishing clout. You
can’t call in a telephone order unless you can charge the purchase to your
credit card. This delays you getting items you want now.

In fact _ some companies will try and make you feel “low class” if you don’t
own a credit card. I am proud to say that I DON’T OWN one. When I’m in a
store and they say “Would you like to put this on your charge?” I promptly
say, “No, I pay for everything I buy!” They immediately shut up. And if they
would snap back with a rude answer, I’d leave the stuff sitting on the
counter, walk out of the store and get what I needed somewhere else. You
don’t have to take abuse just because you don’t choose to line the pockets
of the rich credit card companies! It’s insane!

If you’ve ever had a credit card and charged $200, you know you end up paying
back $400 or more (unless you pay the balance within 30 days.) Stop allowing
these so called banks to rip you off.

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IMPROVING YOUR CREDIT

April 14th, 2008   Filed Under "How to", Business Credit, Free resources  

IMPROVING YOUR CREDIT BY PAYING BILLS LATER, RATHER THAN SOONER!

Every business will get to the point where suppliers will offer terms on
bills, rather than requiring payment up front or on delivery.  Their bills
will probably be marked “2/10, net 30.”  This means you get a 2% discount if
you pay within 10 days, and the bill is due within 30 days.

Many business owners will jump at the opportunity to save the 2% by paying early, and
rightfully so.  However, believe it or not, they can help their credit
rating by paying at the end of 30 days.

How is this so?  It’s all a matter of your business’ CREDIT HISTORY.  All
of the companies who offer you terms will be reporting your history to
various credit bureaus.  These bureaus are who gets consulted by banks when
they decide whether or not to give you a loan.

By always taking advantage of the 2% discount, a business establishes a
paying pattern.  Thus, if you’ve been paying a company’s bills in 5 days
for the past year, this is what they will expect from forthcoming bills.
Now, say one month has a tighter cash flow than normal, and you must take
20 days to pay that bill.  This sends up a red flag for the billing company.

You normally pay in 5 days, why are you now paying  in 20?  Even though you paid the bill well within the deadline, you have given a sign that you had a cash flow problem.  This uneven paying pattern can show up on your credit rating.  Even though all your bills are paid on time, an uneven paying pattern can jeopardize your future chances for more and larger credit limits.

Now, if you always pay your bills on the 25th day of the due period, even
when you can pay them early, that cash poor month won’t look any different
to the billing company.  Most companies would rather grant terms to a
company that always pays on the 25th day, than one that sometimes pays
early, sometimes pays later, as this reflects an image of disorganization
and uneven cash flow.

Also, always paying toward the end of the due period will aid your cash
flow. If you pay your bills consistently, at the same time every month, you
will not be surprised by a sudden cash shortage.  For example, say you
decide to pay a bill early one month.  Then, the next week, your main
supplier calls to tell you about a closeout deal he has that would double
your profits.

Only problem is he can’t offer terms, it has to be cash.
Because you paid that bill early, you can’t take advantage of the special
deal.  If you would have waited to pay it, your cash flow would have allowed
the purchase, and the resulting higher profit margin would have yielded the
cash to pay the bill.

So, you see, paying bills later, and not taking advantage of any early
payment discounts, CAN work to your advantage.  You need to consider your
future plans and decide if saving 2% now is really worth it.

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Business Building Entrepreneur

March 26th, 2008   Filed Under "How to", Business Credit, Business Options, Earn Online, Free resources, Ideas, Resources  

Watch this latest videos on YouTube.com  Entrepreneur

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Establishing Credit for your Business

December 10th, 2007   Filed Under "How to", Business Credit  

Establish Business Credit

      The process of establishing business credit is quite similar, however it does require taking the time to follow the specific steps to allow you to gain the maximum amount of business credit possible. 

      Once you have obtained your business license, applied for your EIN (employer Identification Number), and set up your home office space you are ready to begin the process. 

 Get your FREE step by step details showing you how to establish your business credit from New Works, work at home.

      For maximum results our free step by step guide will show you how to establish your own Limited Liability Corporation (LLC), “how to” setting up the appropiate business account, registering and getting a your business telephone listing, establishing your business Dunn & Bradstreet account, and where to obtain the easiest and quickest, no qualifying business credit accounts, as well as a resource list of more business credit vendors.

       Many people have used this method in an attempt to separate their personal credit account from their business credit, giving them access to more money for business needs, without having to burden their personal credit status. 

 

This article is written by B.J. Norman, contributing writer for New Works, work at home jobs and advice. This article can be used in its fullness, as long as you keep all bylines in place. For more detailed information on work at home jobs, you may visit http://www.newwork-at-home.com


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