| As per 2005 statistics released, on line | | | | stop payment of check and for charge backs. |
| trade grew more by more than 22% over | | | | |
| previous year. To accept credit cards for | | | | However, being a processor with one of the |
| online trade, you need a merchant account. | | | | lowest fraud rate, such steep rates also gel |
| Getting a merchant account is not easy for | | | | with market. |
| all. It does involve a lot of money. To solve | | | | |
| this issue, another fast emerging choice is | | | | Payment to Suppliers |
| use of third-party factoring services, also | | | | |
| known as credit card processors. These | | | | Generally all payments are made on 1st and |
| processors process third party orders through | | | | 16th of the month, when all transactions that |
| their own merchant accounts. A good processor | | | | occur within 48 hours of this period will be |
| provides a secure environment for sale, | | | | processed, and payment remitted. However |
| ensure that supplier fulfills the obligations | | | | suppliers with sales volumes of over $1,000 a |
| of trade and ensure payment for the sale to | | | | week qualify for weekly transfers. |
| the trader. | | | | |
| | | | Types of Products |
| The growth of criminal methods on the net to | | | | |
| steal information and rob off wealth is | | | | A supplier is not allowed to sell certain |
| growing at alarming rate. To help these | | | | types of goods as adult content, firearms, |
| issues, these processors provide very | | | | ammunition, tobacco products and multi-level |
| valuable service to newbie merchants who can | | | | marketing etc. |
| not afford own merchant account and are quite | | | | |
| instrumental in fraud prevention as well as | | | | Protecting Consumer Interest |
| to protect the consumer interest. A good | | | | |
| credit card processor instills a strong sense | | | | Protection of consumer interest is basically |
| of satisfaction among consumers to protect | | | | in own interest of a credit card processor to |
| their interests and thus at a nominal cost | | | | be able to stay in business. As the terms of |
| boosts the revenue of on-line trader. | | | | agreement with 2CO, a supplier agrees to |
| | | | readdress all the customers complaints |
| A good processor has to be very stringent as | | | | addressed to him directly or through 2CO, to |
| they are answerable to their own merchant | | | | the satisfaction of customer, proficiently |
| account provider. Too many dissatisfied | | | | and harmoniously. |
| customers or traders can make them go out of | | | | |
| business. I came across which very | | | | To protect interests of sellers, it reserves |
| elaborately describes about various credit | | | | the right to impose limits on purchase of |
| card processors. It would be a good idea to | | | | products by specific buyers for any reason, |
| check from here. | | | | in its sole discretion, as it may deem fit. |
| | | | |
| One of such reputed and well established | | | | Payments on an account are made after 2CO's |
| credit card processor is 2CheckOut (2CO), | | | | verification processes it also holds money |
| which is online distribution center for over | | | | from suppliers account to protect buyer's |
| 300,000 products and services. It provides a | | | | interest. Generally a 5% of the gross sales |
| customizable transaction interface, | | | | are kept as reserve for at least 90 days |
| multi-level customer service interaction, | | | | would be held and in some cases the Reserve |
| security features using SSL encryption | | | | is retained at a higher rate for period |
| network. One can get started immediately with | | | | exceeding 90 days. |
| no hassles of term contracts, additional | | | | |
| equipment and can deal with any international | | | | It has a provision for refund and charge back |
| suppliers, except for few prohibited | | | | too. Either 2CO or supplier may ask for |
| products. | | | | reversal of transaction leading to refund and |
| | | | return the funds to a customer's account. |
| What does it cost? | | | | Credit card issuing bank may dispute the |
| | | | validity of transaction through the given |
| Charges wise, it may not be cheapest one, but | | | | credit card either on its own volition or on |
| in terms of customers rating and | | | | instruction of its clients and initiate |
| appreciation, it definitely stands out. | | | | reversal of funds transferred. This is called |
| Initial set up charges include one time setup | | | | charge back. In such cases, where supplier |
| fees of $49. Besides, a commission of 5.5% | | | | feels victimized, he may opt to initiate a |
| per transaction and additional charges of | | | | dispute and seek assistance of 2CO. 2CO would |
| $0.45 are levied. These transaction charges | | | | assist by way of providing any documentation |
| can go up on some classes of products. | | | | that supplier may need and would charge a fee |
| Charges for additional services are even | | | | of $14 for each such dispute that supplier |
| higher. 2CheckOut supports 28 currencies for | | | | decides to contest. |
| payment. For payments in local currency, if | | | | |
| it is one of the supported currencies, wire | | | | 2CO service has been rated as wonderful by |
| option can be exercised at a cost of $5 per | | | | most users. The only suggestions for |
| transfer. You can also choose to receive | | | | improvement would be more in depth sales |
| funds in US dollars at fees of $20 per | | | | reports and the ability to have custom form |
| transfer. These charges are definitely steep | | | | fields on. It has reputation of being a |
| for small payments, but, 2CheckOut does give | | | | company that enables businesses to receive |
| option to set a release level of payments and | | | | funds from businesses and consumers |
| payments would be held till it reaches that | | | | internationally with zero fraud and at a much |
| level. Additionally, there are charges for | | | | lower cost than traditional wire payments. |