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