iPhone Merchant Accounts

Merchants can now do business everywhere and at anytime with apple iphone and iPod Contact apps that process credit cards. You will find apps for apple iphone and iPod Touch owners who need to have to generate a sale outside of a classic store environment. Merchants can now do business everywhere, anytime with out having to rely on a phone line or credit card processing machine.

Most merchant accounts can connect to these apps via a gateway like Authorize.net.

Consumers can also make arrangements via PayPal on your iphone or iPod Touch. Regardless of which financial institution supplies your merchant account, both accounts will be linked in order that incoming funds are automatically transferred in your financial institution accounts.

Be positive to check out what the total operating costs are for the app's service. Merchants will need to think of the price per transfer as well as the possibility of monthly fees. Some apps will have a month-to-month or binding contract agreement. This fees are usually in addition to your regular merchant account fees.

The standard elements that you just ought to search for in an app are the potential to make charges, supply refunds and render transaction void. Becoming in a position to location a hold about the card could be beneficial likewise. Every application's Web internet site will list its elements in detail.

Some apps have a gratuity function and can collect a customer's signature. iphone apps like ProcessAway, iSwipe (which is donate-ware) and iMerchant Pro allows customers to crucial in a customer's bank card details and track the payment. They also send receipts via e-mail as soon as the payment is authorized.

You'll need to choose an app which has security functions that should not shop individual data onto your iphone or iPod Touch whilst undertaking small business. SSL encryption will also establish trust together with your consumers to ensure they really feel confident about generating a buy.

Ecommerce Merchant Account

Found this post today and thought readers would like it.


"Ecommerce Merchant Account: "

One does not need any hardware and software, the number of merchant account credit card processing. One example is the mobile merchant account. This type of merchant account requires only a phone call that the details of the transaction card processing phone. In addition, the hardware required for processing merchant account credit card transactions. One example is credit card payment credit card through a terminal point in the retail store cashier. Some merchant account, payment, processing credit card transactions for all software programs. Internet merchant account can not work without the software to process credit card transactions. Finally, there are vendors who have a combination of hardware and software, so they decided to speed up the card processing system.

Here is a guide for beginners credit card software to be some of the features.

First make sure the software you need to buy credit card online upgrade. So, you can offer your customers the confidence and some advanced and sophisticated technology for each hour in a very low additional cost solutions. You do not have to upgrade the financial burden is a great potential addition, if the credit card than the hardware. This hardware is often clumsy, but it is easy to become obsolete.

When it comes to online shopping, You need to ensure that your consumers may feel it is safe for you to Li Chang, You buy a Zai Renhedifang fraud Henshao proportion of confidence. In general, the credit card transaction processing software is safe to take care of, but you can improve your site’s security, to reduce the theft of credit card numbers and hackers. Moreover, considering their VISA card or American Express in its first 4 digits on the back to use additional security measures.

Not all software is compatible with the same operating system. They either work with Windows or Macintosh. With most operating systems try to avoid buying the last of the highly compatible. The software must be from major manufacturers, company verification, ?????? or Hyper com include. The software usually works with many different types of processor cards. Proprietary equipment, the software does not work the name of only one processor.

The processing software, sometimes need an Internet connection. Some people only need a modem or phone line. This may be useful, you buy software that can send credit card information online and telephone lines, a modem or emergency situation.

The card processing software, has signed with the merchant account you will often want to add features varieties. Some of them are customer database, user permissions, periodic settlement and / export file to import. In addition, most of the ability to combine in order to reduce the Secretary of your bookkeeping functions. An important feature is worth considering is to confirm the internal software integration system. This is a fraud or stolen cards to reduce fraud, because the list.

A soft card on the market today, a great number. Your responsibility, should be based on how to select only the best service, rewards, speed, function and conditions. Then you can be assured they will do hard work.

Mobile Credit Card Processing

On-site workers (i.e. contractors and mobile beauty services) and those that market through trade shows have a wide range of credit-card processing possibilities for immediate sales and possible info capture. As wireless technologies evolves, you'll need to contemplate very carefully which approach serves you greatest. Positive aspects of mobile commerce include things like:

1. Improved cash flow.
2. Secure credit rating and debit transactions in seconds.
three. Lowered credit-card fraud and chargebacks.
4. The capability to conduct business without having phone lines.

Here are by far the most favorite types of mobile credit-card processing and a few of the add-ons you might require.

Choices:

Get mobile (POS) point-of-sale terminals - POS terminals course of action credit ratings or debit cards, work wirelessly or via dial-up and are protected. Some provide built-in printers and details capture options. POS terminals commonly expense upwards of $1,000.

For your cheapest option, go with cell phones - Unless you practice more than a number of thousand bucks per month, cellphones may be the solution to go. You'll be able to course of action payments with or with no further equipment. Even so, card-reader attachments, which price tag a number of hundred dollars, can assistance lower processing fees.

For one of the most data capture, go with laptops - By attaching a credit-card reader on the USB port, a assortment of software program possibilities can search, filter, sort, format, print or export data to other programs or computers. Print receipts on any plain paper printer. If Wi-Fi is unavailable, your laptop can shop transactions until later.

For benefit, go with PDAs - PDAs like the Blackberry or now popular Iphone deliver the wireless accessibility of cellphones as well as the data manage of PCs. They're a sensible alternative for those that demand both comfort plus the power to manage and handle info.

Other Issues to Consider & Contemplate:

• Check your cellphone or Wi-Fi range before selecting a payment approach to ensure it covers your areas of operation.
• If you run a seasonal business you might be dropped by your carrier for non-use between seasons. Ask about this when choosing a payment option.
• Avoid systems using Cellular Digital Packet Data (CDPD). They are reducing the coverage area and it is becoming an obsolete system.
• If your customers have to have receipts, you will need a printer. Mobile printers price typically are at least $200.
• Give yourself time to set up these payment processing systems. It can be done quickly, but could take a couple of weeks.
• Familiarize yourself with the fees being charged. This is a complex system and there could possibly be hidden charges if you're not vigilant.

Leasing POS Terminals - Is This a Good Idea?

A new business owner should be aware of telemarketers and companies offering to help them with their credit cards. Because of ignorance in the credit card industry, many new business owners are led to believe that leasing a credit card terminal is the way to go for their business. This is not so.

A new business owner will spend a whole lot more money on leasing a credit card machine than purchasing one outright. While leasing one can cost them thousands of dollars, putting your money into a purchase of a simple swipe/print machine will only cost you $200 to $300 dollars which is a lot of savings especially when you're just starting out. This money saved can go into another purchase that you require for your new business.

Many new businesses are still being convinced to lease their equipment because they do not take the time to investigate their purchase options because of their very busy schedules. With the internet readily available, it is not common for most other businesses to lease. It is much more reasonable for them to purchase outright unlike back in the eighties and early nineties where they were led to believe that processing equipment was pricey.

Some business still do lease their equipment if the equipment is very highly priced. Wireless terminals are becoming more affordable but can still cost over a thousand dollars which is quite a bit of money. Leasing may sound more reasonable initially but in the end you will pay more than the original cost of the terminal.

If you do decide to lease your equipment, always be aware of all the terms that go with it. There are always strings attached. Leases last anywhere from 12 - 48 months and the shorter the lease the higher the monthly payments will be. There may be penalties for trying to terminate the lease and also buyout options to consider at the end of the lease. Be sure you completely understand what you are getting into before signing a lease. The costs can be hefty.

See how much more leasing will cost you compared to buying your equipment outright by using the lease cost calculator.

Major Cash Grab from Credit Card Processors in Canada

This letter was sent out this week:

"IMPORTANT Changes to VISA, MasterCard and debit card changes for merchants
Over the past couple of months, we have become increasingly concerned about developments in the credit and debit card industry that will adversely affect all businesses who accept payment via these cards. There are a number of different changes that will be taking place in the near future, all of which appear to be designed to complicate the ability of the merchant to figure out exactly what they are paying to process transactions, and enrich credit card companies and other institutions such as banks who issue the cards, largely at the expense of the merchant.

If you are currently using the CFIB plan for VISA, MasterCard and debit, you will still be better off than if you try to negotiate an arrangement on your own, and if you are not currently on the plan you may want to consider it going forward.

With respect to the credit card part of the market, over the past few months credit card companies have been introducing new types of cards, such as those referred to as "Premier", "Mosaic" or "Infinite" cards, usually offering a special set of benefits to consumers who spend a certain amount of money. Consumers have not requested this - it has been completely initiated by the credit card companies with a wink and a nod from the issuers - Canada's financial institutions. The hitch for merchants is that these cards can result in considerably higher fees for those who accept card payments. In some instances, the exact same credit card can attract a different merchant fee once it has been deemed "high spend", or where the bank issuing the card detects a certain dollar amount has been reached. This can happen without the merchant having any clue that the merchant fee has changed. Needless to say, credit card companies will be making a lot more money for what is effectively the same service. And the consumer won't care because they will not be assuming any costs.

On the debit card side of the market, Canada has long operated with Interac, a cooperative venture among banks, credit unions, payment related companies and others, as the principal clearing house for debit transactions at comparatively reasonable cost to consumers and merchants. The growth in debit has been astronomical since its introduction in 1984. VISA and MasterCard now want in on the action in Canada and are trying to convince the banks to support them with the promise of greater fee income. In the U.S., both VISA and MasterCard allow their credit cards to double as debit cards; in most cases, debit transactions also attract the "interchange rate" (a percentage of the transaction amount), not the flat fee charged by Interac. We believe that if VISA and MasterCard were to bring the same service to Canada, debit rates would go up dramatically. Therefore, VISA and MasterCard will make a great deal more money than has been charged in the past by Interac's "flat fee" approach, with no extra value accruing to the merchant.

Currently, debit attracts a "cents per transaction" fee. If the credit card companies succeed, the market will move to a fee which is a percentage of the transaction size. For example, for a transaction of $1,000, a common current rate would be $0.065 (6.5 cents). In future, if the charge was to become 0.65 per cent (the current U.S. average), the fee would be $6.50 - an increase of almost 10,000 per cent!

Not surprisingly, these developments have taken place "under the radar" to date as serious scrutiny would raise opposition to the plans. As VISA and MasterCard dominate the credit card business, they are used to calling the shots with little if any push-back from customers, governments or other players as they have no competitors. At CFIB, we are currently aggressively making our case with government authorities, the credit card processing companies, Interac and others to get these developments out in the open, better understand their implications, promote transparency and protect the small business sector from massive cost increases. If these changes proceed as planned, the bottom line for small- and medium-sized businesses will be sharply higher costs for both credit and debit transactions, costs that will be especially difficult to bear as our economy faces a range of other serious challenges, including such things as punitively high energy costs.

If you are currently a merchant dealing with VISA or MasterCard, you will likely receive notice of some of these changes in the near future. I wanted to give you a heads-up at this time, and I will keep you posted as to CFIB activities aimed at lessening the negative impacts on small businesses, as well as the Canadian economy overall. It is difficult at present to estimate the total impact of these changes, but it will be substantial and the dramatically increased costs will not mean any changes in service, so this is a total cash grab. CFIB is the only group actively opposing these changes, and we will continue to do so until meaningful change is achieved. I would also appreciate receiving your feedback on any information you are receiving from VISA, MasterCard or others on this topic.

As always, I want to thank you for your support and participation in CFIB.

Sincerely,

Catherine Swift
President and CEO"

What do you think this means to your business...? How will this effect you? What can we do about it...?

Large Retailers Can Expect To Pay Through The Teeth

From a recent globeandmail article on chip techology in Canada, author IAN HARVEY said, "Retailers generally welcome the cards because of their better security features, says Peter Woolford, vice-president policy development & research of the Retail Council of Canada, but there are concerns since there are more than 620,000 locations, many with multiple check out counters.

"The new readers are about twice as expensive as the current ones," says Woolford. "For small retailers who lease the equipment it's no big deal but for the big retailers who buy it's a sizeable investment. Also the larger retailers have to change over all their system software."

Some retailers are grumbling, he says, because if they don't have chip readers in place by Oct. 2010 they'll be financially responsible for any fraud. Conversely, ATMs and retailers have until 2012 and 2015 to be complaint for chip debit cards."

Want to read this whole article on smart card chip technology in Canada? Then click here.

How will chip cards change the way we process debit transactions?

Many merchants ask what is the difference between a the new chip cards that are coming out versus processing cards the without the chip card technology and what that means to their business. Basically all it means is the customer will swipe their own cards and the merchant is not to touch the card anymore. As well as, other higher security efforts to prevent debit card fraud. Click here to hear it from INTERAC'S mouth.

Canada Merchant Accounts - Are They Ahead Of The USA?

The green sheet covers an article on how Canadians are testing merchant account chip technology that enhances data security on credit and debit card-related POS Terminals.

"The pilot program, which will run through October 2008, will render all 90 local area merchants' POS terminals compliant with the Europay International, Master-Card Worldwide and Visa Inc. (EMV) smart-chip-card standard...Despite the benefits of increased security and lower dollar amounts of fraud, the U.S. market has not yet created a business case to move forward with EMV adoption." More on this article here.

Restaurant Merchant Accounts - What You Need To Know

Have you ever tried eating at a restaurant that doesn’t offer credit card payment? Did you know beforehand that they only accepted cash? Well, I have and it was really inconvenient since I don’t usually bring money with me and the cashier told me that they do not accept debit cards.

I keep thinking why restaurants would not choose to allow several payment options when almost all businesses already have credit card payment facilities. And then I found out that in order to collect through credit cards, business establishments would need to have merchant accounts.

Now the question is: how do you get restaurant merchant accounts? First, we need to understand that there are three major forms of merchant accounts – retail merchant accounts, mail order telephone order merchant accounts and Internet merchant accounts. Retail merchant accounts offer the lowest transaction rates but often come with the most stringent rules. Transactions need to have the card present, which basically means that the card needs to be swiped through a card terminal such as what most shops, restaurants and hotels have. Merchants who do not have direct access with their customers are not suited for this kind of merchant account.

Mail order/Telephone order accounts usually have the highest transaction rates since credit cards are not physically used and there is greater risk of default in payment. In this case, merchants enter customer’s data into a computer and they process payment through the payment service provider’s website.

Internet merchant accounts are similar to MOTO accounts, in that they do not physically use the credit card and since transactions can only be done through the Internet uses a payment service gateway, kind of a virtual terminal where payment can be processed. This is most common with e-commerce.

Anyway, getting a merchant account is not difficult but without proper research, you can get overcharged. With processing fees involved, sometimes some shops need incorporate costs to their pricing. The higher these fees are, the higher the prices will be. This is why it is important for businesses to choose the proper merchant account that fits their business so as to save in transaction fees.

Before you start looking for a merchant account provider, there are several things you will need to know

• You need to understand credit card discount rates mean and what rates your provider offers. Aside from these, you need to know the different factors that will allow you to get higher discount rates.
• Know the differences in the discount rates of “keyed in” credit cards from those, which are swiped.
• Know how much the transaction rates are. As we have discussed already, some merchant accounts have higher transaction fees so you need to know how much the difference will be so you can also estimate your pricing scheme.
• Know how much the setup costs are. These are the initial fees you have to pay to cover MasterCard, Visa and other credit cards. Some merchant account providers also have charges for credit card machines so be sure to ask about that too.

Other Payment Processing | Merchant Account Blogs

Paymentnews.com create a great list of payment industry blogs.

IP POS Terminals will be over taking the Dial-up POS Terminal in Canada

IP POS Terminals are becoming the new credit card terminal to use in Canada. The dial-up used to me the only POS terminal available and when IP (Internet Protocol) POS terminals hit initially hit the market place just like most new technologies it was expensive for most small business owners.

However, now most IP units are the same price as a Dial-up but have 2 major benefits over the older dial-up.

1. Speed
2. Security

The IP terminal can process transactions in 3-5 seconds and can run multiple units off one broadband connection.

The security is as good as internet merchant accounts with SSL (secure socket layered) prevents millions of dollars of fraud through online processing. When transactions pass through a SSL connection it is converted into a secret code that only the correct companies can understand. Yet Dial-up terminals, offer no transaction security for data in transit, based on the assumption that somebody would have to tap a phone line to intercept the data.

Soon Visa and MasterCard is also going to charge more to merchant's who still use old unsecured technology. So with IP POS Terminals being faster, safer and soon to be cheaper... what is keeping merchants from making the switch to IP credit card machines...?

Toronto Merchant Account Services

The hot bed of merchant account companies in Canada operate out of Toronto, so usually the most competitive rates for merchant accounts are found in T.O. However, low cost rates are not the be all and end all. Merchants really need to consider the services they are getting with their payment processing solution. Merchant accounts are no longer just processing credit cards and debit cards. It is IP and wireless terminals, tipping, clerk ID's, gift cards, loyalty cards, and now merchant account cash advances. You want a company that is able and approved to handle all these aspects on your Point of Sale Terminal(s).

How to tell if you will get good customer service from your payment processing provider

About a week ago, at my friend’s bar, after a rather stressful Saturday night of rowdy customers, a narrowly averted bar fight, and the usual weary clean up, everyone was more than ready to go home. Unfortunately, the final sales tallies couldn’t be processed because the credit card lines seemed to be down. Settling up the night’s sales was at a standstill until the credit card slips could be processed. The technical support help line was giving the manager the runaround. Furthermore, the manager was leaving within about three hours for a weeklong vacation! Arrangements were being made for another employee to come in on Sunday to run the slips when the system came back up at the last minute.

Situations like these can be a minor inconvenience or a major hassle. But imagine what would happen if your payment processing capability seized up in the middle of a busy rush of customers? The inconvenience has been passed along to the customers, and you run the risk of losing major sales. High quality technical support at such times is essential, but not all technical support and customer service lines are created equal. Evaluating a payment processing provider’s customer service is an important—perhaps the most important—task you face when choosing a provider. How can you go about this?

First, ask basic questions about the customer service/tech support the company provides. Most payment processors provide a tech support line, but depending on your type of business (such as a bar where transactions are processed late into the night) you may require one that operates 24 hours, and not all do. Get the provider’s customer service number and try calling it yourself at different times during the day. A merchant account provider should be able to give you referrals to other businesses that have used their service: call these as well and get their feedback.

What if you have a mechanical problem with your POS terminal that can’t be fixed over the phone? You should find out how long it will take for your provider to get someone on-site to repair or replace your machine. If your payment processing capabilities are going to be held up for several days your business may suffer considerably.

How quickly will they be able to set up your system and get your processing services up and running initially? This varies as well from company to company, from less than a week to six weeks. Can your business afford delays?

Ask questions that provide you with an understanding of the basic administrative issues with your account. For example, how long will it take for your sales, when processed, to be deposited into your company’s bank account? Clarity and transparency is key. If you feel that your merchant account specialist is not explaining the process of setting up, running the equipment, discussing your rates, helping you choose the right service package for your particular business, and so on, in a clear, helpful manner, than that provider may not be right for you.

How does the money flow from online shopping cart to my business account?

My friend Vladimir V. Tuporshin over at Shop-Script did a really good job at simplify how money flows from a business owners websites shopping cart to their bank account. If it was ever unclear how this works this post will explain it all.

If you missed the link above to the post here it is again - click here to understand how merchant account services work.

How Can You Tell If a Merchant Account Company is Good?

I have business owners asking me this question all the time, how can you tell if the merchant account vendor you are getting a quote from is a good company or not...?

Just like most business decisions you should always firstly listen to your gut. If you feel uneasy or pushed by a sales rep for any reason or you feel that the potential provider is not being 100% up front with you then find someone else.


Here is a list of some check marks you'll want to make sure are being hit:

1. A good company will ask you questions about your business and make sure they setting you up with the right payment processing solution. A bad one will be pushing for the sale and not asking questions.
2. Cheap prices are usually synonymous with cheap quality and/or poor services. The old expression of "you pay for what you get" really is true. I would do a little research to find out what the current buy rates are from Visa and Master Card online. Just type in visa interchange or master card interchange to find out what the credit card processor is buying the rates at. If the rates they are quoting you are way below that rate then you know something must be wrong. They must be back ending you with tons of hidden fees to make up the difference because no merchant account company is looking to become an investor in your business.
3. A good company does not hide their fees nor makes excuses for them. They will be more focused on services and providing customer support. Look for social proof, testimonials, referrals, ask other business owners who they use, jump on business forums and ask people who have similar business as yours in the general area or region you are in who they are using and are they happy.
4. A good company will openly give you their tech/customer support phone number for you to call at anytime you want to test out their services.

If you tick off those four questions before choosing a merchant account provider you should be in good hands.

Do You Run a Co-op Type Business and Need Merchant Account Services?

It is common for some business types to be set-up like a co-op where a group of services providers like hair stylists or massage therapists etc. will come together in one location and split costs on the store space or clinic office space.

The problem occurs when it comes to getting merchant account services for these types of businesses because typically most merchant account providers in Canada will not allow several different business accounts on the same terminal.

Some of these co-op type businesses can have as many as 6 - 10 people in all sharing one location. Nobody wants to see a barrage of 6 different Point of Sale Terminals all lined up at the check out desk, nor do the technicians want have the expenses of each having their own payment processing solution.

What can these Co-op type of businesses do?

Well, many Point of Sale terminals now have the capability to be set-up with clerk I.D.'s, which can track each person's sales, tips, cash back, etc. Although there can still only be one business account associated with the merchant account this essentially would simplify the accounting.

One brave soul at the Co-op could sign-up for the merchant account and then they could write checks to the other technicians on a weekly or bi-weekly basis minus the costs associated with the merchant account services. This way the costs are kept down for everyone at the Co-op, there is only one Point of Sale Terminal, and the Co-op doesn't have to worry about losing any sales by not offering debit and/or credit cards as a method of payment.

What Will Cause Your 3rd Party Merchant Account To Be Suspended

Some of the fastest factors that will cause your third party payment processing account to be suspended is to do any of the following below:

• Persistent pattern of charge backs - most merchant accounts do not like to see more then a 1% charge back ratio regardless of whether they are 'third party' merchant accounts or 'true' merchant accounts
  
• Poor or inadequate response to customers and a history of unresolved complaints or refused refunds
• Supplying faulty or inferior goods that are not as described in your product description
• Entering customer credit cards yourself which goes against your merchant agreement - do not and say do not take orders over the phone then enter it into your PayPal buy button for people to process their orders - they must do it themselves. If you are want to take orders over the phone you will need to be set-up with a merchant account that handles MO/TO ordering.

It is important that you take the time required to read the terms and conditions to your merchant accounts and know you rights and what the correct procedures are to processing your credit card payments then to be naive and find out the hard way of having your accounts suspended.

If you do run into major issues with charge backs and suspensions I recommend you visit: www.merchant911.org

Do You Run A Restaurant, Bar, or Night Club And Do Not Offer Debit As Option To Pay?

Do you run a Restaurant, Bar, or Night Club and do not offer Debit as option to pay?

Well you may want to re-think you decision to do that.

Having a short range Point of Sale Terminal with a one step tipping feature can really benefit the bottom line in your business.

I believe the stats are that over 60% of all Canadians pay by their debit cards. The first point is you should allow your customers to pay by the method they most prefer.

Besides listening to the stats, there are other reasons having a 'at the table' or 'mobile' Point of Sale Terminal that offers debit is:

• Turn Tables Faster
• No pre-authorizations at the end of the night
• Lower transactions costs for debit vs credit (just taking 10-20% off your credit card costs can save you 1000's of dollars every year.)
• Smart Chip credit cards require at the table terminals
• Happier customers, because they keep their cards in their hand
• Can offer cash back (certified cash back = proper cash back records for accounting/tax preparation

Chew on a few of those benefits!

I know many restaurants, bars, and night clubs have only offered cash or credit cards as a method of payment for many many many years, but owners of these establishments might want to rethink that decision.

How to Get a Merchant Account in Canada

Example Scenario: Your website is finally gaining traffic and your online business is looking like is going to produce profits:

1) You have captured your website visitor’s attention with good SEO, good content, and good sales copy.

2) You have generated an interest for your product and prospects desire your product/services.

3) Now you want to close the sale -- Immediately!!

The Problem: Without accepting credit cards you can't close the sale immediately! By not making as easy as possible for potential clients/customers to pay you, you know, you are certainly losing all your potential impulse purchases, and even some otherwise dedicated customers who simply become too frustrated to complete the purchase process.

So you finally decide to set-up a merchant account! You have decided to phone your local bank in Canada to setup a merchant account to sell your $20.00 widget on the Internet. Hopefully you can be all setup by the end of the evening and widget orders will be filling your email box from around the world by morning.

Getting a Merchant Account at Your Local Bank:

You phone your bank on Thursday, setup an appointment to come in next Monday at 10am to speak to a Bank Manager.

Monday Morning Day 1 The Bank Manager then tells you need to contact their Sister Merchant Account Company’s Account Executive to set-up payment processing on your website. So now you phone with the sister organization after wasting a time to go in to see the Bank Manager to find out that they cannot help you. After speaking with the merchant account service provider, they tell you to fax in all your business registration papers, identification and samples of your product you will be selling online. Excitedly, you head home to gather all this information.

Day 2 You finally tracked down all the necessary paperwork they said they would require to apply for an account and fax it in by noon’ish and now you expecting to hear back within the next 24 hours of your approved. You day dream that any minute now people will be ordering from your site like a dog on a bone!

Day 5 Worried, that you haven’t heard anything back yet, so you call your accountant executive that has been assigned to you and ask them what is your status, to only find out that you still have a bunch of forms to authorize. You then have these forms faxed over to you and the paperwork is 15 pages of lawyer jargon that does not make any sense to you.

Day 6 You call your account executive and ask him to explain the paperwork and what the fees are and he lists off the fees and rates and says none of it matters because this is only an application, and that they don’t even know if you will be approved.

Day 7 You begin to panic after watching more and more lost sales on your website occur you decide to sign-off on this 15 page application and fax it in.

Day 10 Still no merchant account.

Day 14 Monday comes along and now it is running into week 3 of trying to get set-up with a merchant account so you can simply accept credit cards on your website. So you decide to phone your account executive to inquire about the status of your approval. You find out that you have been approved, but with conditions. They either want a $7000 deposit or they want to hold 25% of your sales until it equals $7000 as a reserve account in case of any charge back scenarios.

Day 16 You reluctantly authorize the reserve by signing more lawyer jargon paperwork. You ask how long will this take? The account executive replies, “It should be approved in about five days.”

Day 21 You receive a call from your account executive and you are told that your account is conditionally approved, and you will receive your merchant accounts once you make sure that your ‘private policy, terms of use, and refund policy’ is clearly stated on every page.

Day 23 You contact them letting them know you have made the appropriate changes they requested.

Day 25 They get back to you, to say yes you did do what they requested and they will issue your merchant account numbers shortly so you can integrate them into your shopping cart software program.

Day 30 Finally, after almost a month from initializing your first appointment with the Bank, you now have a merchant account for your website and can now start accepting payments by credit cards.

Does this scene sound too familiar when trying to get a Canadian Merchant account?

Getting a Canadian merchant account is harder than one anticipates. Not to mention …expensive!

There are alternatives to the Bank and/or their sister organizations:

PayPal
This is the easiest way to get a merchant account online and most likely the cheapest if you just have a small product line. They will even let you sell in Canadian funds and deposit right into your Canadian bank account. They’ve been around for years and you know if E-bay uses them, they must be trustworthy and reliable.

Use a Merchant Account Specialist:

Merchant Account Specialist
A Merchant Account Specialist can save you time and help you make this administrative nightmare seem pleasant. They typically do your application for. Shop around from the competition in advance and can usually have most clients set-up and ready to go in about 2 weeks.

If you choose to do it yourself – Use your favourite search engine and type “Canadian merchant accounts” in it, you will find tons of links to research.

Whoever you decide to open a Merchant Account with:
Make Sure There Are No Hidden Charges! A good reference to have by your side is this article titled ‘The 17 Essential Questions Every Canadian Business Owner Must Ask before Choosing a Payment Processing Provider’

The best way to avoid any hidden or unexpected fees is to do your research…

What is the big benefit of using a IP Point-of-Sale Terminal over a Dial-up Point-of-Sale Terminal?

There are many benefits to use a IP Point-of-Sale Terminal over the old Dial-up Point-of-Sale Terminals.

However, before we get into the benefits let's just make sure we clear on the the basic terminology. IP means connecting through your High-speed internet connection, sometimes referred to as DSL, Broadband, and IP. From this point forward we will refer Point-of-Sale to "POS".

The three major benefits are:

1. Does not tie up your existing phone line(s)

2. Can add many terminals to one IP connection

3. High Speed Internet POS Terminals can process transactions in 4-5 seconds

If you currently have both high speed internet at you place of work and your current POS is connected to you phone line causing it to be not usable while you do debit and credit card transactions then you will find it huge convenience to upgrade your old Dial-up POS terminal into an IP POS Terminal because you will not have to worry about tying of your phone line anymore.

With an IP connection you can be on your computer surfing the net and still processing your sales through your POS machine, in fact, you could also have serveral POS terminals all running off one IP connection.

Therefore, if you are one of those merchants who has multi-check out stations with each their own POS Terminal and with each POS Terminal on it's own dedicated phone line then this will save you a ton in phone line expenses, for with IP connection you can run as many devices off one IP connection. Less cost then than paying for a second phone line.

You will also notice that IP POS Terminals can process transactions in about 3 seconds, which can really decrease lines ups at your checkout or if you run a business like a restaurant/bar you would be able to turn tables faster, etc. This usually makes both customers and staff happier.

This usually means more money for everyone too!