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Starting your own web business is a lot easier to do if you follow the right steps. While you’re thinking of domain registration, web hosting and shopping cart applications, it’s easy to overlook the need for reliable credit card processing. So what steps are involved in setting up an Internet merchant account? Like any company, having the proper paperwork is very important in not only being able to sign with a reputable merchant services provider, but to also get a low rate for accepting payments online. The type and amount of documents you require depends on the size of your company and the amount you of money you expect to process. The more you ask for, the more detailed the process becomes.
Below is a summary of the paperwork potentially involved for a large Internet business:
1) A business plan or executive summary that details what your business is about and your expected monthly/annual sales.
2) Financial statements with your opening balance sheet.
3) Copies of your most recent bank statements to prove your company can make a go of it.
4) Your most recent payment processing statements, if available, to show your company is viable.
What else will you need? First, a void business check, with your “doing business as” name, or DBA, printed on it. A DBA is simply the name of your company or other identifier that is listed on your customers’ credit card statement once they make a purchase from your business. Second, you’ll need your articles of incorporation, sometimes known as certificate of incorporation. This is your business registration with your local authority. Third, you’ll of course require a completed website or other information such as brochures or flyers that showing your product or service offering.
Figure out what extra services you will need. For example, solutions like automated recurring billing or re-billing, if your business is subscription based. Do you need extra security such as Verified by VISA or MasterCard SecureCode? Address Verification System (AVS) is important to many online merchants. This tool matches the credit cardholder’s billing address with the shipping address, to minimize risk of fraud. When in doubt, ask your Internet merchant account provider for advice about what works best for your type of operation.
So how do you go about getting the best rate? Typically, this depends on the dollar amount and volume, plus the risk involved. Some businesses already have a point-of-sale or retail location and rent a terminal. The rates for online payment processing will be different, since the fees for card-not-present transactions are slightly higher due to the nature of the industry.
You might also want to select which credit cards you want to accept. Do you want to accept both Visa and MasterCard? What about American Express or Discover? There is often a setup fee involved for each card, however the more options you include for your customers, the more they are likely to shop at your web store.
Besides setting up an e-commerce store, you may also want to accept credit cards by telephone or mail. This is called MO/TO (mail order / telephone order). Also, do you want to offer your customers the choice of purchasing in the currency of their choice? This is also a convenient feature to increase your online sales. In the end, there are many features of an Internet merchant account that you could choose. Ask your merchant services provider for help if you need it, so you can choose wisely and benefit from a solution that is right for you.
