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December 16, 2008

Amazing Online Profits-Getting Paid(Part Six)

Filed under: Online Issues,Strategies — manuelcrc @ 12:36 pm

If you’re going to operate online, then you need a way to collect money. After all, what’s the point of having an online business, if you can’t make online sales and collect money?

The very best way to collect money is by setting up your own merchant account. A merchant account is your relationship with a bank that lets you accept Visa, Mastercard, American Express and Discover (here in the U.S.). You process those cards and get your money in 2-3 business days.

The processing bank will directly fund your chosen bank account so your money is available to you almost immediately.

If you’re just starting out, you may not want to deal with the small minimum expense of having your own merchant account, but this is a must for anyone doing a significant volume.

For example if you use the same company that set up my merchant account, you’re looking at this fee structure:

* 2.29% + $0.30 a transaction
* $10 statement fee
* $10 gateway fee
* $20 monthly minimum processing required
* $99 application fee

(Note: Those fees are discounted in a special deal for my customers and subscribers so you’ll probably find higher fees elsewhere if you start searching. I’ll tell you how to contact my service in a couple of minutes.)

Obviously, you have some minimum fees to deal with each month, but that cost is far outweighed by the benefits you received. The only cost structure that you’ll see come close is Paypal. Paypal can be a good way to start small, but I am personally aware of many people who have dealt with significant problems with Paypal when they started to process several thousand dollars a month. Since Paypal is not a bank, you are dealing with a private company that has a lot of rights given up by you in your user agreement.

Speaking of Paypal – they charge 2.9% + $0.30 per transaction. If you’re processing at least $1,000 per month, then having your own merchant account saves you money.

You can get set up quickly with Paypal because it’s automatic for a small volume. After your funds are cleared into your account, you can request that they transfer the funds from your Paypal account to your bank account. That will happen in a few days.

One order issue that concerns me with Paypal is that you can’t buy something through their system unless you register for a free Paypal account. To me, that creates a potential blockade to someone quickly completing an order. And I don’t want anything to slow down that process because I don’t want to lose orders that way.

If you’re selling a digital product, you can use Clickbank. Clickbank charges a 7.5% discount rate plus $1.00 per transaction. The application fee is $49.95. Clickbank sends out checks twice a month about 2 weeks after the previous 2 week sales period ends. That means you wait 3-4 weeks for your money.

One possible advantage of Clickbank is that you get automatic access to their large network of affiliates. Depending on the target market for your product and your ability to attract affiliates, that may or may not be helpful to you.

A fourth option is 2CheckOut.com. 2CheckOut.com charges a 5.5% discount rate plus $0.45 per transaction. The application fee is $49. Like Clickbank, they pay every 2 weeks so you have to wait a bit for your money.

So, what’s the bottom line?

Based on my personal experience and my research in talking with others, the very best option is using your own merchant account. No question.

I believe in your success,
Emmanuel Olonade
wealth creation tips

exerpts from shawn casey


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