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A Guide To Online Payment Processors
by: Paul Foley
‘Free’ Accounts or Merchant Accounts?

Anyone who does business online (and actually takes money from other people) must, at some point, bite the bullet and choose a credit card processing company – this can be quite an expensive decision.

There are effectively two different ways of going about this; you can either go for the free accounts or the specific merchant accounts.

But what is there to distinguish the two? After all they both allow you to accept a payment from a credit card holder right?

Well yes, they both allow you to accept payments from people with credit cards – but there are some underlying and fundamental differences that you should be aware of.

Lets have a look at merchants accounts (ICann, WorldPay or 2Checkout – just as examples), when you register with one of these guys you will have to provide information relating to your business and prove that you are actually a registered business.

You will also have to pay a setup fee, from personal experience I know that this can be in the order of several hundred dollars, you will also pay a yearly subscription or support fee – again this is typically a couple of hundred dollars a year.

You might think that this is OK – but don’t forget you are also paying a percentage of the transaction value, this can be anything up 4.75%.

From this information alone we can see that for the little guy this is quite a high cost – especially if you’re just starting out and you don’t even know if your product/service is going to take off.

There are also other things that you need to be aware of when looking at professional merchant accounts, for instance 2Checkout will, from time to time try and actually call your customers (a selection of) and verify that the goods have arrived – if they can not do this then they will potentially refund ALL currently held sales.

I mention this as I was made aware of 2CO’s operating policy (this morning) by one of my fellow online marketers – this guy lost $5,000 because 2CO phoned the wrong person and lets face it, once you’ve delivered the products and given a refund how many people are going to say ‘Yes, here are my credit card details again’ – not very likely – and then cancelled the merchants account without so much as saying sorry.

So in other words make sure you read the fine print – there is typically stuff in there which is not really in your interest.

Anyway, that’s enough about merchant accounts, now lets consider the free accounts – and the first thing to be aware of is that there is no such thing as ‘free’. With the free accounts you typically don’t pay a setup charge or even a yearly charge – you do however pay a percentage of the transaction value, this can be anything from 1.5% up to 4%.

The two main suppliers of free accounts are PayPal and StormPay. It should be noted that although they both provide pretty identical services there are advantages and disadvantages associated with each of them.

For example, StormPay typically charge slightly more per transaction then PayPal – however PayPal charge more to get your money out then StormPay. PayPal is also VERY quick to respond to allegations of foul play (whether it exists or not) and typically very slow to do anything about it (besides locking your account).

PayPal also has some bizarre habits when it comes to money laundering rules, for instance my younger brother plays on Ebay and makes a few dollars here and there – nothing suspicious about that right (especially seeing as Ebay owns PayPal) but for some reason when his balance went past $50 they locked his account for a couple of weeks and sent him mails requesting proof of ID and wanting an explanation of where the money had come from.

No such problems with Storm pay, they validate you when you sign up by effectively linking you to your credit card to your address – any suspicious transactions are followed on a more gentlemanly basis. As of the time of writing I have not heard of anyone using Storm Pay having their account locked for questionable reasons.

In terms of signing up for the service StormPay is by far the quickest and in terms of market saturation is also on the up and up (PayPal is the established norm but StormPay is catching up quickly).

One thing to remember no matter which type of payment processor you use is that if a customer demands a refund 9 times out of 10 they’re going to get it – unless you can satisfy your processor that you have done everything that they require (so for PayPal if you’re sending tangible goods you need proof of postage that identifies what you’ve sent and in the case of allegations of ‘no delivery’ proof that it has been received – and then there’s still no guarantee that they’ll rule in your favor).

One important distinction between payment processors will relate to geography, i.e. where in the world they accept payments from. Most of the free services do not accept payments from central Africa or south East Asia, this is purely to do with level of fraud (Just think Nigeria).

To summarize, for the brand new business who has little or no client base and has no idea if their offering is going to be picked up by the market it is better to start with a free account, my personal recommendation being Storm Pay. If your business later grows and requires specific merchant account functionality then you can always upgrade or pick one from the market.

If you would like a StormPay account use the following link: http://www.stormpay.com/?2430996

About the author:
The author is a well known webmaster and maintains the sites http://www.HelpmeBuilda.Comand http://www.Cash-Sense.comThe HelpmeBuilda.Com site is dedicated to helping people technically with building an online presence whereas the Cash Sense site is dedicated to making money with Google Adsense. The author also runs http://www.mortgagehelp4u.com


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Steps to a Writing an Effective Press Releases
 by: Diana Ennen

Want to get the most media attention and spotlight for your business? Then the first place to start is with a GREAT press release. Now I can almost see half of you leaving now, dreading the thought of having to write one of these. But wait!! I’m going to show you easy methods to make your press release work for you and get the attention it deserves. Ready? Let’s go.

We’ll briefly go over the basics because of their importance. Editors want to see things done the RIGHT way. I would bet that a lot of good releases simply get tossed out just because they aren’t set up properly. To a busy editor, that all too familiar “10 second glance” says a lot for you and your business; it let’s them know if you’ve done your research enough to warrant that release to be placed in their newspaper or magazine.

Here are your essentials:

"FOR IMMEDIATE RELEASE" on the top left of the page.

Your contact name, phone number, e-mail address, and website follows.

Headline is next, normally in bold and centered on the page. Summarize what the release is about and capture their attention. Spend almost as much time on your headline as you do writing the release. It’s that important.

The press release body starts with the location of the release and the date (Margate, Florida, May 5, 2005.)

Most press releases are between 200-500 words, and no more than a page. The first paragraph has the most important information. Don’t save the best for last, it won’t get read. In this paragraph answer the questions, who, what, when, where and why?

It is recommended that you write press releases in the 3rd person and use short sentences and paragraphs. Do not go over board, trying to dazzle the editor, it won’t work.

Target your release. You will be sending your release to a specific audience so make sure that in your release you keep to what would appeal to that audience. What don’t they know that you can add? Nothing works better than getting an “AAH HAA” when an editor is reviewing your release.

Provide statistics. Do some research and find some relevant information that applies. You can easily do this through Google. Once you find your quote, do a Google search or Yahoo quote on that particular topic. However, don’t stop on the first Google link and take that for gospel. Research it a bit further. Have it come from a respectable company or magazine.

Include relevant quotes from experts in your field that will reinforce what you are saying. Approach authors, leaders in your Industry, and other experts that back up the facts you are stating in your release. They will normally appreciate the added publicity and you get the quote you’re looking for. For example, as an author I’ll often get asked to provide a quote for an article on home-based businesses or the virtual assistant industry. I welcome the opportunity as it provides me more publicity.

Also, if you have a satisfied client that you feel will add credibility to your Release, add a quote from them as well. The first time you mention the expert, write out their full name. Then list them by last name or Mr. and Mrs. Smith only. I normally prefer the last name.

The last paragraph should be your call to action. You’ve talked the whole release about your business or product, now tell them what to do with the knowledge they just acquired.

At the bottom of the release include ### to indicate you are done, followed by a short bio. Make sure if you include your website that you include http:// in front of it for search engine recognition.

Your bio should include your information, any books authored, etc. Double check this for accuracy. At this point, you’re tired and done with the Release. But if it goes out to the world with the wrong web address, the valuable time spent even writing the Release has been wasted.

That’s it; the basics for writing a press release! Now one other thing I’d like to add in, they work! They truly work. I’ve had a recent release get accepted by PRWeb (and yes they do reject bad ones!), and then go on to hit several other major newspapers and media outlines and the Google alert, which resulted in our paper in the area contacting me. You want to set up a Google news alert for your name so that you can follow the path and see when you make the news so you can follow up. Also, PRWeb at http://www.prweb.com has complete guidelines for setting up a good press release. Go with the extra money and spend $20.00. It’s worth it to get the additional exposure.

About The Author
 

Diana Ennen is the author of numerous books including Virtual Assistant: the Series, Become a Highly Successful, Sought After VA, Words From Home, Start, Run and Profit from a Home-Based Word Processing Business & the Home Office Recovery Plan. She specializes in publicity and book marketing and is president of Virtual Word Publishing http://www.virtualwordpublishing.com and http://www.Publicity-VA.com. Articles are free to be reprinted as long as the author’s bio remains intact

 

 



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