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Old 17th November 2005, 01:06 PM   #1
Linda
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Default The Merchant Account Head-Spin: Finding Reliable Information About Merchant Accounts

Jack Lang has a great article on the realities of those selling you merchant accounts.


"Anyone with true electronic payment expertise is busy capitalizing on their knowledge by selling merchant accounts or marketing affiliate programs for providers. Either way, their interests lie in making a buck, not in helping you to get the best merchant account for your business."

Catch it @ http://www.smallbusinessbrief.com/ar...ts/003299.html

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Old 10th February 2006, 04:28 PM   #2
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Quote:
Originally Posted by Linda
Jack Lang has a great article on the realities of those selling you merchant accounts.


"Anyone with true electronic payment expertise is busy capitalizing on their knowledge by selling merchant accounts or marketing affiliate programs for providers. Either way, their interests lie in making a buck, not in helping you to get the best merchant account for your business."

Catch it @ http://www.smallbusinessbrief.com/ar...ts/003299.html
I don't agree with you 100%. There are quit a few people just looking to screw the merchant but this is mainly in credit card processing. This doesn't generally apply for the Electronic Payment community in whole. That is a very one sided opinion.

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Old 11th February 2006, 12:21 PM   #3
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Default Hello

I have an online business and before that I had another buisness which I had to get credit card processing. I was jacked around by two merchant services and the payment server gateway for two months before I got service with my current provider. My experience is that I dont trust any of them and it was a terrible experience.

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Old 14th February 2006, 03:49 PM   #4
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Quote:
Originally Posted by youbuyinkdotcom
I have an online business and before that I had another buisness which I had to get credit card processing. I was jacked around by two merchant services and the payment server gateway for two months before I got service with my current provider. My experience is that I dont trust any of them and it was a terrible experience.
How do you like your current one? If so, who is it?

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Old 18th February 2006, 02:42 PM   #5
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http://credit-card-processing-review.toptenreviews.com/

Maybe this link will help a few people.

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Old 22nd February 2006, 08:54 AM   #6
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I am looking for a merchant account.

I use PayPal right now as my only option for accepting credit cards.

My line of business is renting my vacation home. And personal checks are fine. But I am wondering if I might improve business if I accept credit cards.

For my UK guests I insist on credit cards, so PayPal is forced on them. Others that are PayPal members don't mind.

My biggest problem is those booking last minute who are not confortable with PayPal.

Does anyone know of a merchant account that is strictly phone in credit card number? I don't need online, I don't need equiptment. I'm looking for the cheapest solution for asking for a credit card # from a guest ready to make a reservation, and then processing that charge.

All the local banks I've looked into don't have an account for my type of business.

Where my average charge is ~$500, I only get 40 guests a year, and at this time most pay by personal check. So definitely low useage, but higher charges overall.

Thanks for any suggestions you make!
Robin

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Old 22nd February 2006, 11:54 AM   #7
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I also use paypal for my merchant account provider. They have recently got into credit card processing for businesses. I've been using the service for 3 months now and love it. I was using Card Service International and hated it. They had constant downtime and the price seemed to change monthly. The $20 for paypal is a steal!

I also wrote an article about Choosing a Merchant Account Provider awhile back, check it out.

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Old 27th February 2006, 01:55 AM   #8
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i resent the comment from whoever said they trust no one in the merchant service industry and that merchant service provider reps are out to just screw people over...i have worked in the industry for five years now and i can tell you i have no enemies and that i do actually help people...the company i work for is in the top ten reviews list someone had posted that link..lets straighten something out...if you get ripped off by a msp rep dont get me wrong it does happen but it is nobody but your own fault...let me tell you all how the process works....visa and mastercard give us a rate it costs for the processing company this rate is called interchange...this is the rate it cost CSI or whatever company you are using..all msp's have the same interchange rates....all msp's do is mark that rate up...that is how they make their money...then people say oh that is what is wrong with america and people call us fleecers...lets think about this we take all the liablility for these transactions...thats why visa and mastercard have people like us instead of just handling the transactions themselves..those of you with merchant accounts know we place the money in your bank account and debit your account once a month for your processing fees...so what happens if you take all the money out of your account before we take out what you owe visa and mastercard and what you owe us...we take the hit..visa and mastercard are not gonna say oh well they didnt pay you so you dont have to pay us..that is just one risk factor involved before we even get into chargebacks and every other kind of credit card fraud out there..now back to rates...for internet businesses the interchange rate is really high im not gonna say what it is but it is over 2%...also let me tell you there are 120 different rates through interchange..this depends on the type of card your customer is using...if your customer is using a rewards card the interchange rate goes up .15%...that rate is to the processing company so if we didnt mark the rate up we would lose money on the transaction...this is why people say "well i am suppose to be getting this rate but on my statement for some transactions the rate is higher than what the rep told me"..the rep did not rip you off your customer just used a rewards card so it cost more...now for the people who think there rate is to high yeah they can get marked up from a greedy sales rep but you should know opening an account for your business that will be handling your money about what your rate should be..if not then you have failed as a business owner in doing your homework...im not saying it is right that reps mark the rates up that high but if you have any idea of the going rates you should not let yourself get ripped off...people knock my industry so much but without us to take the liability there would be no ecommerce unless it was done with money orders and personal checks and the market wouldnt run right like this for obvious reasons....there are better msps than others out there..just like any other industry...everyone is caught up in shopping for rates and fees...and yes different companies are more expensive than others....this is not because the more expensive company is ripping you off it is because their service is better...here is an example...this is a little far fetched but it gets my point across...lets say you have to have a major surgery...you go to one doctor who went to a very acreddited college/med school he quotes you $3000 more than a doctor who got his education online from some BS online university...what doctor are you going to trust to do your surgery...i dont think i even have to answer that question...when shopping for a processer you can pick 2 of 3 things

1) quality product- you want to make sure the company you choose has service that is not always down and is not a fly by night company who just opened up and has maybe 100 clients who process through them..check crudentials the easiest way is ask them what big corporations they work with...for example the company i work for handles all of pizza hut, taco bell, little cesars, holday inn's merchant services just to name of few and that doesnt even put a dent in the bi corps we handle so obviously we arent going anywhere

2) customer service- face it people in any market in the world things are going to go wrong...if a company is handling 50,000 accounts something is going to wrong with some of them...an example is IBM they are a quality computer company but do you think none of their computers have defects..of course they do but if you buy a new computer from IBM and something goes wrong do you think they wont do whatever it takes to fix your problem..more than likely they will...if something goes wrong with your merchant account you want to make sure the company has 24/7 365 customer service and if you need a problem fixed or something is wrong you want to make sure you can call the company and get ahold of someone who can fix your problem right then and not get directed through an automated system who keeps you on the phone for a half an hour just to leave a voicemail and hope someone calls you back within the week...this is one of the main problems with msp's in some companies lack customer service...after all if your account is down you cant accept any payments therefore you cant make any money

3) price- there is a difference in price as i explained above....the question is is that $20-$30 a month more worth the good customer service and the quality of the service....this is a question i cant answer for you this you have to decide on your own

as far as paypal...if you have more than a couple thousand dollars in credit card sales a month i would stay clear from paypal, stormpay, or any 3rd party processer... if you havent seen it yet check out [url]www.paypalsucks.com paypal and all 3rd party processors are notorious for freezing ones account with all there funds in it...freezing the account means you cannot withdraw any funds from your account for 180 days...so if you been using one of these 3rd party processors for all your transactions and they freeze your account that could very easily bury your business...believe me i set people up with merchant accounts EVERY DAY who have had their account frozen through a 3rd party processor so that should tell you how often this happens...im not joking just check out the paypalsucks website and you will see what i mean...i hope this helps some of you out when picking your merchant service provider....if any of you have any questions for me feel free to email me at [email protected]...i would be more than happy to help you out


Last edited by mikelada; 27th February 2006 at 01:58 AM.
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Old 27th February 2006, 11:44 AM   #9
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There are a couple of things about the previous post I can't agree on. The first being that because the monthly fee is higher I get better service. This is just in my personal experience and might not apply to all providers, but I used CSI for a little over a year and hated it. My monthly fee actually went up every month while my monthly charging volumes stayed the same. Their LinkPoint payment processing system went down CONSTANTLY. Contacting customer service was never a pleasant experience.

I am not afraid of PayPal freezing my account because I am not doing anything illegal with it. If they suspect you are using your account in a way that violates their TOS, then yes they will freeze your account. PayPal has been the best solution for my business so far.

DON'T USE STORMPAY! Those guys really are crooks.

My two cents...

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Old 27th February 2006, 06:16 PM   #10
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yes i agree CSI is a terrible processor believe me i used to work for them...a few years back first datas service wasnt so horrible and was actually the best around...they blew up and they were not ready for it is the whole story in one phrase for you...now there service sucks and they do always raise there fees..almost all companies rates are fixed meaning they will not go up unless interchange rate goes up...then we have to pass the markup along...although interchange has not gone up since april of 2004...all of my clients have had the same rates and fees since they signed up....a few accounts i had went up with the interchange increase and have been at that rate ever since...the linkpoint gateway is horrible...authorize.net is the way to go and verisign is in second place..i put linkpoint at about fourth or fifth place

as far as paypal they freeze peoples accounts who are just doing honest business everyday...believe me if you want you dont have to but i talk to at least 1 person everyday who has had their account frozen for to much volume or if they get a group of chargebacks in a short time frame...then i set them up and see exactly what they are doing and paypal freezing their account is ludacris 9 out of 10 times...most of the time it is just fraudulent consumers who purchase with a credit card, receive a perfectly good item, and then do a chargeback to scam the merchant

as far as not paying a little higher prices for a good msp....you get what you pay for just like anything else in life...if you want to save a buck and cut a corner usually you are going to end up in the hole somehow...but im not saying some companies dont overcharge your rate should be at about a 2.35% and $0.25...some companies are a little bit higher than this...the companies that are much lower than this rate i would be very careful of..always check crudentials before signing that contract

i am not trying to be critical i am just trying to make all of you aware of how this business really works..i have no reason to get on here and make up a bunch of garbage and post it on a forum.....i was just browsing the internet because i am going to start my own online business and found this forum...i seen this thread and thought i had some infomation that could be useful to some of you.... like i said i am always open for emails to answer any questions you might have [email protected]


Last edited by mikelada; 27th February 2006 at 06:21 PM.
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