The Difference between a Retail Merchant Account versus an E-commerce Merchant Account
July 23, 2009 by Admin · Comments Off
There are a few major differences when dealing with a Retail Merchant Account, and an Ecommerce Merchant Account. Both are similar in that, a merchant or seller is able to accept Visa, Master Card, American Express and Interact, as a method of payment for goods and services rendered, but the way they are accepting these transactions is where the differences lie.
Merchant Services applications are always looked at in terms of safety and security. Visa and mc need to take into consideration, when and where the point of sale is taking place, as there are some risk factors they need to take into consideration when adjudicating weather or not the business is fit to accommodate transactions…..these risk factors contribute to the major differences between getting an approval for a Retail account VS. a Ecommerce Account. Let’s take a closer look at these risk factors and the 5 major differences between processing a transaction in a retail environment compared to an online situation.
- Card Acceptance. This is the main driving factor or difference between the two types of transaction processing. Visa and mc consider this a risk factor because in a retail situation, the merchant ALWAYS obtains a signature from the customer directly on the receipt. It is difficult for a customer to reject a fee from a purchase when the merchant is able to supply a signed receipt as confirmation of the transaction. With online processing, the availability of that signature is slim to nil, so Visa and Mc will rely on the solidity of the business profile to reduce or cancel out the possibility of a merchant disputing a fee. So the will scrutinize the business profile more thoroughly, as they do not have the comfort of relying on something like a signed receipt.
- Fulfillment. This is an industry term. Basically this refers to the amount of time between finalizing a transaction for goods and services and when the customer receives those goods and services. for example, If I go for a haircut and pay visa, I have received my service and paid right away….if I purchase a swimsuit online, I make the payment right away (ecommerce billing) but, I do not receive that product for 2-3 or how ever many weeks, whatever the FULLFILLMENT time is….this creates another risk that will be looked at before approval. it is a major difference to pay for something and wait for it, then to instantly have what you’ve purchased.
- Product Availability and Presentation. Unlike walking into a store and picking out your “size and color” when shopping online you are only subject to one form of presentation, usually a picture or image of some kind to represent your purchase. Whereas, in a store you can touch it, feel it, try it on, etc. Digital images are helpful to represent your product type, but there is still a down home difference between being able to see and touch as opposed to a 2-d image.
- Product Type. The internet provides a platform never before available to business. So more “intangible” goods and services now have a home online whereas things like financials services, learning or educational seminars, software sales were vague and expensive to advertise in order to obtain a customer base that kind of thinking is in the past. E commerce is ideal for these types of businesses that differ greatly from retail in that they are providing a service that does not physically exist.
These are just a few prime examples as there are many businesses that thrive online, where as the platform may not be as successful to others. The bottom line is, that the internet is a wildly new exciting tool for businesses to reach out to an audience never before imaginable. Malls will never close, but the internet is competing with how and where our shopping dollars are spent!
Debit Machines
May 10, 2009 by Admin · Leave a Comment
Learn which type of POS machine is best for your business.
In Canada there are basically only 6 different types of debit machines available Canadian Merchants. Debit machines in Canada are often also referred to as, “Point of Sale Terminals” or “POS” for short, but they are basically hardware equipment that allows Merchants to accept credit and/or debit as a method of payment.
Here is the list of the 6 different types of solutions available:
- Dial-up Debit Machine: This is the most commonly used POS machine by Merchants. The hardware is usually two pieces (one main box with an external PIN Pad) and it connects to any working phone line. This equipment is the most popular because it happens to be the most affordable piece of POS equipment. More info on Dial-up Debit Machines.
- IP/Broadband Debit Machine: This is the second most commonly used POS machine by most Merchants, although it is quickly become more popular as more Merchants seem to be having high-speed internet at their business venue(s). There are many benefits to this solution over the Dial-up machine and it typically is only $10-15 more depending on the exact hardware. More info on IP Debit Machines.
- Wireless Debit Machine: This machine used to be popular but is not used as much anymore. It works similar to using a cordless phone, still plugging into a phone line and/or internet connection. Most companies have replaced this unit by the Cellular Debit Machines.
- Cellular Debit Machine: These card processing machine runs off the cellular network and can process a transaction anywhere there is a cellular signal. These are a little more expensive than your traditional POS terminal, but they give great flexibility. For merchants on the go and needing a face-to-face solution this is perfect. More info on Cellular Debit Machines.
- PC Software: This solution doesn’t require any hardware to process credit cards. It is software based and works on any computer as long as you have an internet connection. Perfect for the business that only wants to process credit cards. Business professionals are fond of this solution. More info on Point-of-Sale Software.
- Customized Processing Software: This type of solution is something we DO NOT specialize in because it’s out of the scope for 99% of all businesses. It’s usually the Walmart’s and other huge big box chains that have their own customized payment processing solution created for them.
We offer free no obligation merchant account analysis to all Canadian merchants. Often, merchants ask us, “Why should I use your services?” and we always reply with, “Read our testimonials.“
Dial-up Debit Machine
September 23, 2008 by Admin · Leave a Comment
Dial-up Debit Machines connect via any working telephone line. Many merchants use their existing phone line or tap the terminal into their fax line to save additional costs, but if you have a busy location you may want to consider having a dedicated phone line for your Debit Machine.
The reason for this: if you choose to use your existing phone line, you will not be able to be on the phone at the same time you’re doing a transaction. Dial-up Debit Card Machines can take anywhere from 10-25 seconds per transaction to complete depending on the age of the hardware and software. So, basing it on that, you should probably be able to judge if you can afford to share your existing phone line with your POS Terminal or not…?
Our advice is: if your business does under 30 transactions a day and you find your phone line is not constantly ringing off the hook then sharing your existing phone line will not be a big deal. However, if you find your business requires full use of the phone and you do more then 30 transactions a day, then you may want to consider getting a dedicated phone line for your machine, or use an IP Credit Card Machine.
The real big appeal for merchants of a Dial-up unit is that they are usually less expensive than ALL other types of payment processing hardware.
We have been helping small businesses connect to service providers who:
- Provide guaranteed financing regardless personal credit score
- Provide leasing from as low as $29-$49/month (Depends on hardware, deposits, credit score, etc.)
- Provide ownership from as low as $999 (including lifetime warranties)
- Provide debit transaction fees from as low as 8 cents
- Provide Visa & MasterCard rates from as low as 1.69%
- Provide a lifetime warranty included on all hardware
- Can deposit into any Canadian business bank account
- Can implement gift & loyalty card services (Very important-the power of gift cards can produce huge profits for your business.)
- Provide quality Customer Support 365 days of year
- Provide a 24 hour replacement unit if the current unit stops working (For most major urban centres; if you live in a remote area add an extra day.)
- Provide free software upgrades
- Ensure that ALL terminals are PCI & EMV compliant (Very important-no point investing in a terminal that is already going to be obsolete.)
