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Showing posts from January, 2009

The Benefits of Electronic Payments for B2B Transactions

In the digital age, businesses are increasingly moving away from traditional payment methods such as checks and cash, and adopting electronic payment methods for B2B transactions. Electronic payments offer numerous advantages over traditional payment methods, making them an ideal choice for businesses looking to streamline their payment processes and improve cash flow. What are the benefits of electronic payments for B2B transactions? Faster payment processing Electronic payments are processed much faster than traditional payment methods. With electronic payments, the payment is transferred directly from the payer's bank account to the payee's account, eliminating the need for physical checks or cash. This significantly reduces payment processing time, allowing businesses to receive payments faster and improve cash flow. Increased convenience Electronic payments offer increased convenience for both the payer and the payee. With electronic payments, businesses can make and recei...

Merchant Account Fees

There are many different kinds of fees that go into credit card processing that the merchant may have to pay. Knowing the different types of fees can save you money. Discount rates The discount rate is the fee the merchant pays per transaction. There are different rates depending on the type of transaction. Qualified rate The lowest rate. This usually requires that the cards be electronically swiped and the transaction settled within 24 hours. Also known as Swipe rate. Mid Qualified rate This is the percentage rate merchants are charged whenever they accept credit cards that do not qualify for the lowest rate. Here are some reasons why this can happen. non-swipe transaction non-swiped credit card transaction foreign car, business card or rewards card batch not done in a timely manner (24-48 hours) Mid qualify is also known as a partially qualified rate. Non Qualified rate This rate will be the highest charged. Here are some reasons a transaction would fall into the non qualified rate....

Merchant Account Fees

There are many different kinds of fees that go into credit card processing that the merchant may have to pay. Knowing the different types of fees can save you money. Discount Rates The discount rate is the fee the merchant pays per transaction. There are different rates depending on the type of transaction. Qualified rate The lowest rate. This usually requires that the cards be electronically swiped and the transaction settled within 24 hours. Also known as Swipe rate. Mid Qualified rate This is the percentage rate merchants are charged whenever they accept credit cards that do not qualify for the lowest rate. Here are some reasons why this can happen. non-swipe transaction non-swiped credit card transaction foreign car, business card or rewards card batch not done in a timely manner (24-48 hours) Mid qualify is also known as a partially qualified rate. Non Qualified rate This rate will be the highest charged. Here are some reasons a transaction would fall into the non qualified rate....

Pay Pal vs Merchant Account

A proper headline would be third party payment processors vs a merchant account. Google checkout and Pay Pal are good examples of third party payment processors. In a recent survey only 44% of PayPal customers and 19% of Google Checkout customers rate their purchase experience as good or very good.* So what are the differences? Fees Third party payment processors don't require you to have a merchant account. In a sense your using their account and they are charging you for the privilege, but higher fees aren't the only differences. Funds Your money goes directly to your account usually two days faster with a merchant account. Third party payment processors store your money for you making you request it be deposited to your account. This can add 3 to 4 days before you see your money. When your money is in your bank it is FDIC insured, not so with third party processors. Dispute Resolution When your the merchant account owner you are represented by your acquiring bank and resell...

More on Shopping Carts

There are tons of shopping carts to choose from it can and will get confusing. You need to choose one that you'll be happy with because your gonna be stuck with it for a long time. When and if you decide to move off a shopping cart it can be a time consuming task so try to avoid that. Here are some important considerations when choosing a cart. Payment Processors The most important thing your cart will do is process transactions. Not all carts work with all payment processors or payment gateways, so you need to check your carts supported gateways page. If they dont' have this page or it is hard to find you need another cart. If you already have your processor you can check their supported carts page. Some carts will let you make an add-on, or module to support a processor, but its generally a better idea to use one that is supported out of the box. The reason being when they update the cart you will have to update the module. If the cart software provider supports your processo...