I'm looking for some answers to questions that I have for combining credit card processing for a brick & motar store and an online store.

B&M: First, the brick & motar CC processing is currently done through a local bank. It seems like the % rates I see with these guys are slightly higher than the rates I've been getting with some online merchant account providers. The B&M does around 100 transactions per month with $5-100 price range per transactions. Approximately 80% of the sales are done via credit card processing so it is an important aspect of the business. Also note that there have been 0% chargebacks since it was opened back in mid-2004.

Online: Next, I've been assigned to manage the new online aspect which is in the works so I've been working on trying to get things organized. The online store will be running by a different name but run by the same person. The online store will be selling something completely different than the B&M store. Lastly, since this is an online-business so the chance of chargeback are higher than the B&M store (keep in mind).

With that context, I wanted to post and see what some of you eCommerce/merchant gurus thought. Here are some of my questions:

1) Since the B&M and online store are going to be offering different products/services and even running by different names, is it possible to put under one merchant account (remember, owned and operated by same person)?

2) If it's possible, any disadvantages of doing so?

3) How would the per transaction rates work? Would it be a fixed % for both the B&M and online store or different?

4) Since they will be running under different names, is it possible to put "ABC / XYZ (Phone)" in the customer's statements for transactions?

5) Anyone implemented this kind of setup before? If so, which company did you go with?

That's all the questions I have so far but I'm sure I'll think of more as they come to me.

Thanks :)

Hello -

Although the business is operated by the same owner, because one business has card-present transactions and the other is processing online, you would have to open up two merchant accounts. The advantage to this is that card-present transactions for your brick and mortar business would process at a much lower percentage rate than your online business would.

If you check around, there are some merchant providers that specialize in both and will give you a discount on monthly fees.

Hope this helps, and good luck!

Thanks for the response.

Originally posted by CDGcommerceJill
Although the business is operated by the same owner, because one business has card-present transactions and the other is processing online..

From what I understand though, there is a way to implement a card-swiping system that completes transactions through the internet.

I guess I should have mentioned that the priority is to put the two different systems under a single system which can be used to keep track of inventory and records through a custom developed program.

So the general question is really... "Can this be implemented?" :)

The differences in transaction rates aren't really a concern unless the difference differ greatly (>~1.5%).

If you have a stable internet connection at work, you can get a cherry keyboard and swipe the card. LinkPoint virtual terminal works this way. And you can get the swiped rate.

I would not recommend mixing the two because Visa / Mastercard have different rules governing internet (keyed) transactions and swiped transactions though. It is a lot easier to say "It wasn't me" on a keyed transaction than it is a swiped transaction with their signature.

Corey, do you have any link to some dealer that sell this "cherry keyboards" ?

Could be nice to check it out.

Sure - check out CDW (http://www.cdw.com/shop/tools/sbb/vendor.aspx?mfg=CHK&submit.x=17&submit.y=11) and barcodes (http://www.barcodesinc.com/cherry/) is another that come to mind