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  1. #1

    Question Merchant Accounts and Hosting

    I am new to this forum. This is my first post, so don't tear me up too bad. Even though I may be new here I am sincere in my request for help and referrals. So please be helpful in your response. Our business is very important to us and we would like to help it to grow.

    We have a domain name in place.

    We have a merchant hosting plan with Yahoo.

    We are trying to locate a merchant account so we can accept credit cards and debit cards and maybe checks for our internet business.


    We would like to move our host to one of our vendors. I think they would be far easier to work with than Yahoo, whom is impossible to contact for any help.

    The new webmaster is "only" giving us the option of Authorize.net for a gateway provider. Yes I know they are a very large and respected company. I do not have a problem with that.

    The problem is with the merchant account providers themselves. I have been given a terms and conditions that very clearly states in # 2 font "merchant gives complete power of attorney to contract in merchants name for whatever reason (they) ( I will leave out their name) deem neccessary, not neccessarily for business purposes"

    You have got to be kidding right? That statement alone means they could go and borrow money in my name for whatever reason they want to. They tell me people sign these agreements everyday. Surely it is beacuse these folks do not or CAN"T read the very fine print, right? Who would sign that?

    We have been looking for so long I am about to give up on this e-store all together. We have self employed for tweenty years and this is seemingly not worth it, is it?

    I think the webmaster that we want to move our e-store to will be better for our business. They are vendors allready and are very helpful to us, so far. The ONLY problem is with the gateway. Why is this so blinking hard to solve.

    Does anyone read their fine print?
    Should we look for a different webmaster?
    Should we keep looking for Authorize.net as gateway?

    Any ideas would be greatly appreciated.


    <<< Signatures need to be set up in your profile. >>>
    Last edited by SoftWareRevue; 06-24-2005 at 01:48 PM.

  2. #2

    Re: Merchant Accounts and Hosting

    Originally posted by 4RE KLR
    I am new to this forum. This is my first post, so don't tear me up too bad. Even though I may be new here I am sincere in my request for help and referrals. So please be helpful in your response. Our business is very important to us and we would like to help it to grow.

    We have a domain name in place.

    We have a merchant hosting plan with Yahoo.

    We are trying to locate a merchant account so we can accept credit cards and debit cards and maybe checks for our internet business.


    We would like to move our host to one of our vendors. I think they would be far easier to work with than Yahoo, whom is impossible to contact for any help.

    The new webmaster is "only" giving us the option of Authorize.net for a gateway provider. Yes I know they are a very large and respected company. I do not have a problem with that.

    The problem is with the merchant account providers themselves. I have been given a terms and conditions that very clearly states in # 2 font "merchant gives complete power of attorney to contract in merchants name for whatever reason (they) ( I will leave out their name) deem neccessary, not neccessarily for business purposes"

    You have got to be kidding right? That statement alone means they could go and borrow money in my name for whatever reason they want to. They tell me people sign these agreements everyday. Surely it is beacuse these folks do not or CAN"T read the very fine print, right? Who would sign that?

    We have been looking for so long I am about to give up on this e-store all together. We have self employed for tweenty years and this is seemingly not worth it, is it?

    I think the webmaster that we want to move our e-store to will be better for our business. They are vendors allready and are very helpful to us, so far. The ONLY problem is with the gateway. Why is this so blinking hard to solve.

    Does anyone read their fine print?
    Should we look for a different webmaster?
    Should we keep looking for Authorize.net as gateway?

    Any ideas would be greatly appreciated.


    <<< Signatures need to be set up in your profile. >>>
    Hello,

    I have used Authorize.net in the past and my only complaint with them is that they do charge a boodle in fees. However, if you make enough transactions per month to overcompensate Authorize.net, it is an excellent choice.

    As for merchant accounts, I've had a shakey experience with them. My best advice to you is to do your research. I had used eonlinedata in the past and I was mortified by my experience with them. You will find a lot of info regarding merchant accounts on these forums.

    Good luck with your endeavors.
    Small Business Web Hosting with DOT45
    24/7/365 Technical Support; Windows Shared Environment; ColdFusion MX, ASP.NET, PHP, MS SQL, MySQL, Online Store Software, SiteBuilder, Secure Webmail via IlohaMail

  3. #3
    I have been reading this forum for two days and I have learned alot.

    Really the problem I am having is the terminology in the terms and conditions. Why would anyone give someone else that kind of power of attorney. I mean they could borrow up money from all their clients and go to Vegas and we the merchant could do nothing because we gave them the POA. doesn't make sense to me

    I do understand that banks and processors have to protect themselves but I as a merchant have to protect my customers from them as well, right?

    I may just need to find a new webhost and be done with it. I have been reading PayPal's terms, whew. Has anyone read these?

    What would be a fair price for a web host that included:
    2 gig web space
    20 gig transfer?

    That may not be enough but I have now way of knowing until I get the site finished, Right?

    Thanks for the response.

  4. #4
    Hello, could you provide more details as to what kinds of services you are providing?

    It is hard to gauge what is sufficient/insufficient from "2 gig web space" and "20 gig transfer."

    20 gig transfer should be way more than sufficient for MOST cases. If you are looking to transfer/stream multimedia files to your customers, I would recommend finding a host that specializes in it or to take the dedicated route.

    If you're not doing that, I think 20 would be alright, if not more than enough. I would shop around and see if you can find a host that you can trust, and beware the ones who will offer you 100 gb of transfer and disk space all for a dollar a month. That would be like going discount on your back when shopping for a new mattress.
    Small Business Web Hosting with DOT45
    24/7/365 Technical Support; Windows Shared Environment; ColdFusion MX, ASP.NET, PHP, MS SQL, MySQL, Online Store Software, SiteBuilder, Secure Webmail via IlohaMail

  5. #5
    Aixagent,
    We have an aftermarket automotive accessoies store that we are trying to get on the web. We have other ideas we would like to grow into later but would like to get this one up and then grow into the other ones. Diesel truck performance parts, tunercar performance parts, blowers, superchargers for example.




    Moderator,
    lighten up
    Geeze

    I am afraid to even respond to this thread any longer.

    I recieved a WARNING for making a post. Is this site that anal? I just asked a few questions for goodness sake. Maybe I should just find another forum to ask these questions to so I will not get a warning for making a post.

    Delete this one to I don't care. If you are that upset that I asked a question and then tried to make sure it was looked at then go ahead and block me from your site. Good lord thats ridiculas, at least in my opinion!

    As I stated in my first post I was sincere about my questions. If YOU don't know the answer thats fine, no big deal, let it go. The intent was not BUMPING a thread. There seems to be enough knowledgeable people on this site to answer the simple questions I could come up with.
    Last edited by 4RE KLR; 06-24-2005 at 02:42 PM.

  6. #6
    Originally posted by 4RE KLR
    Aixagent,
    We have an aftermarket automotive accessoies store that we are trying to get on the web. We have other ideas we would like to grow into later but would like to get this one up and then grow into the other ones. Diesel truck performance parts, tunercar performance parts, blowers, superchargers for example.




    Moderator,
    lighten up
    Geeze

    I am afraid to even respond to this thread any longer.

    I recieved a WARNING for making a post. Is this site that anal? I just asked a few questions for goodness sake. Maybe I should just find another forum to ask these questions to so I will not get a warning for making a post.

    Delete this one to I don't care. If you are that upset that I asked a question and then tried to make sure it was looked at then go ahead and block me from your site. Good lord thats ridiculas, at least in my opinion!

    As I stated in my first post I was sincere about my questions. If YOU don't know the answer thats fine, no big deal, let it go. The intent was not BUMPING a thread. There seems to be enough knowledgeable people on this site to answer the simple questions I could come up with.
    Awesome, there are quite a few web hosts that can help you get that setup. Web hosts aren't allowed to contact you directly with offers, but there are plenty here can do for you exactly what you are asking. You are allowed to send PMs to them, however.
    Small Business Web Hosting with DOT45
    24/7/365 Technical Support; Windows Shared Environment; ColdFusion MX, ASP.NET, PHP, MS SQL, MySQL, Online Store Software, SiteBuilder, Secure Webmail via IlohaMail

  7. #7
    Thanks
    All I have to do now is not get booted off this forum and survive long enough to find out who they are.

    Less of course by my response here this is considered "bumping"




    I want to thank you for your help and I really am not angry with you. It just seems to me that no one new is wanted on this site.

  8. #8
    Our clients have had good experiences with both e-onlinedata.com and CDG Commerce.

  9. #9
    I tried to look up CDG.com. I only got apage that said that domain names was for sale. I do not recognise the name CDG if it stands for soemthing else.

    Thank you for response I did get the other one to come up so i will go check them out.

    Steve

  10. #10

  11. #11
    Thanks i'll check that one now as well.

    I'll be back

  12. #12
    Join Date
    Jul 2003
    Location
    Castle Pines, CO
    Posts
    7,189
    It depends on your needs really. Authorizenet.com was down a lot last year but hopefully they have fixed all their issues. LinkPoint does not charge anything for their transactions and hopefully with this migration, they have finally got everything fixed. Verisign's Payflow will give you 1000 free transactions as well.

  13. #13
    Thanks Corey.
    When they post they give you 1000 free transactions. That would be total or a month. I would guess total, then the transaction fee would start?

    I have spoken with one company and they offered 250 transactions. I really did not know what that meant. It looked to me, like I could make 250 transactions for the month, while paying a transaction fee of .25, then anything after that would be more per transaction. It did not say that on the paperwork. I just did not know what that meant.

    My business will not have 250 a month to start with, but it will in about six months and from then on it should continue to have more than the 250 a month.

    That is the first I have heard about Authorize.net haveing problems. I suppose everyone will have some problems sometime thogh,right?

    I am really frustarted with this looking to find a company that uses Authorize.net as their gateway and the terms and conditions not being completely stupid. I really cannot believe people actually sign these things. I recieved one yesterday that stated:

    "from time to time processor and or bank may feel the need to visit merchants office and or place of business. Merchant will be completly liable for all expense for travel to and from said office, including but not limited to airfair, meals, rental car and hotel for the entire duration of the inspection trip. These charges will be automatically deducted from merchants account with no further notice, either before or after the inspection trip is scheduled and or completed"

    I guess It is a good thing my office is not in Las Vegas or they would include "any other unrelated expenses as well", ie gambleing. I really cannot believe people sign these things. I don't know maybe it is just me. Maybe they all say this and that is normal "fine print". It just sounds too one sided to me.

    Thanks
    Steve Parks

  14. #14
    Join Date
    Jan 2003
    Location
    Lake Arrowhead, CA
    Posts
    789
    Steve,

    It's not just you and I don't think you're being paranoid at all. Maybe you are correct and very few people actually read the fine print or understand the potential implications? For my part, I can tell you there is no way in hell I would sign anything containing the kind of broad provisions you are citing. I would sent a copy back with amendments and never look back if they refused to alter the agreement.

    I also agree that contracts are very often far too one sided. IMO, any contract which is obviously not designed for the benefit of both parties should be given very serious scrutiny. Just be glad that you're not the witless lemming which anyone else who signs such agreements must be.

    Good luck in your search. I'm sure you will eventually find merchant services who have your best interests (which should also be theirs) in mind.

    Sean
    http://www.srohosting.com
    Stability, redundancy and peace of mind

  15. #15
    Join Date
    Jul 2003
    Location
    Castle Pines, CO
    Posts
    7,189
    Keep in mind that the merchant acccount provider is also going to charge you a transaction rate as well.

    Create a spread sheet and try to do an average transaction and volume to see what you might be spending.

    As far as visiting your place of business, keep in mind MAPs are letting you borrow money basically. When you ask for $30,000 a month, you are in one sense, asking to borrow about $180,000. So a MAP wants to protect their money as well. People sign up for a merchant account just to run credit cards they have created.

    Now as far as those fees being imposed on you for the visit, that is basically old school. Agents used to charge those because they could. An application fee used to be about $1,000 but not anymore. Competition has taken care of that.

  16. #16
    I use Corey actually as my ecommerce consultant. I have been able to set up different merchant accounts through-out the months.

    I have been very pleased with his support and going above and beyond the call of duty when needed. If there are ever any problems on my account, Corey can usually help to clear them up even though is just an agent

  17. #17
    SroHost
    They have verbage stateing that any changes to the contarct are not considered accepeted even if signed by someone at the account processors or the banks location. It very clearlt state schanges are not accepted.

    Corey,
    I understand. I guess that is part of the reason these are written this way. So far no app fees but there have been some asking for set up fees. As far as I am concerned it is the same thing. Of course the fees are important to me as they would be for anyone. But I am not really looking at the fees athe the primary reason to choose or not to choose a specific company. I have come to be more concerned with the verbage of the contract. I DO realize that they have to look out for themselves as far as crooked merchants and ID theft and that sort of thing. But so far I have only seem ONE contract that was not COMPLETELY one sided. I tried to set up with them only to find that my webmaster had never heard of "Skipjack" as the gateway. I had not either. But five weeks ago I had no idea who Authorized.net was either.

    30K per moth X Six months (????)= 180K { for possibel chargebacks on the Credit card} ????

    The top guy,
    Thanks for the heads up. I will email Corey. Give me a minute Corey and check your email. [now is 12:26 PM CST]

  18. #18
    Join Date
    Dec 2004
    Location
    Las Vegas/St. Louis
    Posts
    175
    SkipJack Financial is actually a tight outfit. They only deal with elite Agents & resellers, having to maintain certain volumes, and customer satisfaction. One good thing about skipjack is the very detailed gateway system, and recurring is included in the associated fees.

    AuthorizeNet has been around a long time, and if you are planning to use a 3rd party shopping cart that doesnt integrate directly as the gateway, they are the easiest to integrate. Just generate a transaction key, and youre set!

    Do you have an idea of what gateway you are planning to go with?
    John Travis - [COLOR="Green"]The Internet Merchant Account Guru
    * Best Merchant Accounts - US Based Businesses Only * Click Here to Request Rates * Eco Friendly Hosting
    * ENZU Intelligent Cloud Hosting / VPS / * Dedicated Servers * Great Prices! *Click Here for Our VPS/Server Specials! *

  19. #19

    Thumbs up

    Well, we were planning to move our yet unopened store from Yahoo to one of our vendors for the hosting. The main reason is we believe that they will be easier to work with as Yahoo is impossible to get in touch with. We believe that they will help us to build our site to start up with and help me to understand how the whole thing works. They are one of our vendors and provide some of the products we sell, so it will be beneficial for the both of us if the site is set up well and easy to follow.

    I do not know if I can post their name here so I will just say one of our vendors. Our vendor is offering 2 gig web space and 20 gig of transfer, of course emails, subdomains, tech support, my SQL domains, custom design, website promo, and training. They have just reciently went up on their set up fee, that I think is now way too high, but the monthly is not to bad. At least I don't think(?). What should this cost? They do not charge me a transaction fee on every transaction, only the monthly fee.

    They are the ones that keep telling me I need to use Authorize.net. I found a company I could work with but our vendor did not supprt the Skipjack gateway. Our vendor is also the one that gave me the link to this forum so I do believe they are really trying to help us.

    The short story is we are new to e-commerce and do not want to be taken advantage of. We have another business that we have owned for almost twenty years and would like to stop doing that. We would like to open this little e-store and then make it grow to eventually replace the income. We are thinking that, later when the kids go off to college we could travel more or even move and it would not affect our business. Our current business does not allow us to do that. If I am not here standing on top of it every single second of every single day it does not produce. After twenty years it is getting old and finally wearing me down, dealing with stupid people. It amazes me how many excusses grown men can come up with so they don't have to do a job correctly the first time. Take my word for it and stay away from the new home construction business.

    We do understand that the e-store will have problems as well as any other business.

    I really do appreciate the help here.

    Steve Parks
    High Performance Mailorder


    BTW: Thanks for the reply Corey

  20. #20
    Join Date
    Jul 2003
    Location
    Castle Pines, CO
    Posts
    7,189
    As far as the hosting - that all depends on your needs. You can find companies that will sell you hosting for $1.00 a month and heck, some for $1.00 a year.
    Originally posted by 4RE KLR
    30K per moth X Six months (????)= 180K { for possibel chargebacks on the Credit card} ????
    Worse case scenario. Usually the average for Visa / MasterCard chargebacks is 6 months. Some issuing banks only a couple of months.

    And you are very welcome

  21. #21
    Join Date
    Dec 2004
    Location
    Las Vegas/St. Louis
    Posts
    175
    Across the board - Credit Cards have a 6 month window for any complaints. This is nor really something to fret on if you have honest customers. Just make sure that with those volumes, you are keeping a tight fulfullment record, maybe following up on any shipping fraud issues. Unless theres a fulfillment mistake or service issue, most chargebacks come from fraud. Make sure you are running address verification, and maybe image verification as well.
    John Travis - [COLOR="Green"]The Internet Merchant Account Guru
    * Best Merchant Accounts - US Based Businesses Only * Click Here to Request Rates * Eco Friendly Hosting
    * ENZU Intelligent Cloud Hosting / VPS / * Dedicated Servers * Great Prices! *Click Here for Our VPS/Server Specials! *

  22. #22
    Thanks John,
    I do now understand the six month window issue.

    I know everyone that makes a purchase on the web may not be as honest as they should be. With Id theft being what it is today.

    I will run AVS on every sale when available, for my own benefit as well. The only question is how does the system know if the billing address is different from the shipping address? Most of our shipping is done with UPS or Fed Ex so getting signitures at delivery should not be much of a problem. At least I hope not much.

    I have not heard the term image verification. Does that mean the card image? My marchant account sales will be predominantly web based.

    Steve Parks
    High Performance Mailorder (.com)

  23. #23
    Originally posted by 4RE KLR
    Thanks John,
    I do now understand the six month window issue.

    I know everyone that makes a purchase on the web may not be as honest as they should be. With Id theft being what it is today.

    I will run AVS on every sale when available, for my own benefit as well. The only question is how does the system know if the billing address is different from the shipping address? Most of our shipping is done with UPS or Fed Ex so getting signitures at delivery should not be much of a problem. At least I hope not much.

    I have not heard the term image verification. Does that mean the card image? My marchant account sales will be predominantly web based.

    Steve Parks
    High Performance Mailorder (.com)
    Correct me if I'm wrong but I believe you can use aftermarket fraud detection software/services, or depending on who your Payment Gateway is (such as Authorize.net), you can use their own fraud detection services. With Authorize.net, even without their fraud services (which is an extra fee), you are given the option to set it so that transactions where the billing and shipping addresses are different are automatically rejected.
    Small Business Web Hosting with DOT45
    24/7/365 Technical Support; Windows Shared Environment; ColdFusion MX, ASP.NET, PHP, MS SQL, MySQL, Online Store Software, SiteBuilder, Secure Webmail via IlohaMail

  24. #24
    I don't know.

    I think that there may an occasion, where the billing address and the shipping address may be different. For example If someone wanted to purchase a gift for someone else(?) If they wanted it shipped to them directly. ie grandama sending the grandkids something for b-day.

    Surely this has happened before.

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