Let’s see numbers behind processing with a merchant account as opposed to a third party processor:

$30 (Per Membership Sold) x 150 (Memberships Sold)= $4,500.00

$15.00 (Merchant Account Monthly Fee)- $15.00 $15.00 Gateway Monthly Fee)- $15.00 2.35% (Discount Rate) x $4,500.00- $105.75 .30 cents (Per Trans Fee) x 150 (Memberships Sold)- $45.00 .10 cents (AVS Fees) x 150 (Memberships Sold)- $15.00

Total Fees (With Merchant Account)= $195.75

$4,500.00(In total sales) - 195.75(Total fees) = $4,304.25(Net profit after all processing fees have been deducted)

With merchant account, Bill was able to keep substantially more of his sales for himself, as profit. Bill could use these extra resources to advertise more, expand his operation, and even hire someone to work for him, even if only on a part time basis. The point is that that better deal in credit card processing is always with a merchant account as opposed to using a third party processor. Most third party processors leverage high levels of risk and chargebacks they must face everyday, by charging enormous fees and rates to their entire customer base. Third party processors are synonymous with Adult related websites. This is reason for their increased exposure to risk. They must charge high rates to overcome losses they are subject to by processing for a category of merchants that, unfortunate as it may be for them, falls into a certain level of risk and fraud that most other merchants do not. Because merchant account company restricts its clientele to only companies with non adult related content, they are able to offer an entrepreneur like Bill, selling online content through his membership based marketing website, a much better deal in credit card processing.

$4,304.25(Net Profit with Merchant Account) - 3,892.50(Net Profit with Third Party Processing) = $411.75(Total Savings with Merchant Account)

This experiment has shown that average website owner can save substantially by choosing wisely when it comes to their credit card processing solution. We have proved that most any entrepreneur can and will save substantial amounts of money by using a merchant account for their online credit card processing, as opposed to processing with a third party processor. In our little test, Bill saved $411.75, and that was just in first month alone. Remember, that third party processor will charge more, 15.0% to be exact, per transaction, once customer is charged on a recurring basis. This means that for second month, Bill would have paid even more to his third party processor; $675.00 to be exact! And that is just on first months returning 150 customers. Every time Bill has a recurring payment processed through his third party processing account, he would be subject to a 15.0% transaction fee on all those sales. Not a very thrifty choice for credit card processing.

As with any business decision, be smart. Compare rates and plans, and make sure “simple” setup is really worth cost. In most cases, your Merchant Service Provider can setup your merchant account in as little as 24 hours. This is faster than your third party processor, and adds even more value to otherwise already vastly superior deal you are receiving with your very own merchant account.

Make decision that is best for your business, and best of luck! Please visit Josh Greth at CardStreet.com. Copyright 2003 Josh Greth. All rights reserved.

Josh Greth has developed, owns, and is the reigning CEO of CardStreet Cardservice Corp. To date, they have established over 100,000 successful merchants and helped make their dreams a reality, by creating a simple, yet cost effective, means of credit card processing. For more information on credit card processing, or to obtain your own merchant account for a retail, internet, wireless or phone/mail order business, please visit CardStreet.com.

I visit several dozen web sites every day constructed by people who submit ads to us, and am appalled at "crudity" of some.

If your web site looks like it was thrown up with little effort or forethought, you really don't have much of a chance of doing business.

In same vein, if your web site is recognizable as an affiliate program, you also have little hope of doing a decent business. Most of these ads, to put it bluntly are "tired" and are immediately recognizable from their URL. This is why it is so important for you to have your own web site. You can have links to affiliate sites, but whole purpose is to first sell yourself. If you do that, selling your product or service is a whole lot easier.

If your product is highly overpriced, and don't forget that shipping and handling add to bottom line, you will quickly recognize error of your ways. Now, price isn't everything, but you must be competitive. If someone can get exact same thing at a lesser price, and with all other things being equal, they will shop there.

You must have a guarantee! If someone is dissatisfied with your product or service, you must be prepared to refund their money. And, you must also present an image where they will believe your guarantee. If they have a way to contact you directly, your guarantee will be a whole lot more believable.

Price isn't everything if you have all other "ducks in order". Most people are willing to pay a bit more if they are comfortable with seller. If they aren't, price doesn't matter.

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