How to Receive Payments for Your Online Sales

Written by Nowshade Kabir

Once you decide which products you are planning to sell onrepparttar Internet, and what type of web store you are going to use in order to display your products, next vital decision that you have to take is to figure out how your customers are going to pay you. Whatever you plan to sell online, accepting credit card transaction is a must! A full 90 percent of all online sales occur through credit card payments.

There are two ways you can add e-commerce capabilities to your website:

1. Having your own merchant account 2. Using third party processors

What is a merchant account?

A merchant account is a special kind of bank account where funds received from credit card transactions are first routed torepparttar 146473 special account and held there before being remitted to your business account. You as an online merchant will need an account called ďCard Not Present Merchant AccountĒ. Havingrepparttar 146474 merchant account is, actually,repparttar 146475 first step in processing credit cards online. You will also need a payment gateway. A payment gateway is a service provided by billing processor which allows real time authorization of online transactions. The payment gateway you choose to work with has to be compatible with your shopping cart. Three top payment Gateway providers are AuthorizeNet (, Verisign ( and USAePay ( All payment gateway providers have their own merchant solutions. Most banks, today, work with partner payment gateway providers and are fully capable of furnishing with a merchant solution.

If you are just starting an online business and you donít think that your sales will generate more than a thousand dollars a month, you will be better of with a third party processor. However, once your sales become a few thousand you will save a bundle by switching to a merchant account.


With 72 million accounts worldwide and payment volume which is growing at a rate of 44 percent each year, PayPal by far isrepparttar 146476 most popular third party processor onrepparttar 146477 Internet.

PayPal is a simple and affordable payment solution for those online merchants who are unable to or donít want to go through repparttar 146478 complex process of setting up a bank merchant account.

At present, PayPal has four unique solutions for merchants.

PayPal Website Payments Standard: This solution allows you to accept credit cards on your website. However,repparttar 146479 transaction is processed onrepparttar 146480 PayPal secure server. The customer can choose to pay either by credit card or PayPal. If you donít have shopping cart as yet, you may get one from PayPal; or you can integrate PayPal solution to your existing shopping cart.

Cost: No monthly fee. No setup fees. No cancellation fees. Transaction Fees are 1.9% to 2.9% + $0.30 US$.

PayPal Website Payments Pro: This solution is virtually same as having your own merchant account. If a customer pays by a credit card, PayPal works as a payment gateway for you. The customer does not leave your website at anytime if she pays you by a credit card.

Cost: $20.00 US$ monthly fee. No setup fees. No cancellation fees. Transaction Fees are 2.2% to 2.9% + $0.30 US$.

PayPal Email Payments: This isrepparttar 146481 payment system PayPal started with. You send invoice to your customers by email and get paid on PayPal.

If You Lost 70% of Your New Customers, Would You Notice?

Written by Lynella Grant

Copyright 2005 Offrepparttar Page

Buyers Donít Rely onrepparttar 146472 Yellow Pages Likerepparttar 146473 Used to

Customersí buying behavior has changed - for good. If your business depends on most categories inrepparttar 146474 Yellow Pages to attract new customers, youíve probably seen a decline. Traditionally, people headed torepparttar 146475 Yellow Page directory precisely when they were ready to buy. Theyíd checkrepparttar 146476 listings to find their options, or "let their finders dorepparttar 146477 walking." Now theyíve got more choices.

New research by The Kelsey Group in March, 2005 found that 70% of US households now userepparttar 146478 Internet as an information source when shopping locally for products and services. These buyers arenít going torepparttar 146479 Internet for online purchases, nor to find distant providers. They intend to spend their money in their own community.

The Kelsey Group also found that interviewed individuals feltrepparttar 146480 search engines were a "better source of purchasing information than Yellow Pages, newspapers and magazines." The trend is being driven entirely by Internet users. Related data from other sources show that consumers who search online for purchases spend more than those usingrepparttar 146481 printed directory.

Demoterepparttar 146482 Yellow Page Ad to a Smaller Portion of Your Budget

The Yellow Page industry is a Fifteen Billion Dollar industry inrepparttar 146483 US. While there are more choices of printed Yellow Page directories than ever,repparttar 146484 buying habits ofrepparttar 146485 public have moved away from using them. Computer-savvy buyers knowrepparttar 146486 easiest way to findrepparttar 146487 information they want is through search engines (and since May they can do searches onrepparttar 146488 run, on their cell phones). But many small or local businesses arenít even listed.

The Kelsey Groupís data is consistent with other statistics showing thatrepparttar 146489 Internet has overtakenrepparttar 146490 newspaper for cars and real estate (major purchases). And itís becomingrepparttar 146491 "go-to" place for information. A study by imedia Connection found itís "second only to spouses for finding referrals."

To stay competitive, small and mid-sized businesses will be compelled to make sure theyíre included in search engine data bases. While itís not necessary to have a website, it helps to be listed on someoneís (like a local portal or professional group). Enterprises that canít be found by online searchers risk losing sales to businesses they find instead.

Cont'd on page 2 ==> © 2005
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