Guide: How To Accept Payments On Your Website- which option is best?

B.J. Kharrazi : January 14, 2018 4:07 AM : Blog

Today we’ll discuss 5 popular ways to accept credit card payments on your ibsite.

The options i share with you includes payment page links, payment page builders, e-commerce solutions and custom solutions alike.

So if you’re brand new to putting payments on your ibsite, or you’ve never done this before, or you’ve already done it but you’re not happy with the solution you currently have, i’re gong to talk to you about all of the options that are available to you.

There’s obviously more than a handful of ways to make this happen so the solution that’s right for you largely depends on the resources that are available to you to make the solution come to life.

Do I Need A Payment Page On My Website?

So one of the biggest questions that we’re asked is very simply: how how does it work? Do i have to put payment pages directly on my website or can they be hosted by another company? or is there a Pay Now button available and how do you make all these solutions tie together?

The short answer: no, you don’t need a payment page that is hosted on your site.

Now for the long answers-

There’s so many options out there, so again, we’re going to go over the five broad categories and then we’re going to give you a bunch of resources in this post, including three big questions to help you determine which solutions actually best for you. in the form of a checklist at the end of the post.

First, we have the all-in-one processor hosted payment page. So all-in-one processor is a company like Stripe or PayPal and these are also known as payment service providers. These are definitely different than a true merchant account provider in the sense that this option is an off-the-shelf processing solution available to you, like Paypal.

With this merchant payment solution, you license their technology and use their platform. This plafform’s ready-made options give you the ability to create an account for free, like PayPal and Stripe- which are both free to use.

The ease of deploying this payment solution is a big benefit to beginners and this solution gives you an intsnat ability to log into your account dashboard and create a Pay Now button or a Buy With card button.

Depending on which tool you’re using or which service you’re using, you can take that code and place it on your website through an HTML editor whether using Wix or Squarespace, for instance.

There is the extremely popular WordPress platform where you may also easily place that code directly into your Wordpress editor. Once placing this simple code into your website html or Wordpress page editor, a Buy Now button appears automatically.

So a setup like this is rather simple to do. You create the accounts like these for free, starting out, and then you can log in directly to the dashboard and just start creating your Pay Now button so that’s definitely the pro to this type of option .

Downside Of Off-The-Shelf Free Payment Solutions

Now for one of the negatives: if you create a Pay Now button with one of these solutions or one of these providers, you are tied to using their merchant account solution with that payment button.

So , for instance, if you create the Buy Now or Pay Now button with Stripe or PayPal, you’re also automatically accepting the payment processing costs for these platforms which may be more more expensive in the long run.

Payment processing cost alone can make these easy solutions a problem if you plan on doing significant business online as a lot of other more complex merchant account providers can be much cheaper, sometimes 50 basis points to a full percentage point less than what Stripe or PayPal might charge.

So the cost for this option is really contingent on the amount of time it takes you to research the options, you ability to deploy more technical payment code and what knowledge that it’s going to take to put those buttons into place and then work it into your own site.

True Merchant Account

Another option is a true merchant account provider that is deployed on a hosted payment page on your site.

True merchant account providers are companies like us, 1st National Processing, Card Connect, Chase Paymentech and First Data. These pro options are all different than the Stripe of Paypal payment service providers.

With these more robust options, your hosted payment page is tied to a payment gateway and the best way to understand what a true merchant account gateway and hosted payment page does is to imagine the Gateway is a software tool that encrypts data between your store, your online store, or your payment page and the merchant account processing company.

You don’t need to store cardholder data

So when a customer goes to your website and makes a payment, the data is first sent through the Gateway, which is appropriately named by the way over to the processing company and then sent back. This is an essential piece and a vital part of the transaction flow of an online credit card transaction. In this scenario, one of the nice things about the hosted payment page is that it’s completely managed for you by the gateway service so that just means that you don’t have to worry about storing cardholder data because it’s all all hosted and managed and taken care of by the Gateway company that’s part of the hosted payment page service.

Hosted payment pages are set up with companies like 1st National Processing or authorized net, and again, all the security is taken care of and handled for you with this solution. So below is a sample of a hosted payment page built into a wordpress website editor that also includes examples of a Pay Now button.

The way it works is when your customer clicks on this button, it takes them away from your domain over to the gateway hosted payment page again which is on a different URL where the customer can enter their information and the security liability with this option is managed by the payment gateway so you don’t need to worry about any of the SSL Certificate issues. When the customer clicks the Pay Now button, they in effect leave your website and they go over to that secure environment which is hosted by the Gateway so there’s typically not an additional cost for the hosted payment page, as it just comes as part of the service with the Gateway.

So again, if you have an account with 1st National, this service is going to come with it and gateways typically cost between five and thirty five dollars a month, plus about five to fifteen cents per transaction when the Gateway is used.

Custom API Integration Option

Additionally, those seeking to payment processing can utilize a custom APi integration with custom payment pages or shopping cart solutions.

This is easily the most expensive option because it requires custom programmers and developers who typically charge betien 50 and 150 dollars per hour so it doesn’t really take too many feature requests to get that bill past the thousand or multiple thousand dollar mark in order to get your custom payment page or shopping cart solution that you want.

The custom solution has one big really big benefit and that’s that you get to make it however you want it to look. So this solution can follow the form and function of your website and when you build it with an SSL certificate, which you definitely will be required to do, you want it to look like the rest of your branded website.

The customer never leaves your website with this solution and they stay within the experience of your shopping cart or your payment pages.

As we mentioned, with this more complex solution, you’ll need an ssl certificate on your website that can be provided by most large hosting companies such as Godaddy or Hostgator.

Yet another easy solution would be Amazon’s buy now button if you happen to be an Amazon seller. here this is the experience of a shopping cart solution where your customer can go onto your website, hit the Amazon Buy Now button and get their payment processed through your Amazon store. This is also a quick off-the-shelf solution if you prefer to do business through your Amazon account.

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Credit Processing & Cash Discounts- What merchants need to know

B.J. Kharrazi : January 4, 2018 2:07 PM : Blog

Currently companies like Visa and MasterCard charge upwards of three and sometimes four percent for the pleasure of taking credit processing fees that business owners have been paying accept customer credit purchases. Currently card holders are lured with 2% cash back programs and even the fancy travel and airline mileage programs, however it is the merchant who is paying for those after they’ve already toiled hard and long early mornings late nights to bring those products and services to the customer.

At 1st National Processing, we offer credit card processing that works for anyone who doesn’t have a clear picture of what they need to process credit cards with the most reliable service as competitive costs.

At the end of each month, merchants are stuck having to pay of roughly 3%, and some are paying upwards of three and a half percent. And in the merchant processing world there’s always going to be this processing fee that’s going to be paid, the fees that are paid are always going to be different based on the type of card that’s used.

Just to give you a picture of how that works, there are literally hundreds of different cards with hundreds of different rates and depending on where you shop, you get different amounts of points that’s why you guys have probably seen credit card ads offering you a 2% cashback on gasoline, and others have an Amazon card so that when you shop on Amazon you get 3% on Amazon purchases. Yet this same card will only get you 1% everywhere else, andthe reason for that is because all these different cards have different rates depending on where you shop and what kind of card you have.

So for example if you have a Visa signature preferred or Visa Infinite card and you’re shopping at a supermarket, you’re going topay the supermarket’s 2.1 percent plus ten cents whatever that transaction is.

Now if you have a regular Visa card with the basic rewards, then you might only pay 1.43 percent and some cents. So as you can see, there’s a huge swing that exists in the processing fee structure and most merchants have major problems with this because they can never calculate what their costs are in any given scenario.

This uncertainty becomes a huge difficulty that they have to overcome on a regular basis. Some merchants find it hard to obtain a copy of the interchange fee schedule, however it is possible to easily use Google to find interchange rates; Visa interchange rates, MasterCard interchange rates, Discovery and so on.

You can then call these straight off the internet, referring to their websites- as this is alll public information.

Many popular cards can soon become very expensive- often purchases made on one of these expensive credit cards at a hotel or car rental place can amount to a 2.4 percent plus 10 cents fee and again this is the cost before the processor, before the bank, before anybody else is involved!

So supposed low Visa rates at at 2.4 percent might actually end up being three point six percent before all is said and done because other people have to get their piece as well, so you have the issuing banks and the providers of the processing service take their peace. And this leaves confused merchants with no idea what they’re paying. Often, they don’t even know why they’re paying it!

All they know is that they can tell you how their bill is too high even though they started off thinking they have a great rate. Often small merchants will think they have a great rate at 25 basis points, which looks amazin, but once our company takes a look at that statement we find that 25 basis points was 25 basis points after cost, which is accompanied by an additional 10 cents. So now this great 25 basis points in this scenario with a card of 2.4 percent ends up being a bill of 2.65 percent plus 20 cents in this current scenario- yet the merchants don’t realize this is happening.

Obviously, there’s a lot of complexities to this and it becomes very annoying for merchants and they have no way of figuring it.

At 1st National Processing, what we do is is listen to merchants describe how they are paying too much and then we go to work figuring out a way around this.

Our process is to look at different industries that have been doing different things for years. One of the helpful things that we found was there are laws that enable a merchant to actually not have to pay those fees and if you inquire further, you find this is actually a federal law that says a payment card network (that’s referring to Visa MasterCard, Discover, Amex) shall not directly, or through any agent processor, licensed members of the network by contract requirement condition penalty or otherwise inhibit the ability for any person to provide a discount or in-kind incentive for payment by the use of cash cheques, debit cards, or credit cards.

To the extent that is required by federal law, that discount is offered to all prospective buyers and disclosed clearly and conspicuously- that’s a very important point and no one can be penalized for offering a discount for someone to pay cash and that’s the federal government law.

Once that law came about, which was in the year 2013, the big card companies had to change their policies. Visa, Mastercard, Discover and Amex did not allow for merchants to offer a discount for a different price for cash versus card, but now with that advancement in the law, Visa shows these terms and regulations on their own website.

By these rules merchants may attempt to steer customers who initially present a Visa card to an alternative method of payment, such as providing discounts for cash that’s instead of a card purchase as long as it’s not done in a confusing manner or denies the consumer choice. This means you have to be able to offer it evenly to everybody the same.

At 1st National Processing, we offer the latest info to our clients on the ability for merchants to provide discounts for cash. Essentially, what has happened over the past few years is that the big card brands (Visa, MasterCard, Discover), along with the federal government and most states, have allowed the merchants to pass the fees for their processing on to the customers.

The problem that exists now is that the big card companies are very smart and they said listen, you could do it, but you have to follow what we call surcharge regulations. Surcharge regulation means that if you’re charging an extra fee for the use of a card, well then you have to use their signage.

Specifically, you have to prove you have Visa signage, MasterCard, Discover or Amex signage on all four sides and you can’t charge certain types of cards and you can’t charge over a certain amount along with all kinds of rules and regulations. This makes it almost impossible for a small merchant on the street to go ahead and start surcharging, not to mention the fact that there are 11 states that do not allow for merchants to surcharge. We what you need to keep in mind is that every single state, regardless of where it is and regardless of card brand, allow for a merchant to offer a discount for cash.

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Merchant Processing For Beginners- an explanation

B.J. Kharrazi : January 1, 2018 12:43 PM : Blog

Are you having trouble understanding your merchant account are you confused about the rates and fees and how you’re being charged, if so this post will explain how it all works you don’t need to know every little detail about credit card processing you just need to know enough to delegate the task to a provider that’ll take care of everything for you.

Also keep in mind that eventually it’s important to understand the fundamentals so that you can properly make a provider selection in the next couple of minutes we’ll discuss the merchant account transaction cycle and how it works, as well as interchange and its role in the process. We’ll also discuss the two main pricing structures and how they compare to each other and at the end I’ll give you a couple ideas on how to best select a provider that fits your needs. more »

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Getting a Merchant Cash Advance

B.J. Kharrazi : July 30, 2013 12:51 AM : Blog

Business owners often face the need for fast financing in order to keep operations afloat. Los Angeles Credit Card Processing is often an ideal solution for the business owner who is need of a quick financing solution at a low rate. Merchant cash advances offer the opportunity to obtain a fast cash advance in exchange for a percentage of your debit and credit card sales. Business owners who have found it difficult to obtain the financing they need through traditional lending institutions due to poor credit or because they have not been in business very long, may find that working with merchant service company in Los Angeles is the ideal solution for their financing needs.

Fast Funding

One of the main benefits of this type of arrangement is that you can often receive the funding you need in just a matter of days. We a premier Merchant service company in Los Angeles, can provide funding in seven business days or less. With funds deposited directly into your account, you are able to enjoy the freedom and flexibility of handling your immediate financial needs with no hassles. In addition, you can also typically receive an approval decision within one business day or less, giving you complete peace of mind that your business funding needs are met.

High Approval Rate

Additionally, the approval rate for such advance is quite high. Even business owners who have a bad credit score can still receive approval for the financing they need. The reason for this is that merchant service companies do not take credit scores into consideration when approving advance requests. Due to the fact that lenders receive funding back through a percentage of credit card sales, there is absolutely no risk involved. This makes it possible for merchant services to meet your immediate cash needs without considering your past credit history. You also do not need to worry about submitting tax returns. This eliminates the need for time-consuming applications and allows you to receive the funding you need in a more timely manner.

No Upfront Fees or Fixed Payments

You also do not have to worry about paying any fees upfront when you apply for a merchant cash advance. There are absolutely no processing fees. Additionally, you never need to worry about making fixed payments. Repayments are based on a percentage of your daily sales totals, ensuring that your repayments are always affordable. If you happen to experience a slow day, your payments will remain low. When sales increase, your payments correspond, allowing you to pay off your advance even faster.

Operating a small business can be challenging enough on its own. The last thing you need to worry about is financial concerns. By taking advantage of Los Angeles credit card processing, you can obtain the financing you need without worrying about passing invasive credit checks, completing time-consuming applications, or meeting repayment plans that stretch your budget. In just a matter of a few minutes, you can quickly and easily apply for the funding you need.


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High Risk Merchant Accounts

B.J. Kharrazi : May 20, 2013 1:13 AM : Blog

Trying to obtain a high-risk merchant account can frequently prove to be a challenging task. In addition to the fact that very few credit card processors are willing to work with high-risk businesses, the entire process can often be quite frustrating and time-consuming. One of the primary reasons that the application and approval process can be so difficult and take so long is the amount of risk the processor must usually take into account. Understanding that level of risk can help you to improve your chances of being approved.

As you may or may not already be aware, there are certain industries that are typically considered riskier according to credit card processors. Such industries often include adult entertainment, affiliate marketing, pharmaceuticals, outbound telemarketing, and gaming. One of the reasons such businesses are considered risky is the regulatory environment that surrounds such industries. The potential for merchant fraud can also increase the risk level associated with these businesses. Although this is not the case with all businesses, there are many websites that simply serve as fronts for operations that are illegal or restricted. In addition, the risk of charge-backs is also considered problematic. Finally, credit card processors are often considered about issues related to declined transactions. In fact, the rate of declined transactions can reach about one-third in many businesses.

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How to Choose the Best Merchant Service Provider

B.J. Kharrazi : April 30, 2013 10:31 PM : Blog

When you are in need of a local Los Angeles merchant account, it is important to understand how to choose the most reliable service. Whether you are just opening your business or you are planning to expand in the near future, it is crucial to select a cost-effective, robust, and reliable option. There are many choices for credit card processing in Los Angeles, which can leave you feeling somewhat overwhelmed. By understanding how to choose the best service, you can quickly narrow the options.

It is not uncommon for many people to make their choice for a Los Angeles merchant account based on price. While it is important to shop around and find the most competitive rates, there are other factors that should be considered as well. For instance, among the most important variables to consider is the amount of experience the merchant service provider is able to offer. Experienced merchant account providers typically offer a higher level of security, risk and underwriting management in addition to technical capabilities and customer support. Many providers appeal to your desire to obtain the lowest price possible by offering rates that appear to be quite low. The problem with this is that many of these rates are not inclusive of all of the fees you can expect to pay. The merchant account industry can be quite competitive, but it is important to make certain that you do not choose a service that will lure you in with initially low rates that do not represent the true amount you can expect to pay.

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How To Prevent Your Merchant Account from Experiencing An Account Freeze!

B.J. Kharrazi : August 13, 2012 6:55 PM : Blog

frozen credit card processing accountA rare, vital subject not often spoken about concerning merchant account credit card freezes. It’s considered an unbearable set-back when it comes to your finances. It is also a hindrance to your business.

The second your merchant account experiences a hold, you cannot access any of your funds until they feel the issue is resolved. The problem with this is you will not be able to send or transfer funds or allow transactions involving a credit card. This could take days, weeks, months, or even years.

You may have heard of some off-the-wall merchant account stories leaving you with an endless means of questions in your mind. A portion of Internet users feel that the merchant accounts are responsible for the development of stories, others beg to differ.

There is a root to every cause attached with some form of an effect—either positive or negative. In such cases, the banks are the entities that place holds on the merchant accounts until issues are resolved.

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Credit Card Processing Is The Prefered Method of Payment for Internet Business Owners In the Digital Age

B.J. Kharrazi : August 13, 2012 6:44 PM : Blog

eCommerce Merchant ServicesProcessing credit cards on the Internet is a much required form of payment when buying products or services online. If you’re a business owner, it’s crucial you have a merchant account.

People feel secure with merchant accounts that allow credit card processing. Buyers and sellers have different advantages and disadvantages when using your credit card.

For instance; if you’re a buyer and not happy with your product and feel it doesn’t meet the description, you rightfully have the power of authority in most cases to request for a charge back. Hence, you do the right things and send the product back to the seller.

As a seller, the disadvantage is having to wait for the buyer to be satisfied and, or leaves you with positive feedback. Situations like this can take place on websites like eBay. The advantage the seller has is holding off on leaving feedback until the buyer has agreed the transaction went through smoothly.

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