Merchants Center.com » Credit Card Payments

Business Cash Advance and Your Own Business

Melanie James — Thu, 10 Dec 2009 00:18:17 +0000

When in need of short term financing assistance, a business owner can apply for a merchant cash advance. This article talks about the process of business cash advance loan, also known as credit card account receivables factoring or credit card financing.

if you're in need of money

What is Business Cash Advance?

Business cash advance is available for entrepreneurs who have a merchant account or who accept credit card payments.

You can use your credit card receivables to obtain cash from a factoring lender.

Most lenders offer 80% cash advance from the amount of the receivables submitted. The rest of the funds will be given when the cardholder completes payment.

This method is ideal for keeping the cash flow steady. Instead of applying for a traditional business loan, a merchant can use the sales made from credit card-paying customers to get cash right away. Instead of waiting for the 30-day grace period given to cardholders, a merchant can instantly utilize the funds to cover for business expenses.

Points to Ponder For Small Business Owners

Who are qualified to get a business cash advance loan? Factoring lenders often require that the business meets the minimum value of credit card sales each month. The minimum amount may range from P2, 500 and above. If your credit card transactions do not reach this quota, you may consider other business financing options.

It is important to choose a legitimate cash advance lender. Watch out for lenders who offer instant approval online as not all lending companies that you can find on the web can be trusted. Spend time and effort doing research and make sure that you clearly understand the process.

A typical business cash advance application can be processed within two to four weeks. Take note that you should not be required to submit an upfront payment to get approved.

If you are not familiar with how merchant cash advance financing works, you may seek help from a business marketing expert. You can also ask for recommendations from other entrepreneurs or business owners in your community or State.

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About the Author:

Melanie James has spent the last 14 years working with businesses to implement quick, effective and inexpensive changes to their businesses to increase productivity and their bottom line.

How Your Business Can Accept Credit Card Payments

Melanie James — Mon, 14 Sep 2009 06:41:07 +0000

Accepting credit card payments is definitely a huge advantage for any business. With the popularity of internet shopping, many consumers today prefer the convenience and cost-effectiveness of shopping online.

Thus, if you don’t accept credit card payments, you could be losing a large percentage of potential customers. The question is, how do you accept credit card payments?

Opening a Merchant Account

The first step to be able to accept credit cards as payment is to apply for a merchant account.

Banks and merchant account companies offer credit card payment systems for both small and large businesses. However, before you sign up for their service, do your research well and check the exact terms and conditions of your chosen merchant account provider.

When comparing merchant account service providers don’t forget to check the pricing. How much would it cost you per card transaction? How much would be the set-up charge? What kind of support does the company provide to their customers?

What about the reputation and track record of the company? What do present clients have to say about their service? These are important questions to consider when choosing a merchant account company.

Does My Business Qualify?

If you’re running a home based business or a small business, what are the requirements to get approved for a merchant account status?

Of course, your business’s financial standing would be reviewed. Banks or merchant account companies would be interested to learn exactly how much you earn from your sales each month. If your business has a stable history of sales and income, you should have no problem getting approved for a merchant account.

Another factor that would affect your lender’s decision would be the status of your business credit history. Have you already established a business credit? Usually, a business needs to be at least 2 years in operations to get approved for a merchant account. In 2 years, you should have already established a solid business credit history as well.

Needless to say, if you have a problem with your business credit, it would be difficult to get an approval. To be sure, check your business credit report at least 6 months in advance and do the necessary steps to improve your rating before applying for a merchant account.

On the other hand, having a good to excellent business credit history would surely win you a quick approval. If you can prove that your business has been running smoothly for a considerable period of time, and that you have a good business partnership with your suppliers, achieving a merchant status wouldn’t be difficult at all.

Accepting Credit Card Payments

Once approved, you’re now ready to accept credit card payments. See to it that you clearly understand how the processing of credit card payments work. Your merchant account provider should give you all the assistance and support you need to make sure that unnecessary problems would be avoided.

As the owner, you should also be aware on how you can protect your business from the risk of identity theft and credit card fraud. Before accepting credit card payments, you should be completely prepared in handling your incoming credit card transactions.

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About the Author:

Melanie James has spent the last 14 years working with businesses to implement quick, effective and inexpensive changes to their businesses to increase productivity and their bottom line.

Prepaid Debit Cards – Why Advantageous for Merchants

Melanie James — Thu, 10 Sep 2009 08:17:16 +0000

Prepaid debit cards have been introduced in the market for quite some time. To keep up with the competition, different issuers have enhanced it’s features to make them more flexible and user-friendly. Today, prepaid cards are not just ideal for people with bad credit history. Even those who do have good credit standing can choose to own a debit card for personal reasons.

In fact, small business owners are beginning to recognize the benefits of using such.

If you are a small business owner, then you should be interested to learn how it can be beneficial for your business.

In this article, let us discuss why debit cards are advantageous for merchants and how you can make the most out of them.

Encourage Customers to Pay with Debit Cards

If you have a merchant account, then why not encourage your customers to pay with a DC’s instead of a credit card? Some merchants even accept ONLY debit card payments. The reason? There is much lower card processing fees involved with debit card transactions than with traditional credit card transactions.

Merchant account providers can afford to require lower fees on debit card payments because it involves much less risk than credit card payments.

When a DC holder pays for his/her purchases, the balances are instantly paid off using the customer’s available funds from his/her debit account.

The only risk associated with this purchase is if a customer makes claims that the products were not received in good condition or that the transaction was made without consent and demands for a charge-off. Of course, the same thing applies with customers who use the credit card mode of payment.

On the other hand, when a credit cardholder pays for his/her purchases, the customer has the option to pay for the full balance within that billing period or pay only the minimum amount required by the credit card issuer. Thus, credit card processing costs tend to be more expensive than debit card processing fees.

Manage Your Payroll with Debit Cards Payment System

Whether you hired in-house employees, freelancers or home based contractors, you can simplify your payroll system using debit card payment. How is a DC payroll system more advantageous than the traditional one?

First, you can conveniently keep track of your payroll records by accessing your debit account. Most debit card companies provide an online account access for their cardholders so you can check on your account status from your own computer at any time. If you need to document the report, you can simply print out a copy for filing purposes.

Sending payments through debit cards is more cost-effective, more convenient and safer. As a business owner, all you have to do is deposit sufficient funds in your debit account, and you can send out payments through online banking.

Unlike wire money transfer services, you will not be charged with additional costs every time you send in payment. Your employees can make a withdrawal from the ATM immediately after their salaries have been sent.

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About the Author:

Melanie James has spent the last 14 years working with businesses to implement quick, effective and inexpensive changes to their businesses to increase productivity and their bottom line.

Business Cash Advance – an Efficient Business Financing Option

Melanie James — Thu, 09 Jul 2009 23:28:03 +0000

A business cash advance is a popular financing option for many small business owners. However, before applying for a business cash advance financing, see to it that you understand how it works and how you can use it to save your business.

How Business Cash Advance Financing Works
There is another name for business cash advance financing – accounts receivables factoring. Based on this term, it’s easy to see that financing can be obtained by submitting accounts receivables invoices to a factoring lender.

Accounts receivables are sales made to customers that are awaiting payment. Merchants often extend 30-day credit to their customers to give them time to pay back their purchases. However, if you have a limited budget, you may need to obtain cash during the thirty-day waiting period. This is where business cash advance or accounts receivables factoring can help you.

When you submit your receivables invoices, your lender would immediately release your cash advance. Most lending companies offer 80% cash advance from the amount of invoices surrendered. Upon approval, your lending company will take over the collection of payments from your customers.

When your customers finished submitting their payments to your factoring lender, the business owner can receive the remaining 20% from the amount of invoices. Typically, customers are given 30 to 60 days to submit their payments. If your customer fails to pay back their debts on time, the business owner will get penalized.

Aside from accounts receivables, a merchant can also use credit card sales through credit card receivables factoring. If you accept credit card payments online, this is a good financing option for you. Both accounts receivables and credit card factoring can be obtained by businesses that have been in existence for at least two years. For new business owners, they will have to seek other alternatives to meet their short term financing needs.

How to Manage a Business Cash Advance

If you haven’t tried a business cash advance loan, it is recommended to explore your options carefully and do your own research. Take note that not all lending companies that offer accounts receivables factoring or credit card factoring services are legitimate. It is your duty to fin one a lender that not only offers a great deal but one that can be trusted as well.

For new business owners, it is also a good idea to seek professional advice from a business accountant or a business attorney. Get to know practical tips on how you can use your sales invoices and credit card transactions to free up your resources.

About the Author:

Melanie James has spent the last 14 years working with businesses to implement quick, effective and inexpensive changes to their businesses to increase productivity and their bottom line.

Managing Your Working Capital Through Credit Card Factoring

Melanie James — Tue, 09 Jun 2009 04:35:15 +0000

If you are an online seller and you accept credit card payments, you should consider a method of business financing known as credit card factoring. Let’s discuss how credit card factoring is done and how it can benefit your online business.

How Credit Card Factoring Is Done

Have you heard of accounts receivables financing? This method of business financing is done by selling existing invoices to a cash advance lending company to acquire cash. Thus, the business owner won’t have to wait for the customer’s payments to start using the funds.

Lenders usually offer 80% cash advance from the amount of the invoice submitted. Once the lending company receives the complete payment from the customers, the business owner can receive the other 20% cash from the invoices submitted.

In concept, credit card factoring works in the same way. The only difference is that customer payments will not be sent in cash but through credit card. By selling credit card transactions, a business owner can utilize its profits or sales without having to wait for a 30-day repayment period.

Many businesses today turn to credit card factoring because it is easier to avail than traditional business loans. Instead of waiting for a few months to get approved for a business loan, an online merchant can get financing help from a credit card factoring lender at a sooner time.

Business credit isn’t required to get approved for a credit card factoring financing. Whether or not you have good credit history doesn’t matter. If your business reaches the lender’s minimum quota of credit card transactions each month, then you can apply for a credit card factoring loan.

How to Utilize Credit Card Factoring

The money you receive from your factoring lender can be used for many purposes. If you need to repair one of your machines or purchase a new machine in a hurry, credit card factoring can help you.

If you need to hire additional workers for this season to meet your customer orders, you can use the funds to pay for new workers without delay. Credit card factoring is also a great help when financial emergencies arise.

Because credit card factoring involves fast and easy processing, it is still a viable option even if you’ve already applied for a bank business loan. While waiting for your loan to get processed, you can use your credit card factoring loan to start your projects right away.

Use Factoring Wisely

Just as caution is needed in obtaining other types of business financing loans, business owners must exercise discretion and care before applying for a credit card factoring loan as well.

See to it that you’ve studied the Terms and Conditions of your lender before signing up your contract. It is important to choose credit card transactions only from your trusted customers to ensure payment.

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About the Author:

Melanie James has spent the last 14 years working with businesses to implement quick, effective and inexpensive changes to their businesses to increase productivity and their bottom line.

How To Avoid Chargebacks

Melanie James — Thu, 28 May 2009 14:04:27 +0000

Do you own a business? If yes, then perhaps one area of your business that you’re most concerned about is your payment processing system. Today, every small businesses can accept credit card payments from customers. However, with cases of credit card fraud ever increasing, both consumers and business owners are warned to take the necessary precautions to avoid possible problems.

What is a chargeback and how can you avoid them?

One of the most common problems about accepting credit card payments is getting charge backs. But what are charge backs?

When you accept credit card payment from a customer, there’s a possibility that the customer can change minds, or isn’t even the real owner of the credit card.

Perhaps the credit card has been stolen and is being used without the real card owner’s consent.

By the time the credit card owner receives his/her billing statement, he or she may dispute these unauthorized charges. Under the Fair Credit Reporting Act, a consumer has the right to dispute unauthorized charges in the account. In this case, when the consumer calls up the bank and advise them about these unauthorized charges, the credit card issuer may move for a reversal of that particular credit card transaction.

Obviously, credit card charge backs can affect a business’s sales and marketing performance. If you’re not careful, a huge amount of chargeback can result to a major loss in your profits. What you thought was a genuine sale for your business later on may prove to be a fraud.

To avoid being a victim of credit card fraud, it is the merchant’s responsibility to accept credit card payments with extreme caution. Here are some steps you should take before closing that credit card purchase.

• Swipe the card or imprint it on the transaction receipt. In case of a dispute, having the card swiped proves that the customer presented the credit card when the purchase was made.

• Closely examine the cardholder’s signature. Sometimes, it is easy to overlook this crucial step especially when there are a lot of customers in line, waiting for their turn in the cashier. But checking if the customer’s signature matches the signature at the back of the credit card can alert you of a credit card theft. Instead of presuming that the credit card holder is the real owner, keep in mind that there is always a possibility that the credit card being used is stolen.

• Ask for proof of identification. Some shops do not ask for additional IDs unless it’s a huge purchase amount. But even if it’s just a small amount of purchase, every merchant should make it a practice to ask for at least one ID from their client.

• Check the credit card’s expiration date. Don’t forget to check the expiration date on the credit card. There are cases when credit card thieves use old or expired credit cards and get away with it.

• Call the credit card issuer. If you’re in doubt, take a moment to call the credit card issuer to confirm the details of the cardholder.

About the Author:

Melanie James has spent the last 14 years working with businesses to implement quick, effective and inexpensive changes to their businesses to increase productivity and their bottom line.

Requirements for Processing Credit Cards on Small Business Web Sites

Melanie James — Thu, 21 May 2009 23:48:47 +0000

A business that accepts credit card payments online definitely has the edge over its competitors. As more and more consumers today prefer to shop from the internet, you just can’t afford not to have an online order option and online payment system on your website. Yes, even if it’s just a small business, having a credit card payment system will make a big difference in your marketing performance.

The first step you need to do is apply for a merchant account. You can contact your bank and apply for a merchant account so you can get started with your e-commerce site.

But what does it take to be able to accept online credit card payments? And what are the requirements needed in a credit card processing system?

Preparing Your Website

Secured Web Site. The primary factor you need to ensure is the security of your customers. See to it that your website is encrypted with at least 128-but SSL (Secure Socket Layer) certificate.
PGP Encryption. PGP encryption is used for protecting e-mails from getting hacked. If a customer chooses to place his order via e-mail, a PGP encryption will ensure that the contents of the e-mail will have some protection.

Firewall. Since you will be handling credit card details and personal information from your customers, it is crucial to do all the necessary steps to protect their privacy. Another way to do so is to set-up a firewall on your website.

Shopping Cart The right shopping cart application. Find a shopping cart that is not only safe and secured but one that is dependable.

There are several e-commerce software providers in the market so you’ll want to take your time in researching and looking for the best one. Make sure that it is able to accept different payment gateways.

Remember that you prospective customers will not be using only one type of credit card. A shopping cart application that accepts Visa and MasterCard is great but if you can find one that accepts a wider range of gateways, then the better it is.

Also, you’ll want to get a shopping cart that is easy to use and efficient. Test if your shopping cart really lives up to its promises. Usually, a customer who intends to buy can lose interest if he can’t figure out how to use your shopping cart. Find a shopping cart provider that will give you a 24/7 customer support in case you need assistance.

Privacy Protection Statement. Assure your online customers that their privacy is respected and duly protected. A Privacy Protect statement should be posted on your website. More importantly, stay true to your promises. Don’t sell the information you collect from your customers to marketing companies or brokers.

Register with legal organizations. Being registered with trusted organizations in the business industry like the Better Business Bureau will give your business more credibility. Posting official logos from prominent organizations will give your customers more confidence in buying from your website.

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Melanie James has spent the last 14 years working with businesses to implement quick, effective and inexpensive changes to their businesses to increase productivity and their bottom line.

Accepting Credit Cards – the Way to Building Up Your Customer Base

Melanie James — Fri, 24 Apr 2009 01:48:15 +0000

If you’re looking for an effective way to increase your customer base, then you should definitely consider accepting credit cards. Whether you’re into selling products or offering services, your business will be a lot more effective if your going to use credit card marketing strategy.

The Age of Plastic

If you still haven’t realized it, you’re living in the plastic age, where credit card is the new money.

Yes. With the convenience that credit cards bring, most people prefer to use them as payment compared to cash whether they’re shopping in a regular store or purchasing from an online market.

Just think about how much your business will be missing out if you go on marketing without accepting credit cards. Your business probably wouldn’t have much improvement for the years to come if you won’t accept credit card payments.

Are Credit Cards Safe?

Some business entrepreneurs reason out that customers are really afraid to make online transactions. True, there may still be a lot of people who are hesitant about purchasing through the internet because they fear credit card fraud and identity theft. However, many businesses have gotten over this obstacle by providing a secured website for their customers.

In fact, many customers are willing to purchase online using their credit cards as long as they are assured that the website is secured and that the online marketer is a legitimate one. Because credit cards allow them to shop conveniently even with their busy schedules, more people still prefer to do online shopping rather than go out of their way to visit the mall or regular stores.

There is a big market of online shoppers out there, and your business needs to reach out to this online market. Yes, you too can strengthen your business and acquire more customer base by providing a secured website that allows customers to use their credit cards and make purchases securely.

Protecting Your Customers

If you’re going to accept credit card payments, one of the first things you should check is that your payment processing page uses Secure Socket Layers (SSL) of at least 128 bit.

This will be reflected with padlock symbol that users will find at the bottom of their browser’s window.

The padlock symbol indicates that the webpage uses security encryption that protects all the information that is entered in the page. With this credit card strategy, you can be assured that your customers will be more confident in making online purchases from your business.

Don’t forget to provide a customer support system for your business as well. When your business accepts credit card payments, you can expect to receive a lot of inquiries from your customers.

Prove to your customers that you’re a reliable business company by responding to their queries quickly and efficiently. Let them know the status of their orders and the purchases they made and assure them that they have made business with the right online merchant.

Truly, accepting credit cards using a secured system will increase your customer base and productivity significantly.

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About the Author:

Melanie James has spent the last 14 years working with businesses to implement quick, effective and inexpensive changes to their businesses to increase productivity and their bottom line.

Accepting Credit Cards Online – the Possible Options

Melanie James — Thu, 23 Apr 2009 23:38:23 +0000

If you have started to introduce your business in the internet, then it’s about time your business should accept credit cards online. If you’re having second thoughts about accepting credit cards from your customers, you should be happy to know that it’s not really that complicated.

In fact, once you’ve accepted credit card payments, you may be surprised to find that this new system payment actually works to your advantage.

Why Accept Online Payments?

Accepting credit cards online is a great opportunity to widen out your market.

People who cannot go out of their way to visit your establishment, but would like to buy your products or avail your services can conveniently do so through the internet.

Since, more and more people today prefer to make their purchases online, think about the earning potential your business will enjoy simply by accepting credit card payments.

Third Party Provider

In order to be able to accept credit card payments, a business must first establish itself as a legitimate merchant. This will allow a business to be accepted as a partner with one of the business merchant services. A business merchant service is a company that processes credit card payment or credit card transactions of your business.

One of your options for a merchant credit service is a third party provider. A third party provider handles all your credit card transactions which mean all information regarding all credit card payments to your business are managed on your behalf. With this kind of arrangement it is very important to ensure that the third party provider you do business with is reputable and legitimate.

Internet Merchant Account

Another option is by applying for an Internet merchant account. This way, you will be handling your own account and process all credit card payments you receive through the internet.

For most business owners, this is the option they prefer because they do not have to entrust their finances with a separate company. Also, many businesses find that an Internet merchant account is one of the cheapest options they can avail.

What About Security?

If you already have set up your own Internet merchant account, then you’re ready to accept credit card payments. However, make sure that your customers can do their online transactions safely.

A website that uses SSL or Secure Socket Layers is the best way to ensure that all information that is entered by your customers will not be hacked or stolen. A secured website has a padlock icon which your customers can find at the bottom right corner of their browsers.

Providing security to your customers is very important when it comes to accepting credit cards online. Customers will not be taking any chances in purchasing from you or doing business with you if they are not one hundred percent sure that their credit card information is safe with you.

If you’re aiming for an increase in your sales and your customer base, then accepting credits is indeed the right move for your business. As long as you do all the necessary steps to ensure that all credit card processing will be done securely, you should be seeing the positive results instantly.

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About the Author:

Melanie James has spent the last 14 years working with businesses to implement quick, effective and inexpensive changes to their businesses to increase productivity and their bottom line.