Charge.com vs Yahoo

In order to accept and process payment and affectively manage ecommerce, every online store should have a merchant service provider. When shopping for merchant services, there are many options available. Charge.com and Yahoo are both reputable companies and provide a variety of features and benefits at competitive prices. However, all merchant service providers vary in their charges, the types of payments they allow you to accept, the quality of technical support they provide, and other related features. The following information is an outline of Charge.com and Yahoo merchant services, providing a comparison for both companies.

Charge.com

Accept credit cards: Visa, Master Card, American Express, and Discover.

Competitive Rates*
Free Application
Free Setup
Free Technical Support
Free Online Payment Processing Software
Free eCommerce Shopping Cart
Free Web Based Terminal for manual Processing
Online Reporting and Management of Transactions
SSL Secure Transactions


Yahoo Merchant Services

Accept: Visa Master Card, American Express, Discover, PayPal, Checks, PO's, COD's, and Money Orders.

Competitive Rates*
Free Application
$50 Setup Fee
Free Technical Support
User Friendly Yahoo Shopping Cart
Advanced Tracking Statistics
Sales and Inventory Reports
SSL Security and Fraud Protection
Search Engine Submission / Discounts on Yahoo Advertising

*Monthly fees and transaction rates are based on sales volume, average ticket amount, and the types of products and services being sold. Charge.com provides rate information upon completion of their free application, while Yahoo offers some information about fees on their website - according to sales volume.

Both Charge.com and Yahoo are highly ranked for fast set up and easy use. In addition, they both have excellent approval rating and a friendly, professional support staff. Visit Charge.com and Yahoo on the web for more details. Choosing a merchant account provider should be based on the needs of your individual business.

Charge.com

Yahoo Merchant Solutions

Protecting Your Merchant Account

A substantial part of protecting merchant accounts is securing them from online fraud. At present, identity theft is the fastest growing crime in America. While online shopping allows for the ambiguity of a persons identity, it is highly targeted for the purpose of completing fraudulent activity. In other words, since no one really knows who they are selling to online, it is easy for a person to pose as someone else. However, there are security measure that should take place to minimize your chances of becoming a victim and reduce the risks of credit card chargebacks with your merchant account.

First of all, choose your merchant account provider based on the security features they offer. Many companies have their own screening measures that work to combat identity theft. One of the most important features you will need to implement is the verification of the card validation code. The card validation code, also referred to as the CVC, CVV, and CVV2, is the 3 to 4 digit number located on the back of each physical credit card. By verifying this code, it ensures that the card user has possession of the physical credit card, and has not just acquired the card number by hacking or some other illegal means. Often, when a credit card number is stolen for online use, the thief will not be able to provide this code for verification.

In addition to requiring the card validation code at your point of check out, it is a good idea to verify that the address provided matches the billing address of the credit card. Many internet merchant accounts provide services that run this verification process for you. This process is fast and often efficient at warding off fraudulent card users. In addition, be aware of anyone who requests international shipping or needs a large order overnighted. These are both red flags for fraud that is about to occur.

Sometimes chargebacks are not the result of fraud and can be avoided by effective communication. Be sure that the terms of your return policy are clearly stated on your website. It may also be a good idea to include them on paper with the product you are shipping. This should alleviate any frustrations your customer may experience that could lead to chargebacks.

In addition, know how your company name will appear on your consumer's credit card statement. Sometimes consumers will dispute charges if they cannot identify their purchase on their monthly bill. Make sure they will be able to recognize you.

Finally, present your phone number wherever possible. Consumers who can easily contact your business to settle problems are less likely to dispute them with their credit card company. Therefore, by taking this measure, you will experience fewer chargebacks and protect your merchant account.

Bad Credit Merchant Accounts

Today, bad credit merchant accounts can be found almost everywhere. Our recent economic recession has placed many business owners in financial hardships. Therefore, there is a growing need for merchant services with lenient requirements for acceptance. However, merchant accounts that cater to those with bad credit often charge higher rates to compensate for the higher risks they take. Plus, current involvement in certain financial proceedings may make it impossible to acquire merchant services from anyone.

When shopping for a merchant account, you should consider all your options. Even though your credit history may seem questionable, it is always a good idea to apply for regular merchant services first. You may be surprised about what they are willing to accept or find that your credit is not as bad as you thought. If you are denied for a regular merchant account, then, you should begin shopping for merchant services that provide for those with bad credit.

There are numerous options for bad credit merchant accounts available online. They often advertise high approval ratings and can provide you with a response that same day. In addition, there are international merchant accounts that approve applicants with leniency. However, research all terms carefully, as some companies will try to take advantage of individuals with fewer options as a result of bad credit. You can expect to pay higher discount fees, but should still shop around for the best deal. Plus, it is not uncommon for bad credit merchant accounts to require a steep up front payment or deposit for their services.

Almost any merchant who needs a merchant account can acquire one, with the possible exceptions of those who have current or recent bankruptcy proceedings, show a history of fraudulent activity, or are on the VISA/MasterCard watch list. Overall, bad credit alone should not disqualify one from being able to operate a new business. Today's market is full of companies that specialize in high risk merchant accounts.

Free Merchant Accounts

When you see the word “free” used to describe merchant account services, it usually refers to one of two things. The merchant account provider may be waiving all set up fees, credit card equipment fees, and other miscellaneous fees, to provide you with service in which they only charge the discount fee, or a percentage of each sale as it occurs. Or, free merchant account services can describe 3rd party processing, where another company pays the associated expenses and processes your credit cards for you.

Nothing about free merchant services is actually free, because either the merchant account provider or 3rd party processor will always charge a percentage of each sale. However, traditional merchant accounts often charge fees for applications, equipment, start up expenses, monthly statements, batch summaries, and more. Using a free merchant account can save a company from paying a lot of up front expenses.

Merchant account providers who waive the fees associated with opening and maintaining an account do so to be competitive in their industry. They wish to appeal to new vendors and grow their profit from numerous discount rates being paid. So, they cover all the other expenses and fees under the assumption that they will earn the money back and begin to gain a profit after a short time. As with most merchant account services, a contract generally applies that specifies the length of service.

With 3rd party free merchant accounts, another company accepts credit cards on behalf of your business, but charges you a few extra percentage points on each transaction. Again, this saves money up front that would ordinarily go to pay for expensive processing software, equipment, customer service fees, payment gateway fees, or minimum transaction fees. Plus, 3rd party services rarely do credit checks and can start processing cards immediately. If your business performs a limited number of card transactions, this may be the best route to take. However, for high volume sales, paying those few extra points can end up costing a lot more in the long run. Some people choose to use a 3rd party free merchant account a a stepping stone until their business takes off.

Google CheckOut vs PayPal

Ecommerce providers are often in search of merchant accounts that are cost efficient and easy to use. Google CheckOut and Paypal are strong competitors as third party payment processors offering free merchant accounts. They provide added security for both the merchant and the consumer, allowing credit cards to be processed safely. PayPal is presently more established with merchants and consumers, managing more than 100 million accounts. However, Google CheckOut is rapidly growing in popularity by offering discounted rates and incentive programs.

Google CheckOut is a branch of the Google search engine. One of the main advantages of this company is that it is integrated with Google AdWords. With Google CheckOut, merchants receive additional recognition in the Google Search Engine. Plus, they get a number of discounts on certain services. On the other hand, Paypal derived from the eBay corporation. They are more widely accepted and offer a full range of merchant services. Not only do they accept credit cards, they deduct from bank accounts as well.

Security features for Google CheckOut and PayPal are similar. They both use an encrypting system that codes sensitive data before it crosses the internet. They also both offer similar pricing, rebate programs, and fast payment processing. However, Google CheckOut has recently run some special promotions in their efforts to compete with PayPal.

Fraud protection is offered by both Google CheckOut and PayPal at 100%. However, PayPal requires that the transaction amount is over $50 before they will ensure coverage. Both companies have a support staff that works to quickly resolve issues. However, customer support through PayPal is available live through a toll free number, while Google CheckOut responds to questions by email. There are advantages and disadvantages to both payment processors. Some merchants choose to use both Google CheckOut and PayPal as opposed to choosing between them.

Virtual Merchant Accounts

In today’s world of modern technology virtual merchant accounts process credit cards without credit card machines. Ideal for ecommerce, they can be used by anyone who has a computer with internet access. Just as a regular credit card terminal functions, virtual accounts work to verify, authorize, and facilitate financial transactions.

Offering online credit card processing with a virtual terminal, virtual merchant accounts can be set up easily. The process usually takes less than a day and provides up to date online security features. Generally, a merchant account specialist will walk you through the system, explaining what the components are called and how they operate. Business owners with a basic knowledge of their virtual terminal system will be able to cash in on increased revenue.

Virtual terminal accounts are able to service more than just online vendors. They can be used by solo professionals, who like the option of remote billing, on-site vendors who work at trade shows, restaurants, and anywhere else that can benefit from a wireless payment option. With the creation of numerous hand held devices that access the internet, virtual terminal accounts are able to exist almost everywhere.

In addition, there are several different types of virtual terminal accounts. Wireless equipment that submits data over telecommunications networks, mobile credit card processing software, software applications that turn laptops into credit card processors, and web portals that allow the consumer to process full transactions, all operate as different forms of virtual terminals.

Overall, virtual terminal accounts offer solutions and smart, safe processing to a number of different business types that can utilize them for gain. They assist any merchant in upgrading to a cashless payment system and simplify the ability to process credit cards in a fast and efficient manner.

Credit Card Merchant Fees

In order to accept credit card payments for your online business, you will need both a merchant account and a payment gateway. A merchant account is a bank account that allows transactions to be deposited as they occur. A payment gateway, provides electronic communication with the customer's card issuing bank, to authorize funds almost instantaneously. However, these services constitute a number of fees that must be paid by the merchant. Therefore, it is important to shop around and know what costs to anticipate.

Overtime, one of the most expensive aspects of accepting credit cards is likely the discount rate. Discount rates are a percentage that is charged by your merchant account provider for each transaction that occurs. They vary depending on your annual sales volume and average transaction amount. However, you can expect them to fall in the range of 1.5%-5%, depending on the merchant account provider you select and your individual circumstances.

In addition, a transaction fee is generally charged for each sale. A transaction fee can be charged by either the merchant account or payment gateway provider. It is a flat fee that usually amounts to somewhere between 15 to 30 cents per transaction. This is why many companies will not accept credit cards for small purchases of a few dollars or less.

Set up fees, application fees, equipment fees, and statement fees are all commonly charged by a merchant account provider. However, some companies will tax on additional fees for various other services. Plus, payment gateways generally charge a monthly processing fee, in addition to a transaction fee. This is a flat fee that is assessed just for authorizing credit cards and may cost somewhere around $40 per month.

There are numerous merchant account and payment gateway providers. Each of them varies in terms of fees. Therefore, it is important to shop around for the best deal before signing an agreement for service. Also, be sure to read all the fine print of any contract.

The best Merchant Account provider is MerchantWarehouse.  They have cheap fees and are very easy to use.