|
|
 |
|
Ecommerce / Web Marketing Ezine
March 17 2002
|
View the TTB Ezine Archive
Taming the Beast Ezine - March 17 2002
Contents:
- A note from Michael and Kathy
1. Site News and Updates
2. Article Summary - Shopping cart overview
3. Full Article - Payment Gateways & Merchant Accounts.
- Closing Notes, subscription and contact details
March 17 2002
Greetings All,
Commencing in this ezine issue, we'll be publishing the full version of an article published in the last fortnight, instead of older articles. These articles are free for reproduction as long as the copyright statement is included.
This fortnight's full article deals with the confusing world of payment gateway services and merchant accounts - pre-requisites for accepting online payments using credit cards. We'll also catch up with site updates and other news from Taming the Beast.net
Many articles are available from our site, free for reproduction on your web site or ezine. Subjects covered include Web Design, Ecommerce, Internet Promotion and Marketing, Security and of a general cyberspace related theme. The article index can be viewed at:
http://www.tamingthebeast.net/ articles/articlemain.htm
Don't forget to check out the other great resources on TTB! We're adding new tools and tutorials on a weekly basis! Have you tried out the online Flash and DHTML generator as yet? Find it here:
http://www.tamingthebeast.net/ generators/codegenerators.htm
Please forward this newsletter on to those who you feel may be interested in the subjects discussed. Unsubscribe details at the end of the newsletter.
======================================
**TAMING THE BEAST CONSULTANCY SERVICES***
-Need a web site developed?
-Want to boost your search engine rankings?
-Need a banner? - 4 of ours recently became high click-through prize winners!
-Don't have the time to promote your site yourself?
Review the many consultancy services offered by Taming the Beast:
http://www.tamingthebeast.net/ admin/about.htm
====================================
1. Site News and Updates
Color Changes
If you have visited the site over the last couple of days, you would have noticed changes to the colour scheme and banner logos, etc. This is a work in progress and further changes will be carried out over the next month or so. Any constructive feedback you have on the changes would be greatly appreciated.
Internet News
The ecommerce and general web environment changes rapidly. One day is an eternity on the Internet... Stay up to date with all the latest ebusiness information via Taming the Beast.net! Our free technology news headlines are updated continuously, 24 hours a day - 7 days a week! View it here:
http://www.tamingthebeast.net/n&w/internet-news.htm
Freebies
Not really web development related, but due to the popularity of our free cell phone ring tones section and the demand for general freebies, we've started a new section for general freebies and discounts which will be updated every week. Take a look, there might be something of interest to you! Freebies include phone cards, product samples - you can even win a Pentium 4 computer or the fastest video card on the planet - A Geforce 4 Ti 4600!
http://www.tamingthebeast.net/ freebies/free-offers-1.htm
-------------------------------------
NEW AFFILIATE PROGRAM VIA TTB!
Did you know, that in the year 2001, there were in excess of over 280 Billion PAID SMS messages sent worldwide - this includes cell phone ring tones and picture messages! This year the prediction is an annual growth rate of between 30% and 150% depending upon the country!
Share in the profits of this booming industry! Anyone who owns a cell phone is a potential customer. Full marketing support is provided and this affiliate program would integrate well into most existing web sites. If you don't have a web site, a free web page to promote the service will be provided. We are using this service ourselves and have been blown away by the great service offered!
For further details:
http://www.tamingthebeast.net/ ringtones/tones-logos-sms.htm
Don't hesitate in contacting us if you have any questions about the program or service.
----------------------------------
2. Article summary - Shopping cart overview
Before spending your money on a shopping cart package, take a look at this article and avoid some problems commonly faced by site owners venturing into the mad world of ecommerce! Linked to this article is also the results of a review we carried out on around 130 ecommerce solutions.
View the full article here:
http://www.tamingthebeast.net/ articles2/shopping-carts.htm
------------------------------------
3. Full Article - Payment Gateways, Internet Merchant Accounts and 3rd party credit card processors
Merchant accounts, payment gateways, shopping carts - it all gets pretty confusing when you start looking into the complexities of ecommerce - especially when it comes to taking online payments using credit card processing!
In our previous articles, we examined points to consider in setting up your site and also hints and tips on shopping carts. If you haven't already read those tutorials, there's links to them at the end of this article.
Let's briefly recap the nuts and bolts of the process of online sales using credit cards.
1. Customer visits your site
2. Customer clicks on a "buy me" button after reviewing sales copy
3. The selection is added to the shopping cart.
4. Once at the 'checkout', the customers' personal and financial details are recorded via a secure form.
5. Details submitted from the form is transmitted to a payment gateway service which securely routes the information through the relevant financial networks.
6. If the transaction is successful, the customers' credit card account is debited and your merchant account is credited.
7. Once all funds have cleared, you are then able to transfer money to other accounts.
More on payment gateways
A payment gateway is a separate service and acts as an intermediary between the merchants' shopping cart and all the financial networks involved with the transaction, including the customers' credit card issuer and your merchant account. Think of it as a EFTPOS terminal in cyberspace. It checks for validity, encrypts transaction details, ensures they are sent to the correct destination and then decrypts the responses which are sent back to the shopping cart.
This is a seamless process and your customer does not directly interact with the gateway; as data is forwarded to the gateway via your shopping cart and a secure (SSL) connection. The shopping cart is configured via plugins to send information in a format that is acceptable to the particular gateway.
The proper choice of payment gateway is another vital element which will contribute to your success or failure as an online business.
Payment Gateway Issues
As with any other ecommerce element, shop around, compare prices and read the fine print. Here are some of the major points to consider when selecting a payment gateway service.
- If you have already purchased a shopping cart package, ensure that the payment gateway service is compatible. If a service is not listed, contact the shopping cart vendor for clarification. Many vendors would be happy to support other payment gateway services if there is a demand for it.
- If you haven't yet selected a shopping cart, get a list of supported applications from the payment gateway service provider. A payment gateway may offer great pricing, but if the range of shopping carts or storefront software it supports is limited, the whole process of setting up for taking online payments may cost a lot more than you think. I've noticed some gateways only support horribly expensive and restrictive shopping cart software packages and services.
- Ensure the gateway at least offers AVS protection. The Address Verification System (AVS) AVS decreases the incidence of accepting fraudulent transactions by verifying the cardholder's billing address with the card issuer. Using AVS on your transactions may also benefit you by a reduction in fees charged by your Merchant Bank.
- Check to see what other types of transaction protection are offered to you as a merchant. These will probably be 'premium' services, the charges added to the basic servicing fees, but dependent on your products may be absolutely necessary. If you are engaged in the sale of anything that is youth or technology oriented, it's probably a wise move to pay for the extra service as chargeback rates on fraudulent transactions can cost you around US$30 per incident! For a rather disturbing report and some strategies regarding this issue, view:
Credit Card Fraud Costs and Statistics
http://www.tamingthebeast.net/articles2/ credit-card-fraud.htm
Credit Card Fraud Strategies
http://www.tamingthebeast.net/articles2/ card-fraud-strategies.htm
More on Internet merchant accounts and third party credit card processors.
Some type of Internet merchant account is necessary in order to have a place to receive funds from credit card sales. Internet merchant accounts can be gained from most major banks. A word of warning - your bank will more than likely charge like a wounded bull for such an account, so definitely shop around and tell your bank that you will go elsewhere if they won't give you a good deal - you'll be amazed just how flexible banks can be in their pricing structures ;0)
Internet merchant accounts can be harder to obtain. This is because of increased security risks as no signatures are involved, nor is a card physically presented at the point of sale. Another option may be to use a third party processor, which is basically a payment gateway and merchant account rolled into one. A third party credit card processor is a company that accepts credit card orders on behalf of other online businesses.
Selecting an Internet merchant account provider or third party processor:
- Shop around and then shop around some more - this is a very confusing section of ecommerce. If you make enquiries with a company and they don't respond within 24 hours, or are somewhat vague in their responses - run like hell away from them. Many banks/companies employ poorly trained salespeople rather than those with hands-on product knowledge or an understanding the complexities of ecommerce. Ensure they explain all charges to you thoroughly by enquiring about the following rates:
Statement - the charge each month for issuing you statements on all transactions
-
Discount Rate - a percentage deducted for each product sold
-
Transaction - added to the discount rate, a flat rate on each transaction
-
Monthly Minimum - what you will be charge regardless of the level of sales each month
-
Reserve - some providers require you to maintain a certain level in the account to cover chargeback fees.
-
Chargeback - the killer fee which may cost you up to US$30 per fraudulent transaction (which includes any client disputing a transaction successfully).
- If you are a new business with a new product range, consider using a third party credit card processor while you test the waters, which will incorporate a payment gateway with a merchant account - many of these services will also incorporate a shopping cart application as part of the deal (see links at the end of this article). These services may appear to cost more, but they can save you from expensive long term contracts and initial outlay on shopping cart applications.
If you intend using a third party credit card processor that combines gateway services with a merchant account, added to the points already mentioned, ensure you also check on monthly gateway fees, AVS costs, and any other added fraud protection you wish to implement.
Rushed decisions in choosing your ecommerce applications, elements and third party services will dramatically increase the likelihood of your business failure. This is definitely an area where if you spend the time fully investigating all the options open to you - you'll reap the rewards after implementation. It is worthwhile considering contracting the services of an ecommerce consultant to assist you in making these crucial decisions. The fees you pay to a consultant will be returned in increased profits - and less stress.
Related Articles:
Ecommerce web site design and development - Part 1
http://www.tamingthebeast.net/articles /ecommerce-site-s1p1.htm
Ecommerce web site design and development - Part 2
http://www.tamingthebeast.net/articles/ ecommerce-site-s1p2.htm
Guide to choosing shopping carts
http://www.tamingthebeast.net/articles2/ shopping-carts.htm
Over 130 Solutions reviewed! - the results
http://www.tamingthebeast.net/tools/ best-shopping-carts.htm
Michael Bloch
Taming the Beast.net
http://www.tamingthebeast.net
Tutorials, web content and tools, software and community.
Web Marketing, eCommerce & Development solutions.
____________________________
Copyright information.... This article is free for reproduction but must be reproduced in its entirety & this copyright statement must be included. Visit http://www.tamingthebeast.net to view great articles, tutorials and tools for site owners, web developers and Internet marketers! Subscribe for free to our popular ecommerce/web design ezine!
------------------------------------
Well, that's all for this Taming the Beast update. We are very open to feedback, so please don't hesitate in contacting us.
Regards from Australia
Michael Bloch & Katherine Tyndale
Taming the Beast - Established 1995
michael@tamingthebeast.net
kathy@tamingthebeast.net
www.tamingthebeast.net
Tutorials, web content and tools, software and community
Marketing, eCommerce and Web Development Services
To subscribe to this newsletter, click here:
http://www.tamingthebeast.net/ cgi-bin/dada/mail.cgi
|
|
|
