Credit Card Orders
Take Credit Card Orders on the Cheap
By Bob McElwain
Note: Bob McElwain ran his highly successful Sites Tips and Tricks website for many years. When he closed the site to pursue other activities, he granted permission to reprint his articles. Some are very outdated now, but there are so many gems of knowledge that we decided to publish the enitre series on Smart Web Center, just as they were originally published.
We’ve all heard it. You simply can not do business on the Web unless you can handle all that plastic folks love so much. You must offer instant gratification, for it’s the way of things these days, right?
But a merchant account is not free. While the percentage taken off a transaction may be as little as two percent, your cost per sale can be considerably higher unless you have a good volume of sales. There is usually a set up fee for a merchant account, ranging from a $100 and up, and it’s mostly up. If you depend upon software, you may need to buy that as well. And buy the upgrade whenever it is demanded of you. This is not cost effective without sufficient volume. So what is a person to do?
I ran across ClickBank the other day. <http://www.clickbank.com/> They can get you up and running for $39. (Compared to setting up a merchant account, this is dirt cheap!) They want 10% on each transaction. This may sound like bad news, but it is more likely meaningless. For one thing you don’t have to mess around getting order forms up on a secure server. You do none of the work of handling the transaction. And they mail a check every two weeks.
I have not tried this program, but I checked out the site with some care. While it looks like a straight-up operation to me, this is something everybody must decide for themselves. However, $39 is not a lot to risk.
If you are just getting started on the Web and do not have many sales, this may be your salvation. You’ll need to check the math relative to your operation, but a merchant account that costs say $200 to $300 per year to sustain is likely to cost a good deal more per sale on small volume.
One reservation: The order screen is quite different than most you see on the Web. You may want to check this with care to be sure it will suit your customers.
There is yet another way to go. If you have a friend or business acquaintance with a merchant account, they may be able to take orders for you. Something like 15% will cover your friend’s costs and you put up zero dollars going in. It’s a nice way to start, particularly if you don’t know if you will ever get an order!
Given success, however, you will want to get your own merchant account at some point. On your favorite search engine, try “merchant account” and/or “credit card orders.” You will find a bunch. It’s worth the time to shop. Finding the plan that suits your needs can save real dollars.
If you or your spouse has an account with Costco, check into the merchant account service they offer. If you are already paying the $100/year premium membership fee, you may find the account they offer to be the best deal available.
Here is an update from a subscriber who likes the service - Bob
I have been using ClickBank (clickbank.com) for my e-book and advertising as well as a couple of services upon which I have set a fixed price. I have been very pleased with the service. It’s easy to set up and to add a new product.
The only problem I had with them was including an $85 product, for my initial limit was $50. I had just created the account about a week earlier so I’m sure they wanted me to stick with them before upping my limit. I haven’t promoted the affiliate opportunities with it yet, but have gotten some hits from others who have placed affiliate links to their sites.
Pam Jones - Profit Power Internet Promotions
http://www.profitpowerpromo.com/
01/12/00: Yet Another Update
MultiCards.Com offers a different way of handling credit purchases. They take the order, and forward accumulated funds weekly. You do not need a merchant account. The charge per transaction varies, but is essentially 10% plus one dollar. When the annual fee is added in, you may find a merchant account more cost effective, but this may be an effective alternative for some.
11/2100: STILL ANOTHER UPDATE
If you want to learn more about merchant accounts, read my article “Choose Your Merchant Account With Care.”
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