PCI compliance is an essential component of payment processing and security. When signing up for merchant services, it pays to ensure your provider offers PCI compliant solutions to reduce liability in a data breach and avoid steep fines. Here’s what you should know about what PCI compliance really means and why it’s important for your business.
What Is PCI Compliance?
PCI compliance refers to the Payment Card Industry Data Security Standard (PCI DSS). This is a set of security standards that ensure every business that transmits, accepts, stores, and processes card information does so in a secure environment.
PCI standards were launched in 2006 to manage changing security practices. These standards are managed by the PCI SSC, an independent organization created by Visa, Discover, Mastercard, American Express, and JCB. While the PCI council administers and manages the security standards, it is payment acquirers and brands that must enforce compliance.
What Does PCI Compliance Involve?
PCI standards are designed to reduce vulnerabilities in cardholder data transmission, processing, and storage to ultimately protect cardholder information and reduce credit and debit card data loss. PCI compliance involves many factors such as:
Protecting cardholder data with secure data storage. A PCI compliant hosting provider, for example, must have several layers of defense with physical and virtual security standards.
Maintaining a secure network. This involves installing and maintaining a firewall and avoiding vendor-supplied default passwords and security parameters.
Maintaining a vulnerability management program. This can include maintaining secure systems and applications as well as using regularly updated anti-virus software.
Using a strong access control system. This restricts access to cardholder data, assigns unique IDs to people with computer access, and restricts physical access to data.
Maintaining an information security policy that includes acceptable uses of technology and reviews risk analysis.
Why PCI Compliance Matters for Your Business
If your business accepts, stores, transmits, or processes cardholder data, you must have data hosted securely with PCI compliant merchant services. Your business must be PCI compliant no matter your transaction volume or size if you accept credit and debit cards. If your business ever suffers a data breach, a lack of compliance can cost you in the form of steep fines by the PCI council. It can also open your business to potential legal action. Your customers also want to know that your business will protect their sensitive payment information to build trust.
When you sign up for payment processing, make sure you choose a PCI complaint processor to give your customers peace of mind and protect yourself against the risks of data theft.
When it comes to credit card processing, there are essentially two ways to process a debit or credit card payment: in person through contactless, swipe, or chip technology or through keyed entry. These transactions are called Card Not Present (CNP) transactions when the card or cardholder is not present, even if the physical card is in front of you. CNP transactions are considered unique because they come with higher risks and fees. Here’s what you should know.
What Are Card Not Present Transactions?
A transaction is considered card-present when the card used for the transaction is in the presence of the merchant at the time of the transaction. These transactions can involve cards swiped in a self-service terminal, a cardholder handing the cashier their card to swipe, EMV chip payments, contactless payments, and when an imprint of a credit card is captured with a manual machine.
When the transaction happens when the merchant and buyer are not in the same place together, it’s considered a CNP transaction. The most common CNP transactions include:
Mail orders
Phone orders
Mobile Purchases
Electronic or e-commerce orders
Subscription or recurring billing
Payment apps on smartphones that don’t use card readers
CNP Transactions Come With Higher Risks
CNP transactions are considered riskier for merchants than card-present transactions. When a transaction is conducted with the card present, the merchant can verify the transaction by comparing the card with the buyer’s identification and/or requiring a PIN. CNP transactions are susceptible to two primary forms of fraud:
Chargeback fraud. This happens when a buyer receives something from a merchant but informs their bank that they did not receive the product or authorize the charge. Chargeback fraud deprives the merchant of their product as well as the revenue. Merchants can also be assessed fees for chargebacks from their merchant services provider.
Credit card fraud. This is when someone uses stolen card information to make fraudulent purchases that are not authorized by the cardholder. According to independent research from 2016, 45% of all credit card fraud in the United States involves CNP transactions.
Card Not Present Transactions Have a Higher Cost
CNP transactions don’t just affect your chargeback liability with your merchant services; they also affect the cost of credit card processing. This is because the cost of payment processing can be broken down into three components: interchange, which is the biggest share of the cost to process a transaction; assessments; and the markup from your payment processor.
There are hundreds of interchange categories based on the type of transaction, the type of card used, and your business category. Without considering other factors that influence payment processing rates, CNP transactions are always more expensive than card-present transactions due to the higher risks.
You can’t always control whether a transaction will be card-present or CNP. For example, e-commerce transactions are always CNP. You may be paying higher interchange rates and accepting greater risks than necessary, however. If you physically take cards from customers and key the information into a mobile device or terminal, you can save money on merchant services by investing in a card reader or POS terminal. If you have a mobile business, a card reader that can be attached to a tablet or smartphone can allow you to process card-present transactions rather than paying for CNP transactions.
If you own a small business you have probably already figured out that networking is an important part of keeping it thriving. Even though many people are intimidating at the idea of networking, there is no need to be. Here are some networking tips for small businesses.
The first tip is to use an opportunity for networking as you would taking the time to make new friends. Establishing personal connections with those your business can benefit from is one of the keys to long term success. However, it is important to understand that in order to do so you need to listen as much as you need to talk. An equal exchange of ideas is the only way to truly make a connection.
The second tip is to research those you will be networking with before an event. The more informed you are about who they are and what you do, the more valuable the experience will be for you. It is also important to have intelligent questions in mind to ask. This shows that you are engaged and interested in the networking process.
There is nothing wrong with networking in pairs. Just ensure that the person you attend networking events with does not work for the same company that you do. When you attend with a partner you can boost each other’s confidence and help each other promote your businesses in a positive light.
Whether you are alone or in a pair, every networking event should start with you introducing yourself to others in an interesting way. You can do this by sharing an interesting anecdote with them. It makes the interaction more memorable and shows your enthusiasm for your job and your company.
For every person you network with, it is important to identify one thing that you can do to help them. Simply offering them a favor gives them a reason to value you and your input. Even something as simple as introducing two individuals that you know to each other can leave a lasting impression that may in-debt both of them to you.
Your goal should be to leave every networking event you go to with at least one friend that you didn’t have when you walked in. Approaching events this way is always better than approaching them as nothing more than an information gathering session.
One of the biggest mistakes made at networking events is not following up afterwards. Before parting ways with anyone you have met, ask them if they prefer to keep in contact through email or phone calls. Following up with their preferred method can help form long term relationships that will lead to more success for the future of your business.
A merchant account is essentially a special bank account that allows you to accept credit and debit card payments. This account will hold funds from these transactions before they are transferred to your bank account. Setting up a merchant account isn’t as complicated as it may seem and it’s the first step toward credit card processing and growth for your business.
Choose a Merchant Services Provider
To set up your merchant account, you will need to choose a payment processing provider who will handle transactions for you. The processor communicates with the issuing bank and relays information from the customer’s credit card to the customer’s bank and your bank. The processor allows you to receive credit and debit card payments by ensuring transactions are valid, using anti-fraud measures, and communicating all of this information in a matter of seconds.
When choosing a processor, it can be easy to get overwhelmed by the fees, confusing pricing models, and terms. As a general rule, you should avoid merchant account providers who want to lock you into a term commitment. Month-to-month services are best to avoid high early termination fees that can be hundreds. You should also watch out for hidden fees such as:
Termination lease fees for POS equipment
Monthly minimum processing fees. This fee is the difference between your monthly minimum and how much you paid in credit card processing fees.
IRS fees.
Batch fees.
PCI compliance fees.
Statement fees.
Monthly or annual fees to keep your merchant account open.
Application fees.
Set-up fees.
Finally, don’t be fooled by processors that advertise a low rate but have a confusing pricing model. Fixed rate processing may seem like a good deal and it’s offered by companies like Paypal. The problem is the fee is usually much higher than you would pay with a different pricing model. That 2.75% rate may sound great but most of your transactions could qualify for 0.50%! Tiered pricing is also common. The rate for the lowest tier will be advertised but most of your transactions fall into much higher tiers. We recommend Interchange Plus pricing because it’s transparent, easy to understand, and you will always know what you are going to pay for every transaction.
Applying for a Merchant Account
Once you choose the right merchant services, it’s time to apply. This process is a lot like applying for a loan because you will need to provide a cover letter, financial statements, and processing history for your business. The more history you have, the greater your chances of being approved. The payment processing company will want to know about the volume and number of your transactions, refunds, and chargebacks each month as well as your average transactions and total annual sales.
There are also some factors that can make your business “high risk” such as your type of business, a high chargeback rate, bad personal credit, and high average ticket sales. This can affect your chances of being approved. Every processor has their own standards for what they consider high risk. Don’t lose hope if your business falls into the high-risk category; it just means you should choose a merchant services provider that specializes in high-risk merchants, understands your business, and can provide the best rates.
The Final Steps
Once you’re approved for a merchant account, you can integrate it with your online shopping cart through a payment gateway if you accept e-commerce payments. For a brick-and-mortar store, you can set up your credit card terminal to get started.
Merchants today use their software based POS systems to run a greater share of their business. A point-of-sale is an intricate system that can control and track almost every activity from inventory and transactions to employee scheduling. The platform you choose isn’t just an IT decision and your POS is more than a fancy cash register. It can give your business a competitive edge and support long-term success. Here are some important questions you should ask to choose the right POS system for your business.
Which features are most important to you?
Your POS system isn’t just for payment processing; it can handle a wide range of tasks for your business. Consider the unique needs of your business to help you compare your options. Possible features you may need include:
Built-in scales to weigh and sell products
Customer-facing gratuity support
Off-site processing for food delivery and more
E-commerce integration
Support for refunds, store credit, and returns
Split payments and multiple payment options
Third-party integration with accounting software, email marketing software, and more makes it easy to connect your POS system with other business systems
Inventory management. This includes inventory tracking, low stock alerts, and automated ordering settings
Employee tracking. You can choose a POS system that tracks not only employee check-ins but also employee sales and productivity.
How much does the system cost?
While cost is an important factor to consider, it shouldn’t be everything when buying a point-of-sale system. It’s best to consider the system’s value to your business and its longevity. On average, a POS system lasts about a decade. That’s a long time to spend with something that may have been cheap but doesn’t add much value to your business.
The cost of a POS system can be broken down into a few categories:
Hardware. This is where many business owners focus but it isn’t the only cost.
Credit card processing. Of course, you will need to pay for merchant services to accept credit and debit cards.
Integration. You may need to pay a fee for a POS system that integrates with third-party software.
Software. Your POS system will require software to activate the hardware and make it useable. An alternative is a cloud-based system which comes with a monthly fee instead of software licensing.
Support. Service and support may be provided at a flat monthly fee or included in your package. You may also have one-time training fees as well.
To lower your costs, avoid leases and contracts that lock you into the system even if you find something you prefer. Equipment leases are very difficult to cancel as well. Look for a POS system that you can use on a month-to-month basis or buy the equipment outright for lower costs.
Is the system easy to use?
You and your employees will be using this system throughout the day for a decade. You want a system that’s easy to understand and easy to train employees to use. You can usually get a free trial to get a feel for the system and make sure it fits your needs.
Your point-of-sale system will be a major decision when you sign up for merchant services. Whether you’re replacing an aging POS system that doesn’t match your needs or you’re buying your first POS system, it pays to consider your decision from every angle to ensure it’s something that will add value to your business day after day — not introduce another headache to your operations.
Providers of merchant services and payment processing solutions often find that marketing their businesses is not an easy task. The main challenges faced by providers in this regard include operating in an extremely competitive field, gaining the confidence of prospects, and formulating a sales funnel strategy that considers the various levels of attention and interest that merchants show.
Payment processing and merchant services are technical matters that do not typically sell on their own merits. Similar to other business-to-business solutions, payment platforms require sophisticated promotion strategies that involve marketing across multiple channels, cultivating leads and applying a proactive involvement. With this in mind, here are five marketing tips that providers of payment solutions can use to make their marketing efforts more effective:
Cultivating Leads
Most payment solutions providers start their marketing efforts with lists compiled by lead generation firms; while this is generally a good move, it should be complemented with strategies to generate inbound leads. One way to accomplish this is with newsletters and podcasts that entice prospects to sign up for future updates by leaving information about their business.
Working with an Adequate Marketing Budget
Leading providers of payment solutions are never stingy with regard to their marketing efforts. Even if the marketing campaigns are conducted entirely online, they need to be supported by a solid budget. For every provider who keeps a blog and shares its posts on Facebook, others are investing hundreds of dollars to promote their content and manage advertising campaigns.
Sticking to a Marketing Plan
The marketing section of a business plan is not enough to succeed in this competitive field; what providers need is a separate and comprehensive marketing plan that lays out the strategies that need to be followed on a monthly basis. An important aspect of a marketing plan is an editorial calendar that formulates the type of content to be published according to recurring trends; for example, the holiday shopping season could feature newsletter topics about increasing point-of-sale security during busier days when stores get a lot of foot traffic.
Following Up With Prospects for Conversion Purposes
The sales funnel for merchant services providers needs to be more focused on conversions when compared to other sectors. Providers who offer retail POS software subscriptions as value-added services, for example, can post case studies on Facebook and boost their content as promoted posts; this will allow them to track visits to their websites and landing pages with the Facebook Pixel feature, and the next step is to target future posts towards visitors who have shown interest.
Including Traditional Media Outlets
Radio stations, local newspapers, and trade magazines are still very effective outlets for marketing purposes; in fact, they have become more effective now that most marketing campaigns are being conducted online. A spot in a radio program that focuses on the local business scene, for example, can generate very strong leads.
When your business accepts Mastercard, you will pay a fee called the Acquirer License Fee or ALF. The payment network charges the ALF to acquirers as a fee to access their network. As a business owner, it’s important to understand what this fee is because it’s passed on to merchants as one of the costs of credit card processing.
What Is the Acquirer License Fee?
The ALF, also known as a License Volume Fee, is a fee the payment network assesses to acquirers as a charge to access their network. This fee is currently assessed for all non-PIN and credit processing volume and it’s billed as a pass-through fee with merchant services. The license fee is currently very small at just 0.0047%.
As a merchant, you will pay this fee on all MasterCard gross processing volume of your sales transactions that don’t use a PIN. The payment network will charge the fee to your credit card processor who will pass it on to you. Because this is an assessment fee, it can be stacked. This means more than one fee can be applied to the same transaction. MasterCard has 14 different fees that may apply to merchants who accept their cards.
Acquirer License Fee and International Transactions
There is a different rate when international transactions are involved. These transactions may be classified as domestic or foreign based on the region in which it’s settled. When the fee is internationally based, it’s called the Cross-Border Assessment Fee.
The domestic Cross-Border Assessment Fee is currently 0.60% and it applies when the merchant country is different than the country of the card issuer. The foreign Cross-Border Assessment Fee is 1.00% and charged to transactions when the merchant country is different than the country of the card issuer and the merchant currency code is not the same as the card issuer.
How to Find the ALF on Your Statement
You can locate the ALF you pay when your merchant services have an interchange plus pricing model. While credit card processing companies can use different terms for the ALF, it may be listed as a License Volume Fee, Acquirer License Fee, License Rate, or MC Acquirers License.
In the contemporary digital landscape, the triumph of any business is intricately intertwined with its adept utilization of software solutions. These tools are the backbone, enabling companies to streamline operations, boost productivity, and ultimately thrive in a competitive market. From automating mundane tasks to facilitating seamless communication and data management, software is pivotal in propelling growth and efficiency.
In this article, we explore indispensable software that holds the potential to revolutionize business operations. By delving into these critical solutions, businesses can gain valuable insights into optimizing their processes and maximizing their potential for success in the digital age.
Accounting and Financial Management Software
Benefits of Using Accounting Software
Efficient financial management is a cornerstone in any prosperous business’s journey. Accounting software is a crucial ally in this endeavor, streamlining essential tasks like invoicing, expense tracking, and financial reporting. By leveraging these tools, businesses can ensure the maintenance of precise records and gain valuable insights into their financial health.
With the automation and accuracy provided by accounting software, organizations can make well-informed decisions promptly, paving the path toward sustainable growth and success. These software solutions are the backbone of financial operations, empowering businesses to confidently and efficiently navigate complex financial landscapes.
Top Accounting Software for Businesses
Several accounting software options cater to businesses of all sizes and industries. Leading solutions such as QuickBooks, Xero, and FreshBooks offer comprehensive features tailored to meet the diverse needs of companies ranging from startups to enterprises.
Customer Relationship Management (CRM) Software
Importance of CRM Software
The foundation of any thriving business lies in nurturing robust relationships with its customers. Customer Relationship Management (CRM) software emerges as an indispensable tool in this endeavor, offering businesses the means to consolidate customer data, monitor interactions, and optimize communication channels. By centralizing vital information, CRM software facilitates a deeper understanding of customer needs and preferences, enabling businesses to tailor their offerings accordingly.
Moreover, the streamlined communication afforded by CRM systems fosters enhanced engagement and responsiveness, ultimately culminating in heightened customer satisfaction and loyalty. As businesses prioritize cultivating enduring relationships with their clientele, CRM software is a catalyst, empowering organizations to forge meaningful connections and drive sustainable growth in an increasingly competitive landscape.
Popular CRM Solutions for Businesses
CRM solutions like Salesforce, HubSpot, and Zoho CRM empower businesses to effectively manage leads, nurture relationships, and drive sales growth. These platforms offer customizable features and analytics tools to optimize the sales and marketing processes.
Project Management Tools
Advantages of Project Management Software
Effective project management stands as a linchpin in the success of any endeavor, ensuring deadlines are met, resources are allocated judiciously, and goals are achieved. Project management software catalyzes this pursuit, offering tools to streamline collaboration, track tasks, and manage resources efficiently. By providing a centralized platform for communication and coordination, these software solutions enable teams to work cohesively towards common objectives, fostering synergy and productivity.
Furthermore, project management software aids resource allocation, allowing teams to optimize their utilization and adhere to budget constraints. With these capabilities, organizations can easily navigate complex projects, mitigating risks and maximizing opportunities for success. Ultimately, project management software empowers teams to deliver projects on time and within budget, driving efficiency and fostering a culture of achievement.
Notable Project Management Tools for Businesses
Tools such as Asana, Trello, and Monday.com offer intuitive interfaces and robust features to streamline project workflows, enhance team collaboration, and improve productivity. These platforms empower teams to organize tasks, set priorities, and track real-time progress.
Communication and Collaboration Software
Significance of Communication Tools
Effective communication is the bedrock of successful teamwork and operational efficiency within businesses. Communication tools are pivotal in facilitating this essential exchange of ideas and information, enabling seamless collaboration regardless of team members’ locations or schedules. These tools streamline remote work and foster a culture of knowledge sharing, promoting innovation and collective problem-solving.
By providing a transparent and timely communication platform, these tools create a cohesive work environment where team members feel connected and empowered to contribute their best efforts. Practical communication tools ultimately contribute to increased productivity, stronger team cohesion, and better decision-making processes, which are critical for achieving organizational success in today’s dynamic business landscape.
Critical Collaboration Software for Businesses
Platforms like Slack, Microsoft Teams, and Zoom provide businesses with unified communication solutions for messaging, video conferencing, and file sharing. These tools enhance collaboration among team members, regardless of their location or time zone.
Human Resource Management (HRM) Software
Benefits of HRM Software
Efficient human resource management is indispensable for businesses, influencing talent acquisition, workforce productivity, and regulatory compliance. HRM software is pivotal in automating administrative tasks such as payroll processing and attendance tracking, freeing up valuable time for HR professionals to focus on strategic initiatives. Moreover, these software solutions streamline recruitment processes by centralizing candidate information, facilitating communication with applicants, and expediting hiring decisions.
Additionally, HRM software enhances employee engagement and satisfaction through features like performance evaluation, training management, and feedback mechanisms. By leveraging these tools, businesses can create a positive work environment, foster professional development, and retain top talent, ultimately contributing to organizational success and sustainability in a competitive market landscape.
Leading HRM Solutions for Businesses
HRM solutions such as BambooHR, Workday, and ADP offer comprehensive features for managing employee data, payroll, benefits, and performance evaluations. These platforms help businesses streamline HR processes, reduce administrative burdens, and focus on strategic initiatives.
Marketing Automation Software
Impact of Marketing Automation
Marketing automation software revolutionizes how businesses engage with their audience by automating repetitive marketing tasks and enabling personalized interactions. By leveraging data and analytics, companies can tailor their marketing campaigns to target specific demographics, behaviors, and preferences, thereby increasing the relevance and effectiveness of their messaging.
Furthermore, marketing automation tools facilitate lead generation and conversion by nurturing prospects through the sales funnel with timely and relevant content. Businesses can optimize their marketing efforts and drive higher ROI through features such as email marketing automation, lead scoring, and customer segmentation. Ultimately, marketing automation software empowers businesses to streamline their marketing processes, enhance customer engagement, and achieve better results with less manual effort.
Prominent Marketing Automation Tools for Businesses
Leading marketing automation platforms like Marketo, HubSpot, and Mailchimp offer advanced features for email marketing, lead scoring, and campaign management. These tools empower businesses to optimize marketing efforts, increase ROI, and scale growth.
Cybersecurity Software
Essentiality of Cybersecurity Tools
In today’s digital landscape, safeguarding sensitive data and mitigating cybersecurity risks is critical for businesses to protect their assets and uphold customer trust. Cybersecurity software plays a crucial role in this endeavor by employing advanced technologies to detect and prevent cyber threats—these solutions secure networks and endpoints, protecting data from unauthorized access or malicious attacks. Additionally, cybersecurity software helps businesses maintain regulatory compliance by implementing necessary security measures and protocols.
By investing in robust cybersecurity solutions, organizations can proactively safeguard their systems and data, mitigate potential risks, and demonstrate their commitment to maintaining the highest standards of security and privacy. Ultimately, cybersecurity software is essential for businesses to protect their reputation, preserve customer confidence, and mitigate the potentially devastating impacts of cyber incidents.
Major Cybersecurity Solutions for Businesses
Cybersecurity solutions like Norton, McAfee, and Bitdefender provide comprehensive protection against malware, ransomware, and other cyber threats. These tools offer real-time monitoring, threat intelligence, and proactive security measures to defend against evolving cyber threats.
Conclusion
In conclusion, the significance of investing in appropriate software solutions cannot be overstated in today’s fiercely competitive business environment. The discussed software, from financial management to customer relationship management and cybersecurity, is a cornerstone for sustainable growth and success. These solutions streamline operations, enhance productivity, and fortify defenses against cyber threats, enabling businesses to navigate challenges and seize opportunities effectively.
By leveraging these indispensable tools, organizations can optimize processes, foster stronger customer relationships, and maintain a robust security posture. The right software empowers businesses to stay agile, innovative, and resilient despite evolving market dynamics. Therefore, strategic investment in software solutions is paramount for companies striving to thrive and prosper amidst today’s dynamic and competitive landscape.
Signing up for credit card processing can feel a bit overwhelming with lots of unfamiliar terms. Don’t feel bad; payment processing is a technical industry with plenty of acronyms and jargon. This basic glossary will help you understand the terms you will see and hear to make informed decisions and understand exactly what you will be paying.
Card Present/Card Not Present
Card present refers to transactions in which the debit or credit card and cardholder are both present in a face-to-face transaction. Card Not Present (CNP) refers to transactions in which they are not physically present such as online and phone transactions.
Chargeback
A chargeback happens when a transaction is billed back to the merchant after the payment is already processed. Chargebacks work in favor of the customer and they may occur for many reasons, including fraud or dissatisfaction with the product or service provided.
Batch
A batch is a group of credit card transactions that are submitted by the merchant to the processor for settlement and funding all at once. Batches are usually a full day’s activity. Bath processing is when a full batch of transactions are processed at the same time, which may be done automatically at the end of the day or manually.
Discount Fee
This is a percentage fee that the merchant account provider charges for processing services along with fees paid directly to issuing banks.
Gateway
If you accept payments in person, you will likely use a credit card machine. A payment gateway is a credit card processing solution for e-commerce sites that works like an online point-of-sale terminal to protect the cardholder’s data during the transaction.
Interchange Fee
This is the fee Mastercard and Visa charge to complete transactions and deposit money in your merchant account. This fee is an underlying cost of accepting card transactions. There are hundreds of different interchange rates based on the type of transaction, the type of card, and the type of business. Some merchant services use a pricing model called “Interchange+” which means the exact fee is passed on to you “plus” a bit extra. Other payment processors bundle this fee into tiers that make it difficult to determine what you will pay on each transaction.
Discover and American Express do not participate in this interchange process by handling all areas of card transactions. They essentially act as their own issuing bank, merchant bank, and card association.
Merchant Account
This is essentially a bank account that authorizes you to accept card payments. You will need a merchant account to use a payment gateway and process transactions. There are many types of merchant accounts based on how you will accept payments.
Monthly Minimum
This is an amount the credit card processor charges you if the discount fee, transaction fees, and account fees do not add up to a pre-determined amount.
Point of Sale (POS)
This is the application through which payments are processed, the credit card machine that processes transactions, or an organization’s entire point-of-sale management system.
Processor
The credit card processor is the entity that initiates Electronic Funds Transfers into the ACH system and handles electronic verification. A processor is also called the merchant acquirer, merchant account provider, or merchant services provider.
In today’s world, the Internet provides us with work opportunities past generations didn’t have. One of them is starting an online business. If this has been your dream but you don’t know how to get started, there are ways to launch an online business before you know it.
Steps for Starting an Online Business
The first step in starting an online business is choosing the right structure for it. This means you have to decide if you are going into business alone or with others. You can choose to be the sole proprietor of your new business or you can team up with those whose skills and knowledge compliment yours. This could be done on a small or a large scale making you either an LLC or a major corporation. The type of business you want to run will be an important factor in this.
Your new business has to have a physical location. Generally, your best course of action is to register your business with the state you currently live in. When filing paperwork for it you will have to choose a name for your business. The more unique it is and the more it speaks to what you intend to offer, the better for your future success.
Acquiring a domain for your online business is the next step. Once you have done this it is time to consider finances. This is where services such as PayPal come in handy. You will need to use merchant services to provide your customers with what you intend to sell them. It is also important to have the ability to handle payment processing and credit card processing quickly and safely. This is essential to getting consumers to trust your new business enough to give it their hard earned money.
By opening a merchant account with PayPal or a similar company, you will be able to take payments from customers directly from your website. PayPal makes payment processing easy and also gives you the ability to make credit card sales at trade shows and conventions.
Ensuring everything is up and running smoothly will help you become a successful online business owner in no time.
