Build your bottom line with an e-commerce system
by Nancy Gerber

Fuel for your business

You can break the “billable hours ceiling” by selling products and packaged services on your Web site 24 hours a day, 7 days a week with an automated e-commerce system. Sell e-books, booklets, teleclasses, CDs, cassettes, books, workshops, memberships, conference registrations, and more.

A growing opportunity
Jupiter analysts predict that 63 percent of the population will be making purchases online by 2006; and according to the Aberdeen Group, 90 percent of on-line shoppers use credit cards to make purchases.

From whom are consumers most likely buy—merchants who accept credit cards or those that do not? Along with the convenience on online purchasing, there is a sense of legitimacy with businesses that can accept credit cards over the Internet.

Points to ponder
Here are some important points to consider as you ponder an e-commerce system for your Web site.

• Create greater attraction—accepting credit cards accelerates client enrollment. Along with making it easier for prospects to buy from you, accepting credit cards online enhances the image and credibility of your business. Visitors to your Web site know you are a
  serious professional!
   
• Improve your cash flow—Funds from credit card transactions and electronic check payments are available within 48 hours of processing. No need to wait for checks to arrive and clear the bank.
   
• Increase your efficiency—Funds are directly deposited into your account, which virtually eliminates repeated trips to the bank. Automatic recurring billing, available for ongoing clients, ends repetitious data entry. Paperless processing and monthly, consolidated statements reduce clutter.
   
• Enhance your focus and your clients' focus—Having the “money conversation” only once with ongoing clients allows for greater focus on the working relationship. An up-front, in-place, clearly understood and automatically executed payment plan creates greater ease for all.
   
• Provide added value (convenience, choice and incentives) for your clients—Clients appreciate the flexibility of multiple payment options, including debit cards (with VISA or MasterCard logos), credit cards, and electronic checks. Their payments are also consolidated on one monthly credit card or bank statement. Clients also enjoy using their credit cards to accumulate frequent flyer miles or other marketing bonuses.
   
• Reduce or eliminate receivables—Clients will make payment arrangements with their credit card company instead of you. You can finally stop being a banker and save time and energy. In addition, many corporations and government agencies now prefer paying by credit card. Paper check payments take up to 60 days or longer to process. Why wait?
   
• Easily process international transactions—In today's “global village,” international business relationships are growing more and more common. You can enhance your options by eliminating currency exchange issues with international clients. Charge them using US dollars and their credit card processor will handle the currency conversion and bill them. You can also enroll in an International Merchant Account Program to process payments using dozens of other currencies. 

No time like the present
There may be no better time than now to take advantage of an e-commerce solution to help grow your business by adding credibility and value for your customers. A feature rich e-commerce solution saves you money and time by combining multiple tools into one product, allowing a hands-free passive income stream. 

For tips on choosing a merchant account for your small or home-based business, check out Fuel cells.

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Fuel cells

Tips on choosing a merchant account

1. Get your own merchant account, rather than going through a third party payment service (such as PayPal). You have much greater flexibility, protection and more security that way.
    
2. Look for a provider that specializes in working with other businesses that look like yours. Banks and other mainstream providers generally don't have the best rates for small/home based businesses. Check with your professional organization to see if they have a member benefit or endorsed program in place.
    
3. Unless you do many in-person transactions, find a provider who offers a gateway to a virtual (online) terminal. You don't need to rent or buy expensive processing terminals if you don't physically swipe credit cards.
    
4. Understand what fees you should expect to pay.

• The PROCESSING FEE (also known as the discount rate) is the percentage of the transaction that the bank gets. Good rates, for VISA and MasterCard, 2.15-2.25%; American Express, anything under 3%.
   
• The TRANSACTION FEE is a fixed fee per transaction. Good rates are $.25 for VISA and MasterCard and $.05 for American Express.
   
• The MONTHLY MINIMUM is the minimum amount of total processing fees that the bank expects you to pay every month. For example, if your monthly minimum processing fee is $30, and your processing fee is 2.2%, you will need to do $1500 in transactions in order to meet this minimum, otherwise the bank will deduct the difference from your account. A good rate is about $10 a month.
   
• The STATEMENT FEE is what the bank charges you to print up and mail your monthly statement (some can issue an on-line statement). A good rate is $7.50 to $10 a month.
   
• The GATEWAY FEE is the charge to gain access to the on-line virtual terminal. A good rate is $5 to $10 a month.
   
• The SET-UP FEE is what it will cost you to sign up for the merchant's processing program. Be careful, as some providers charge an annual rather than a one-time enrollment fee. A good one-time rate is about $125. Some service providers charge as much as $250 or more.
   
• APPLICATION FEES are what it costs to apply for the individual credit card processing accounts. Look for a provider that does not charge this fee.

5. Check out the level of customer service. When you call for information, do you get a real person or voice mail? Is there real-time Internet-based assistance available (such as live chat)? This will likely be a good predictor of your future experience as a client.
    
6. How simple is the application process? Can you submit your application on-line?
    
7. How long does approval and set up take? You should be ready to go 2 to 5 business days after your application is received.

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Fuel for your soul

Consider these words of wisdom:

“Money is the opposite of the weather. Nobody talks about it, but everybody does something about it.”
– Rebecca Johnson, in Vogue

“If you make a living, if you earn your own money, you're free—however free one can be on this planet.”
– Theodore White

“Time is money.”
– Benjamin Franklin

“Advice is like snow; the softer it falls, the longer it dwells upon, and deeper it sinks into the mind.”
– Samuel Taylor Coleridge

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