TAKE CREDIT CARDS ORDERS ON THE CHEAP
by Bob McElwain

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 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

MultCards.Com http://www.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.

05/06/00 - ANOTHER UPDATE:
CCSlide.Com is the best deal I've heard of to date. No
setup fees. They take only 5.9% per transaction. Here's
a neat article about them:

http://sitetipsandtricks.com/art/a042000c.html>
________________________________________________________

Bob McElwain
Web marketing and consulting since 1993
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