Dazed and Confused

... with Ecommerce...

[gutabo]

Hello,

I'm trying to start e-commercing ASAP. I have read some threads about it, but just got VERY confused. I'm going to resell a service, and I'll have to pay to many tiny companies for their services. I have a merchant account(almost like a normal bank account, right? only that it's for business... am I right?), and almost no knowledge on shopping carts(are they supposed toverify the CC?). I'm also lost on transference rates(how much's "good"?), SSL, and almost everything else. Help, please?

[khuntley]

Golly, that's a bit to cover, but I'll try to make a stab at it. Rather than trying to explain all of the various components that are eCommerce, I'll suggest that you need to be with a web hosting company that bundles everything together. I normally wouldn't suggest this to someone unless they were just getting into ecom.

These companies usually have detailed instructions for obtaining a merchant account and credit card processing, will install SSL for you, provide a shopping cart, etc.

Some of the majors to take a look at:

ValueWeb, Media3, DellHost, Hostway

ValueWeb seems to throw in the most for free...

Kevin

[lorax]

Well, let me point you to a basic primer on shopping carts [webmasterworld.com] first.

Re: merchant accounts - not the same as a normal bank account. The biggest difference is that they allow you to accept credit card payments.

Re: transference rates - not sure what you mean here. Do you mean conversion rates or payment gateway fees?

[gutabo]

Thanks for the reply!

What about the fees? They(valueweb) have a 2.39% discount fee, and they charge $0.25 +$.05 AVS per transaction fee, is that good or bad?

I was also checking on VeriSign, but couldn't find much info...

Any help would be greatly appreciated!

[lorax]

Not sure about the fees gutabo. They're usually all over the place - sort of like interest rates. Once you sign up you'll find a better deal elsewhere. Better to do some homework and compare rates as best you can and then choose. Stick with the company for a while to see how they compare. If after a few months you find a better deal and you're not happy - then move on.

Be careful of things that look too good. Sometimes they are. I tend to stick with companies I know or have heard good things about. Sure I pay a few extra pesos but I know what to expect and that peace of mind is worth the extra cost. For me.

[khuntley]

Gutabo,
"2.39% discount fee, and they charge $0.25 +$.05 AVS per transaction fee, is that good or bad"

That's not bad at all for the discount rate, actually very good. You can find .15 per transaction fee, but they will have a higher discount rate and unless you sell candy bars that will end up being more expensive. The .05 for AVS is optional from what I remember.

I have an interesting perspective about ValueWeb. I was lucky to have been in an executive level position at a competitor to them and was in sales and marketing designing products to compete with them. At the time (two years ago), I considered them a model for small to medium ecom sites. Their model is value adds, hence the name. You don't pay for everything from setup fees for merchant accounts to your own SSL. They even send you a copy of Adobe GoLive depending on the account. However they are expensive. But for the beginner there is little upfront costs for things like SSL, credit card processing, etc., as they pay for everything to encourage long-time customers.

Heck, I'll go so far as to say that unless you have lots of technical experience or want telnet access or have good upfront capital, ValueWeb is untouchable for small to medium ecommerce.

Kevin

[khuntley]

I should have added that I wrote a post that could be called "everything you always wanted to know about getting a good merchant account to accept credit cards."

[webmasterworld.com...]

However it is less of a concern with the "bundle" hosting providers as usually they try to get decent rates for you. Be wary though as some hosts have a $295 setup fee with the third party credit card processing company and it just goes to the host.

Again I have to look at ValueWeb in that they negotiated lower fees and no setup with Cardservice Intl.

Gosh, you would think that I work for them...(I'll never work for another hosting company again)

Kevin

[Harwich]

On your merchant account watch out for extra monthly and hidden fees. (statement fee, chargeback fees, etc.)

Also be wary if you have to sign up for a set period of time and have to pay penalties to quit their service early.

Harwich

[bekyed]

This is the best service www.protx.com and they only charge £20.00 per month, no set up fees or transaction fees.
Good and reliable - easy to set up.

Bek