Card Processing FAQ

Internet Merchant Accounts FAQ

1. What does it mean to "process" a credit card?
2. What is an Internet Merchant Account?
3. How do I get an Internet Merchant Account?
4. Can I use my existing Merchant Account with VERISIGN?
5. What banks will work with me to help me establish an Internet Merchant Account?
6. I have a checking account with my local bank but they cannot provide me with an Internet Merchant Account. Can I still work with my bank?
7. What kind of bank fees can I expect to pay for an Internet Merchant Account?
8. How long does it take to get an Internet Merchant Account?
9. I am an international merchant. Will I be able to use VERISIGN Services?
10. Can I process transactions in non-US currency?
11. Even though my transactions are processed in US dollars, can I accept international credit cards?

Effective Credit Card-Based Sales

1. Why should I automate the acceptance of credit cards at my Web site?
2. What kind of sales volumes are businesses achieving on the World Wide Web?
3. Are there Web businesses like mine that are successfully accepting credit cards?
4. I'm having trouble attracting customers to my Web site to make purchases. What am I doing wrong?

Merchant Accounts FAQ

1. What does it mean to “process” a credit card?
   To process a credit card means to accept the card number for payment and have the transaction immediately authorized through a credit card processing network much like in a retail store when a merchant accepts your card and "swipes" it through a credit card terminal. In order for a merchant to accept credit cards for payment on the Internet, the merchant must have an Internet Merchant Account with an acquirer (usually a bank).
2. What is an Internet Merchant Account?
   In order for a merchant to accept credit cards for payment on the Internet, the merchant must have an Internet Merchant Account with an acquirer (usually a bank). The acquirer takes on the job of processing the card and making sure the funds are deposited into the merchant's bank account. VERISIGN acts as the channel to move the credit card transaction from the merchant's web site to the acquirer's processing network, receive the results and post them back to the merchant's site.
3. How do I get an Internet Merchant Account? To qualify for an Internet Merchant Account, you must have a checking account with a US bank. If you currently do not have an account with a bank, many acquiring institutions can assist you. Your acquiring institution must have the ability to set up your account to use the First Data Corporation Nashville processing platform or Nova Information Systems. Your account must be set up with the bank to use VERISIGN as the software type or payment gateway.
4. Can I use my existing Merchant Account with VERISIGN?
   You must have a Merchant Account that is specifically designated for Internet transactions. If you currently have a Merchant Account, check with your acquiring institution to see if they can provide you with an Internet Merchant Account.
5. What banks will work with me to help me establish an Internet Merchant Account?
   Any bank that can process credit card transactions through the First Data Corporation Nashville (also known as Envoy) platform or through Nova Information Systems, and supports Internet transactions should be able to work with you to set up your Internet Merchant Account. We can supply a list of banks that work with Internet merchants.
6. I have a checking account with my local bank but they cannot provide me with an Internet Merchant Account. Can I still work with my bank?
   Absolutely. There are several acquiring institutions that can provide you with an Internet Merchant Account, and deposit the funds from Internet transactions directly into your business checking account.
7. What kind of bank fees can I expect to pay for an Internet Merchant Account?
   Fees will vary, so ask up front what type of fees are involved. Most acquirers charge an application fee that may range from $50 to $300. Some (but not all) acquirers will charge a minimum monthly fee, and/or a monthly statement fee. All acquirers will charge a discount rate, which is a percentage of the transaction, and can range from 1.5% to 4% per transaction. Many acquirers also charge an additional per transaction fee that is from $0.10 to $0.40 per transaction.
8. How long does it take to get an Internet Merchant Account?
   That will depend on the completeness of the information that you provide to the acquirer. The process can take from two days to one month, and sometimes longer.
9. I am an international merchant. Will I be able to use VERISIGN Services?
   Any merchant who can qualify for an Internet Merchant Account with a US acquirer can use VERISIGN Services. A merchant must have a checking account with a US bank to qualify for a merchant account. If you are an international merchant looking to use VERISIGN Services, and you do not currently have a US banking relationship, VERISIGN has partnerships with organizations that can assist you in obtaining a US Internet merchant account.
10. Can I process transactions in non-US currency?
    Currently all transactions processed through VERISIGN are in US dollars only.
11. Even though my transactions are processed in US dollars, can I accept international credit cards?
    Any credit card (Visa, MasterCard, etc) that you are qualified to accept through your acquirer that is also issued in foreign countries can be accepted at your site. This includes MasterCard, Visa and JCB.

Effective Credit Card-Based Sales

1. Why should I automate the acceptance of credit cards at my Web site?
   This kind of automation fulfills part of the promise of the Web, putting small merchants and large merchants on a more level playing field from a resource perspective. Any function that can be effectively automated on your commercial Web site should be, simply because it simplifies management of your business, minimizes time consumed in manual operations and allows you to focus more energy on the crucial task of marketing and attracting customers to your site.
2. What kind of sales volumes are businesses achieving on the World Wide Web?
   VERISIGN is serving merchants with monthly transaction volumes that range from just a few per month up to tens and even hundreds of thousands of transactions per month. The customers are already there, and projections by leading industry analysts suggest they are going to keep coming to the Web to shop in increasing numbers. Getting your sales volumes to grow is a function of the appropriateness of your product or service for Web-based sale, and your skill and determination as a business person and Web marketer.
3. Are there Web businesses like mine that are successfully accepting credit cards?
   Yes. Thousands. On the other hand, there are even more Web-based businesses that have merchant ambitions but haven't begun to realize their potential because they are either not accepting credit cards, or they are accepting payment in non-automated ways, such as manual processing via phone, fax or email. Accepting credit card payments in an automated fashion is a competitive advantage to Web merchants at this stage of the market's development.
4. I'm having trouble attracting customers to my Web site to make purchases. What am I doing wrong?
   Marketing your product or service in the "virtual world" is a major challenge, just like it is in the physical world. A couple of keys are: 1) offering a product or service that customers can reasonably decide to purchase on the Web (that doesn't need to be physically seen or "tried out" to overcome purchase resistance), and 2) taking every strategic and tactical step possible to effectively market your site and your product.

For more information or to sign up for service, please contact:

TSR Solutions, Inc.
E-Services Representative
gbennett@tsrnet.com
(262) 512-4100