Introduction

Accepting credit cards offers an array of advantages to companies: Reduced administrative cost, improved cash flow, quicker access to funds, the image of a modern, innovative company, etc. Consumers also like using credit cards as a form of payment because it is a simpler and safer method, no hassles with cash or delayed payments as with billing. Accepting credit cards can be a big decision for some businesses. For others, accepting credit cards can be their most widely used form of payment, including cash!

The following guide will assist you with moving your business into the world of electronic payments. Accepting credit cards should be an easy decision once all the facts have been clearly defined.

Is Accepting Credit Cards Worth It?

Not every business needs to accept credit cards. Many companies function perfectly fine with cash or billing and other payment terms. However, in order to sell your products or services successfully, most businesses should definitely consider looking into accepting credit cards. Accepting credit cards can make it easy for your customers to buy products and pay for services. The more difficult it is for customers to conduct business because credit cards are not accepted, the greater the chance of losing that customer forever!

Although the cost of accepting credit cards should be considered; conversely, so should the cost of not accepting credit cards. Will you be losing customers? Will you be inconveniencing your customers by not accepting credit cards? Do your competitors accept credit cards? Remember, today's consumers demand conveniences. If you are inconveniencing your customers by not accepting credit cards, you might consider that an obvious sign that accepting credit cards will be a smart business decision.

Whether you decide to accept credit cards or not, be sure to consider all of the factors involved. Making an educated decision in the beginning will prevent a lot of headaches down the line.

What do I need to accept credit cards?

In order to accept credit cards you will first have to establish a merchant account. The merchant account is an account established with a payment processor for the settlement of credit card transactions. The funds derived from the merchant account will need to be deposited into a checking account belonging to any bank of your choice. As for the checking account requirements, if your business operates as a corporation, a business checking account in the businesses name is required. If your business is a sole proprietorship or partnership, the only requirement is the individual or partners' name(s) must be on the check. Meaning, in this circumstance, a personal checking account can be used in place of a business checking account but only for sole proprietorships or partnerships.

The next step in accepting credit cards is to choose a payment processing solution best suited for your business type; these include Real-Time Internet processing, retail swipe terminals, and computer-based processing such as software or our Virtual Terminal. Please feel free to contact us for detailed information on each available solution to help you determine which is best for your businesses needs.

Your credit card processing options:

Real-Time credit card Processing - This is our most popular solution for Internet businesses that accept credit cards. Real-Time credit card processing allows your customer to automatically and securely pay on your site using their credit card. Real-Time processing normally works in conjunction with a secured online order form or a shopping cart. Because the payment gateway encrypts the information prior to sending it out for authorization, secure certificates are not required for Real-Time processing.

Virtual Terminal - This solution is perfect for Mail/Phone Order businesses as well as web sites that process sales using a non Real-Time processing solution. Our Virtual Terminal is a secure solution that allows you to accept credit cards using any computer connected to the Internet, anywhere in the world, with no software to install! You simply access the Virtual Terminal and manually enter the credit card information. Our Virtual Terminal also includes access to Real-Time reports.

Retail Virtual Terminal - This includes all the features referenced above with the addition of an electronic card reader. Our Retail Virtual Terminal is ideal for any retail business where credit card payments are accepted. Used with the Magtec card reader, your credit card transactions are securely processed in seconds! Paynet Systems Retail Virtual Terminal supports a wide variety of powerful features, including comprehensive transaction management and reporting features to help you better manage your business.

Retail Swipe Terminal/Credit Card Machine - This solution is most desirable for retail/storefront merchants who see their customers face-to-face. A credit card machine is an electronic device used by retail businesses to process credit card transactions. If the customer is present, they swipe or slide their credit card through the machine.

Point-of-Sale Software - With PcCharge software you can accept credit cards for retail/storefront business with the addition of a card reader. Or, without the card reader it is also a popular solution for After determining what payment solution best fits your needs, an application must be completed. The application/merchant agreement is the contractual agreement between you, the merchant, and our processing bank. The documents can either be emailed or faxed for you to review and sign. The business owner(s) or an officer of the corporation will be required to sign the documents in order to accept credit cards.

The following items will be needed.

1. Business checking account (see above for requirements)

2. A copy of a voided check

3. Articles of incorporation, business license or reseller license.

4. Have a web site (if you are Internet based. A web site is not needed for retail storefront businesses)

5. Provide 2 trade references

6. A photocopy of your driver's license

Paynet Systems will assist you in all stages of accepting credit cards. Your account representative will be available for any questions assuring a seamless setup process.

What are the Rates and Fees for Accepting Credit Cards with Paynet Systems?

Fees will play a major role when deciding if accepting credit cards is feasible for your business. There are many fees to consider and we strongly recommend you take the time to learn how various fees will affect your business.

Discount Rate:
Our cost -	1.59% for Retail (swiped transactions)
	2.19% for Internet - Mail/Phone Order businesses (non swipe)

The amount charged to a merchant for processing daily credit card transactions.

Transaction Fee:
Our cost -	0.25 cents for Retail (swiped transactions)
	0.25 cents for Internet - Mail/Phone Order businesses (non swipe)

A fee charged by a merchant account provider for each credit card transaction completed.

Programming fee:
Our cost -	No Charge

Many companies will charge a fee for programming your existing point-of-sale systems when changing from one company to another.

Application Fees:
Our cost -	No Charge

Often times an application fee will be charged when submitting an application for accepting credit cards.

Monthly Minimum Fee:
Our cost -	No Charge Programs Available

This is the amount of Visa/MasterCard fees you must meet each and every month, usually $25. If a month worth of fees do not total the monthly minimum, the merchant account provider will make up the difference with additional fees.

Monthly Statement Fee:
Our cost	$5 with minimum fee $10 without minimum fee

This fee includes unlimited 24-hour a day, seven days a week, customer support. The purpose of the monthly statement is to give you an itemized list of your daily Visa/MasterCard totals as well as your monthly totals of the credit cards accepted. It will also indicate the total amount of fees you have incurred for the month.

Cancellation Fee:
Our cost -	Waived

Cancellation fees are commonly assessed if you cancel your service prior to the binding term found within the merchant agreement. Paynet Systems is so confident you'll remain a satisfied customer; you are free to cancel your Credit Card Processing Agreement, any time, penalty free.

Chargeback Fee:
Our cost -	$15

A credit card transaction that is billed back to the merchant after the sale has been settled. Chargebacks are initiated by the card issuer on behalf of the cardholder. Typical cardholder disputes involve product delivery failure or product/service dissatisfaction. Cardholders are urged to try to obtain satisfaction from the merchant before disputing the bill with the credit card issuer.

Annual Fee:
Our cost -	No Charge

This is a fee charged annually by many processors. It's often referred to as an annual membership fee.

Non-Qualified Surcharge:
Our cost -	0.65% - 1.83% depending on business

This surcharge applies to business and corporate cards, and other downgrades such as non address verification for key-in sales. Failure to batch out your point-of-sale devise within the allotted 24-hour period can also cause this fee to be accessed. When accepting credit cards, it is important to understand this fee. Please ask your Paynet Systems representative for a thorough explanation.

Voice Authorization Fee:
Our cost -	$0.50 per call

This fee is charged only if you call in a credit card sale using our voice automated system. For instance, you need to accept credit cards off-site and do not have access to your point-of-sale devise. You can then call our 800 number to process the credit card transaction.

I'm Ready to Accept Credit Cards!

We at Paynet Systems feel now that all the cards are on the table we have a winning hand. Paynet Systems offers professional advice and will always treat the Customer the way we would want to be treated were the roles reversed. This sometimes means less profit up-front because we don't gouge on equipment or sell a product that is not needed. However, we trust in return we will earn your long-term business. If you should have any question or comments please feel free to contact us. info@paynetsystems.com

As always…Paynet Systems looks forward to exceeding your expectations!