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January 4th, 2005, 12:22 PM #1
Hi all, I have a retail site, and currently only accept paypal payments,. I am seriously looking into starting an affiliate program. What are the base things Needed to get started. Let me give a little more input on where I currently stand.
I have a EIN.
I will be purchasing a DBA lic in about 12days.
I am looking into merchant accounts so that I can accept cc pymnts directly ( are customers more partial to paypal or merchant account transactions?)
And I plan to get an LLC pretty soon.
I currently am providing my products at the lowest rates available on the web, but If I decide to start up an affiliate program will I have to raise prices slightly to handle the fees and payouts to my partners? (or is this not neccessary?)
I am looking for replys from any Affil Managers, Retail store/portal owners that currently have an affiliate prrogram, or any mods that are savy in this field.
January 6th, 2005, 03:17 PM #2
January 6th, 2005, 07:27 PM #3
- Join Date
- January 18th, 2005
<BLOCKQUOTE class="ip-ubbcode-quote"><font size="-1">quote:</font><HR>What are the base things Needed to get started. <HR></BLOCKQUOTE> Once you are up and running and sellings your products then you are ready.
<BLOCKQUOTE class="ip-ubbcode-quote"><font size="-1">quote:</font><HR>I am looking into merchant accounts so that I can accept cc pymnts directly <HR></BLOCKQUOTE> 2checkout is a good place to start off with:
<BLOCKQUOTE class="ip-ubbcode-quote"><font size="-1">quote:</font><HR>will I have to raise prices slightly to handle the fees and payouts to my partners? (or is this not neccessary?) <HR></BLOCKQUOTE> This is entirely up to you. Is paying commission to affiliates going to hurt your current margins? You don't want your affiliate sales to lose money for you. You will have to sit down and calculate your fees and commissions to see where you stand.
February 13th, 2005, 12:30 PM #4
- Join Date
- February 10th, 2005
- Olympia, WA
There are a lot of advantages to accepting cards directly. First of all the rates are lower then what you pay for paypal. Your "bargain" will come in how you set up your account. As there are a lot of scammers in the affiliate world there are just as many in the merchant service world.
Whomever you chose to sign up with make sure you ask the following questions.
Is your "low" rate an introductory rate that will bump up to a higher rate in a few months?
What are your rates for mid Qual and Non Qual and what are the parameters in which a sale will fall into these categories.This is their biggest scam. They'll offer you a ridiculously low rate to get you to sign up, but then only allow a handfull of your transactions to qualify at that rate. the rest will drop to mid or non qual where the rates are jacked up to maybe 3.5 or 5%.
Second be careful of the payment gateway they recommend. Are they outsourcing it to a third party or do they handle the customer service inhouse. You want to go with an integrated system, or when your money doesn't show up in your account they'll pass the buck and you spend your time on hold with CS being done in India.
Do they educate you on how to handle chargebacks and fraud protection.
For chargeback issues make sure your identifier is the same as your website name so that the customer can recognize the charge on their statement. Also include your CS number. Keep it short some banks only allow 14 characters in the identifier space on the statement. This will help the acquiring bank place a lower risk assesment on your account and bring your rates down.
As for fraud protecton, make sure the payment gateway has AVS and CVV2 controls. MAKE SURE YOU USE THEM!!!!
Some of the better gateways allow you to set your own fraud parameters. This is advisable because it puts you in control of the transactions that you will allow.
Also remember that your rate also depends on what it is you are selling. Some SIC codes are higher risk and therefore are assessed a higher discount rate.
One last thing. MAke sure when you assign your average ticket you also include your high ticket. Example. The average sale is $80. but someone decides they want to buy 20 of your items for a gift for their employees. now your sale is for $1600. The bank will think that that is a fraudulent transacton and hold your money. You will then have to provide proof of sale to get your money. If you do have a large sale call your bank and let them know to expect it. Lastly your monthly volume. Make sure you give yourself room to grow. You may only be selling $5000 a month right now but as your business grows you need room to go over that amount. So put in $20000. The bank will hold your transactions after you met your processing threshold.
Hope this helps.
I have been in the merchant service industry for the past 10 years and our company specializes in Internet processing. We also have an awesome affiliate program too.
March 21st, 2005, 11:02 AM #5
I will be sending you a pm asap, we need to talk.
March 28th, 2005, 01:37 PM #6
You absolutely need to accept credit cards direct. Without this option, you don't look serious. You might want to consider http://www.psigate.com Talk to Warren Lusk and tell him I referred you. Good group of guys and if you bargain with them, I'm sure you can work out a good deal. I've been with them for about 3 years now and have several accounts with them.Ron Goldman
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