Accepting Credit Cards

I do not want to use Paypal or 2CO, I have no faith in them, especially Paypal. I know they are popular for some people and everything, but I have my reasons. Plus Paypal just does not seem professional.

My business plan is calling for about $60,000 a month and hopefully in the next six months, we should be at about $75,000 a month. Maybe within the year we should be at about $150,000.

One of my partners has excellent credit and I have OK credit. Do processors look at both of our credit reports and do we have a chance at getting a merchant account?

Maybe even recommend a company that you are using?

Thanks you!

 

On an old site of mine I used WorldPay and they were good but they do charge for the service. I got an account easy so I should imagine you would too.

http://www.worldpay.com

 

It depends on who is signing the contract. Any person with 50% share can be the signer on the account. The processor will look at the credit of each person signing the account. As far as credit goes, it is definitely not the deciding factor. The only major credit hindrance is if you have bankruptcies on your credit report, or a lot of open debts. If you don't want them to look at your credit then don't put your name on the application.

What type of products are you selling and how?

That is a large monthly volume for a new business, so you need to be very careful when you get setup. If you are setup with the wrong processor, they will shut you down long before you get anywhere near $150K. When you do get setup, you want to shoot for an expected $150k/month right from the start. If anyone mentions Cardservice, Ipayment, or TMS, I would run quickly the other direction. None of these processors can handle growth like that.

Let me know what questions you do have. I will be happy to answer them here.

 

If you are in the United States, you have tons of companies to pick from. I would not really recommend Worldpay if you are in the United States actually since they are usually better with merchants not based in the United States.

We use Cardservice ourselves and have never had any problems with our growth or anything. Every so often, we run a high transaction ($5,000) but as long as we call them before, there are no problems. If we wait and call after the fact, they might hold onto the money an extra day to verify the transaction.

 

Actually my partner suggested Cardservice about a week ago Corey. I have been looking at them because they seem to be pretty well know.

I do not know why jetstep made mention about Cardservice not being able to keep up with a growing business. They are a pretty large company from what I have seen and being owned by First Data does help. (Yes I have done a little homework on the subject and Cardservice keeps coming up everywhere.) My partner's cousin uses Cardservice and he is very happy with them. So I would not run away from them. They are stable and have been in business for over fifteen years.


I am in the United States and selling tangible goods, mainly small kitchen appliances.

 

I don't want to get into an argument over cardservice here. We're an ISO for them as well as FDMS, TMS, Nova, MSI, and Ipayment, so I'm not bashing cardservice for any random reason. We get more complaints from carservice related issues than any other processing bank.

This is why I don't recommend them, except for new internet based business owners with poor credit.

Fees and service crap:
Very high compared to Nova or FDMS.
$25 monthly minimum.
$10 statement fee.
Required Batch Settlement Fee
Required Batch Closure Fee
Processing Rate is charged on sales and refunds...
Required Early Termination Fee in addition to an early cancellation fee. (2 separate fees)
$30 Chargeback Fee
$25 Checking Account Change Fee
Daily discounting only (no monthly discounting)

On a personal note, I have seen them shut down more merchants for more random reasons than any other processor. The second you go over your anticipated monthly volume, good luck seeing that money for 6 months. Same thing goes if you run a large transaction. They shut down businesses who see growth and they hold their money for 6 months.

Apart from that why would you not process straight to FDMS. There are tons of providers that are ISO's directly with FDMS. Why add a second middleman.

Also, for those people who negatively rated me on this post, these rates and fees and words were taken directly off the un-editable portion of a cardservice application that I am looking at right now.

 

Well you were the one that stated that about Cardservice. If they are such a bad company with TMS, why do you offer them? That seems to defeat the purpose. I would only offer / sale something that I had faith in. If you did not want to start a bashing thread, then you should have really said nothing about it. I was really asking what companies some of the users on this board used just in case I might have missed a company.

I spoke with Corey already this morning and it was a breath of fresh air to finally talk to someone who did not push me to sign up. Since I know about Cardservice and I feel very comfortable with Cardservice and we know someone who has been using them for over three years with no problems, I am thinking of using them.

 

We offer the other companies because not everyone can get approved at FDMS or Nova. Rather than turning away customers we have the ability to offer services to anyone regardless of their business type or credit. In light of that, I only refer my customers to those processors if they cant get setup at Nova or FDMS. They are also well aware of why I am signing them to those processors before I ever do it.

Personally I would never use a company that charged a processing rate to return something. That fee alone would prevent me from ever signing with cardservice. Those fees I listed above are on their application and can't be changed.

I never said that everyone has problems with Cardservice, but in my and my customers experience, businesses are much happier with other processors.

I'm not sure if this was directed at me or not, but I never pushed you to sign up or even suggested it. I only made suggestions as to who to avoid, to help prevent problems down the road. My suggestions were based only from problems I have personally seen merchants have, especially ones with high expected monthly volumes like yours.

I still stand by my original advice that if you expect to do 150k per month inside a year, or even two years, you should apply with the intent of that amount.

 

It was not directed at anyone. We have already completed the pre-application at Loud Commerce and chose the LinkPoint Gateway. We will electronically complete the application Monday for final approval.

 

Authorize Net or
Link Point