Credit Card Payments Lead To Online Sales Success

Maximize your online sales by learning how to process credit card payments
through your web site

The ability to take credit card payments through your web site is essential to the success of your business. Nearly all online purchases are made by credit card payment, and offering your customers a fast and simple means by which to buy your product will result in more sales and better word-of-mouth advertising. However, many people mistakenly believe that all they need to accept online credit card payments is a “shopping cart” option on their site. The truth is, a shopping cart is only one small piece of the puzzle.

“A shopping cart is important in that it creates an order form and keeps track of your sale, but it doesn’t actually put the money into your bank account,” explains Matt Bacak, publisher of the Powerful Promoter Newsletter and an online marketer who trains speakers and authors. “The first step to successfully accepting online payments is to understand the way money gets from the Internet to your account.”

You’ve probably purchased a number of items on the Web and are familiar with the way an online shopping cart appears to a customer. But do you know how your credit card payment, made via the shopping cart, eventually finds its way into the pocket of the product’s seller? Even if you’ve been selling products online for years and experienced a degree of success doing it, you may not be aware of how credit card payments are processed. You’re also probably unaware of the enormous benefit credit card payments can have to your bottom line.

“Surveys have shown that as 68% of shopping carts that are initiated on the Web are abandoned before completion. This happens because the customer becomes confused about the payment process or about what he or she is actually buying,” says Armin Morin, an online marketer who has made millions promoting and selling products on the Web. “Even if you’ve been successful accepting PayPal payments, the ability to process credit card payments will benefit you. PayPal requires a customer to take a few extra steps, increasing the odds that they’ll just decide it’s not worth the effort. If they can just type in their credit card number and be done with it, they’re yours.”
So how exactly do online payments work? Well for starters, you will need that shopping cart option on your site. A number of software programs including the popular Kickstart Cart are available to help you achieve that. Next you’ll need a bank account. And finally, you’ll need the two key “go betweens” in the journey between cart to bank – an Internet gateway and a merchant account.

Your Internet gateway takes the information collected by your shopping cart and keeps a running tally of what’s been ordered. It also collects the information related to payment method, and “runs” the credit card. That information is sent on to your merchant account, which receives the payment and in turn pays you. The money is direct deposited into your bank account.

“A merchant account is really the best way to process credit card payments through your web site,” says Morin. “I would still have a PayPal account and still offer that to your customers as a means of payment. Some people do prefer that. But don’t be surprised if only about 10% of your total sales come through PayPal.

By accepting credit card payments online, your sales will increase even if your web site traffic doesn’t. Customers will appreciate the ease with which they can purchase items from your site, and will recommend your product to family and friends. The key to sales success is and always will be customer service. By quickly and effortlessly accepting credit card payments, your web site will automatically be offering a level of customer service that has come to be expected.

Master Credit Card Fine Prints

Fresh bank credit card applicants in Australia may have difficulty understanding the small prints included in their application if they’re unfamiliar with certain credit conditions. It’s imperative that you really read and understand everything that is found in these application forms, and there are a few things that you need to pay attention to.

Credit Card Terminology You Need to Know Before Getting a Card

The credit card’s Annual Percentage Rate or APR, possible borrowing limit, and finance charges are three of the most important things that you need to be informed about.

What is credit card APR? It is short for Annual Percentage Rate or the cost of using credit, expressed as an annual interest rate. This will be applied towards the balance or your unsettled card bills. It’s also important to find out what the APR is of a number of banks in Australia.

Credit Limit on the other hand is simply how much credit the bank or company will give you after checking your creditworthiness. And since this is your first time to apply for a card, do not imagine that you will be given so much credit. However, always remember that you have an option to apply for a credit limit increase, once you have built enough in your credit report that would cause a growth in confidence on your borrowing worth.

Meanwhile, finance charges would be the fees that’ll be charged to you for not paying on or before the deadline. Penalty charges for late or missing payments can be a fixed amount of money or a percentage of your credit balance.

Furthermore, look up your card’s minimum payment condition. You ought to be able to at the very least pay off this amount on a monthly basis so you will not end up being compelled to pay substantial finance charges. This is generally just a small percentage of your outstanding balance.

Moreover, considering that one of the most important advantages of owning these cards is to be prepared for emergencies, also check out the amount of cash advance you can obtain from your card. (But of course, because of the greater interest expense linked to cash advances, it is best to ask yourself first if you happen to absolutely need the money prior to making credit card cash advance.

In case you have all these details, you can begin comparing what credit card companies offer so you’d know which card is the best for you.

Tips in Making More Advantageous Credit Judgements

You also need to consider that since credit card interest rates are regulated, the rates among different leading these companies may not have a significant difference here in Australia. For this reason, credit card issuing banks differentiate themselves or create a brand using free gifts, other promotions and technological innovations. Those companies can notably be different on the length of their “grace period” (or number of days credit rates are not yet applied to your credit purchases.) This will allow you to make big expenditures without needing to concern yourself with the interest costs accruing without delay after you made the purchase.

And an indispensable tip for first time card holders is to be mindful of hidden fees. You should never erroneously assume that you only have to concern yourself with APRs and finance charges for late payments or cash advances. You also need to be aware of this card fees that can soon add up to a substantial sum of money. Processing fees, maintenance fees and annual fees are the most typical hidden fees which are billed to you despite your card being idle. Hidden fees may sometimes come from credit management programs such as payment protection plans that can be charged to your card even if you’re not using it.

Plus check your card’s incentive programs. Reward programs enable you to earn points which you can either use to claim promotional items or to reduce your credit balance.

Helpful Pointers for Finding the Best Credit Cards

Getting the best credit cards truly is determined by what exactly you need. Some cards could be a lot more beneficial compared to others based upon the incentives as well as promotions presented whilst applying for the credit line. It is necessary that you consider the justification why you desire the bank card before beginning to apply.

College students should think about getting a bank card which is created specifically especially intended for them. These offers commonly feature low aprs as well as cheaper fees. Whenever selecting a student bank card, do not accept one that comes with a APR which is over 16%.

Any offer lower may nevertheless be affordable in the event you can not pay back your balance in full every month. Refunds such as cashback, gift cards, along with other offers might be beneficial to students who utilize the credit card frequently.

Frequent travelers are usually offered cards which match their needs. Several travel charge cards offer the possibility to gather reward miles that may be redeemed for flight tickets. Many of these charge cards present an alluring incentive such as offering 1000s of miles after the very first purchases made on the bank card.

Whilst the added benefits may be attractive, make sure that you will be acquiring the best credit cards before filling out the application. Make sure the number of miles you are going to receive are worthy of the interest rates and costs connected with using the credit card.

Regarding the regular, everyday charge card users, there are lots of offers, to choose from offering to provide the best credit cards. When you have a good credit score, you can get a card with no annual fee and also a less expensive APR.

A few cards will allow you to have an opening 0% APR for a particular number of months. Utilizing these added benefits is beneficial, especially if you prefer to make use of and pay the balance of the balance before the allotted prescribed time expires.

There are plenty of card promotions out there which are sent out to consumers on a regular basis. Whenever searching through the numerous deals, you should only choose the best credit cards focusing on your financial situation.

There are credit cards adapted to students, folks the travel, and also the normal credit card user. Ensure that the card you choose will give you you the best features, and that it also includes the very best APR’s and expenses.