Merchant Accounts--and frustrations

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11-01-2007, 10:23 PM
Laciemn

Merchant Accounts--and frustrations

So..here's my story. A few months ago(before my 18th birthday), I decided I wanted to start an online jewelry business. Building a business has been my dream since I was around 14...people would always ask me what I wanted to do, but I didn't have the idea until then.

I made up little plans for advertising, printed them out, planned out each month of my business, decided where I would order from, what I would order etc. Pretty much what I'm saying is, I'm freaking ready to go! But I have to wait for my debit card to come in to order my inventory and get my website. It's so annoying having to fill out all these forms and take them places like The Chamber of Commerce, The library(for using their fax machines) etc because I have NO car and I have to wait on relatives and friends to take me where I need to go.

I'm pretty much frustrated because nothing is ever as simple as it seems! All these tiny problems keep dragging me down and making things seem impossible! Like I thought I was ready, I've decided on what shopping cart program I wanted to use, found out how I would install it, decided on my webhost.

Then there's the whole thing where I HAVE to have a merchant account for gateway credit card processing. I don't have bad credit..but I don't have ANY credit at all! I've never had any bill in my name, I've always just paid it directly to my mom. I HATE the waiting game! I am an extremely optimistic person, I've prayed to God for my success, but I just feel there's nothing I can do about my credit!

So my question is, is there ANY way I can get a merchant account without good credit? Any tips, advice, from you more experienced people?
11-02-2007, 01:40 PM
JEccles

Have you established a bank account for the business? Gotten you business license? If those have been taken care of, you might be able to set up with a merchant gateway to deduct the charges as they happen, as opposed to billing you. Or, you may want to consider changing your payment options to PayPal or Google.
11-02-2007, 04:28 PM
stymiee

Unfortunately your product is considered a high risk product. Even worse, you want to sell online which is also high risk. Basically, without awesome credit you won't be able to get a regular merchant account. Even with perfect credit you would have been declined by most processors just due to how high risk jewelry sales are online.

You'll need to use either a third party processor for your transactions or see if a high risk merchant account provider will accept you.
11-02-2007, 05:43 PM
Laciemn

Quote:

Originally Posted by JEccles

Have you established a bank account for the business? Gotten you business license? If those have been taken care of, you might be able to set up with a merchant gateway to deduct the charges as they happen, as opposed to billing you. Or, you may want to consider changing your payment options to PayPal or Google.

I've got my no sales tax number and registered as a sole propreitership, I called the Chamber of Commerce and other places and they say those are all I need to sell things. I actually set up a meeting with this guy who says he can get me a merchant account with no credit(I met up with him through my bank) so hopefully that will go well!
11-02-2007, 05:45 PM
Laciemn

Quote:

Originally Posted by stymiee

Unfortunately your product is considered a high risk product. Even worse, you want to sell online which is also high risk. Basically, without awesome credit you won't be able to get a regular merchant account. Even with perfect credit you would have been declined by most processors just due to how high risk jewelry sales are online.

You'll need to use either a third party processor for your transactions or see if a high risk merchant account provider will accept you.

Well, my jewelry is actually not diamond or gold jewelry. My idea is to keep it affordable, it's mostly sterling silver and ranges from $15-30 per peice. I'm hoping to start establishing credit through getting some bills put in my name. Any other tips? I'm thinking maybe my wholesaler can help with my credit?
11-05-2007, 05:51 PM
Corey Bryant

There are some processors that might open an account but limit you to a certain amount a month or maybe even request a that the processor holds a certain amount per transaction for (usually) up to six months.

There is a chance you might be able to open an account. Most won't look into your financial background unless you are wanting more than $30,000 a month to process. The financial background will come into play when you are going to be processing a month or are in debt. Being new is something that most processors don't care about.

The jewelry though is a bit different of course because the customers cannot see it when they first buy it. So keep the communication open between them and you. Send them an email, asking how they liked it etc. This will help in case you start to get a lot of chargebacks.

Call some processors - you will more than likely talk to a few agents. Some processors consider jewelry high risk and some don't. But don't go and start signing a contract after contract. Wait - it might take more than a day to get approved. If you don't wait - you might end up with three or four merchant accounts, which will cause you more problems.
11-06-2007, 04:45 PM
Fred333

Do you have a website up? That would help out a lot.
11-26-2007, 11:04 PM
Laciemn

Hey guys, I know I haven't responded to this post in a while, but since last time I do have my site up.

www.accentedjewels.com

I've payed for a merchant account, it comes with a shopping cart, but the transactions still don't take place on my site.
www.eprocessingnetwork.com is the place I signed up with.

I haven't sold anything from my site yet..I don't know what's wrong. People keep telling me they'll check it out and possibly buy my stuff, but it never happens.
11-27-2007, 06:10 AM
fionix

I just looekd at your website and it looks okay. You should consider a redesign which gives your online shop a more prof. look.
11-27-2007, 04:55 PM
dropship

No need for a merchant account. Just use PayPal or Google Checkout. You do not want to get stuck with a remote merchant account through a company like CardService International... You want an account through your local bank. When starting out I was able (due to my credit) to get a merchant account through CSI and it was an absolute nightmare. The horror stories you read about PayPal were nothing compared to what those guys did to me...

Just start small. Get that PayPal account and Google account and then, once you are established, go to your local bank and check into their merchant options.

Good luck!
11-27-2007, 06:17 PM
Corey Bryant

Quote:

Originally Posted by Laciemn

I haven't sold anything from my site yet..I don't know what's wrong. People keep telling me they'll check it out and possibly buy my stuff, but it never happens.

Are you reviewing your stats to see if people are coming to your website?

Quote:

Originally Posted by Laciemn

I've payed for a merchant account, it comes with a shopping cart, but the transactions still don't take place on my site.

Back to the stats - are people dropping out when they are redirected to another website?
11-27-2007, 11:34 PM
Laciemn

Quote:

Originally Posted by Corey Bryant

Are you reviewing your stats to see if people are coming to your website?

Back to the stats - are people dropping out when they are redirected to another website?

I've been checking my stats. It doesn't seem that people click the buy now buttons at all. I don't understand, most people have said they love, "so and so necklace" or the "pink earrings." The site looks good, it could use a little improvement but mostly it's fine.

I have noticed I am not getting any redirects from Google at all. My site showes up if I type in accentedjewels, but none of my keywords are showing up, and only the homepage and bracelet section comes up in google.
11-28-2007, 06:34 PM
Corey Bryant

Go back to those people. Ask them if there is anything you could do to help facilitate the order.
11-29-2007, 03:26 AM
Laciemn

Quote:

Originally Posted by Corey Bryant

Go back to those people. Ask them if there is anything you could do to help facilitate the order.

Okay I've done this :).

Guys, wow, um..apparently people were trying to order from me but were confused about the shopping cart. They would add things to the cart and think they ordered something but they didn't click checkout.

ALso, I changed over from paypal to this merchant account/shopping cart I pay 10 dollars a month for. NOW I can't even log into it using the correct password.
11-30-2007, 01:49 PM
Corey Bryant

I'll admit it was a bit confusing - going directly over to another website (and not being SSL). This is why I tend to suggest Paypal (since their brand name is known) or keep buyers on your site.

That gateway should have an API that could be integrated into your website, unless it was the cart you were relying on as well
12-01-2007, 04:02 AM
Laciemn

Quote:

Originally Posted by Corey Bryant

I'll admit it was a bit confusing - going directly over to another website (and not being SSL). This is why I tend to suggest Paypal (since their brand name is known) or keep buyers on your site.

That gateway should have an API that could be integrated into your website, unless it was the cart you were relying on as well

Oh dear. Well, I was actually using PayPal but someone suggested I have something people can just put their credit card info directly into instead of having to sign up for a paypal account.
12-01-2007, 08:48 AM
dropship

With PayPal they can do that -- a PP account is not required.
12-02-2007, 12:30 PM
Corey Bryant

Depending on the country you are in Laciemn, Paypal has different offers. Some of the offers though for US residents that Paypal has is the API (where users stay on your secure website during the check out process) and most users won't need a Paypal account (as long as you have the proper account within Paypal).

Contact them for more questions. And as usual, call them twice to make sure you get the proper answers. Unfortunately with most larger corporations information sometimes is not disseminated properly and you will get the incorrect answers.
12-05-2007, 06:56 PM
next

Quote:

The site looks good, it could use a little improvement but mostly it's fine.

i don't want to offend you, but your design looks exactly like scam pages with a slightly different color scheme.
12-06-2007, 03:36 PM
rfresh

Getting setup with a merchant account is very frustrating. You sign up with one company only to discover they are working with another party and another party. It's impossible to know who all the players are before hand. I'm on my third merchant this year. The industry is in a real mess as far as communicating to the prospective customer who they are and will be dealing with. I signed up with one company and got an email from a different company saying welcome, etc. etc.