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Featured Articles > Accepting Online Payments > What Is The Perfect System? And Payment Types NOT To Use!

What Is The Perfect System? And Payment Types NOT To Use!

I will explain exactly how most of my operations are set up. Every user has three options for ordering as mentioned above (online, 800 number, and snail mail/fax). I want them to order directly online with our secure server if possible because:

  1. You will get more orders from people buying on impulse. If they wait to call your 800 number or mail a check, they might have second thoughts or simply forget to do it.

  2. Everything is automated with the secure server ordering process, so it is completely hands free.

  3. The most profit is made from online orders because I am not paying fees for live operators with the 800 number or wasting my time processing manual order-forms.

To encourage customers to order using my secure server, (which is fully automated unlike the manual order form where we have to manually process the credit card and fax the fulfillment company the order), we offer the added benefit of receiving the email version of Car Secrets Revealed within ten minutes of the order being approved. If they order by any other method, they would not get the email for 72 hours.

When an order is placed on the secure server, the secure server calls the bank and authorizes the credit card while the customer waits on line for a few moments. While they are waiting, a screen is displayed, explaining everything that is going on (that their credit card is being approved and to wait for a moment). Once their order is approved, a screen comes up explaining this, tells them when their product will be shipped and what email address to contact if there are any problems.

The money then gets deposited into my bank account, the one MB software version of Car Secrets Revealed gets sent to the client's email address, my fulfillment house automatically receives the shipping instructions and I receive an email with the ordering information as confirmation. In other words, I have not physically touched a single thing and the entire order has been processed automatically.

If you want to see a copy of the online order form, there is a link to it at the beginning of this webpage. Or go to http://www.carsecrets.com/jumporder.cgi and see it right on your monitor (notice there is an "s" after "http" which stands for "secure").

For reasons I cannot understand, most people think that to get a secure server they have to move their entire site to an Internet Service Provider (ISP) that offers a secure server. This is not true. You can stay with your current ISP and simply link to your order form webpage through a different ISP with a secure server. I do that with all my products.

Note: So you may be asking, "who can do this secure real-time transactions for me?". Well, I highly recommend a company called Interlink Advertising for your secure server connection (this is who we use). They will customize almost anything to meet your needs and their customer service is not only outstanding but lightening fast as well. They also support real time transactions so credit cards are processed automatically within seconds. Visit http://www.marketingtips.com/isp.html to fill out a submission form and give them your name and phone number, your website address if you have one (so they can take a look to see what you need) and what services you need (ie. Website hosting, secure services, automated credit card processing, etc.). Your filled out submission form will be automatically forwarded to the "expert" programmer at Interlink Advertising. He will look at it and get back to you within 48 hours. I should mention that you must already have merchant accounts for them to be able to help you. If you need credit card merchant accounts - I will show you how to easily get these a little later in this newsletter.

The second way to order on-line is through a non-secure server, which is, basically, just a regular order form, exchanged online. I recommend offering a non-secure form as an alternative for two reasons:

  1. The browser or local host the customer is using may not support secure servers and they might not have access to the secure order form.

  2. The client may feel uncomfortable leaving their credit card number on the Internet with the secure or non-secure order form, but wants to place the order online anyway so they use the non-secure order form and pick the option for you to call them for their credit card number.

When customers use the non-secure order form, they have the option to enter their credit card number directly, fax the order form to us, or fill it out with the credit card field blank so we can call them for the missing information. Although this is more of a hassle than the secure server, it will still cut down on the cost of paying live operators through your 800 number. It also offers the advantage of facilitating impulse buyers since they can order your product or service right on the screen instead of having to log-off to call your order desk at the 800 number (most people only have one phone line in their house and use that to connect to the Internet).

The following is what a copy of our non-secure order form looks like (you can also view it by going to http://www.marketingtips.com/a-order.html):


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Online Order Form

We are a bonded company, so feel comfortable ordering with your credit card.

I feel comfortable sending the necessary information online
I will fax my credit card information to you at (604) 730-2480
Call me for my credit card information. (within North America)

Name:
Email:
Company:
(optional)

 
Address:
City:     State:  
Country:     Zip:  
Phone

Credit Card:

VISA
MasterCard
American Express
Discover

Credit Card #
Exp. Date

    

All orders will be shipped within 24 hours.

Your credit card will be charged $217 ($197 plus $20 Federal Express S&H -- the course weighs almost 10 lbs. so it is expensive to ship). It will be shipped via Federal Express and is guaranteed to arrive within 3 business days.

Note: All overseas orders will be charged an additional $25.00 for shipping by 1st Class Mail. Delivery time is approximately 7-14 days for overseas orders.

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Some people will call the 800 number no matter what you offer them online, because they feel uncomfortable not talking to a real, live person or entering their credit card number online. This 800 number is assigned to me by my fulfillment house. They answer the phone 24 hours a day, 7 days a week,, and take orders for the products that I offer. For this they charge fees, the most significant being $1.20 per minute while taking orders. The average order takes 3 to 4 minutes, so it costs me approximately $5.00 for every order placed through the 800 number (plus a few small fees that are "tacked on" my monthly account). This fee represents extra profit I could have made if they ordered directly online, and that is why I encourage online ordering as much as possible.

Once an order is placed through the 800 number, the client is told they will receive the software version of the book within 72 hours. The next day all the orders for the previous day are printed off at the fulfillment house. My representative at the fulfillment house charges the credit card from her location, packages and ships the order, and emails me a copy of all the orders. Within 48 hours of receiving the order via fax I must manually email the software to the clients that have requested it (this again is a hassle that can be avoided by encouraging customers to order online with the secure server).

I have used a few different fulfillment houses and the company I most highly recommend is Mountain West Communications. Their number is 1-800-642-9378 (ask for their sales department, and tell them Corey sent you - she will get a kick out of that).

Mountain West Communications also has merchant accounts you can use if you are just getting started. In other words, you do not have to host your own merchant accounts. They pay you once a month for the sales you have charged less their fees. Note that if you use their merchant credit card accounts, you will not be able to charge online orders to that account. That is because all orders must go through their 800 number as required by their bank. Also note that the discount rate (the rate that the credit card company charges you) is about 5%, whereas you can get it at 2.5% or lower if you use your own merchant accounts.

The customer can also write a check or send a money order via snail mail for fulfillment. You could either give the address of your home/business, or give them the address of your fulfillment house and they can take care of it all. The fulfillment house will just send you the original envelopes and checks received, once a week (or whenever you ask them to). Again this makes it "hands free" for you. If you are consistently home, you could have the orders come to you and then fax (or email) them to your fulfillment house for shipping.

Here is a copy of the order options and how they are worded on my Car Secrets webpage (underlined words are links to the order pages):

Act now, the second edition sold out quickly and the third is expected to move just as fast. There are three easy ways to order:

The first and fastest way to order is directly online with our SECURE SERVER or if your web browser will not support secure servers... use our other order form. Keep in mind that when you use our order form on our Secure Server, we can email you the software version of the book within 10 minutes so you can start putting cash back in your pocket tonight (the printed soft-cover book will still follow in the US Postal Mail). If you order with our "other order form", the software will be emailed to you within 72 hours.

Or, you can use your credit card and order by phone. When you order through the 800 # your software can still be emailed to you; but within 72 hours, not 10 minutes like ordering online via our secure server. Or if you don't want the software emailed to you, you can have the software on diskette sent with the book via US Priority Mail. You can call anytime, 24 hours a day, seven days a week, and the number to call is: 1-800-241-5934. To get this special price when you call, please tell the operator the "publication number" is #7999. Remember to give the operator your email address if you want the software emailed to you.

The last way to order is through "snail" mail. All you have to do is write your name and address and the words "Car Secrets Package" on a piece of paper, and send it, along with your payment of $27.00 plus $2.95 shipping and handling to: Car Secrets, 1123 Fir Ave. Suite #7999, Blaine, WA 98230

Here is a copy of the order options and how they are worded on my Internet Marketing Center® webpage (underlined words are links to the order pages):

There are three easy ways to order.

  1. The fastest way to order is directly online. Click here to order with our Secure Server, or if your web browser doesn't support secure servers, use our other order form.

  2. The fastest way to order is directly online. Click here to order with our Secure Server, or if your web browser doesn't support secure servers, use our other order form.

  3. Call toll-free at 1-800-241-5934 (24 hours a day, 7 days a week) and mention "publication number 7999" to get the discounted price with the free bonuses mentioned above.

  4. Click here to print out an order form to mail or fax.

The course is shipped via Federal Express. You will receive the course in 3 days and can get started the same day you receive it. You can be doubling or even tripling your profits by NEXT WEEK!!

Here is what the order form looks like if they want to mail or fax in their order:

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Mail or Fax in your order Print out the following order form and either:

  1. Fax it to (604) 730-2480 or,
  2. Snail mail it to: The Internet Marketing Center®, 1123 Fir Ave. Suite #7999, Blaine, WA 98230
Marketingtips Logo

Yes, rush me The Insider Secrets to Marketing Your Business on the Internet course. I understand that if after using all the techniques and strategies in the course and I do not triple my current profits within 90 days, I can return it for an immediate refund... and The Internet Marketing Center® will send me an extra $197.00 just for giving it a try. No questions asked. The course will be sent Federal Express within 24 hours of receiving your order and is guaranteed to arrive within 3 business days.

Name: _________________________
Email: _________________________
Company (optional): ______________
Address: ______________________
City: __________________________
State: __________
Country: ____________
Zip: _________
Phone: (___) ____- ______
(  ) I am enclosing a check or money order for $217 ($197 plus $20 Federal Express S&H -- the course weighs almost 10 lbs. so it is expensive to ship). Please note that we do not accept checks by fax, so if you are paying by check you must mail it in.
(  ) I want to charge this purchase to my Credit Card

Credit Card (check one):

VISA
MasterCard
American Express
Discover
Card Number: _________________________

Expiry Date: _______

Signature: _____________________________

I authorize The Internet Marketing Center® to charge $217.00 ($197 plus $20 Federal Express S&H -- the course weighs almost 10 lbs. so it is expensive to ship) to my credit card for the purchase (and shipment) of the business training course The Insider Secrets to Marketing Your Business on the Internet.

Note: All overseas orders will be charged an additional $25.00 for shipping by 1st Class Mail. Delivery time is approximately 7-14 days for overseas orders.

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Payment Types To Avoid

There are other ways to collect money other than using credit cards, or mail and a check or money order.

You can collect money directly online through companies such as Cybercash (http://www.cybercash.com) or First Virtual (http://www.firstvirtual.com). These companies are very similar to fulfillment houses in the sense that they charge the customer's credit card account and then pay you (less the discount rate).

This is how most of them work:

  1. A customer has to sign up with a "transaction company" (like First Virtual or Cybercash). They will give their name, address and credit card information in exchange for an account number and password.

  2. You have a prearranged agreement with the transaction company (First Virtual or Cybercash) to use their account numbers on your order page (this requires you to sign up and follow their regulations).

  3. If customers come to your site and you offer Cybercash or First Virtual, your customer can enter their account number and password for the transaction. The transaction-company (i.e. First Virtual or Cybercash) will then charge a customer's credit card the amount specified for your product or service.

  4. The transaction company would then issue you a check once every month (or 60 days depending on the transaction company you use) for the value of the sales processed through their company for that period.

There are a couple of major drawbacks with these kinds of transaction companies however:

  1. Many of them do not pay you until 21 days after the sale (some up to 90 days after the sale).

  2. Your customer must have an account number and password set up with the transaction company already (if they don't, it is a hassle for them and you take the chance of losing the sale).

  3. Some of the transaction companies require special software on the customer's end to be able to use this service (sometimes called an "electronic wallet"). This is software that the customer must have on their computer.

In ending this section, let me say that using a transaction company is generally a waste of time. Getting credit-card merchant accounts are, in my opinion, the only way to handle sales efficiently. You will find that most people online have credit cards.

Receiving checks by phone/fax sounds great in theory but in practice it is not so great. It is generally very time consuming and can be a big hassle. For those that do not know how this works, you basically take the bank and account information from customers via phone or fax. You then produce a check on your computer printer from check writing software that is "supposed" to be valid at a bank. This is a very similar technique to a "debit card", where customers authorize you to take a certain amount of money directly from their bank account.

There are two ways to take checks by fax. You can get your own software that prints checks, or you can have a service bureau take the information from the customer and produce the checks for you.

Sometimes you end up waiting months to get paid for faxed checks because they are not considered a legal form of tender by some banks. There is also a big problem with illegibility, incomplete info, etc.

If you still want to collect your money using the method above, I strongly recommend getting your own check writing software. That is one way of avoiding the service problems (you are in control instead of depending on another company to handle your transactions), and to get prompt turn-around at the banks. Do be aware that some banks are not very fond of this scheme, and some will not honor the check unless the customer verbally approves the transactions (again, another hassle as it is unlikely you will get a hold of the customer when you want to).

Keep in mind that this method is usually more trouble than what it is worth. Most people have credit cards and will use them. Those that don't will be confused by the process in which they have to go through to effectively use checks with the phone/fax method of ordering. I have used a couple of different systems in the past (with two of them I had to pay a $495 "set-up" fee just to become a user) and as I said before, in my opinion, it is a waste of time and effort.


ABOUT THE AUTHOR: Derek Gehl specializes in teaching real people how to start profitable Internet businesses that make $100,000 to $2.5 Million (or more) per year. To get instant access to all his most profitable marketing campaigns, strategies, tools, and resources that he's used to grow $25 into over $60 Million in online sales, visit: http://www.marketingtips.com/t.cgi/892189


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Featured Articles > Accepting Online Payments > What Is The Perfect System? And Payment Types NOT To Use!


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