Merchant Account Info

The convenience and overall added value of having a Merchant Account is a no-brainer. Setting one up for your new site can be a different story, though. So, before your begin, keep in mind that this is a bit of a bureaucratic pain in the rear-end, but everyone goes through it and never has to mess with it again. Expect 2 applications and a short setup session. Overall time investment should be 1-2 hours over the course of 1-2 weeks to have your MA up and running.

Who do I call? What do I sign? How do I know which type? These are some of the questions this document intends to demystify.

The Three Components
The ability to access credit cards online is comprised of 3 separate components (and vendors) working as one.
1. Your actual merchant account with a financial institution which enables you to accept credit card payments.
2. Your Authorize.Net Gateway Account which in a sense "upgrades" that MA and allows it to accept transactions via the web (and not just the traditional storefront card-swipe machine.)
3. Your integration software component which allows your website to 'talk' to 1 and 2 in a secured, encrypted environment in the framework of a true online shopping cart experience.
Note: It is very possible that your organization ALREADY HAS components 1 and 2. Be sure to ask your treasurer, president, and anyone else in your organization who might know before you begin working on this. The questions are simple: "Do we have a merchant account? If yes, is it Authorize.Net compatible and do we have an Authorize.Net account?"

Who's Who?

Authorize.Net Info

Contact: Carlos Caceres 801.492.6516 CCaceres@Authorize.net www.Authorize.net

Your Merchant Bank will be your first vendor which handles the first of the three components on the list above. This can be any financial institution. We recommend that you first approach your own bank's Merchant Services Department and inquire regarding setting up your own merchant account. The only restriction is that their offering must be online-capable and compatible with the Authorize.Net Gateway Software. If they don't offer a compatible solution, you can go to any major bank and get one. Your Merchant Bank does not have to be the same as your checking account bank, so no worries there.

Authorize.Net will be your second vendor. They will handle the second of the three components listed above. Authorize.Net is a separate entity from the bank and thus requires a separate application.

Keep in mind that Authorize.Net and most merchant banks offer a 'combo' option where they basically resell the other's services. This is fine, and in some cases easier and less expensive. So ask your bank if they can take care of Authorize.Net for you. And ask Authorize.Net about their Integrated Solution. Use the Authorize.Net links (in the box to the right) for the 2 applications for Authorize.Net (one for the Integrated solution and one for the Gateway only.) Their integrated solution uses Wells Fargo. Tip: most of our clients wind up using their own bank since Wells Fargo is a bit more restrictive than other banks.

Finally, web integration and a secure shopping cart is provided by us at no charge to you.

A word about Fees...
First, understand that 1 and 2 are separate entities and that all fees go to them--not to us. Your bank and Authorize.Net are 3rd-party vendors and your relationship with them is independent of us. Moreover, we do not touch the money. In other words, your users pay online, and the money goes DIRECTLY to your merchant bank via Authorize.Net to be deposited in your account usually within 24 hrs (minus bank's fees of course).

The fees are divided into 3 types:
a. Setup fee (usually around $150 for the MA and another $150 for AuthNet). These fees change, so make sure you find out what they are at the time of application.
b. Administrative Monthly Fee (around $10-$25 per month).
c. Transaction fees (around 30 cents and 2-4% of amount per transaction depending on the card used.) Of course, you have the option of dealing with any Merchant Bank you wish--feel free to shop around for a good rate.

REMEMBER: No one likes fees. Especially bank fees. But it's more appropriate here to think of your Merchant Account as a PROFIT CENTER, not a COST CENTER. This is why every shop in the world accepts the reality of these fees. Your get more business and also save a bundle on administrative costs due to the vast automation allowed by having ecommerce in your arsenal.

Possible hurdles: Personal Guarantors
Most Merchant Banks expect to have a person with good credit 'co-sign' the account as a Personal Guarantor. Due to the nature of non-profit / volunteer organizations, no one wants to sign. That's ok. Make sure the bank knows that you are a non-profit. Most likely, they will ask you for your 501c papers and other documents to establish the fact that your organization is legitimate. So be prepared for that. No worries--eventually everyone gets an MA.

Ok, ok, so what do I do need?
Step 1 - Make sure you understand all this info. This is simple, but heavy on details and thus can be confusing.
Step 2 - Contact your bank, and inquire regarding an MA. You need an MA before you can apply for the AuthNet Gateway.
Step 3 - Once approved, download the Authorize.Net Application (link above), and fill it out. Carlos Caceres at Authorize.Net will be your contact if you have any questions - 801.492.6516.

Once approved - call us, and we'll guide you from there.