Box.com Cloud Storage Review

There is no shortage of options when it comes to selecting the optimal cloud storage platform for your business. Google Drive, Dropbox, Microsoft OneDrive, and more compete as solo options, while innumerable other services offer their own native storage options. Into this mix comes Box, an app with an unfortunately generic name attempting to offer non-generic features and services. Do they really manage to set themselves apart from the competition? Is this service worth a subscription? To find out, read on! We’ll review Box’s pricing, available features, and ease of use.

Pricing

Box Cloud Storage offers three separate pricing plans, each targeted at a different set of users. These are:

Starter

  • $5/user/month
  • 100 GB storage

This option is designed for small teams with minimal storage requirements. Really, you probably don’t want to subscribe at this level, though the price tag may seem tempting.

Business

  • $15/user/month
  • Unlimited storage
  • Data loss prevention
  • User and security reporting

The business subscription is almost certainly the option you will end up with, and though it is three times more expensive than the starter plan, you get unlimited storage and data loss prevention. These two major perks are almost enough for me to recommend it on the spot, but this tier also comes with admin features like user and security reporting, as well as a number of others, that make it an even better deal. Still, if you want the ultimate Box experience, you can take it one level higher.

Business Plus

  • $25/user/month
  • Unlimited Storage
  • Unlimited external Collaborators
  • Admin role delegation

This tier is primarily intended for graphic designers and other professionals that interact regularly with clients. By adding customers as external collaborators, you can bring them into the creative process and grant access to the files you create for them. The business plus tier also steps up the level of admin control you have, including allowing you access to all user activity.

Features

A Box subscription comes with a heap of features, all designed to increase the effectiveness of your document management. Here are some of the highlights:

  • Management: Box gives you control over who uses your data, then gives you information about how they use it. This includes reporting geographic location of access points, as well as timestamps and more. Basically, you get to choose who sees what, then know when and where they saw it.
  • Workflow Management: With this feature, box delivers a sort of “project management lite.” Using Box relay, you can set up workflows, assign tasks and due dates, and generally keep your team on the same page. If you need a basic task management app, you might find that the feature alone meets all your needs, without having to look for a third-party service.
  • Data Security: It wouldn’t be much of a cloud-based storage service if it was not secure. Box takes security seriously, using AES 256-bit encryption, and maintaining numerous redundant servers around the world. On that point, some subscription tiers gain access to Box Zones, which allows you to select which geographic regions you want your data in.
  • Machine Learning: Using Box Skills, you can put AI to work for your businesses. You start by creating smart labels and workflows, and over time the AI will learn your systems and find new ways of making your business more efficient. It is pretty impressive, and Box seems convinced it is the way of the future. This feature is in Beta currently but undergoes constant improvement.
  • Integrations: One of the best things about Box in my book is the sheer number of third-party apps it integrates with. This is one versatile platform and the fact that you can pretty much count on your other business services playing nicely with it means your experience is that much more likely to be comfortable and confident.

Ease Of Use

I am of two minds about Box’s ease of use. At basic levels, this is a pretty run-of-the-mill cloud storage service. It is easy to get signed up, easy to start storing documents. So far, so simple. However, when we start getting into the higher subscriptions, things get a little more difficult. While I wouldn’t say any feature is exactly hard to use, they definitely take more forethought and planning, where the more basic capabilities can be operated intuitively. It definitely feels like the kind of thing that would take a considerable amount of time to set up, but once that setup process is complete, your work is done.

Final Thoughts

From one perspective, it doesn’t really matter if you use Box or some other cloud storage service. If that is, you only plan to use it for cloud storage. If that is you, just looking for a place to dump your files in the cloud, then my recommendation is to take a look at several storage services and pick the one you like best from a visual and mechanical design standpoint.

But if you are looking for a cloud storage service that does a bit more, then Box takes a step into the limelight. In another post, I compared Box with similarly-named Dropbox, and I will stick to what I said there. If you are in a position where you need limitless storage and lots of customer interaction, Box becomes your best bet. Add to that basic task management features and lots of admin tools to keep on top of access to your files, and you have what is now an extremely desirable option.

As always, I do recommend test it out before committing completely, and fortunately, Box offers a two-week trial to give you the chance to try before you buy. Go try it out, then make your decision from there.

The post Box.com Cloud Storage Review appeared first on Merchant Maverick.

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Webbased.com: An Alternative To Website Builders

webbased

As a reviewer of website builders, you might say I have a vested interest in promoting the main idea undergirding the DIY website builder: The notion that anybody, given access to inexpensive online editing tools, can create a perfectly functional website for their business or for themselves. However, there are plenty of reasons why a prospective website owner might seek to go another route. Perhaps you want more functionality out of your website than Squarespace or Wix can provide. Or maybe you simply have more pressing business or personal priorities than personally creating the website you want.

An obvious alternative to using a website builder is to hire a web designer to create your site. Sadly, this option is out of the reach of anybody who doesn’t have thousands of dollars (or more) on hand to spend on a website. That’s where intermediary web companies like Webbased.com come in. Webbased.com is a company that offers a variety of web services, including web design, SEO, support, and marketing. It’s meant to be kind of a one-stop shop for getting your website created, marketed, and monetized. Let’s take a closer look at what they have to offer.

Webbased.com: Services Offered

Here are the service packages webbased.com has to offer:

  • Web design services
    • 5 to 15 unique page designs
    • $99/month to $249/month
  • Local search engine optimization
    • Get found by local clients
    • $299/month to $999/month
  • National search engine optimization
    • Boost your search rankings in Google, Yahoo, and Bing
    • Get a marketing dashboard with stats
    • $698/month to $2978/month
  • Pay-per-click management (eCommerce)
    • ECommerce PPC management — best for businesses with products with SKUs
    • $158/month to $298/month
  • Pay-per-click management (local)
    • Increase brand exposure in a specific geographic area
    • $218/month to $1480/month
  • Pay-per-click management (national)
    • PPC management services
    • $478/month to $3198/month
  • Pay-per-click management (retargeting)
    • Boost your ROI by re-engaging previous users
    • $158/month to $398/month
  • Animated video explainer
    • Boost your conversion rates with explainer videos
    • $199/month to $529/month
  • Video production services
    • Get videos made for any marketing purpose
    • $249/month to $625/month
  • Social media management
    • Social media team manages your social media presence
    • Detailed auditing and reporting
    • $199/month to $999/month
  • Logo design services
    • $299 (one-time charge)
  • Landing page design
    • $229/month
  • WordPress maintenance and hosting
    • Get maintenance, security, and updates for your WordPress site
    • $44.99/month to $99.99/month
  • WordPress optimization and performance tuning
    • $99/month to $369/month
  • WordPress support and help
    • Get updates and maintenance on your WordPress website
    • $59 (one-time charge)
  • Merchant services
    •  Better rates than PayPal and Square
    • Fully integrated into your site
    • $20/month

Additionally, if you have an existing business website, webbased.com will analyse your site, free of charge, and send you a report assessing your site based on a number of metrics: speed, security, page views, conversion rate, mobile-compatibility, and SEO.

Here’s webbased’s full list of services, detailing everything that’s included in their product packages along with pricing.

Customer Service & Support

Webbased.com provides a plethora of ways to get in touch with a company rep. In addition to the standard email contact form, there’s a phone support line and live chat. There’s even a chat room you can join between the hours of 9:30 AM and 2:30 PM Pacific in which you can chat with Webbased’s developers about any issues you might have with your website.

Reviews Of Webbased.com

On its website, webbased.com actually directs users to review their services on both Google and Yelp — a sign of confidence in its products. The reviews posted by customers on these two sites are almost entirely complimentary, with users praising both the services offered and the customer support they received. One user’s opinion is fairly representative:

They provided creativity, valuable feedback, analysis and guidance in designing our logo, website, SEO optimization and producing our live company video.

The users with complaints get replies from the company — it’s always good to see companies responding in good faith to the complaints of their users.

Final Thoughts

Not everybody has the time and/or patience to build a website on their own, and it’s not easy for the layperson to personally negotiate with individual web designers over the particulars of services and pricing. Services like webbased.com help give aspiring webmasters the ability to select from a menu of services to get exactly what it is they need in a website. If you feel like passing on the heavy cyber-lifting to a team of experts, webbased.com is worth investigating.

The post Webbased.com: An Alternative To Website Builders appeared first on Merchant Maverick.

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What Is DocuSign And How Does It Work?

Picture it. You are buying a house, and you live a 30-minute drive from your realtor. Every time they have another paper for you to sign (which feels like once or twice a day at this point) you have to abandon your very pregnant wife and drive over just to put your John Hancock on that piece of paper. Sit back and consider the frustration, the amount of time wasted. Then wake up to reality: it’s 2018 and we no longer live in that kind of world. Now we have DocuSign.

What Is DocuSign?

DocuSign has actually been around since 2003, practically an eternity in the tech world. Since that day, they have been helping ensure that twenty-something soon-to-be-dads don’t have to drive all over the world just to sign some papers (is it clear this is a personal anecdote yet?). Having said that, though, DocuSign is about more than just facilitating secure digital signatures. This app helps arrange every step of document preparation and integrates with more than 300 other business apps. That’s a whole lot of convenience on offer here, both for businesses and client signers. But is it worth it? To find out, we examine price, features, and ease of use. Let’s dig in!

DocuSign Pricing

There is a pretty wide array of options for DocuSign pricing, from general access to DocuSign for realtors to full access to the service’s API. In all plans, you get one user account, with the option to contact the sales team for more. Here is what you get for your money in the general DocuSign accounts:

Personal

  • $10/month
  • Send five documents for signature/month
  • Basic Fields
  • Mobile app

Standard:

  • $25/month
  • Unlimited Documents
  • Reminders and Notifications
  • Personalized Branding
  • “Comments”

Business Pro:

  • $40/month
  • Collect payments
  • Advanced fields
  • Signer attachments
  • Bulk Send

As I mentioned above, DocuSign also has pricing specific to realtors, who often need to sign documents (and have documents signed electronically). These plans include some industry-specific features, and are available at the following prices:

Real Estate Starter

  • $10/month
  • Send five documents for electronic signature/month
  • Basic fields
  • Mobile app
  • Strikethrough
  • zipForm Plus integration

DocuSign for Realtors

  • $20/user/month
  • Up to 5 users, contact sales for more
  • “Comments”
  • Reminders
  • Collaborative Fields
  • REALTOR-logo branding
  • In-person digital signatures
  • Signer attachments
  • Advanced recipient types

Finally, DocuSign offers their full API on a subscription model if you want to get into the nitty-gritty of customization. Here is what you get for your money:

Basic API

  • $50/month
  • Start at 40 document sends per month
  • Unlimited Templates
  • OAuth
  • Basic Fields
  • Mobile Signing & Sending
  • Authentification

Intermediate API

  • $300/month
  • Embedding signing and sending
  • Personalized branding
  • Real-time reporting and analysis

Advanced API

  • $480/month
  • Bulk Send
  • PowerForms for API
  • DocuSign Connect

You can decide for yourself how valuable each of these different tiers might be for you, but I will say that for most subscribers, 5 documents per month is pitifully small, and not particularly useful. This means just about everyone will be forced to spring for a more expensive plan, whether they want the other features on offer or not.

How Does DocuSign Work?

Obviously, the primary feature of DocuSign is sending and receiving secure digital signatures. Docusign’s electronic signatures are secure, easy to use, and offer an excellent mix of convenience and efficiency.  You can also easily build your e-signature documents with DocuSign templates and the program’s drag-and-drop editor.

Beyond that basic feature, though, are the other things DocuSign offers to aid and assist the primary function of making signatures easier. Here are the best features available with a DocuSign account:

  • Streamline Process: DocuSign allows you to automate your approval and agreement processes. Using a solution called “System of Agreement,” you can digitize your messy paper trails and make the whole process electronic.
  • Payments: DocuSign is all about convenience and efficiency, and what better example could there be but this: using the payments feature, you can send requests to clients for payment. Your customer can sign and pay in one easy step using their credit or debit card, bank account information, or even Apple and Android pay.
  • Mobile Apps: While I would think most DocuSign users will confine their use of the app to their desks, you can download the mobile version and create documents for an electronic signature on the go. This seems especially useful in real estate and sales, especially if you need to travel to make pitches.
  • Integrations: DocuSign’s integration list includes expected apps like Google, SalesForce, Apple, and others. However, the list also includes such software as Oracle and SAP. As mentioned above, DocuSign integrates with more than 300 other apps, so the chances are it will work within the framework that you already have up and running.

How To Use DocuSign

My test of DocuSign covered the basic document-signature creation, but I was unable to test some of the more advanced System of Agreement features. With that in mind, I found DocuSign absurdly easy to use. To create your document for an electronic signature, you import your PDF or Word doc, then drag-and-drop whatever signature elements you need to any part of the document. This includes your signature or initials (which you can custom-draw if you would like), but also your printed name, business name, and more. It is a seamless, difficulty free process. If the rest of DocuSign works as simply and easily as the parts I was able to test, I can’t imagine anyone experiencing serious difficulties.

Final Thoughts

Overall, my verdict on DocuSign is that if you have a need for digital signatures, this is definitely a good service for you. Especially if your area of business deals with multiple signatures per day, Docusign seems like a positive addition to your day. You will find it helpful on your own, and if you have clients, they will likely thank you for the increased efficiency e-signatures can provide. On the other hand, if you don’t need many signatures in your line of work, this product is likely not worth the expense. If you are still on the fence, keep in mind that DocuSign offers a 30-day free trial to help you make your decision. My recommendation: give it a try and see for yourself how helpful it can be.

The post What Is DocuSign And How Does It Work? appeared first on Merchant Maverick.

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3dcart VS Volusion

3dcart-vs-Volusion

3dcart VS Volusion
✓ Pricing
Ease of Use ✓
✓ Features
Web Design ✓
✓ Integrations & Add-Ons
✓ Payment Processing
Tie Customer Service & Technical Support Tie
Tie Negative Reviews & Complaints Tie
Tie Positive Reviews & Testimonials Tie
Winner Final Verdict
Read Review Read Review
Visit Site Visit Site

Everyone knows starting a business is a challenge, and setting up an online store can be particularly difficult. Not only do you have to find a product and make a business plan, you also have to build an entire website that can operate as your selling platform. This was an almost impossible obstacle for many sellers just a few years ago, but modern software has eliminated many of the hurdles merchants would otherwise have to overcome.

Cloud-based, all-inclusive store building software programs like 3dcart and Volusion can give you the tools you need to make your idea a reality. And because these software place a strong focus on ease of use, all sellers (even those with little technical knowledge) can get a store up and running in just a few weeks–or less!

As a fully hosted solution, 3dcart aims to be accessible and affordable for all merchants. Small and large businesses alike can use this eCommerce platform successfully, as is evidenced by the 22,000 current users. What’s more, 3dcart is continually expanding its features and services to fit even more users.

In the same way, Volusion is a comprehensive shopping cart solution for small to large businesses. Volusion hosts over 30,000 stores and is now offering two versions of their software: the more feature rich V1 and the easy to use (but still developing) V2. Volusion gives merchants the option of choosing between the two.

So, which of these shopping cart solutions should you choose? Well, it depends.

3dcart and Volusion both come with unique advantages and disadvantages, and your choice will depend on your business’s needs. To learn which solution is right for your online store, keep reading. We’ll compare the two shopping carts head-to-head in categories such as pricing, ease of use, and web design. Read on.

Don’t have time to read an entire article? Take a look at our top-rated eCommerce solutions for a few quick recommendations. Every option we present here offers excellent customer support, superb web templates, and easy-to-use software, all for a reasonable price.

Web-Hosted Or Licensed

Both platforms are web-hosted.

Hardware & Software Requirements

None. You just need a computer, secure internet access, and an up to date browser.

Pricing

Winner: 3dcart

3dcart and Volusion follow similar pricing models. Both services are billed on a monthly basis, no contract required, with advanced features included in higher level plans. If you commit to a year-long purchase, you can benefit from a discount of 10%. Keep in mind that many software solutions do not offer refunds on year-long purchases, so don’t commit to a full year until you’re sure the platform will work for you.

3dcart determines pricing levels by the number of staff users and availability of features. All plans beyond the startup plan come with unlimited products and bandwidth. Take a look at a brief breakdown:

  • Startup: $19/Month
    • 1 Staff User
    • 100 Products
    • Sell Up To $10K/Year
  • Basic: $29/Month
    • 2 Staff Users
  • Plus: $79/Month
    • 5 Staff Users
  • Pro: $229/Month
    • 15 Staff Users

3dcart also makes an enterprise platform available for any merchant with an annual revenue of over $400K/Year. There are also discounts available for charities and non-profits.

Pricing for Volusion differs between their two versions: V1 and V2. The most notable difference is that pricing for V1 does not include any transaction fees; however, bandwidth on this plan is limited and bandwidth overage fees apply. On the other hand, V2 comes with unlimited bandwidth, but merchants will have to pay transaction fees on all their sales. See both pricing models below:

V1 Pricing

  • Mini: $15/Month
    • 1GB Bandwidth
    • 100 Products
  • Plus: $35/Month
    • 3GB Bandwidth
    • 1,000 Products
  • Pro: $75/Month
    • 10GB Bandwidth
    • 10,000 Products
  • Premium: $135/Month
    • 35GB Bandwidth
    • Unlimited Products

V2 Pricing

  • Personal: $25/Month
    • Unlimited Products & Storage
    • 2% Transaction Fee
  • Professional: $75/Month
    • Unlimited Products & Storage
    • 1% Transaction Fee
  • Business: $135/Month
    • Unlimited Products & Storage
    • 0.5% Transaction Fee

When we compare 3dcart and Volusion, we can see that monthly rates for each pricing level are similar, with Volusion offering cheaper premium level plans. However, Volusion also charges fees in addition to these monthly rates (either bandwidth overage fees or transaction fees, depending on the version). For this reason, we’re awarding the category to 3dcart.

Get Started With 3dcart

Get Started With Volusion V1

Get Started With Volusion V2

Ease Of Use

Winner: Volusion

3dcart and Volusion both claim to be easy to use solutions. Let’s take a closer look at each software.

3dcart offers all potential users a risk-free, 15-day trial, so you can test out the platform for yourself without handing over any credit card information.

When you log in, you’ll get to explore 3dcart’s dashboard. 3dcart organizes all features in a toolbar on the left. Use categories and subcategories to navigate the software. Use video tutorials to learn the basic procedures.

Adding a product to your store is a two-step process.  First, you have to input and save basic product information. Once you’ve saved that page, you’ll be able to add in more detailed product information. For example, you can adjust shipping, inventory, and SEO settings.

3dcart is relatively easy to learn, though you may have difficulty locating features initially. Some features are buried in places you wouldn’t expect under titles you might not know to look for. Discounts features, for example, are available under “Promotion Manager.” Overall, we give 3dcart a four out of five stars in ease of use.

Volusion also offers trials of their software. You can sign up for free 14-day trials of both V1 and V2. Let’s start with V1.

When you log into your trial, you’ll find this dashboard:

Use tutorial videos to quickly learn your way around.

As it is with 3cart, adding a product on Volusion is a two-step process. First, add your basic product information. When you’ve saved that, you can add advanced information like SEO and shipping details along with more product descriptions.

While we don’t think Volusion V1 has the easiest dashboard in the eCommerce industry, it shouldn’t take too long to learn. You’ll find plenty of features available in the tool bar up top; you just have to figure out how to implement them the first few times.

Volusion V2 is the company’s newest attempt to make an easy to use eCommerce platform. The software is still in development, and while it is missing a few features, the UI is looking pretty good.

We’d still like to see a bit more work done to this admin. In particular, we’d like to see subcategories added to the toolbar on the left. This would make navigation require fewer clicks, which can really add up for online sellers.

V2’s “add a product page” is inviting in its simple and colorful design.

We have experienced some frustration with V2’s simple design, however. V2 tends to railroad users through basic operations, which can be a pain when you don’t need the help.

For example, when you go to set up a discount, you will encounter this screen:

You have to select the appropriate options before you’ll be presented the more typical discount creation page:

I would rather enter my information first into this second page. I don’t find the first page to be particularly helpful.

Volusion’s goal with V2 was to create a platform that’s easier to use, and they accomplish that goal. Personally, however, if I were to choose a version of Volusion, I would still pick V1. I think it’s worth learning a slightly more difficult software in order to access better features.

With so many versions of these software available, it’s difficult to directly compare 3dcart and Volusion. As far as ease of use goes, I think 3dcart and V1 are comparable, and V2 is slightly easier to use.

For this reason, we’re giving ease of use to Volusion.

Features

Winner: 3dcart

To get the best idea of these shopping carts’ features, a good plan is to visit each platform’s website and review the full list. However, if you don’t have time to do that just now, we’ll provide a brief overview of a few special features that each software offers below.

3dcart offers users lots of features, even at the lowest pricing plan. Here are a few:

  • Sell Digital: Sell digital products alongside your physical products.
  • Checkout Options: Choose either one-page or three-page checkout.
  • Automatic Calculators: Use tax and shipping calculators to generate real-time quotes.
  • Abandoned Cart Saver: Email customers to remind them to complete their orders.
  • Built-In Blog: Boost your brand and SEO with a blog.
  • SmartCategories: Create an “On Sale” category to showcase items.
  • Bulk Import / Export: Migrate platforms or make large scale edits with import and export features.
  • POS: Sell in-person with 3dcart Point Of Sale.

As you might expect, Volusion’s two versions come with different feature sets. Here are a few V1 features:

  • Abandoned Cart Reports & Emails: Encourage more conversions.
  • Allow Reviews: Let customers leave reviews on your products.
  • Returned Merchandise Authorization (RMA) Tool: Easily process returned products.
  • Sell On Facebook, Amazon, eBay: Sync channels with your store and manage your multichannel orders from Volusion.
  • Content Delivery Network (CDN): Use a CDN to deliver site content faster.

And here are features for V2:

  • Instant Search: Let customers search products on your storefront.
  • Checkout On Your Domain: Customers will not be redirected to a Volusion subdomain at checkout (available for merchants on the Professional and Business level plans).
  • Shipping Features: Create shipping options like signature-required shipments, discounted shipping, and flat rate shipping.
  • Bulk Import: Use CSV files to import new inventory in bulk.
  • Returned Merchandise Authorization (RMA) Tool: Process returns easily.
  • Dropshipping App: Use Volusion’s already-integrated dropshipping app to fulfill orders without handling merchandise.

3dcart is well known for their robust feature set. Volusion, on the other hand, is still working on expanding their feature set to better match their competitors’. 3dcart wins this one.

Get Started With 3dcart

Get Started With Volusion V1

Get Started With Volusion V2

Web Design

Winner: Volusion

As hosted software, 3dcart and Volusion work to provide elegant, easily customizable design templates for their customers.

3dcart users can find 90 free themes in 3dcart’s marketplace, all of which are mobile responsive. These themes are rather middle-of-the-road. They aren’t spectacular, but they aren’t ugly.

3dcart also has a few dozen premium themes available for purchase. These themes cost $99-$199.

Sellers can edit these themes in a variety of ways. Tech savvy users can edit the HTML and CSS, and less experienced users can use the WYSIWYG editor to make changes to your store’s language (like buttons, tabs, etc.). 3dcart also has a drag and drop available for merchants who request it, but it isn’t a very strong editing option.

Volusion features different themes for V1 and V2. V1 has a selection of 46 themes, 11 of which are free. V1 also sells premium themes at $180.

V2 has a much smaller set of themes–just 14–and all of them are free and mobile responsive. There do not appear to be any premium templates available for V2.

Theme editing between the two versions is different as well. V1 users are equipped with code editing tools. You can use HTML and CSS editors. There are also a WYSIWYG editor and visual style editor, which you can use to adjust and add blocks of content to your site.

Theme editing with V2 is much more focused on ease of use. You can use V2’s visual editor to make larger changes without touching the code. Or, if you’d prefer, you can make changes directly to the CSS.

While 3dcart provides more template options, we think Volusion has more user-friendly editing tools. Volusion wins web design.

Integrations & Add-Ons

Winner: 3dcart

3dcart’s marketplace features plenty of add-ons that offer a variety of features, including order management, shipping, security, social media, dropshipping, channel management, advertisement, and more. There’s also a RESTful API that developers can use to build more customizations and connections.

Volusion also has a strong app marketplace for merchants on the V1 version. There are over 70 integrations available for shipping, email, accounting, and more.

V2, on the other hand, does not provide so many options. There are only 22 applications currently available. It’s worth noting, however, that one of those applications is Zapier, which facilitates connections to many, many more integrations. Zapier is a paid service.

Both versions of Volusion also have APIs available for further development.

We’re basing our decision for this category on numbers. 3dcart wins!

Payment Processing

Winner: 3dcart

3dcart connects with over 100 payment gateways. You’ll have plenty of options.

Both versions of Volusion connect with significantly fewer payment gateways. V1 has 30+ payment gateways, and V1 only connects with two options: PayPal and Stripe (if you connect with Stripe, you can also enable Apple Pay).

In addition, Volusion offers its own in-house payment service for V1 merchants only: Volusion Payments. Volusion Payments lets you process transactions for around 2.15% + $0.30 per transaction with no monthly fee (note: this rate is a ballpark number. Your actual rates may be lower or higher). Volusion Payments requires users to sign a three year contract. If you terminate this contract after the 45 day grace period, you will be charged a $99 termination fee. While we’re happy that Volusion has its own payment services, we are displeased with the way they provide information about the services. Volusion is not very upfront about their fees on their website. We wish they were more transparent.

We’re giving the category to 3dcart.

Customer Service & Technical Support

Winner: Tie

All 3dcart plans come with personalized support via email, live chat, and phone. Self help support options include a knowledge base, video tutorials, a support forum, webinars, and an e-university. 3dcart’s response times are good for inquiries via phone or web ticket. However, their response times for live chat support are significantly delayed. Essentially, “live chat” is just another way to submit web tickets. It takes hours for support reps to get back to you.

Customer support is the same for both versions of Volusion. All plans (except Mini on V1 and Personal on V2) come with 24/7 support via phone, chat, and email. Self help resources include a knowledge base, webinars, video tutorials, a blog, and guides. There are mixed reviews only about the quality of Volusion’s customer support. Some have great experiences, others don’t.

Negative Reviews & Complaints

Winner: Tie

Every shopping cart comes with its fair share of negative reviews. Here’s what users dislike about each platform:

3dcart

  • Poor Customer Service: Users claim customer support is slow to respond to inquiries. Note below in the “Positive Reviews” section that this is not a universal experience.
  • Plain Templates: 3dcart’s templates aren’t bad, but they lack pizzaz.
  • Expensive Add-Ons: The cost of using multiple integrations and extensions can add up.

Volusion

  • Additional Fees: Merchants on both versions face additional fees: bandwidth overage fees on V1 and transaction fees on V2.
  • Dated Software: Users complain that Volusion’s features are not up-to-date with cutting edge software.
  • Misleading Sales Reps: I have seen a lot of reports of misleading sales tactics. It’s worth noting that Volusion has recently put a lot of work into improving their support system, and they claim higher levels of customer satisfaction.
  • No Free SSL On V1: Merchants on V1 have to purchase their own SSL certificate. These are normally included for free with hosted software.

Positive Reviews & Testimonials

Winner: Tie

Despite these negative reviews, there’s still a lot of good things to say about both of these platforms. Here’s what users love about 3dcart and Volusion:

3dcart

  • Low Price: 3dcart’s prices are competitive with other leading eCommerce software.
  • Good Customer Support: Some users have positive experiences with 3dcart’s support team.
  • Easy To Use: 3dcart’s UI is easy to learn, no matter what your technical ability level is.
  • Many Features Built In: 3dcart offers a robust feature set right out of the box. You’ll be able to access advanced features without add-ons.

Volusion

  • It Works: Users like that they can get started right away with all the necessary features. In addition, Volusion users say the software is bug-free, which is a huge plus.
  • No Transaction Fees On V1: Merchants on V1 do not have to pay transaction fees. They just need to monitor their bandwidth usage to make sure it stays within limits.
  • Ease Of Use: Volusion’s UI are very user friendly, especially on V2.

Final Verdict

Winner: 3dcart

It’s a close race, but in the end, 3dcart takes the lead. A strong feature set, low pricing, and high ease of use make 3dcart an excellent eCommerce platform for many merchants.

Despite the results of this comparison, Volusion may still be the right choice for your business. Volusion’s two versions give merchants a level of choice that 3dcart can’t offer. You may find that V1 or V2 fits your needs perfectly.

Whichever you choose, we hope you’ll consider signing up for a free trial of the software before you purchase. You can learn a lot from just a couple of hours exploring a software’s admin panel. Click the links below to get started with a trial of 3dcart or Volusion.

Get Started With 3dcart

Get Started With Volusion V1

Get Started With Volusion V2

The post 3dcart VS Volusion appeared first on Merchant Maverick.

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Business Credit Cards For People With Bad Credit

 

business card for bad credit

According to most of the traditional indicators, the American economy is doing well, or at least as well as it’s been doing in a while. However, with such necessities as housing and healthcare becoming ever more prohibitively expensive for the average person, is it any wonder that, belying the propagandistic happy talk, articles aimed at people with bad credit are some of our most clicked-on pieces of content?

It’s no secret that having bad credit brings serious complications to your life. This is doubly true if you’re trying to start your own business, when access to credit is of paramount importance. That’s why we’ve compiled a list of business credit cards that specifically cater to entrepreneurs with big dreams but poor credit scores.

Your credit score shouldn’t determine your ability to turn your business dreams into reality. The following credit cards claim to help you sidestep bad credit to live the American dream. Let’s see how well they deliver.

Capital One® Spark® Classic for Business

Here’s a card for the credit-challenged that didn’t leave me wanting to take a Silkwood shower after reading about it: the Capital One® Spark® Classic for Business.

The Spark® Classic for Business is marketed as a business card for people with “average” credit. It carries a high variable APR of 24.49% and a penalty APR of 30.9%. Those are the main drawbacks of the card. On the plus side, you’ll earn an unlimited 1% cash back on every purchase. Now, there are plenty of business credit cards that will see you earning cash back at a higher rate, but the vast majority of those cards are not available to those with more modest credit ratings. The card also carries no annual fee, no foreign transaction fee, and you can get additional employee cards at no extra cost.

As for benefits, you’ll get an auto rental collision damage waiver, travel and emergency assistance services, fraud coverage, and purchase security.

Another benefit of the Spark® Classic for Business is that Capital One will report your card activity to several business credit bureaus. This way, if you make your payments, you can improve your business credit.

Wells Fargo Secured Credit Card

The Wells Fargo Secured credit card, as the name suggests, is a card that requires a security deposit that establishes the amount of your credit line. There are no rewards or cash back to earn, but otherwise, the card is a pretty good deal.

A deposit of at least $300 is required, though you can deposit as much as $10,000. The card is available to U.S. citizens, permanent residents, and nonresident aliens. It’s also another card that reports your card activity to the credit bureaus, thus helping you build your business credit (assuming you make your payments in a timely manner!)

The card’s purchase APR is a variable 20.74% — a notably smaller APR than that of the cards I’ve listed thus far — and there’s no penalty APR. You’ll have to pay an annual fee of $25, which is not as nice as a $0 annual fee, of course, but lower than the annual fees of many cards. There’s a foreign transaction fee of 3% and a late payment fee of up to $38.

A note about interest: if you’re charged interest, the charge will be no less than one dollar. However, by paying off your entire balance by the due date each month, you can avoid paying interest on purchases.

If you make your payments on time, you may eventually become eligible for an upgrade to an unsecured Wells Fargo card, in which case your security deposit will be refunded to you. Another benefit: you’ll get protection for up to $600 on a cell phone against covered damage or theft.

Credit One Bank® Platinum Visa® for Rebuilding Credit

The Credit One Bank® Platinum Visa® for Rebuilding Credit isn’t a business credit card, but it certainly can be used by entrepreneurs with iffy credit as a credit card option. Should they, though? Let’s explore.

The Credit One Bank® Platinum Visa® carries a variable APR of 17.49% to 25.49%, the lower end of which is pretty good for a poor-credit card. What’s unfortunate about the Credit One Bank® Platinum Visa®, however, is the fact that your annual fee can be anywhere from $0 to $75 for the first year depending on your credit. For those whose credit score is bad (isn’t that the target audience here?), there will be an immediate $75 fee, reducing the $300 credit line (the minimum credit line Credit One Bank® will issue) to $225. And for each subsequent year, the annual fee can be as high as $99.

The nicest benefit of the card is undoubtedly the 1% cash back you’ll earn on all eligible purchases. However, consider the fact that only certain accounts will be given a grace period as far as interest goes. Without the grace period, interest will start accruing on your purchases immediately, regardless of whether you pay off your entire balance by the due date. There’s also a $19 charge to add another authorized user, which will come into play if you want to authorize an employee to use your card. Not to mention a 3% foreign transaction fee and a fee of up to $38 for late and returned payments. So while using the Credit One Bank® Platinum Visa® for Rebuilding Credit will see you earning cash back (always a nice bonus for a bad-credit card), it’s not the most consumer-friendly card.

Green Dot primor® Visa® Gold Secured Credit Card

The Green Dot primor® Visa® Gold Secured Credit Card is a secured consumer credit card that can be used for business. The minimum deposit is just $200 while the maximum deposit is $5,000. The issuing company specifically states that there are no credit score requirements to apply for this card.

As it is a secured card, the APR is a low 9.99% (the cash advance APR is 18.99%), and the card carries a grace period of 25 days until interest on purchases will start to accrue, so if you pay off your card in full before the payment due date each month, you’ll avoid interest charges. Unfortunately, there’s an annual fee of $49, a foreign transaction fee of 3%, and there are no rewards or cash back to earn. The card does come with auto rental insurance and zero fraud liability, though.

OpenSky® Secured Visa® Credit Card

Here’s another card that doesn’t even check your credit when you apply. The OpenSky® Secured Visa® credit card is a personal credit card you can use to make business purchases. You don’t even need a checking account to get this card. It reports to all three credit bureaus, thus helping you build up your credit.

Though OpenSky deserves kudos for offering a credit card with no regard to the applicant’s credit score, the APR is a variable 18.64%, which is higher than that of some comparable secured cards. The minimum security deposit is $200, there’s a $35 annual fee, a 3% foreign transaction fee, and there’s a 25 day grace period at the start of each billing period in which you can avoid interest on purchases if you pay off your card in full. Not a bad deal for a card that has no credit score requirements whatsoever.

Applied Bank® VISA® Business

One card that comes up a lot in discussions about business credit cards for those with poor credit is the Applied Bank® VISA® Business, which comes in both secured and unsecured versions. On the face of it, the card seems unsexy but reasonable — get the chance to build up your bad credit, and in exchange, you deal with a low maximum credit limit and zero rewards. However, the closer you examine the Applied Bank® VISA® Business, the worse it looks.

The unsecured version of this card comes with a steep APR of 23.99%, while the unsecured version, which requires an initial deposit of between $200 and $1,000 (your credit limit will be equal to the amount of your secured deposit, and the deposit is refundable upon closing the account), comes with an APR of 9.99%. However, if you get the unsecured card, you’ll have to pay an origination fee of $125 just to get the card, along with a $9.95 monthly maintenance fee (that’s $119.40 per year!). There’s also no grace period for the interest, meaning interest will start accruing as soon as you make your first purchase. Oh, and there’s also a late payer APR of 29.99%. The unsecured Applied Bank® VISA® Business seems to be a cynical attempt to gouge vulnerable people with onerous terms and fees.

The secured card doesn’t come with an origination fee, but it does carry a $48 annual fee which comes due on your first billing statement and will reduce your initial credit availability. And while it drops the monthly maintenance fee and the 29.99% late payer APR, the secured card retains the lack of an interest grace period. For both cards, there’s a $30 per card charge to get additional cards for your employees, a minimum interest charge of $0.50 per transaction, a $38 late payment fee (they can do this because business credit cards are exempt from the requirements of the CARD Act, which limits such fees for personal credit cards), and a 3% foreign transaction fee.

There are better options out there if you want a bad-credit business card. In particular, the unsecured Applied Bank® VISA® Business card ought to be illegal.

Final Thoughts

Statistically, it’s harder to start from a position of disadvantage in America than just about anywhere else. Thankfully, there are credit cards out there designed to cater to those whose circumstances have taken a toll on their credit rating. Of course, some of these cards are just attempts to take advantage of the vulnerable, but if you pay attention to the terms and fees, you can avoid the potential pitfalls and start climbing your way out of your credit hole.

The post Business Credit Cards For People With Bad Credit appeared first on Merchant Maverick.

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The Cheapest Credit Card Processing Companies

Business owners today know that it’s more important than ever to be able to accept credit cards. Customers carry less cash, and rely on credit and debit cards for the majority of their purchases. If you’re an eCommerce merchant selling online, taking “plastic” is just about your only option. Unfortunately, you can’t accept credit cards unless you have a merchant account, and merchant accounts aren’t free. In fact, they can be very expensive – especially for a small business – if you choose the wrong provider.

The credit card processing industry can be very bewildering, especially for a first-time business owner. There are dozens of companies providing processing services, and each of them offers different processing rates, fees, and contract terms. A provider that’s a good deal for a very small business might be prohibitively expensive for a larger one, and vice versa. Naturally, merchants want to cut through the confusion and get a quick answer to the question “Which one is the cheapest?” There’s nothing wrong with wanting to save money, especially for a new business that has to count every penny. However, if you look up “cheap” in the Merriam-Webster Dictionary, you’ll note that while cheap can mean “charging or obtainable at a low price,” it can also mean “of inferior quality or worth.” If you’ve ever been disappointed with a product purchase when you thought you were getting a good deal, you know that these two definitions often go together.

Here’s a quick look at some of our favorite low-cost credit card processors. Some are free to use. You just pay for the transaction you process. We don’t cover all of these in-depth in this post, but you can check out our complete reviews for all the details. 

The Overall Cheapest Credit Card Processing Companies for 2018

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Best Choice For Small-ticket, Canada, Mobile, eCommerce  All businesses, Mobile, Retail eCommerce, Mobile Canada, Restaurants Large-ticket, All-in-one, Recurring billing
POS and Other Features Included Yes Yes Yes No Yes
Rate Matching/ Negotiable No Yes No Yes Yes
Pricing Structure Flat Rate Interchange-Plus Flat Rate Interchange-Plus Subscription
Retail Rates 2.75% 0.30% + $0.10 2.70% 0.20% + $0.10 0.00% + $0.08
Basic Monthly Fee $0 $0 $9 $9.95 $99

Before we delve into specific processors, there are two important points that you need to understand:

  1. The company offering the lowest processing rates or fees isn’t necessarily the cheapest. The total percentage of your credit card sales that you’ll have to fork over to your merchant account provider isn’t an easy thing to calculate in advance with any precision. Variable processing rates and hidden (or at least unanticipated) fees can easily result in you paying much more than you thought you were going to for processing. Companies offering flat-rate pricing fare much better in this regard, as their simple pricing structure makes it relatively easy to estimate your monthly processing costs.
  2. The “cheapest” processor isn’t necessarily the best one for your business. While you naturally want to be able to accept credit cards while paying the least amount of money for the privilege, companies offering the lowest rates often cut corners in other aspects of their service to make those low rates possible. Poor customer service, for example, is a common problem among the least-expensive processors. If you want the best overall, you might also check out our top picks for small business credit card processing.

Types Of Providers

With the advent of new, low-cost providers, there are now two broad categories of companies providing credit card processing services. These include traditional (or full-service) merchant account providers, and payment services providers, who offer credit card processing, but without some of the features of a full-service merchant account. It’s very important that you understand the difference between the two.

Payment service providers (PSPs) can process your credit card transactions, but they don’t provide you with a unique merchant ID number for your business. Instead, your account is aggregated together with other merchants. This lowers the cost of things like monthly account fees and PCI compliance, but it also means that your account is much more vulnerable to being suddenly frozen or shut down for the slightest hint of fraud. Getting your account working again is complicated by the fact that most PSPs provide little in the way of one-on-one customer service. For a very small business, a PSP may very well be more affordable than a full-service merchant account, especially since you won’t have to pay so many recurring fees just to keep your account open. Be aware, however, that you’ll constantly be running the risk of suddenly losing access to your account and not being able to accept credit cards at all with a PSP. If your business processes a high number of credit card transactions on a daily basis, the loss of business you’ll incur if your account is frozen is quite high. Popular PSPs include PayPal, Square, and Stripe.

Traditional merchant accounts include a number of features you won’t find with most PSPs. The primary distinction is that you will be assigned a merchant identification number that is unique to your business. This number automatically identifies you to processors, issuing banks, and credit card associations. While it might not sound like much, having a unique merchant ID number helps to lower the risk of fraud and improves the stability of your account. While you still might have to endure a hold on funds for an unusually large transaction, the chances of your account being completely frozen for no apparent reason are much less than they are with a PSP. Merchant account providers also offer a host of ancillary services, including PCI security scans, customizable payment gateways for online payments, support for ACH (eCheck) payments, and many others. These bells and whistles don’t come cheap, of course. You’ll pay more in monthly fees than you will for an account with a PSP. However, you’ll also pay lower processing rates, especially if your merchant account provider offers interchange-plus pricing. For many medium-sized and larger businesses, a full-service merchant account will actually be less expensive than a PSP.

How We Chose

We used a number of criteria to determine which processors offered the lowest overall costs and the best service in most situations, including the following:

  • Pricing: Since we’re profiling the cheapest processors in the industry, it should come as no surprise that pricing would be our top criterion. It isn’t that simple, however. Pricing can be very complex, and there are a lot of variables to analyze in making a cost comparison between one provider and another. Fortunately, flat-rate pricing is relatively easy to analyze, as there’s usually little or no variability in the processing rates. Interchange-plus pricing, on the other hand, is very complex, as there are a bewildering number of possible rates charged under the “interchange” portion of the processing rate formula. To get a better idea of just how complicated processing rates can be, check out our Complete Guide to Credit Card Processing Rates & Fees.
  • Contracts: No one wants to be stuck in a long-term contract with an expensive early termination fee if you close your account early, but that’s what many traditional merchant account providers will offer you. All the companies profiled here – including both PSPs and full-service merchant account providers – offer month-to-month contracts. You can close your account and switch to a different provider any time you want, and with no penalty.
  • Hardware: Unless you’re running an eCommerce-only business, you’re going to need some equipment to process your customers’ credit cards. Most of the companies profiled here offer a variety of EMV-compliant credit card terminals, POS systems, and mobile card swipers. Equipment is offered for sale at competitive prices – sometimes it’s even free! You can also buy your own equipment and have it reprogrammed to work with your provider’s service. Note that Stripe is eCommerce-only and PayPal only offers a mobile payment solution through their ancillary service, PayPal Here.
  • eCommerce support: Buying online continues to overtake traditional retail shopping, and all our profiled providers offer support for eCommerce. This includes both a payment gateway to send payment data to the processor and a virtual terminal to allow you to enter transactions on your computer or mobile device. Each provider also offers options for integrating your website with online shopping carts and developer tools for customizing the interface between your site and their services.
  • Customer support: While every provider offers customer support and service, some do a much better job at it than others. We looked for vendors that provided 24/7 telephone support, as well as an online knowledgebase that allows merchants to troubleshoot common problems on their own. As we’ve noted, some PSPs don’t provide very good customer support at all. That’s one of the trade-offs you’ll have to be aware of if you want to go with the “cheapest” option for credit card processing.

Remember, there isn’t a single processor out there that can offer the lowest costs to every merchant. What might be a very inexpensive solution for you might not be such a good deal for someone else. Also, paying the least amount of money for processing won’t be of much use to you if you have to worry about your account suddenly being frozen or shut down, or if the customer service behind your account isn’t adequate to solve technical problems for you when they arise. That said, here are our six top choices for the cheapest credit card processing companies:

Square Payments

Everyone has heard of Square (see our review) by now. With its free Square Reader, app-based payment system, and simple pricing structure, it’s one of the most popular processing services on the market for small businesses. Square’s pay-as-you-go system allows businesses that ordinarily couldn’t afford a merchant account to accept credit cards.

Retail businesses love Square for its low-priced card readers, which replace traditional credit card terminals with a smartphone-based system that’s both affordable and mobile. In addition to a card reader, you’ll need the free Square app, a smartphone, and an Internet connection. Square’s original card reader is free and you’ll receive one when you open your account. However, it can only read magstripe cards and requires a headphone jack to function. Most users will want to shell out a few extra bucks for a newer, EMV-compliant reader. The Square reader is only $49.00, and supports both EMV and NFC-based payment methods. It also uses Bluetooth to connect to your smartphone or tablet – no headphone jack required.

 

Cheapest Mobile Credit Card Processing Company

The Essentials:
✓ $0 monthly fee
✓ 2.75% for all card-present transactions
✓ Exceptional POS app included free
✓ Free credit card reader available
Proprietary software suite includes:
• Point of sale software
• Inventory management
• Mobile app
• Virtual terminal
• Invoicing/billing
• API for custom solutions
Visit the Square website
Read our Square review

Square’s pricing structure is about as simple as it gets. There are no monthly fees whatsoever for a basic account, and none of the types of “hidden” fees that traditional merchant account providers like to tack on. While some advanced features require a monthly subscription, these are entirely optional, and most businesses probably won’t need them. Square’s processing rates are also very simple:

  • 2.75% for all card-present transactions (including magstripe, EMV, and NFC)
  • 2.90% + $0.30 for all invoices and eCommerce transactions
  • 3.50% + $0.15 for all virtual terminal and keyed-in transactions

That’s it! You don’t have to worry about non-qualified transactions, batch fees, or anything else. Funds are deposited into the user’s account within 1-2 business days in most cases. Billing is month-to-month, so you don’t have to worry about long-term contracts and early termination fees. You can quit anytime you want without penalty.

This all sounds great – and it is – if you’re a small business that has to watch every penny and can’t afford to shell out a significant amount of money every month just to have a merchant account. For a larger business, however, Square’s pricing actually isn’t the best deal available. Flat-rate pricing is deliberately on the high side because it has to pay for all the other services that most providers bill you separately for. At a certain point (roughly $10,000 per month in processing volume), you’re actually better off going with a full-service merchant account provider that offers interchange-plus pricing. Yes, you’ll have to pay those pesky account fees, but your processing rates will be so much lower that you’ll save money overall.

Besides high processing rates, Square has a few other drawbacks as well. We’ve already mentioned that your account is much more likely to be frozen or terminated unexpectedly, but what makes this situation worse is that Square’s customer service isn’t so great. The company didn’t even have telephone support for several years after it launched, but it does now. Unfortunately, it’s only available during business hours, and the large number of complaints about it suggests that the quality of support you’ll receive if you call in with a problem is inconsistent at best.

But is it really the cheapest way to go? Well, it depends. For a very small business that doesn’t have a high processing volume, Square’s lack of account fees and predictable pricing can make it very affordable. On the other hand, a larger business with a high processing volume will end up paying much more under those flat-rate prices than it would with an interchange-plus pricing plan.

Square keeps costs low by aggregating accounts together rather than issuing each user a unique Merchant ID number. Because of this, you won’t get a true full-service merchant account. The trade-off is that there’s a much higher chance that your account will be frozen or terminated without notice if fraud is suspected. This might be a minor inconvenience to a retail business that mostly deals in cash and only occasionally takes credit cards, but it’s catastrophic to an eCommerce business where cash isn’t an option.

PROS:

  • No monthly account fees
  • Low-cost EMV-compliant card readers available
  • No long-term contracts or early termination fees

CONS:

  • Not a full-service merchant account; no unique Merchant ID number
  • Frequent account holds and terminations
  • Flat-rate pricing is more expensive than interchange-plus for larger businesses

For a more detailed look at Square, be sure to check out our full review.

Payline Data

Payline Data (see our review) covers all the bases for small business transactions, from mobile and online payments to in-store sales. They offer easy-to-understand pricing plans that are very affordable, especially for low-volume sellers. However, the company’s website fully explains all of the extra features and their associated costs, so you know up front what you’ll have to pay. Payline also stands out from the crowd for their corporate philosophy of charitable giving and support for non-profits through discounted pricing and their “Commercial Co-Venture” program.

 

Cheapest Merchant Account Provider

The Essentials:
✓ No early termination fees
✓ Transparent interchange-plus pass-through pricing
✓ Outstanding $0 monthly fee option
✓ Exceptional ecommerce shopping cart compatibility
Proprietary software suite includes:
• Excellent mobile processing app
• Easy integration API for customization
• Virtual terminal
• Billing management
Visit the Payline website
Read our Payline review

For brand-new or mobile businesses, Payline Start is the most affordable plan. There’s no monthly fee, and pass-through markup rates are set at 0.30% + $0.10 per transaction. In addition to the free virtual terminal, you’ll also receive a free Ingenico GX5 card reader and the Payline Mobile app to go with it. If you’re looking for value, but want better equipment and lower rates, the Payline Shop plan might be right for you. This plan includes the same features as the Payline Start plan, but lowers your processing rate. The plan costs $10 per month, and markup rates are set at 0.20% + $0.10 per transaction. Mobile businesses and small to medium retailers will benefit the most from this plan.

For more information, see our complete Payline Data review.

CDGcommerce

No account setup fees. No PCI compliance fees. No gateway fees. No monthly minimums, either. There’s a lot of things that CDGcommerce (see our review) doesn’t charge you for, making them a very affordable option for small businesses and those just getting off the ground. They also offer month-to-month contracts with no early termination fee, so in the unlikely event that you aren’t happy with their service, you can close your account without penalty.

So, what do you pay for? Besides processing charges, you’ll only have to pay a $10.00 monthly account fee. This gets you both a full-service merchant account and a payment gateway. You can select either CDG’s own proprietary Quantum gateway or Authorize.Net. Either way, there’s no fee for using the gateway, and no additional per-transaction processing fee. While this is a great deal, you also have the option of adding the cdg360 security package for an extra $15.00 per month. It comes with customized security alerts, PCI-DSS vulnerability scans, and $100,000 in data breach/theft protection. It’s well worth paying a little extra for, especially for eCommerce merchants.

Good Option for Online Payment Processing

The Essentials:
✓ No early termination fees
✓ Transparent interchange-plus pass-through pricing
✓ Free payment gateway option with activation within an hour
✓ Exceptional ecommerce shopping cart compatibility
✓ Over 20 years with excellent reputation
Proprietary fraud prevention suite includes:
• Automatic high-risk order detection
• Dialverify phone order verification
• Cardholder authentication (VbV/MSC)
• Chargeback defender
• Easy integration and API for customization
Visit the CDGcommerce website
Read our CDGcommerce review

We don’t recommend leasing a credit card terminal, but CDG has a program that’s very different from traditional leases, and is actually a good deal. For only $79 per year (for terminal insurance), CDG will provide you with a terminal and keep it updated. This works out to $6.58 per month, a fraction of what most terminal leasing companies will charge you. If you need a wireless terminal, you’ll also have to pay $20.00 per month for wireless data and an additional $0.05 per transaction in processing fees.

You won’t need to negotiate with CDG to figure out your processing rates. All their rate plans are interchange-plus and are fully disclosed on their website. The company offers a choice between Simplified and Advanced pricing plans, with Simplified pricing being designed for merchants processing less than $10,000 per month, and Advanced pricing being for those processing $10,000 or more per month. Here are their current rates:

Simplified Pricing:

  • Online: interchange + 0.30% + $0.15 per transaction
  • Retail (swipe or POS): interchange + 0.25% + $0.10 per transaction
  • Mobile: interchange + 0.25% + $0.10 per transaction
  • Non-profit: interchange + 0.20% + $0.10 per transaction

With very low account fees and competitive interchange-plus processing rates, CDGcommerce offers a great combination of price and value. If you’ve been using Square or PayPal and want to upgrade to a full-service merchant account, they’re an excellent option.

PROS:

  • Interchange-plus pricing
  • Month-to-month billing with no long-term contracts or early termination fees
  • Free payment gateway with virtual terminal
  • Excellent customer service

CONS:

  • Only available to US-based merchants

For more information, see our complete review here.

Dharma Merchant Services

Headquartered in downtown San Francisco, California, it should come as no surprise that Dharma Merchant Services (see our review) is far more socially responsible than just about any other merchant account provider in the industry. For you, that enlightened corporate philosophy translates into fair and transparent pricing, reasonable contract terms, and excellent customer support.

Because they don’t try to squeeze extra money out of struggling small business owners, you won’t have to pay an account setup fee or an annual fee. There’s no monthly minimum, either. You will pay a $10.00 monthly fee and a $7.95 per month fee for PCI compliance. Other fees (most of which are per-occurrence, such as chargeback fees) are fully disclosed on their website. Like many of our other favorite processors, Dharma doesn’t have long-term contracts, either. Billing is month-to-month, and there’s no early termination fee if you close your account.

Dharma Merchant Services review

Good Option for Nonprofits and B2B Payments

The Essentials:
✓ Provides discounted rates for nonprofits
✓ Exceptional customer service
✓ Transparent interchange-plus pass-through pricing
✓ Proven track record with nonprofits
Free MX Merchant Software includes:
• Level 2 and level 3 data for lower interchange rates on B2B processing
• Virtual terminal
• Invoicing/billing
Visit the Dharma Merchant Services website
Read our Dharma Merchant Services review

The company uses interchange-plus pricing exclusively and lists their rates right on their website. Here’s their current processing rate information:

  • Storefront: interchange + 0.25% + $0.10 per transaction
  • Virtual: interchange + 0.35% + $0.15 per transaction
  • Restaurant: interchange + 0.20% + $0.07 per transaction

If you need a terminal, Dharma will sell you either the First Data FD-130 or Verifone Vx520. They’ll also reprogram your existing terminal, if you have one. Need a POS system? Dharma offers the Clover Mini, and will sell it to you outright rather than leasing it. If you need a mobile payments system instead, Dharma offers the Clover Go for $99.00, plus a $10.00 monthly fee. For $139, you can upgrade to the Clover Go Contactless, which connects via Bluetooth instead of your phone’s headphone jack.

Dharma doesn’t have a minimum monthly volume requirement, but they do acknowledge that their fees and rates aren’t the lowest on the market for businesses that process less than $10,000 per month. You’re still free to sign up if you need a full-service merchant account, but they recommend either PayPal or Square if you don’t.

PROS:

  • Transparent interchange-plus pricing
  • Minimal account fees
  • Full range of services and equipment for both retail and online businesses
  • Great customer support

CONS:

  • Not a good fit for low-volume (less than $10,000 per month) accounts

For more information on Dharma, see our complete review here.

Helcim

Headquartered up in the Great White North, Helcim (see our review) provides outstanding service and affordable prices to both Canadian and US-based merchants. They offer interchange-plus pricing exclusively, and their website features one of the most detailed and transparent explanations of their rates and fees that you’ll find anywhere.

Transparency and honesty are major themes with Helcim, which is something you won’t often find with many other providers. Reading their website will give you a quick education on all the sneaky, misleading tricks that other companies use to squeeze more money out of their merchants. Fortunately, you won’t have to worry about this kind of behavior with Helcim. Not only do they fully disclose their processing rates, account fees, and contract terms, but they also provide all their services at fair, competitive prices.

 

Good Option for Canadian Businesses

The Essentials:
✓ No early termination fees
✓ Transparent interchange-plus pricing
✓ Exceptional reputation in Canada
✓ High-quality all-in-one payment platform
✓ Great educational material
Proprietary Helcim Commerce solution includes:
• Point of sale software
• Inventory management
• Billing and invoicing
• Virtual terminal
Visit the Helcim website
Read our Helcim review

Unlike many of their competitors, Helcim encourages merchants to buy their credit card terminals outright rather than leasing them. The company offers a number of popular models, most of which are EMV-compliant. For a little extra cash up front, you can also get an NFC-capable terminal that supports Apple Pay and other similar mobile payment methods. If you already have a terminal, they’ll reprogram it to work with their system for free. Unfortunately, Canadian EMV-compliant terminals are not designed to be transferred or resold, so Canadian customers will have to use the rental option or buy a new machine. Renting on a month-to-month basis (which is not the same as leasing) is usually the best choice for Canadian merchants.

Helcim offers three basic pricing plans: a Retail Plan, an eCommerce Plan, and a combined Retail + eCommerce Plan. The Retail Plan costs a flat $15.00 per month. This fee covers PCI compliance, and there are no account setup or statement fees. There’s also no monthly minimum. All swiped transactions are processed at a rate of interchange + 0.25% + $0.08 per transaction.

Helcim’s eCommerce Plan works the same way, but it costs $35.00 per month. This gives you access to the company’s proprietary Helcim Payment Gateway, which includes support for recurring billing, a customer information storage system, shopping cart integration, and a customizable payment gateway API. The plan also includes a virtual terminal that allows mail order or telephone order businesses to key in transactions on any computer. All online (i.e., card-not-present) transactions are processed at a rate of interchange + 0.45% + $0.25 per transaction.

The Retail + eCommerce Plan includes all features of the other two plans, and costs $50.00 per month. Processing rates are the same as for the other two plans.

There are few downsides to Helcim’s services. One way they’re able to keep costs so low is to exclude high-risk merchants from signing up. This policy lowers the company’s overall risk profile, but it also means you’ll be out of luck if you meet their high-risk criteria. Because they charge a monthly fee (albeit a very reasonable one), they’re also not quite as affordable as Square, PayPal, etc. if you’re processing below $2,500 per month. We’re also still waiting for the company to introduce an EMV-compliant mobile card reader. They currently offer a basic, magstripe-only reader that requires a headphone jack to communicate with your smartphone or tablet.

PROS:

  • Extremely transparent fee structure
  • Very competitive rates for businesses processing over $1,500 per month
  • Excellent customer service and support

CONS:

  • Not suited for very small businesses processing less than $1,500 per month
  • Not available for high-risk merchants
  • Mobile card reader isn’t EMV-compatible

For more information, see our complete review here.

Popular (But Less Reliable) Inexpensive Options

PayPal

Everyone has heard of PayPal (see our review). And just about everyone uses it. With an active user base of almost 200 million customers in 200 markets around the world, it’s a good bet that most of your customers use it, too. But can the company fill all your processing needs? The short answer is yes. PayPal has all the features you would need to run a business – either retail or eCommerce – using just their payment processing services and equipment. But would this be cost-effective? Here’s where it gets complicated. While the company offers flat-rate pricing and no monthly fees for its basic accounts, those flat-rate prices are kind of on the high side. Also, if you need features such as a virtual terminal, your account isn’t free. Instead, it’s $30.00 per month, plus your processing charges.

PayPal doesn’t offer true, full-service merchant accounts. Instead, they function as a payment service provider (PSP), which keeps costs relatively low, but also means that they’re quick on the trigger to freeze your account if they suspect that fraud has occurred. Like most PSPs, they don’t have long-term contracts and don’t charge early termination fees. Billing is month-to-month, and an account that doesn’t have a monthly fee is good for a business that only processes credit card transactions occasionally.

PayPal’s basic rate for online transactions is 2.9% + $0.30 per transaction. International payments and transactions processed through their virtual terminal cost more, while registered charities and mobile payments get a discount. PayPal fully discloses their rates on their website, so you’ll always know in advance what you’ll be paying.

While PayPal is designed primarily for eCommerce businesses, the company also supports retailers through integration with numerous third-party mobile POS systems and their own mobile payments system, PayPal Here. The latter now includes a Bluetooth-enabled EMV card reader. While many companies offer a free virtual terminal, but charge a monthly fee for the payment gateway needed to use it, PayPal does just the opposite. Their PayFlow Payment Gateway comes with no monthly fee, but if you also need a virtual terminal, you’ll pay $30.00 per month for it. There’s also a small additional per-transaction processing charge.

While these are all great features, there are also some not-so-great things about PayPal that you should be aware of before you sign up. Customer support through their telephone support line is very inconsistent. Some customer service representatives are quite knowledgeable and helpful, while others are not. Fortunately, the company provides an online knowledgebase that should help you solve common problems on your own. As we’ve mentioned, sudden account holds or terminations are also a possibility. If you simply can’t afford to lose access to your account temporarily, consider a different option.

For some businesses, PayPal is really all you need. If you don’t need a virtual terminal or any of the other features of the $30 PayPal Payments Pro plan, you can avoid monthly fees altogether and operate on a pay-as-you-go basis. For larger businesses and those with more specialized needs, PayPal makes an excellent secondary payment option on top of your regular merchant account.

PROS:

  • No monthly fees (for standard account)
  • Transparent flat-rate pricing
  • Most customers have a PayPal account

CONS:

  • High flat-rate processing charges
  • Frequent account freezes, holds, and terminations
  • Inconsistent customer support

For more detailed information about PayPal, see our complete review here.

Stripe Payments

Stripe logo

Just like Square is popular with small retail businesses, Stripe (see our review) is the darling of the eCommerce world. The company functions as a payment service provider (PSP), aggregating accounts and keeping costs low for their clients. There are no monthly fees, and their flat-rate processing plan is extremely simple.

Stripe is so focused on eCommerce that they don’t offer much of anything to retailers. There are no credit card terminals, POS systems, or even mobile payments systems for your smartphone or tablet. So, if you’re a retailer, you can skip right on ahead to the next company profiled below. Stripe is not for you.

eCommerce-only merchants, on the other hand, will find a very robust variety of services to help them sell online. Integration is the name of the game at Stripe, and their payments processing service works with just about every online shopping cart on the market. They also have a vast library of APIs that allow businesses to customize the interface between Stripe and their websites. If you’d like to sell your products through your own app as well as on your website, they offer an impressive in-app purchasing capability.

So, how much does all this techy goodness cost? The short answer is not much – at least under certain circumstances. Since all your transactions will be processed online without a physical card being swiped or dipped, Stripe charges a flat 2.9% + $0.30 for all credit and debit card transactions. eCheck (ACH) and Bitcoin payments are charged a mere 0.8% per transaction. This is the same rate that Square and PayPal also charge for online transactions. There are no additional account fees, although you will be charged $15.00 for each chargeback. Chargeback fees are unavoidable with any processor, but unlike most companies, Stripe will refund your money if the chargeback investigation comes out in your favor.

You also won’t have to worry about long-term contracts or early termination fees, as Stripe bills on a month-to-month basis. This is a useful feature for a growing eCommerce business, as Stripe’s flat-rate pricing suffers the same flaw that plagues Square and PayPal: for a high-volume business, their flat-rate pricing is actually more expensive than what a full-service merchant account can provide through interchange-plus pricing.

While Stripe has some very impressive features, it also has a few serious drawbacks. Like other payment service providers (PSPs), account holds and terminations occur frequently and without notice. Stripe uses a machine learning-enabled algorithm to scan accounts for possible fraud, and it’s definitely programmed to err on the side of caution. This wouldn’t be so bad if you could call up a human customer service representative on the phone and resolve the situation. Unfortunately, you can’t – Stripe doesn’t offer telephone support at all. Instead, you’ll have to contact the company through email and wait for a response. Judging from the many complaints about Stripe’s customer service, the quality of those responses leaves a lot to be desired.

Despite its shortcomings, Stripe is a good choice for a new eCommerce venture. You’ll enjoy pay-as-you-go service with no monthly fees, and you won’t have to worry about long-term contracts. The company’s extensive library of developer tools can offer you options that you might not be able to find with other providers. Just be aware that when your business grows beyond a certain point, you’ll need the security and reliability of a full-service merchant account. You’ll also save money on processing charges by switching to interchange-plus pricing.

PROS:

  • Simple flat-rate pricing structure
  • No additional fees or long-term contracts
  • Huge API library for developers

CONS:

  • Flat-rate pricing is more expensive than interchange-plus for high-volume merchants
  • Frequent account holds and terminations
  • No telephone customer support

For more information, see our complete review here.

Final Thoughts

As you’ve probably noticed by now, pricing for credit card processing is a ridiculously complicated subject. With dozens of interchange rates and a wild assortment of fees, trying to figure out how much accepting credit cards is going to cost your business inevitably comes down to guesswork. While you can make a reasonable estimation based on your processing history and your business type, it’s not realistic to expect that you’ll be able to come up with a precise figure. Fortunately, the companies we’ve profiled here fully disclose their processing rates and fees, making your job of estimating your costs much easier.

We’ve only listed six of the most popular and most affordable processors here, so be aware that the cheapest processor for your particular business might not be one of them. There are plenty of other providers out there who are also competing for your business, so check them out, too!

Here are a few very general rules of thumb regarding merchant account pricing:

  • If your business has a low processing volume, you’ll want to find a provider with low monthly and annual fees. One of the most appealing aspects of Square or PayPal is that they don’t charge any monthly fees. This is a great feature if your business is seasonal or you only occasionally have a need to accept credit cards. Processing rates won’t be as important for low-volume merchants.
  • If your business has a high processing volume, fees aren’t as important, and you’ll want to get the lowest processing rates you can find. Paying one or more monthly fees for a merchant account is an insignificant expense for a larger business, but higher processing rates can make a serious dent in your profits.
  • Carefully analyze both the percentage rate and the per-transaction processing fee when evaluating rates. While you’d ideally like them both to be low, which one is more important will depend on your average transaction size. If you process a lot of smaller transactions, a $0.30 per transaction fee can add up quickly. On the other hand, if your transactions are usually larger, you won’t need to be as concerned with the per-transaction fee, and should try to get the lowest percentage rate you can find.

While all the companies we’ve profiled here provide excellent service at an affordable cost, some are better suited to particular types of businesses than others. Square, for example, works best for very small retail businesses. PayPal and Stripe, on the other hand, are a better fit for small eCommerce merchants. Full-service merchant account providers like Helcim, CDGcommerce, and Dharma are more well-rounded, but CDG is a better fit for smaller businesses, while Helcim and Dharma work better with larger ones. For a side-by-side comparison of some of the companies listed here (and a few other excellent providers), please see our Merchant Account Comparison Chart.

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Best Choice For Small-ticket, Canada, Mobile, eCommerce  All businesses, Mobile, Retail eCommerce, Mobile Canada, Restaurants Large-ticket, All-in-one, Recurring billing

The post The Cheapest Credit Card Processing Companies appeared first on Merchant Maverick.

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The Complete Guide to B2B Payment Processing

B2B Payment Processing

Business-to-business (B2B) transactions have been around forever, but with the dramatic increase in credit card usage by corporations, they’ve also become a lot more complicated to deal with for merchants who process them. Traditionally, businesses made their purchases by placing an order in person, through the mail, or over the telephone. The merchant would then ship the products and send the business a paper invoice for payment. They would then wait – sometimes for weeks – for payment to arrive in the form of a paper check. Cashing the check and receiving funds added several more days to the process.

With the advent of the internet, B2B transactions can now be received and processed in very little time. Specialized credit cards designed for small businesses and larger corporations allow nearly instantaneous payments, but also cost more to process than the old paper invoice method. For most merchants, the ability to bring the delay in receiving funds down to just 1-2 business days more than makes up for the extra expense. Accepting credit cards for B2B transactions also leads to a significant increase in overall sales, as more and more companies use credit cards exclusively for their business purchases.

While B2B credit card processing has a reputation for being expensive, you can actually save a very significant amount of money on your processing costs – if you know how to take advantage of the lower interchange rates available to B2B merchants. In this article, we’ll walk you through the basics of B2B processing and show you how you can save hundreds – or possibly even thousands – of dollars in processing costs by properly establishing yourself as a B2B merchant and taking advantage of the discounted rates offered by the major credit card associations.

What Are B2B Transactions?

A B2B transaction is simply a transaction where the customer is another business rather than an individual consumer. The transaction may involve goods, services, or a combination of both. You’ll also hear the term B2G (business-to-government) transaction, which describes transactions between a business and a local, state, or Federal government agency.

The most obvious example of a B2B transaction is when a company purchases supplies for its operations. However, many other types of transactions can also be classified as B2B transactions. For example, when a company hosts a luncheon for employees at a restaurant and uses a business credit card to pay for it, this would be a B2B transaction. The business making a B2B purchase can be anything from a large corporation to a solo freelancer using a business credit card to keep business and personal expenses separate.

In establishing a strategy for dealing with B2B transactions, the most important thing to consider is the percentage of B2B purchases your business expects to experience. Some businesses sell almost exclusively to individual consumers, and see very few, if any, B2B transactions. At the opposite end of the spectrum are businesses that sell almost exclusively to other businesses and make few direct sales to consumers. Most businesses, however, will fall somewhere in the middle, with B2B transactions making up a small, but significant percentage of their overall transactions. As we’ll see below, B2B transactions can entitle you to lower interchange costs and lower overall processing costs. However, you’ll have to jump through several hoops to establish yourself as a B2B merchant, and the specialized software you’ll need to take advantage of those lower rates isn’t free. You’ll want to evaluate very carefully whether it’s cost-effective to add specialized B2B processing services to your merchant account.

Merchant Category Codes (MCC Codes)

Merchant Category Codes (or MCC codes) are assigned by the credit card associations to classify businesses according to the products and services they provide. Before you can take advantage of the lower interchange rates available for B2B transactions, you’ll need to be assigned an MCC code that identifies you as a B2B merchant.

Unfortunately, all the major credit card associations have their own set of MCC codes, and they all treat them differently when it comes to B2B transactions. Visa, for example, will offer you a discounted interchange rate on B2B transactions if you’re assigned a qualifying MCC code and meet certain other criteria. MasterCard also uses MCC codes, but doesn’t offer a discount for B2B transactions.

Because each card association uses its own set of MCC codes, your business will end up with a separate code for each type of credit card you accept. Establishing the proper MCC code for your business is ultimately up to the credit card associations, although your merchant services provider can assist with this task to make sure you’re assigned an appropriate code.

Here’s a list of MCC Codes recognized by Visa as qualifying for B2B merchant status:

  • Accounting, Auditing, and Bookkeeping Services (MCC 8931)
  • Advertising Services (MCC 7311)
  • Books, Periodicals, and Newspapers (MCC 5192)
  • Business Services (MCC 7399)
  • Chemicals and Allied Products (MCC 5169)
  • Cleaning, Maintenance, and Janitorial Services (MCC 7349)
  • Commercial Equipment (MCC 5046)
  • Commercial Footwear (MCC 5139)
  • Commercial Photography, Art, and Graphics (MCC 7333)
  • Computer Maintenance, Repair, and Services (MCC 7379)
  • Computer Programming, Data Processing, and Integrated Systems Design Services (MCC 7372)
  • Construction Materials (MCC 5039)
  • Durable Goods (MCC 5099)
  • Electrical Parts and Equipment (MCC 5065)
  • Employment Agencies and Temporary Help Services (MCC 7361)
  • Florist Supplies, Nursery Stock and Flowers (MCC 5193)
  • Industrial Supplies (MCC 5085)
  • Information Retrieval Services (MCC 7375)
  • Insurance Sales, Underwriting, and Premiums (MCC 6300)
  • Landscaping and Horticultural Services (MCC 0780)
  • Management, Consulting, and Public Relations Services (MCC 7392)
  • Medical, Dental, Ophthalmic and Hospital Equipment and Supplies (MCC 5047)
  • Men’s, Women’s, and Children’s Uniforms and Commercial Clothing (MCC 5137)
  • Metal Service Centers and Offices (MCC 5051)
  • Miscellaneous Publishing and Printing (MCC 2741)
  • Motion Picture and Video Tape Production and Distribution(MCC 7829)
  • Motor Freight Carriers and Trucking (MCC 4214)
  • Nondurable Goods (MCC 5199)
  • Office and Commercial Furniture (MCC 5021)
  • Paints, Varnishes, and Supplies (MCC 5198)
  • Photographic, Photocopy, Microfilm Equipment and Software (MCC 5044)
  • Piece Goods, Notions, and Other Dry Goods (MCC 5131)
  • Plumbing and Heating Equipment and Supplies (MCC 5074)
  • Professional Services (MCC 8999)
  • Special Trade Contractors (MCC 1799)
  • Specialty Cleaning, Polishing and Sanitation Preparations (MCC 2842)
  • Testing Laboratories (Non-Medical Testing) (MCC 8734)
  • Typesetting, Plate Making and Related Services (MCC 2791)

Note that these codes only apply to Visa. MasterCard, American Express, and Discovery use their own separate sets of codes. Also, having an appropriate MCC code to qualify as a B2B merchant doesn’t automatically qualify you for discounted interchange rates on B2B transactions. You’ll also have to submit Level II (and possibly Level III) credit card data, as explained below.

Data Levels

In addition to being a properly-coded B2B merchant, you’ll need to submit additional payment data with each B2B transaction to be eligible for discounted processing rates. Credit card associations recognize three levels of payment data: Level I, Level II, and Level III data. Once again, the major credit card associations have their own separate ways of classifying and treating this data. Visa, for example, refers to these three data categories as “data levels,” while MasterCard calls them “data rates.”

For standard transactions between your business and individual consumers, only Level I data is required to process a transaction. Level II and III data is not submitted, and won’t get you a discount on interchange rates anyway. Because most businesses primarily sell to individuals rather than other businesses, your merchant account will only be set up to handle Level I data unless you add a service to record and transmit Level II and Level III data. Since most businesses won’t need this service, it’s often only available as an optional upgrade, and you’ll usually be charged an additional monthly fee for it. If your business only processes a small number of B2B transactions, you’ll want to weigh carefully whether the discounted interchange rates are worth this added expense. Remember, you’ll be paying the additional fee for Level II/III processing every month regardless of whether you use it regularly or not.

Processing of Level II and III data is further complicated by the fact that once again, the credit card associations have separate policies for handling this additional data. Discover, for example, only handles Level I data and won’t give you any discount on interchange rates for submitting Level II or III data. American Express, on the other hand, accepts both Level I and II data, but not Level III data. Acceptance of Level II data also requires prior approval for your business directly from American Express. Visa and MasterCard have the most liberal policies, accepting all three levels of credit card data without the need for prior approval. Note that you will still need to be properly coded with a Merchant Category Code identifying you as a B2B merchant.

So, just what “data” is included in these various data levels, anyway? Think of transaction processing data as a very large database, with each transaction being a record, and each record consisting of several fields that have to be filled in. All transactions will have to include all required fields for Level I data before they can be approved and processed. Level II and III data require additional fields that have to be filled in for the transaction to be processed as a Level II or III transaction and qualify for a lower interchange rate. Again, there are some slight variations in the data requirements among the various credit card associations. Here’s an overview of the common data requirements for each data level:

Level I data is required for all transactions, B2B or otherwise, and generally includes the following fields:

  • Merchant DBA name
  • Transaction amount
  • Billing zip code

Level II data includes all Level I data, and the following additional fields:

  • Sales tax amount
  • Customer code
  • Merchant postal code
  • Merchant tax identification number
  • Invoice number
  • Order number

Level III data includes all Level I and Level II data, plus the following additional fields:

  • Product commodity code
  • Item ID or SKU
  • Item description
  • Unit price
  • Quantity
  • Unit of measure (each)
  • Extended price
  • Line discount

As you can see, entering Level III data requires a lot of additional data for each transaction. Unfortunately, manually entering this data on a standard countertop credit card terminal is not an easy process. If you’re using a virtual terminal or a payment gateway, it’s a little easier since you’ll have access to a full alphanumeric keyboard. Some merchant services providers can also set you up with a specialized software load for your terminal that automatically captures the required data, but you’ll have to pay extra for it. The bottom line is that manually entering Level II and III data is only a practical option for merchants who only handle the occasional B2B transaction and for whom specialized B2B processing software would not be cost-effective.

B2B Processing Rate Discounts

As we’ve noted above, including Level II and III data when processing a B2B transaction can save you money on processing costs by lowering the interchange rate that you have to pay to the credit card associations for each transaction. How significant are these savings? Perhaps more importantly, are they significant enough to offset the cost of paying for an additional B2B processing service for your merchant account?

To answer these questions, you’ll have to understand interchange fees and how they impact your overall costs for credit card processing. Interchange fees are the fees you’ll have to pay to the credit card association for each transaction. You’ll also have to pay an additional markup to your processor, but in most cases, the interchange fee will constitute a majority of your overall transaction processing cost. For a more in-depth explanation of interchange fees, check out our article Interchange Reimbursement: What You Need to Know About Your Most Costly Merchant Account Fee.

Each credit card association has its own set of interchange fees that apply to a variety of transactions. For our example, we’ll be using the 2018 Visa USA Interchange Reimbursement Fees schedule. You can find similar fee schedules online for the other major credit card associations. Be aware that these fee schedules are frequently updated – usually because the credit card associations have raised their rates. Here’s an extract from Visa’s current interchange fee schedule that applies to B2B transactions:

Visa Level II & III Interchange Rates - 2018

As you can see, a standard Commercial Card-Present transaction made on a business credit card will incur an interchange fee of 2.50% + $0.10 per transaction. However, if you include Level III data when submitting the transaction, the interchange fee drops to 1.90% + $0.10 per transaction. That’s a savings of 0.60%, and even larger savings are possible for other types of B2B transactions. While this may not sound like a significant amount of money, it can really add up quickly, particularly if your business processes a lot of B2B transactions.

Here’s an example of how these savings work. Let’s say you have a single B2B transaction for $1,000. If you only include the Level I data, you’ll pay $25.10 in interchange fees alone. Your actual processing costs will be even higher once you pay whatever markup your processor charges you. For the same transaction, including Level III processing data reduces your interchange fees to $19.10. While that $6.00 savings might not seem like much, it can really add up in a hurry if a significant number of your transactions are B2B.

Large-ticket transactions are common in the B2B world, and the inclusion of Level III data will result in a very significant savings on interchange fees if your transaction amount is large enough to qualify. In the extract above, you’ll see that a Commercial Product Large Ticket transaction incurs an interchange fee of 1.45% + $35.00 per transaction. This special large-ticket rate only applies to single transactions over $6,500.

Given the hefty $35.00 per transaction charge, you might understandably be skeptical that this “special” rate will save you any money. So, let’s do the math. A transaction for $6,500.01 – barely large enough to qualify – would incur an interchange fee of $162.60 if processed at the standard Commercial Card-Present rate of 2.50% + $0.10. However, under the Commercial Product Large Ticket rate of 1.45% + $35.00 your interchange fee would only be $129.75. That’s a savings of $32.85. At the same time, the same transaction would only cost $123.60 under the Commercial Level III rate of 1.90% + $0.10. The break-even point between the Commercial Product Large Ticket rate and the Commercial Level III rate occurs at $7,758.50. Thus, for any transaction over this amount, the Commercial Product Large Ticket rate will actually save you money in interchange costs. Remember in comparing these rates that the markup you pay to your processor under an interchange-plus pricing plan will add to your overall processing costs, but it will be the same regardless of whether the transaction is B2B or not, and regardless of the ticket size.

How Processing Rate Plans Affect B2B Processing

If your head is spinning a little by now, we understand. There are a lot of variables involved in comparing B2B processing rates against standard business-to-consumer rates. There is, however, one simple and very important point that you need to understand: B2B processing rates will only save you money if you have an interchange-plus or subscription-based pricing plan. With an interchange-plus pricing plan, you pay the applicable interchange rate plus a fixed markup (usually a percentage of the transaction plus a small per-transaction fee) that goes to your merchant services provider. Subscription-based (or membership) pricing plans modify this arrangement by offering much lower per-transaction costs in exchange for a higher monthly subscription fee. One of our favorite providers, Fattmerchant (see our review) only charges a low per-transaction fee with a 0% markup (although their $99 per month subscription fee might not be cost-effective for low-volume businesses). Interchange-plus and subscription-based pricing plans pass the interchange costs directly onto you with a fixed markup. If the interchange costs go down due to using Level III data for B2B transactions, this lower rate is also passed on, meaning you save money.

Unfortunately, the same cannot be said for flat-rate or tiered pricing plans. Providers such as Square (see our review) will charge you a flat rate for each transaction regardless of the underlying interchange fee. As a result, you won’t see any savings on B2B transactions with Level III data. In fact, if such a transaction does result in a lower interchange fee, your provider gets to keep the savings. Tiered pricing works the same way, with transactions being processed according to fixed rates based on whether a transaction falls under a qualified, mid-qualified, or non-qualified tier. Since these tiers are designed to ensure that the processor makes a profit from each transaction regardless of the underlying interchange rate, you won’t see any decrease in processing costs by using Level III data for B2B transactions. In fact, your processor will get to keep whatever savings result from using Level III data. While we strongly recommend against tiered plans for all merchants, it’s doubly important to avoid them if your business processes a lot of B2B transactions.

B2B Software Applications

As we’ve discussed above, you can save a significant amount of money on processing B2B transactions by including Level III data and ensuring that you have the proper MCC code identifying you as a B2B merchant. However, a standard merchant account designed for business-to-consumer transactions won’t include these features. You’ll have to pay extra for them, and every merchant services provider approaches the problem of serving B2B merchants differently.

While including Level III data can be as simple as installing a special software load on your credit card terminal, merchant services providers are increasingly turning to computer- and web-based software to help B2B merchants get the lower rates to which they’re entitled. A notable trend we’re seeing in the merchant services industry is the switch to integrated processing software that allows merchants to process both retail and online transactions using the same platform. With an integrated payments platform, it’s easy to include B2B processing capability as an option for merchants who need it.

One of the better-integrated services we’ve seen is the MX Merchant platform offered by Dharma Merchant Services (see our review), one of our favorite providers. By adding the optional MX B2B app, B2B merchants can have Level III data automatically populated whenever they submit a B2B transaction. While the app costs an additional $20.00 per month, it can more than pay for itself if you process even a single large-ticket B2B transaction at the lower interchange rates.

Most other merchant services providers will also charge you an additional monthly fee for submitting Level II or III data. While these fees vary, $20.00 per month seems to be the industry average. If you only rarely process B2B transactions and they aren’t for large amounts, this extra service might not be cost-effective. On the other hand, any merchant who processes a significant amount of B2B transactions – particularly large-ticket ones – should realize a net savings by including this feature in their merchant account.

Final Thoughts

If you’ve ever tried to input Level III data on a countertop terminal manually, you’ve probably gotten frustrated and given up on inputting all the required data needed to qualify for a lower interchange rate. You’ve probably also overpaid for processing that transaction. Yes, the world of B2B processing can seem very confusing at first. However, it’s really not all that complicated. Your merchant services provider can help ensure you’re properly coded as a B2B merchant and that your payment processing systems (i.e., terminals, POS systems, virtual terminals, and payment gateways) are set up to include Level III processing data. Whether you want to invest the money into additional B2B services will depend on your overall B2B transaction volume.

For merchants who only see a B2B transaction on rare occasions, it might not be worth the extra monthly fee for a service you’re rarely going to use. In such cases, using a payment gateway or virtual terminal will make it much easier to enter the required Level III data manually. Merchants who process a significant amount of B2B transactions, on the other hand, will save far more money in lower interchange rates than the cost of the additional B2B software. If you can save more than the usual $20 monthly fee for B2B services, we highly recommend that you include this feature when setting up your merchant account. Your merchant services provider should be able to help you get this option set up and running smoothly.

The post The Complete Guide to B2B Payment Processing appeared first on Merchant Maverick.

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Shopify VS 3dcart

If you’re looking into building an online store, you’ve probably seen mention online of both Shopify and 3dcart. Both of these are fully hosted SaaS (Software as a Service) solutions, and both boast usability and plentiful eCommerce features. These shopping carts call themselves all-in-one solutions, meaning that they will provide you with site hosting, web security, and customer support, all for one monthly fee.

Let’s start with a quick overview of each eCommerce platform:

Shopify VS 3dcart
Tie Pricing Tie
✓ Ease of Use
Features ✓
✓ Web Design
Tie Integrations & Add-Ons Tie
Payment Processing ✓
Tie Customer Service & Technical Support Tie
Tie Negative Reviews & Complaints Tie
Tie Positive Reviews & Testimonials Tie
Tie Final Verdict Tie
Read Review Read Review
Visit Site Visit Site

Shopify and 3dcart clearly offer their users a lot, but how do they stack up against each other? In this article, we’ll go over the price, features, and design editors of each solution. By the end of this article, you’ll have a clear idea of which software better fits your business.

Shopify is a Canadian eCommerce solution, which has grown since 2006 to host more than 600,000 stores worldwide. Shopify’s claim to fame is usability and affordability. Merchants at all stages will be able to access the software and use it to build a site to their liking.

Shopify’s downfall, however, is related to this usability. Because Shopify aims to provide easy-to-use features, they often fail to add more advanced functionality. Users have to add-on these advanced features with integrations and applications.

3dcart3dcart, on the other hand, is a feature-rich eCommerce solution that is built to serve merchants large and small. They offer a range of pricing options so that users can select a plan that fits their budget. 3dcart is a less popular solution than Shopify, currently hosting over 22,000 customers, but it is still a main player in the eCommerce industry.

However, 3dcart is not a perfect solution. While the platform is still relatively easy to learn, it is not quite as intuitive as Shopify. In addition, users often report that 3dcart’s customer support is not reliable.

Keep reading for more in-depth information on each of these platforms. Learn which software is best for you.

Don’t have time to read an entire review? Take a look at our top-rated eCommerce solutions for a few quick recommendations. Every option we present here offers excellent customer support, superb web templates, and easy-to-use software, all for a reasonable price.

Web-Hosted Or Licensed

Both services are web-hosted.

Hardware & Software Requirements

None. You’ll only need a computer, internet access, and an up-to-date web browser.

Pricing

Winner: Tie

Pricing plan for 3dcart and Shopify follow a similar model. Both are available as a monthly subscription in which price is based on features. Neither service requires you to sign a contract, although you can get a discount on your monthly rate if you commit for a year or more. What’s more, Shopify and 3dcart both offer enterprise-level platforms for users who need a higher level of support and capabilities.

Shopify’s plans are billed on a month-by-month basis. If you choose to sign on for one year, you can benefit from a 10% discount on your plan, and if you pay for two years, you’ll get a 20% discount.

One way in which Shopify’s pricing is different from many eCommerce platforms is that Shopify charges transaction fees. You will be charged these fees (0.5%-2.0% based on your plan) in addition to the processing fees that you’ll pay to your payment processor of choice. Shopify will waive these transaction fees if you use their in-house payments solution, Shopify Payments. You will still have to pay processing fees to Shopify Payments, but you won’t be charged the additional transaction fee.

Here’s a quick overview of plans:

  • Shopify Lite Plan (No Online Store Included): $9/month
    • Transaction Fee: 2.0%
  • Basic Shopify Plan: $29/Month
    • Transaction Fee: 2.0%
    • Two Staff Accounts (In Addition To The Owner’s Account)
  • Shopify Plan: $79/Month
    • Transaction Fee: 1.0%
    • Five Staff Accounts (In Addition To The Owner’s Account)
  • Advanced Shopify Plan: $299/Month
    • Transaction Fee: 0.5%
    • Fifteen Staff Accounts (In Addition To The Owner’s Account)

With 3dcart, you’ll be billed monthly. However, if you pay in advance for a full year on the platform, you’ll receive a 10% discount. Keep in mind that 3dcart does not allow refunds, so be sure 3dcart is the right software for you before you commit for a year.

All of 3dcart’s regular plans (excluding the Startup Plan) come with unlimited products and bandwidth, free domain registration, API connectivity, and 24/7 phone support.

  • Startup Plan: $19/Month
    • 1 Staff User
    • 100 Products
    • Sell Up To $10K/Year
  • Basic: $29/Month
    • 2 Staff Users
    • Unlimited Products & Bandwidth
  • Plus: $79/Month
    • 5 Staff Users
  • Pro: $229/Month
    • 15 Staff Users

Pricing for 3dcart and Shopify is very similar. Your choice will depend on how many staff users your business needs and how Shopify’s transaction fees would affect you. For our comparison, we’ll call this a tie.

Ease Of Use

Winner: Shopify

For many merchants looking for eCommerce software, ease of use is the number one priority. Fortunately, both Shopify and 3dcart provide that ease of use to all their users.

Shopify is one of the most intuitive eCommerce platforms on the market. Try out the admin for yourself with a free 14-day trial, no credit card required. Here’s what you’ll find when you first create your account:

Adding products is easy. All of the information you’ll need to enter is available on one page. Just fill in the fields provided.

Discounts are similarly easy to set up, and you can make them specific to certain products or categories. You can limit your discounts to customer groups, number of uses, or minimum order total. There are also BOGO discounts available.

Shopify also makes site customization accessible to all merchants. Read more in our web design section.

3dcart works to make their software accessible to all merchants, regardless of technical experience. Try out the platform with a 15-day free trial, no credit card required.

When you sign into your account, you will immediately be presented with a setup wizard. This wizard and the available tutorial videos will help you locate and learn to use some of the more basic features.

3dcart’s dashboard is user friendly. You can find everything organized in the toolbar on the left. Most of this organization makes sense, but there are a few features that are buried where you wouldn’t expect them. ‘Discounts,’ for example, is under a tab called “Promotion Manager.”

Adding a product with 3dcart is unique because it involves a two step process. You’ll start by entering basic product information like images, product name, and a product description. Once you’ve saved that page, you’ll be able to add more advanced information. On this page, you’ll be able to adjust your shipping and inventory information, write SEO descriptions, and more.

Discounts follow the same two-step model. The more detailed (second) page lets you apply your promotions to specific categories, to an order that includes a specific product, and more.

While we love that 3dcart’s dashboard, we have to award this category to Shopify. 3dcart is just not quite as intuitive as Shopify. There is a slight learning curve to overcome, and a few features are difficult to find in the admin.

Features

Winner: 3dcart

As we’ve stated, Shopify comes with all of the basic features merchants need. However, advanced functionality often requires add-on applications. Let’s take a look at a few of the features that come built-in with Shopify:

Front End Features

  • Language Capabilities: List your site in over 50 different languages.
  • Automatic Shipping Rates: Users on the Advanced Plan can integrate with UPS, USPS, and FedEx to calculate shipping rates. All users have access to Shopify Shipping, which lets you calculate shipping rates, and purchase and print shipping labels.
  • Abandoned Cart Recovery: Automatically send an email to remind customers about items they left in their cart.
  • Integrate With Shopify POS: Sell in person with Shopify’s Point Of Sale (see our review) system.

Back-End Features

  • Customer Segmentation: Group your customers by location, shopping tendencies, and demographics. Use those customer groups to market more effectively.
  • Dropshipping Apps: Shopify integrates with dropshipping apps like Ordoro, Inventory Source, and eCommHub (now HubLogix). Learn how to start a profitable dropshipping business with Shopify.
  • SEO Best Practices: Shopify includes many SEO tools, including a customizable H1, and automatically generated sitemap.xml, and the ability to write titles, meta tags, and product tags.
  • Discounts: You can create discount codes and coupons, including BOGO (Buy One, Get One) discounts. Gift cards are available at higher plans.
  • Digital Products: Sell physical and digital products on your site.
  • Bulk Import/Export: Make bulk edits to your products, or use the bulk import feature to easily migrate from another software.

3dcart, on the other hand, includes many of the bells and whistles that Shopify is lacking. For example, 3dcart includes the option to enable one-page checkout on your site. Here are some of the features you get with 3dcart:

Front End Features

  • Sell Digital: Let customers download products immediately after purchase.
  • Checkout Options: Choose to enable either one-page or three-page checkout.
  • Product Images: Include multiple product images, image zoom, and videos on product pages.
  • Promotions: Create gift certificates, discounts, and coupons.
  • Automatic Calculators: Provide real-time quotes for taxes and shipping at checkout.
  • Abandoned Cart Saver: Remind customers to complete transactions.
  • Blog: Include a blog on your site to boost your SEO and add value to your site.

Back-End Features

  • Inventory Management: Monitor low stock and make sure inventory is accurate.
  • SEO: Use a variety of tools to optimize your organic traffic.
  • Bulk Import / Export: Migrate platforms and make bulk edits.
  • POS: Sell in-person with 3dcart POS.

This one is close, but 3dcart has a few more features that are not available with Shopify. So, we’re giving the win to 3dcart.

Web Design

Winner: Shopify

Shopify is well-known for its beautiful and responsive web design options. In the Shopify Themes marketplace, you can find 64 theme options, 10 of which are free. Take a look at one premium theme below:

There are a few ways you can go about customizing your theme. Users with little technical experience can use a WYSIWYG editor to make changes to site content. For example, you can update headings, categories, and button text. Shopify’s drag and drop editor, Sections, lets you make larger changes to your storefront. Use Sections to add and move widgets on your storefront. Shopify also offers code editors for the more technologically inclined. Shopify uses a language called Liquid, which some developers like and some don’t.

3dcart, on the other hand, offers 90 free themes, which is many more than Shopify. All of these themes are mobile responsive. In addition, there are a few dozen premium themes available from $99 to $199.

Users sometimes complain that 3dcart’s themes are dated, and I tend to agree. That isn’t to say that the themes are ugly; they just don’t have that sleek look I’m used to finding on modern eCommerce platforms.

You’ll have to edit these templates primarily using the HTML and CSS editors. 3dcart also includes a limited WYSIWYG editor for buttons, tabs, etc., and a drag-and-drop editor for older HTML5 themes (you must request to have this editor enabled). It isn’t a perfect editor (which is why it isn’t automatically available), but it could be a help as you learn your way around the code editors.

Integrations & Add-Ons

Winner: Tie

Both 3dcart and Shopify offer plenty of integrations and add-ons to further functionality.

There are over 1500 apps available in Shopify App Store, which essentially guarantees that there’s an app to fill whatever feature gap you may have. Unfortunately, for many merchants, multiple applications are necessary, and the costs of those add-ons can quickly add up. Shopify also has an API that you can use to develop your own own applications.

In the same way, 3dcart offers integrations for a variety of features (including order management, shipping, security, social media, dropshipping, channel management, advertising, and more.) Users of 3dcart also complain that the cost of these add-ons can quickly become expensive. 3dcart also has a RESTful API available.

Payment Processing

Winner: 3dcart

Shopify integrates with over 100 gateways.

In addition, Shopify has its own in-house payment solution called Shopify Payments. As we stated in the Pricing section of this article, if you use Shopify Payments, Shopify will waive their additional transaction fees. Shopify Payments is currently available to merchants in the US, Puerto Rico, Canada, the UK, Australia, New Zealand, Singapore, Japan, Hong Kong, and Ireland.

Credit card processing rates for Shopify Payments are based on a user’s Shopify plan. Take a look at the fees for each plan in the screenshot below:

Keep in mind that Shopify Payments is not a perfect solution, and there are many complaints online about withheld payments and cancelled accounts. Read our full review of Shopify Payments for more information.

3dcart connects with over 100 payment gateways. They do not offer an in-house payment solution, but they also don’t ding you with transaction fees if you use a third party processor, which in my opinion is a much bigger deal.

The winner here is 3dcart.

Customer Service & Technical Support

Winner: Tie

Merchants using Shopify have access to 24/7 support via email, live chat, and phone. Self help resources include a knowledge base, a community forum, videos, podcasts, and guides. You can also hire a Shopify expert to help you through a particularly rough patch.

I’ve seen mixed reviews of Shopify’s support team. Some users say they’re helpful, while others blame them for reading from a script and being informed about the product.

3dcart also offers 24/7 personalized support via email, live chat, phone. Resolve issues on your own with a knowledge base, video tutorials, a support forum, webinars, and e-university courses.

Not too surprisingly, I have also seen mixed reviews of 3dcart’s quality of support. Users frequently complain about delays in response time via live chat (in my experience “live chat” is more like another way to submit a web ticket), but response times for web tickets and phone calls are decent.

Another tie here, folks.

Negative Reviews & Complaints

Winner: Tie

Surprisingly, complaints about Shopify and 3dcart are very similar.

Shopify is often blamed for including only the basics in their platform. You’ll have to find a few extensions in the Shopify App Marketplace in order to access more advanced features. And unfortunately, costs for these add-ons can quickly add up. Users also frequently complain about Shopify’s customer service. Some users have less than positive experiences. Finally, that transaction fee continues to be a frustration for many merchants, as does Shopify Payments’s tendencies to cancel accounts and withhold payments.

Users of 3dcart also complain about customer support, saying they are very slow to respond to inquiries. In addition, 3dcart merchants dislike that add-ons can be expensive, especially when you need to use multiple extensions. Finally, some merchants state that 3dcart’s available design templates are dated, and that they’d like to see more current designs.

Because these negatives are so similar, we’re calling it a tie.

Positive Reviews & Testimonials

Winner: Tie

Users of Shopify and 3dcart have similar things to say about the advantages of each platform. A few commonalities include the low monthly price of running your store, strong ease of use, and good customer support.

This final advantage may be confusing as we’ve also included it in the complaints section above. It is very common to see a 50/50 split between positive and negative comments on customer service. Both Shopify and 3dcart have these mixed reviews.

One notable difference is that Shopify is celebrated for its themes while 3dcart is praised for its features. If you scroll up to the negatives section you’ll see that users often complain about Shopify’s features and 3dcart’s themes. It’s interesting to see that what is a strength of one platform is a weakness of the other.

The two platforms tie in this category as well.

Final Verdict

Winner: Tie

It’s always disappointing to end on a tie, but with such a close race, we don’t think it’s fair to call a definitive winner. Your decision will depend on your business’s needs.

Are you looking for an easy to use platform with beautiful design templates? Try Shopify.

Are you willing to overcome a slight learning curve to uncover a few more advanced features? 3dcart is your best bet.

We will say that overall we think Shopify better fits the needs of most merchants, which is why we’ve given Shopify a perfect score of 5 stars in our full review while 3dcart has 4.5 (see our review). However, it’s evident here that both shopping carts are strong options. We recommend you sign up for a trial of each eCommerce platform and decide for yourself which option you prefer.

Get Started With Shopify

Get Started With 3dcart

The post Shopify VS 3dcart appeared first on Merchant Maverick.

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How To Get Small Business Loans For Restaurants

Restaurants have a (somewhat unfair) reputation for being especially risky businesses that are hard to get off the ground. The good news is that restaurant business loans aren’t especially hard to find, even if you’re looking for a loan to open a restaurant.

Want to know how to get restaurant financing or a loan to open a restaurant? Below, we’ll look at how to finance your restaurant with working capital. If you’re specifically looking to finance restaurant equipment, check out our companion post on restaurant equipment leasing.

Comparison Chart

fundation logo
Read Review Read Review Read Review Read Review Read Review
Borrowing Amount  $10K – $5M $10K – $5M $2K – $100K $20K – $500K $1K – $5M
Term Length Varies by product Varies by product 3 – 36 months 1 – 4 years Varies by product
Required Time In Business Varies by product Varies by product 1 years 12 months 6 months
Required Sales $1.50 for every $1 borrowed $100K/yr $10K/mo
Required Credit Score 640 670 620  660 550

 

kiva logo avant logo
Read Review Read Review Read Review Read Review Read Review
Borrowing Amount  $5K – $500K $5K – $500K $6K – $5M $25 – $10K $1K – $35K
Term Length 3 – 36 months 13 – 52 weeks 6 – 12 months 3 – 36 months 2 – 5 years
Required Time In Business 6 months 9 months 6 months N/A N/A
Required Sales $10K/mo $42K/yr $120K/yr N/A N/A
Required Credit Score 550 550 600  N/A 600

Where To Get Restaurant Business Loans

Most traditional and alternative lenders, at least on paper, offer restaurant lending services. Typically, your ideal option for restaurant funding is a bank or credit union with whom you have an established relationship. In most cases, they’ll offer the best rates and terms.

If you or your business are too risky for a traditional lender, however, there are still restaurant financing options in the form of alternative lenders.

The Cost Of Restaurant Financing

Before we look at your restaurant funding options, you want to be able to compare the offers you might come across.

Here are some of the data points to consider when comparing restaurant loans:

  • Term Length: The amount of time you have to pay back your loan. The longer the term, the higher your interest or factor rate will usually be.
  • Interest/Factor Rate: A percentage or decimal multiplier that determines the amount of money you have to pay back. For short-term loans, this may be a flat fee rather than accumulate over time.
  • Origination Fee: This is a closing fee some lenders charge in addition to interest. It’s either a percentage of the amount you’re borrowing (1% – 5% is typical) or a flat fee. In most cases, it will be deducted from the amount of money you receive from the lender.
  • Administration Fee: This is a fee charged to maintain or set up your account. It may be a percentage or a flat fee. Sometimes charged in place of an origination fee.
  • APR: Annual percentage rate represents what your effective interest rate over a year would be. This can help you determine how expensive a product is relative to another.
  • Payment Schedule: If you’re used to monthly billing, you may be surprised to hear that some lenders expect payments weekly or even daily. May sure you’re prepared for whatever terms you accept.
  • Collateral: An asset, property, or cash deposit used to secure a loan. Not all loans require collateral.

Types Of Restaurant Business Loans

Restaurant loans and related products come in a few different forms. When you’re looking for a lender, you’ll also want an idea of the type of financial product you’re seeking. All of these products will get you the money you’re seeking, but with different terms. Some are cheaper; others are more versatile. Some are more available to applicants with bad credit.

  • Term Loans: Term loans are for a specific amount that, once received, is paid off in regularly scheduled installments (they’re also sometimes called installment loans). Medium and long-term loans usually accrue interest over time while short-term loans have flat fees.
  • Lines Of Credit: Lines of credit are a bit like credit cards. You’ll be approved for credit up to a set limit. You can draw on your account as often as you want as long as you stay below your limit, paying interest only on the outstanding balance.
  • SBA Loans: As is the case for other business types, there are Small Business Administration loans for restaurants. These loans are partially guaranteed by the SBA, allowing you to access better rates. Just bear in mind that the application process is usually more complicated and often slower.
  • Merchant Cash Advance: MCAs aren’t technically loans, but can serve as the financial product of last resort for businesses with bad credit but steady credit card revenue.
  • Equipment Leasing: If you’re looking to finance restaurant equipment, you also have the option to lease it, which you can read about in more detail in our restaurant equipment financing article.

Restaurant Loans For Start-Ups

If you’re looking for start-up restaurant financing, you’ll face a narrower band of options, but you aren’t completely out of luck. Conservative lenders may still consider approving a loan to start a restaurant if you have a good business plan and credit and are able to put some of your own money into the mix. Additionally, some alternative lenders offer loans specifically geared toward brand new businesses.

Restaurant Loan Providers

Not sure where to start looking for small business loans for restaurants? Here are some lenders to consider.

For Good Rates

Wells Fargo

Borrower Requirements:
• Credit score of 640 or higher
Read Our Review

 

As big banks go, Wells Fargo is one of the easier institutions for small businesses to work with. Due to their size and resources, they can offer a wide range of products for restaurants of any size. Their credit restrictions are higher than those of most of alternative lenders and they require you to show strong month-to-month revenue, but they’re more accessible than many of their conservative competitors.

Chase

Borrower Requirements:
• Excellent credit
Read Our Review

 

Chase has a reputation for offering some of the best business loan rates out there. The trick will be qualifying for them. Despite its size and prominence, Chase is very conservative about who they lend to. You’ll also need to have a branch near you as you’ll need to go to your local branch to apply.

StreetShares

Borrower Requirements:
• 1 year in business
• 620 credit score
Get Started With StreetShares

Read Our Review

 

If you don’t have a bank in your area with whom you’ve built a good relationship, you can still find good rates with online lenders. StreetShares is a bit more selective than many of their competitors, but they offer loans and lines of credits at reasonable rates with no collateral.

Fundation

fundation logo
Borrower Requirements:
• 1 year in business
• 660 credit score
• $100K/yr
Get Started With Fundation

Read Our Review

 

Fundation is another option for borrowers with good credit who would prefer (or have) to avoid dealing with a traditional bank. Fundation offers both installment loans and lines of credit with no collateral needed. Just be prepared for a slightly lengthier application process than you’ll typically experience with alternative lenders.

For Borrowers With Bad Credit

Lendio 

Borrower Requirements:
• 6 months in business
• 550 credit score
• $10K/month
Get Started With Lendio

Read Our Review

 

Lendio is an online lending platform that matches businesses with lending partners. This is a handy service for restaurant owners who don’t have a lot of time to compare loans on their own, or who have bad credit. Lendio’s pool of potential lenders is big enough that you’re more likely than not to find one willing to work with you, even if you haven’t been in business very long. If you’re looking for a loan to open a restaurant, however, you may have to look elsewhere.

OnDeck

Borrower Requirements:
• 12 months in business
• 500 credit or higher
• $100K/year
Get Started With OnDeck 

Read Our Review

OnDeck is one of the bigger names in alternative online lending and a solid choice for borrowers with poor credit but decent cash flow. Just be aware that their factor rates use a per month formula rather than a flat fee, which can make them a little bit difficult to compare to many of their competitors.

OnDeck offers installment loans and lines of credit.

LoanBuilder

Borrower Requirements:
• 9 months in business
• 550 credit or higher
• $42,000K/year
Get Started With LoanBuilder 

Read Our Review

LoanBuilder doesn’t offer as many products as some of the other lenders on the list, but they do give you the freedom to tweak the terms of a short-term loan to your liking. Combined with relatively low qualifications and integration with PayPal’s infrastructure, working with them should be pretty painless.

BlueVine

Borrower Requirements:
• 3 months in business
• 530 credit or higher
• $100,000K/year
Get Started With BlueVine 

Read Our Review

If your company is profitable, but you haven’t been in business long enough to build up a good credit score, BlueVine might be the lender for you. Rather than offering installment loans, BlueVine gives you the option of getting a line of credit or, if you do a lot of B2B business, invoice factoring. Just be aware that their lines of credit aren’t available in every state.

For Borrowers Starting Their Restaurant

Kiva

kiva logo
Borrower Requirements:
• A strong professional and social network
Read Our Review

 

If you’re coming up blank with ideas about how to get a loan to start a restaurant, Kiva is one possible solution. Kiva is a nonprofit microlender that operates worldwide. Rather than measure your income and credit, Kiva uses a process called “social underwriting” to measure your community standing and character. Best of all, the loans have zero interest.

So what’s the catch? Well, Kiva uses a type of crowdfunding to finance your loan, which means you’ll be waiting longer to get your funds than you would with most other lenders. You’ll also be limited to a maximum of $10,000, which may not cut it for your business plan. If you have some of your own money to put into your new business and just need to make up that last few thousand dollars, though, it’s worth a look.

Avant

avant logo
Borrower Requirements:
• Credit score of 600 or higher
Read Our Review

 

Another way around the time in business restrictions you’ll often encounter when seeking new restaurant business loans is to forget the “business” part and get a personal loan. While you won’t be able to borrow the large amounts that you can with a business loan, they can get you a modest ($1,000 – $35,000) amount of money with which to start a restaurant.

Note that you’ll still have to show a strong income relative to the amount of money you’re seeking. Additionally, Avant cannot currently lend to individuals in Colorado, Iowa, Vermont, or West Virginia.

Final Thoughts

If you didn’t find what you were looking in our examples above, don’t fret! We’ve barely scratched the surface of the resources restaurants can tap to find funding. If you don’t have much in the way of collateral, you can try to get an unsecured business loan.

If you’re looking to finance restaurant equipment, check out our resources on leasing and equipment loans. Good luck hunting for restaurant business loans! Do your research and you’re sure to find something that fits your needs.

The post How To Get Small Business Loans For Restaurants appeared first on Merchant Maverick.

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5 Shopping Carts For Starting An eCommerce Business In Canada

best canada ecommerce platform

Are you a Canadian seller looking to set up an online store? Or are you an American merchant hoping to sell products in Canada? If so, you’ve come to the right place.

In this article, we’ll be covering the top 5 eCommerce solutions for Canadian sellers. Each shopping cart included here provides the logistical features that Canadian merchants need for their online stores. What’s more, all of the shopping carts in this article are of top quality, each one earning a perfect five-star review.

Here are a few of the Canada-specific features we’ve looked for in each of the eCommerce solutions presented below:

  • Calculate tax rates for Canada
  • Display prices and accept payment in CAD
  • Integrate with Canada Post for real-time shipping rates
  • Support multiple languages, such as French

We’ll kick off the list with a couple of our favorite Canada-based shopping cart solutions, and then we’ll move onto some American software solutions that also work for Canadian merchants. Let’s get started!

Need a payment processing service? Check out the best and worst Canadian merchant accounts providers. Don’t have time to read an entire review? Take a look at our top-rated eCommerce solutions for a few quick recommendations. Every option we present here offers excellent customer support, superb web templates, and easy-to-use software, all for a reasonable price.

Review
Visit Site
Review
Visit Site
Review
Visit Site
Review Review
Visit Site
Best Choice For Small to enterprise businesses with little technical skill Small to large businesses with some technical skill Small to large businesses with some technical skill Small to large businesses with advanced technical skill Large B2B businesses with some technical skill
Based In Canada Yes Yes No No No
SaaS Yes Yes Yes No Yes
Beginning Pricing Structure $29/month + 2.0% transaction fee $19/month for 75 orders $44.95/month Free $299/month
Free Trial Yes Yes Yes No Yes
Ease Of Use Easy to use Moderate learning curve Moderate learning curve Steep learning curve Moderate Learning Curve

Read on for more details about each eCommerce solution.

Shopify

Based out of Ontario, Canada, Shopify is our first recommendation for Canadian merchants seeking an easy to use shopping cart solution. Shopify is the perfect example of an SaaS (software as a service) solution, which means that Shopify handles the technical aspects of running an online store. For a monthly fee (plus transaction fees) Shopify provides hosting, web security, and technical support.

Shopify is designed for merchants with little to no development experience, so it’s perfect for smaller merchants who want to get their products to market quickly. However, that does not mean that Shopify is limited to exclusively these merchants. The software is scalable, so large or enterprise level businesses can also use Shopify to their advantage.

Pricing for Shopify is relatively low, and all plans include unlimited storage, bandwidth, and products. You can subscribe to their Basic Shopify Plan for just $29/month (+ 2.0% transaction fee). For more advanced features, you’ll have to subscribe to a higher level plan. One step up is the Shopify Plan at $79/month and the next step is the Advanced Shopify Plan at $299/month.

Pros

As one of our favorite, most versatile solutions, Shopify has a lot to offer merchants. Here are a few of the biggest perks of using Shopify:

  • Ease Of Use: Shopify is known for their simple UI. Uploading products is a breeze, and you can make changes to your storefront design with a drag-and-drop tool.
  • Elegant Design: The Shopify marketplace comes stocked with beautiful, responsive, ready-to-use themes. Ten of these themes are available free of charge, and the rest cost between $140-$180.
  • Good Customer Service: 24/7 customers support is available on all pricing plans via email, phone, and live chat. Some users report excellent interactions with support reps, although other users have a different experience (see Cons below).

Cons

Despite all of its positives, Shopify is not a perfect solution. There are still many ways Shopify can continue to improve. Here are a few of the things users complain about on online forums:

  • Limited Features: This is the biggest complaint users have about Shopify. While Shopify includes all of the basic features sellers need to initially set up their store, there are not many advanced features available. In order to access more advanced features (like B2B selling options, single page checkout, etc.), you’ll have to purchase the appropriate add-ons. This leads us to our second complaint.
  • Add-Ons Add Up: Although Shopify’s plans are affordably priced, costs of using Shopify for your online store can quickly add up once you start using extensions. Extensions and add-ons from the Shopify marketplace are billed monthly.
  • Poor Customer Support: This contradicts the “pro” I mentioned above. Reviews are mixed when it comes to customer support. Some users have great experiences. Others end up frustrated.

Canada-Specific Features

Because Shopify was created by Canadians, you can expect the software to offer enough features to support Canadian sellers’ specific needs. Here’s how they handle Canada-specific selling:

  • Multi-Lingual Features: Have your storefront, checkout, and emails display in multiple languages. Shopify has also recently introduced a beta for a multi-lingual admin. Languages currently supported include French.
  • Multiple Currencies: Display pricing in multiple currencies using a drop-down currency picker. Accept multiple currencies.
  • Shopify Shipping: Use Shopify Shipping to calculate and display shipping rates for multiple carriers, including Canada Post, UPS, USPS, and DHL.
  • Tax: Set tax rates for countries and provinces.

Get started with Shopify by signing up for a free 14-day trial, no credit card required.

Read our full Shopify review

Visit the Shopify website

LemonStand

Founded in 2010, LemonStand is an SaaS eCommerce solution with headquarters in Vancouver, BC. Like Shopify, LemonStand provides merchants with hosting, customer service, and site security.

One notable trait about LemonStand is that their design templates are completely customizable. The design is all open source, so if you have the proper know-how, you can change nearly every aspect of the look and feel of your store.

Pricing for LemonStand is based on the number of orders you process each month. We like this pricing model because all features are included with all plans. However, merchants who process many orders each month with very narrow profit margins might be turned off by this pricing model. You can begin with the Starter plan ($19/month for 75 orders) or move up to the Growth plan ($69/month for 300 orders) or Professional plan ($199/month for 1000 orders). There’s also a Premium plan available for even larger sellers.

Pros

We deem LemonStand a 5-star solution, and it seems many users would agree. Here’s what current users praise most frequently on comment boards and review sites:

  • Customizability: If you have the technical experience, you can do a lot with LemonStand. In particular, you will be able to change many aspects of the look and feel or your storefront.
  • Progress: LemonStand is constantly working to add new features to their software and improve existing features. This progress is encouraging.
  • Good Customer Service: LemonStand’s representatives are helpful, courteous, and timely.

Cons

LemonStand isn’t a perfect solution, however. Here are a few of the complaints I’ve found:

  • Missing Features: LemonStand is constantly adding new features, in part because the software is still missing some advanced functionality. Users are hopeful that these gaps in features will be filled soon.
  • Technical Skill Required: Web design with LemonStand requires at least some knowledge of HTML and CSS. If you don’t have that knowledge, you should be able to hire someone who can take care of design issues for you.
  • Lacking Documentation: LemonStand provides documentation as a form of self-help technical support. Unfortunately, some of that documentation is not very detailed. Documentation can occasionally be difficult to follow.

Canada-Specific Features

Here’s how LemonStand supports Canadian merchants:

  • Canada Post: LemonStand integrates with Canada Post so you can provide real-time shipping rates.
  • Taxes: Use tax classes to define tax rates by location. Alternatively, you can integrate with Avalara for more detailed tax calculation.

Surprisingly, I was not able to find any information about displaying your storefront in multiple languages and currencies. However, this doesn’t necessarily mean they are unavailable (especially since LemonStand is a Canadian based company). Comment below if you have any information on the matter.

Test out the software for yourself with a free, commitment-free 14 day trial. Or, read our full review for more information!

Read our full LemonStand review

Visit the LemonStand website

PinnacleCart

PinnacleCart was developed with the intention of helping merchants promote and sell their products, regardless of technical ability. As SaaS software, PinnacleCart gives you the ability to add and edit products, process orders, create marketing materials, and customize your site design. And although PinnacleCart is not a Canadian company, they do provide many of the logistical features that Canadian merchants need.

Pricing for PinnacleCart is based on traffic and storage. All features come included with every plan. These features include unlimited products, daily backups, phone and email support, and an SSL certificate. Pricing is available in three tiers: $44.95/month, $94.95/month, and $199.95/month.

Pros

Pinnacle Cart is another five-star solution. Find out what makes it great:

  • Ease Of Use: Once you conquer the initial learning curve, using your PinnacleCart admin should be second nature.
  • Customer Support: Users are happy with the support they receive from PinnacleCart.
  • Good Marketing Features: Use widgets to market your products on any website, and integrate with social media to further your reach. PinnacleCart’s SEO features are also generally well praised.

Cons

Some PinnacleCart users, however, may have a different experience. Here are a few cons we’ve noticed:

  • Learning Curve: Users who are new to PinnacleCart (and new to eCommerce in general) will have to overcome a slight learning curve when they first begin using the software.
  • Difficult Customization: Some users have trouble customizing their design.
  • Not International Friendly: PinnacleCart does not offer many languages or currency options. In addition, users have some difficulty accepting payments outside of the US and Canada.

Canada-Specific Features

Although PinnacleCart is not the best solution for cross-continental selling, they offer plenty of features for selling within Canada:

  • Canada Post: Add real-time shipping for Canada Post.
  • Automatic Tax Calculation: Use flat-rate tax options to set up tax rates by state and province. Integrate with Avalara Ava Tax or Exactor Tax for more detailed tax estimates.
  • Accept Multiple Currencies: List your prices in multiple currencies and accept payments in multiple currencies.
  • Add French Language Options: Choose to display your site in multiple languages.

Try out the platform for free for two weeks, no need to hand over any credit card information. For more details on pricing and features, view our full review.

Read our full PinnacleCart review

Get Started With PinnacleCart 

Magento

Until now, we’ve discussed exclusively SaaS platforms that favor ease of use over customizability. Magento is the opposite. As one of the eCommerce industry’s most popular open-source software, Magento is highly customizable and scalable, and it’s perfect for merchants with greater developing skills.

Another advantage to Magento is that it’s totally free to download. However, that doesn’t mean Magento costs $0 to implement. Because Magento is open-source, you will be responsible for finding hosting, maintaining security, and hiring developers (or being your own developer) to design your site and add necessary features. There is no Magento support available. Your only options are to resolve issues on your own or pay a developer to fix things for you.

As you might imagine, Magento is more difficult to implement than the SaaS solutions we’ve discussed above. However, Magento’s strong feature set and customizability make it a good option for fearless merchants.

Pros

Take a look at the advantages that come with Magento:

  • Features: Magento provides a robust feature set right out of the box. Add even more advanced features through integrations or develop your own extensions with the available API.
  • Strong User Community: Magento is used by 240,000 merchants around the world. Join a wide community of sellers and developers. Find solutions in Magento’s community forum or hire a Magento developer for select jobs.
  • Scalable & Customizable: Use Magento to build the online store system that your business needs.

Cons

As you might expect, Magento comes with its challenges. Many of these challenges relate to ease of use. Take a look:

  • Steep Learning Curve: Many sellers find Magento difficult to learn. You will need to have some experience with coding or be able to hire a developer.
  • Expensive: Although the software is free to download, there are always expenses related to operating an online store. Be sure to consider web developer costs as well as the expense of hosting, adding integrations, and maintaining security.
  • No Customer Support: You can use self-help support routes or hire a developer. Magento does not provide customer support for their open source software.

Canada-Specific Features

Magento is built for merchants worldwide. The software includes many international selling features, which benefit Canadian sellers.

  • Languages: Choose from many, many available languages. Set up multi-language store views so that you can feature multiple languages without creating multiple sites.
  • Accept CAD: Accept CAD. Implement “dual currencies” to accept both USD and CAD easily.
  • Taxes: Manually add tax rates and rules, or integrate with AvaTax for more detailed (and easier) tax calculations.
  • Canada Post: Use integrations from the Magento Marketplace to add Canada Post shipping calculations to your store.

Magento does not offer a free trial because the software itself is totally free to download. Test out the software by downloading it for free, or read our review for more information.

Read our full Magento review

Zoey

If Magento sounds great, but you’re turned off by that “steep learning curve,” you might look into Zoey. Zoey offers the functionality of Magento paired with an ease of use that rivals Shopify. Sound perfect, doesn’t it? The only downfall: the price. Zoey is designed to be a B2B eCommerce platform with B2C capabilities. It is therefore intended for merchants beyond the startup phase, and the price reflects that.

Nevertheless, we think Zoey is a fantastic option. In particular, we love Zoey’s robust drag-and-drop storefront design tool, which lets all merchants make changes to their sites with zero coding. In addition, we love Zoey’s extensive feature set that includes strong capabilities for wholesale selling.

Pricing for Zoey is divided into two tiers: Entry ($299/month) and Power ($499/month). A step up in pricing includes more staff account permissions, the ability to list more SKUs, priority customer support, and more.

Something important to note: Multi-language and multi-currency features are only available on the Power plan.

Pros

There’s a lot to love about Zoey. Here are just a few of those positives:

  • Easy Setup: It’s easy to get your store up and running. Zoey also offers migration services to make the transition from another eCommerce platform easier.
  • Feature Rich: Zoey comes with lots and lots of features already built-in, so you won’t have to use so many add-ons.
  • Drag & Drop Editor: Zoey’s drag and drop editor gives you control over your site’s look and feel. You can use it to change many, many aspects of your storefront.

Cons

However, there a few drawbacks to using Zoey. We’ve compiled a few potential issues:

  • Pricey For Smaller Sellers: Zoey’s monthly subscription rates are significantly higher than any of the other solutions in this list. These rates are likely too high for merchants who are just starting out.
  • Limited Customizability: Although Zoey is similar to Magento in its features, it is not similar in customizability. Since Zoey is not open source, you will not be able to customize every aspect of your store. So, if you want any additional features, you’ll have to add them via integrations or wait until Zoey releases those features in an update.
  • “Heavy” Platform: If you add on lots of extensions, your platform can get a bit bogged down and not run as smoothly as you’d like.

Canada-Specific Features

Zoey provides sellers with multiple international sales tools, which Canadian merchants can use to their advantage.

  • Multi-Lingual: Sell in 80+ languages.
  • Multiple Currencies: Display prices in 168+ currencies and accept payments with 50+ international payment gateways.
  • Taxes: Zoey includes tax support for many countries, including Canada.
  • Shipping Integrations: Zoey does not offer a direct link to Canada Post, which is unfortunate. Access Canada Post with a shipping software extension like Ordoro or ShipStation.

As you’d expect, Zoey offers a 14-day free trial, no credit card required. Test the platform out for yourself or learn more with our full review.

Read our full Zoey review

Get Started With  Zoey

Final Thoughts

We hope you’ve found one or two shopping carts that might fit your business’s needs. Take a look into our full review of each potential eCommerce solution to learn the details about pricing, features, and customer service.

And when you have a better idea of what each shopping cart provides, we always recommend you take advantage of a free trial to test out the software yourself. Test out your daily operations, and try to “stump” the software with complex products and promotions.

Best of luck in your search for a Canadian-friendly eCommerce platform! There are lots of great options out there, you just have to find the one that works for you!

Need a payment processing service? Check out the best and worst Canadian merchant accounts providers.

The post 5 Shopping Carts For Starting An eCommerce Business In Canada appeared first on Merchant Maverick.

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