What Are Verified By Visa And 3D Secure?

If you’ve heard about Verified by Visa through the grapevine — or more than likely in your checkout process — and you’ve got some questions, you are in the right place. Come along as we take a look at the good, bad, and the ugly when it comes to the evolution of Verified by Visa and 3D Secure.

What is Verified by Visa? Simply put, it’s a program to help ensure that cards are used only by the owner of the Visa account, thereby making online purchases more secure. 

The premise may be simple, but the details can be a little complex. Buckle up for a bit of a bumpy ride. In this post, we’ll look at where the industry used to be in terms of security protocols and talk about how far we have come thanks to solutions like Verified by Visa and its companion, 3D Secure.

3D Secure stands for 3-Domain Secure, which reflects the fact that the checkout process involves three separate domains to protect cardholders and merchants. 3D Secure encompasses both Visa and MasterCard’s security programs, as well as programs offered by JCB and American Express in select parts of the world. Merchants can add 3D Secure authentication on their site as an additional way to prevent card fraud. 

As we dig in the post, we are also going to explore some sobering realities that every eCommerce business must face when it comes to fraud — and discuss how 3D Secure technologies can protect you as a merchant.

What Is Verified By Visa?

Verified by Visa 3-D Secure 2.0

As we mentioned above, Verified by Visa is a program designed to reduce fraud and make online purchases more secure, but that definition is fairly ambiguous. The truth is that Verified by Visa is always evolving to adapt to how it accomplishes the goal of security, and this program will likely continue to change to stay one step ahead of online fraud. A shopper’s experience with Verified by Visa will largely depend on who issued their card as well as the merchant’s online security protocols. For example, a shopper with one particular Verified by Visa card may be prompted to enter in a personal PIN every time they buy at their favorite eCommerce shop. Another shopper with a Verified by Visa card issued from a different bank may go through the checkout seamlessly and not be aware that there are layers of risk assessment happening with data in the background to ensure the order is legitimate. 

This difference in shopping experiences is because there are two versions of Verified by Visa with varying levels of participation from issuing banks. This variance is in part due to the rollout of the new protocol 3D Secure 2.0. The update addressed some of the significant problems with the original 3D Secure, version 1.0. In the light of the risks presented by card-not-present transactions, most merchants (and shoppers!) would agree that adding layers of security is a good thing. But as I mentioned above, there were some big complaints with the original version of Verified by Visa when it rolled off the lot.

Verified by Visa and 3-D Secure 1.0

Screenshot of “Online Shopping is Easy and Secure With Visa” Video

3D Secure 1.0

Before we dig in, let me first say that it is completely normal to experience a certain to amount of negativity bias when we experience something new. As humans, we tend to focus on the negative and often approach new situations with suspicion. That can be a good thing or bad thing, depending on the situation.

Unfortunately, some shoppers who were initially exposed to Verified by Visa and 3D Secure version 1.0 mistakenly thought the pop-up authentication screen prompting them to enter their secure personal PIN was a malicious attempt at gathering their credit card data, and they jumped ship. These customers abandoned their carts or were locked out, resulting in lost sales for merchants. The situation was not good for shoppers, and certainly not good for businesses.

Verified by Visa spoof

Third-party pop-up screens demanding passwords or other sensitive information are a red flag, for obvious reasons. And as predicted by naysayers, several reported malware pop-ups spoofed the whole scheme. Verified by Visa and the banks soon worked out these kinds, fortunately. Now, the authentication step for Verified by Visa 1.0 (yes, that version still exists) happens in an in-line window. Pop-ups are a thing of the past.

But this improvement still doesn’t change the fact that many people don’t like having to remember yet another PIN number, code, or password for every purchase they make, big or small. There’s always a delicate balance between payment security and user experience in the world of payment security. Shoppers expect convenience and ease while also needing a high level of trust.

The newer 3D Secure technology utilized by Verified by Visa continues rolling out to eCommerce shops, and it does an exceptional job of addressing payment security and usability. 

3D Secure 2.0

3-D Secure 2.0 Verified by Visa

Just like 3D Secure 1.0, the newer 3D Secure 2.0 provides an additional layer of security for online transactions before final authorization. However, the updated version of Verified by Visa included in 3D Secure 2.0 uses a data stream to provide more robust risk assessments instead of relying on a PIN or passcode for authentication.

Verified by Visa and the original 3D Secure technology came on the market 15 years ago, but Version 2.0 is being managed and implemented by EMVCo, the same organization responsible for certifying hardware and software to accept chip card payments.

The important thing to note for any merchant considering Verified by Visa and 3D Secure is this: 3D Secure 2.0 represents the latest global standard in payment security.

The touted improvements are:

  • Cross-Device Support: 3D Secure 2.0 brings better usability and support for transactions across several types of devices.
  • Better Risk Analysis: Enhanced risk-based, decision-making for issuers utilizes 10X the data (e.g., time zone, device ID, purchase history, and geo-location data).
  • Improved Usability: A faster behind-the-scenes makes for happier customers.
  • Less Customer Intrusion: Authentication is only required directly from a shopper if the transaction is flagged high risk.

Visa says it best:

The new 2.0 version of the technology enables a real-time, secure, information-sharing pipeline that merchants can use to send an unprecedented number of transaction attributes that the issuer can use to authenticate customers more accurately without asking for a static password or slowing down commerce.

One of the best improvements from a shopper’s standpoint is that they won’t be asked for additional information unless the transaction waves some red flags. Data powers the risk assessment behind the scenes to more accurately identify a genuine vs. fraudulent transaction. As touched on above, 3D Secure 2.0 uses different types of data to analyze the purchase and protect shoppers and merchants from fraud, including but not limited to:

  • Purchase history
  • Device ID
  • Purchase amount
  • Geo location
  • Email address
  • Merchant history
  • Time of day
  • Unusual IP address
  • Unknown device
  • First time purchase of merchant
  • Excessively large purchase amount

And unlike Verified by Visa’s 3D Secure 1.0, users are not required to opt-in or register. If a cardholder’s issuing bank makes use of 3D Secure 2.0, the bank automatically enrolls the card at no charge to the customer.

Verified by Visa Registration

Fewer passwords and no need for registration means that most cardholders will not even necessarily be aware of all the fraud protection happening behind the scenes.

But what about merchants? What does a merchant do if they want to utilize 3D Secure technology in their checkout process? Read on for merchant information and some sobering fraud statistics that fueled the race to better technology.

How Verified By Visa & 3D Secure 2.0 Protect Merchants

Everyone understands that fraud is costly, but many may not know how the EMV chip protections for card-present transactions have caused fraudsters to focus more on eCommerce fraud. After the rollout of EMV, it was harder than ever to clone a user’s card or steal their credit card data. So the target has changed.

Fraudsters identify vulnerabilities in the payment security landscape, and that’s why we see eCommerce businesses hit harder than ever. When companies don’t understand how to protect themselves, they open themselves up to data breaches and big problems ensue. According to UPS Capital, 60% of small businesses are out of business within six months of suffering a cyber attack.

Every ecommerce merchant should do what they can to provide more protection for these transactions. We cover more about the risks of online payments and how you can protect your business in What Is A Card-Not-Present Transaction?, but 3D Secure technology is one excellent way you can defend your eCommerce business.

Here’s how it works in a nutshell:

How 3-D Secure Verified by Visa works

Instead of asking every customer for extra information, Verified by Visa and 3D Secure 2.0 use multiple layers of data to identify a high-risk transaction. Your shoppers are only asked to complete an extra step (e.g., entering in a verification number delivered via text) if there is a high risk of fraud.

All of this is important because merchants not only need to protect themselves from fraud, they need to protect themselves from lost sales due to frustrated customers. A behind-the-scenes risk-management approach means that convenience and user experience remain intact.

EMVCo reports that the data-driven authentication of 3D Secure 2.0 leads to a 70% reduction in cart abandonment. So as a savvy merchant, making it easier for your customers to complete a purchase while reducing the risk of fraud to your business is a no-brainer! 

Verified by Visa 3-D Secure 2.0

How Merchants Can Implement 3D Secure Technology

As mentioned earlier, Visa recommends that issuers and merchants support both the 1.0 and the 2.0 specifications. If you currently have a merchant account, give your provider a call to find out if they offer 3D Secure and how to start utilizing it in your online shop.

If you are in the market to find a high-quality, affordable processor that offers built-in excellent security tools (including 3D Secure) for eCommerce business, check out our other post, How to Choose an eCommerce Merchant Account.

Best Online Credit Card Processing Companies

Heading CDGcommerce Shopify Square Fattmerchant Payline
 
Review
Visit Site
ReviewVisit Site Review
Visit Site
Review
Visit Site
ReviewVisit Site
Key Features Free Gateway Included Advanced Shopping Cart Basic Webstore, All-in-one Advanced Billing & Invoicing Versatile Service
Shopping Cart Compatibility Many Shopify Only Many Many Many
Gateway Compatibility Many Many Square Only Many Many
Pricing Model Cost-Plus Flat Rate Flat Rate Subscription Cost-Plus
Standard eCommerce Rates 0.30% + $0.10 markup 2.90% + $0.30 2.90% + $0.30 0.00% + $0.10 markup 0.50 + $0.10 markup
Entry-Level Monthly Fee $10 $29 $0 $99 $0

Final Thoughts

The Verified by Visa experience for both shoppers and merchants has come a long way since it was first introduced more than fifteen years ago. Because the threat of fraud is continually evolving, we are likely to see this technology continue to get smarter as well.  That’s because eCommerce businesses today face increasing threats from fraudsters who target vulnerabilities in the digital space.

Staying up-to-date with the latest payment security technology is crucial to protect your business and the shoppers who buy from you. Verified by Visa and 3D Secure 2.0 work behind the scenes to authenticate a sale without a lot of intrusive requests to the shopper, making it an excellent way to combat fraud.

The post What Are Verified By Visa And 3D Secure? appeared first on Merchant Maverick.

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LoanBuilder VS Kabbage: Which Lender Is Best For Your Business?

We all know that running a small business requires capital. While it would be great to cover all of our expenses out-of-pocket, for most small business owners, this just isn’t a reality. For times when money is tight, a small business loan makes expansions or simply covering day-to-day operations possible.

But what happens when your revenues are too low, your time in business too short, or your credit score doesn’t meet bank requirements for a traditional loan? Instead of giving up, turn to an alternative lender like LoanBuilder or Kabbage.

LoanBuilder and Kabbage have emerged as frontrunners among small business lenders. Online applications eliminate the need for face-to-face visits with your local banker, to begin with. Borrower requirements are also more relaxed, and you can get the money you need in days — no more waiting weeks for approval.

You want to make the best financial decision for your business, so which lender do you choose? In this post, we’ll compare these two lenders to help you make the right choice. We’ll take an in-depth look at the application process, break down terms and fees, and help guide you on your path to small business financing.

Ready to get started? Let’s dive in.

Services Offered

Winner: Kabbage

LoanBuilder provides capital to small business owners through short-term loans. When you apply for a LoanBuilder loan, you can receive between $5,000 and $500,000 for your business. Once approved, you’ll receive one lump sum of cash that can be used as working capital, for an emergency, to expand your business, or for any other business purpose.

One of the benefits of a LoanBuilder loan is that you can “build” your own loan. With the LoanBuilder Configurator, it’s possible to check out different options to find the financing solution that’s best for your business. You can easily adjust the borrowing amount and terms to compare your options. For example, if you want low monthly payments, select a longer repayment term and lower borrowing amount. If you’d rather reduce your fixed fee, opt for a shorter term.

If you want more flexible financing, Kabbage is the better choice for your business. Through Kabbage, you can receive a line of credit with a limit of $2,000 to $250,000.

A Kabbage line of credit is significantly different from a traditional loan. Loans — like the ones available through LoanBuilder — are sent to your bank account in one lump sum. Once you’ve paid off the loan, you’ll have to reapply to receive more money. With Kabbage’s line of credit, you’ll be assigned a credit limit, and you can make one or more draws up to and including that credit limit. Each payment is applied to your balance plus fees. As you repay borrowed funds, they’ll become available for you to use again — no additional approvals needed.

One of the best things about a Kabbage line of credit is that you don’t have to use it immediately. With a traditional loan, you are still required to make regular payments, even if the funds sit untouched in your bank account. With a line of credit, though, you won’t have to make payments until you request a transfer of funds. This makes it a much better option for those “what if” scenarios you can’t predict. It is this flexibility that gives Kabbage a slight advantage over LoanBuilder.

Borrower Qualifications

Winner: Kabbage

LoanBuilder Kabbage

9 months

Time In Business

12 months

$42,000 per year

Minimum Sales

$50,000 per year

550

Minimum Credit Score

N/A

Even if you’ve been turned down for a small business loan in the past, you may still qualify for funding through LoanBuilder. Unlike traditional lenders, LoanBuilder has more flexible criteria for receiving one of its loans.

To qualify for a LoanBuilder loan, you must meet the following minimum requirements:

  • U.S.-based business in a qualifying industry
  • Time in business of at least 9 months
  • At least $42,000 in annual revenue
  • No active bankruptcies
  • Personal credit score of 550 or above

Please note that these are minimum requirements and that meeting these minimum requirements does not guarantee your approval.

During the application process, you can review your offers with no impact to your credit score. If you decide to move forward with applying for and accepting a loan, a hard credit pull will be initiated by LoanBuilder, which may have a small impact on your credit score.

While the requirements for a LoanBuilder loan are pretty simple, it’s even easier to qualify for a line of credit through Kabbage.

To qualify, the minimum requirements of Kabbage are:

  • In business for at least 1 year
  • At least $50,000 in annual revenue OR at least $4,200/month for the last 3 months

Kabbage looks at the performance of your business when determining whether to approve your line of credit. However, a hard pull will be performed to check your personal credit, although the lender has no credit score minimums to qualify.

Having no minimum credit score requirements really makes Kabbage stand out from other lenders. If you’ve had personal credit challenges, such as an active bankruptcy or a credit score that falls below 550, Kabbage is the better financial product for your business. However, if you have a shorter time in business or lower revenues but meet all credit requirements, you may want to consider giving LoanBuilder a shot.

Terms & Fees

Winner: LoanBuilder

LoanBuilder Kabbage

$5,000 – $500,000

Borrowing Amount

Up to $250,000

13 – 52 weeks

Term Length

6 or 12 months per draw

One-time fee of 2.9% – 18.72% of the borrowing amount

Borrowing Fee

1.5% – 10% of the borrowing amount per month

None

Other Fees

None

Now, it’s time to look at one of the most important factors to consider when borrowing money from any lender: how much is it going to cost? Before we break down the costs between LoanBuilder and Kabbage, note that these are alternative lenders that provide funds to borrowers with less-than-perfect credit. As such, these financial products have a higher cost of borrowing than traditional loans you’d receive from your bank or credit union.

A great feature about LoanBuilder loans is that just one fixed fee is charged, making it easy to understand the cost of borrowing. Fees range from 2.9% to 18.72% of the borrowing amount. The most creditworthy borrowers will be rewarded with the lowest fees. There are no origination fees or additional costs added to your loan.

LoanBuilder loans have terms between 13 to 52 weeks. Terms are based on the amount of your loan. Each week, payments are automatically withdrawn from your business bank account.

Kabbage’s fee structure is a little different. A fee is charged each month when there is a balance. Fees range from 1.5% to 10% and are based on the performance of your business. Your fees may change throughout your repayment period. For example, you may pay a 3% rate for the first 6 months, then pay just 1.25% for the remaining 6 months. This is just an example, and your actual fees may vary.

Kabbage has repayment terms of 6 or 12 months and are based on the amount you borrow. If you borrow less than $10,000, your repayment terms will be set at 6 months. If you borrow $10,000 or more, you can choose between terms of 6 or 12 months. Payments are withdrawn monthly through automatic drafts of your business bank account.

If you prefer to make weekly payments, LoanBuilder is the better choice between the two lenders. If you want a loan with a single fixed fee structure that’s easy to understand, LoanBuilder is also the better option. However, if you’d prefer to make one monthly payment, consider applying for a Kabbage line of credit.

The Application Process

Winner: Kabbage

Now that you know more about the features of LoanBuilder and Kabbage, you’re getting one step closer to choosing and applying for a financial product. Before you start filling out your personal information, though, let’s explore what to expect during the application process.

The first step to receiving a LoanBuilder loan is to fill out the online questionnaire. This questionnaire should only take about 5 to 10 minutes to complete. During this step, you will provide contact information, personal information, business details, and verify your identity.

Once you’ve completed the questionnaire, one of two things will occur: your application will be declined or you’ll receive an offer. If your application is turned down, LoanBuilder will provide you with further details and you’ll be eligible to reapply in 30 days. At this point, you’ll need to pursue other financing options. However, if you’ve received an offer, you’ll be able to adjust the duration of your loan and the borrowing amount to compare costs and select the terms that work best for your business.

At this point, your offer is just a pre-qualification. At any point in the process your application may be declined, and receiving an offer is not a guarantee of approval.

After you’ve selected your terms, you’ll be required to fill out a more comprehensive application. You’ll provide more information to the lender, and you’ll be required to submit documentation such as business bank statements. During this process, a hard check will be performed on your credit.

Once LoanBuilder has analyzed your business financials and personal credit history, your application will be approved or declined. If you’re approved, you’ll electronically sign a contract and the funds will typically be deposited into your business bank account the next business day.

You can also bypass the online system and contact a LoanBuilder Business Funding Expert through the lender’s toll-free number. This may be the best option if you have additional questions about LoanBuilder’s loans. However, the online process is typically much faster and easier for most business owners.

While it is possible to receive your funds just one business day after applying, most small business owners will receive funding within 2 to 7 days.

Kabbage’s application is also available online and can be completed in just minutes. When applying for a Kabbage line of credit, you’ll start by providing information about your business, such as your business name and phone number. During the first step, you’ll also input an email address and create a password. This information will serve as your login credentials for the Kabbage website and app.

Next, you’ll link your business accounts so Kabbage can evaluate your business revenue. You can connect your business bank account from institutions including PNC, TD Bank, Chase, and Bank of America, or you can link business services such as PayPal, Square, Etsy, or Amazon. After you’ve been approved, you can link multiple services and accounts to maximize your credit limit.

Finally, Kabbage will request personal information. This is very basic information including your legal name and home address. You’ll also provide your Social Security Number. At this stage, Kabbage will initiate a hard inquiry on your personal credit.

Once you’ve completed this step, you’ll receive an approval decision. If you’ve been approved, you’ll be taken to the Kabbage Dashboard. Through this dashboard, you can view your credit limit and immediately initiate your first transfer. You can withdraw your full credit limit, a portion of your credit limit, or wait until a later date to make a draw. On this dashboard, you’ll also be able to select your repayment terms and view your payment schedule.

After you make your first draw, funds will be sent to your business bank account immediately. You should then receive the funds within 1 to 3 business days.

Once you’re approved for a Kabbage line of credit, you can also request the Kabbage Card. You can use the Kabbage Card anywhere Visa cards are accepted. Simply swipe your card, and Kabbage will create a new loan with 6-month terms and the same fees as your other loans.

Both LoanBuilder and Kabbage simplify the loan application process. However, Kabbage is the clear winner in this round. Kabbage’s simple application process is hassle-free and has no documentation requirements. With Kabbage, you can receive an approval decision in just minutes and put your line of credit to work for your business immediately.

And The Winner Is …

LoanBuilder and Kabbage each offer benefits to small business owners. LoanBuilder loans provide short-term financing options for business owners that wouldn’t qualify for financing through traditional lenders. However, Kabbage stands out for a number of reasons.

The simple application process, flexibility, easy borrowing requirements, and lightning fast approvals are just a few of the benefits Kabbage offers to small business owners.

Which Is Best For Your Business?

LoanBuilder and Kabbage are similar in that they offer alternative financial solutions for business owners that may not qualify for other loans or financial products. However, there are distinct differences between the two. Determine how much you need to borrow, nail down how you plan to use the funds, and make your decision from there.

Choose LoanBuilder If…

  • You prefer to make smaller weekly payments rather than a larger monthly payment
  • You want one lump sum of money that can be repaid over time
  • You need to borrow more than $250,000

Review

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Choose Kabbage If…

  • You’d rather make monthly payments
  • You want a flexible line of credit that you can use when you need it
  • You want an instant approval with no hassles or paperwork

Review

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Final Thoughts

Kabbage and LoanBuilder both provide quick financial solutions for small business owners. However, don’t forget that this speed and convenience may come at a high cost. These are short-term options that may have higher fees than other financial products. Shop around with lenders, compare any offers you’ve received, consider other loans such as accounts receivable financing, and evaluate the cost of any loan you choose to accept.

By doing your homework, you can better ensure you’re making the most financially-savvy move for your small business.

If you’re still undecided, check out our other resources, including How To Get A Small Business Line Of Credit and The Business Owner’s Guide to Getting A Short-Term Loan.

The post LoanBuilder VS Kabbage: Which Lender Is Best For Your Business? appeared first on Merchant Maverick.

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WooCommerce VS Shopify

WooCommerce VS Shopify

✓

Pricing

Tie

Cloud-Based Or Locally-Installed

Tie

Tie

Specific Size Of Business

Tie

Hardware & Software Requirements

✓

Ease Of Use

✓

Tie

Features

Tie

Tie

Web Design

Tie
✓

Integrations & Add-Ons

✓

Payment Processing

Customer Service & Technical Support

✓

Tie

User Reviews

Tie

Security

✓

?

Final Verdict

?

Review

Visit Site

Review

Visit Site

WooCommerce and Shopify are both wildly popular software systems that can help you build a thriving online store. Behind-the-scenes, however, the two platforms work quite differently from one another. Before we jump into comparing these juggernauts of the ecommerce software realm, let’s quickly get oriented on the basics of each.

At its core, Shopify (read our review) is a SaaS (software as a service) online shopping cart platform. Starting at just $9/month, you can upload products to an online catalog and sell them on Facebook, or post them on an existing website of your own via embeddable “buy” buttons. You can even sell your products in-person with the Shopify POS app. Then, beginning at $29/month, Shopify facilitates the creation and hosting of a fully-fledged ecommerce website.

By contrast, WooCommerce (read our review), is a free and open-source ecommerce shopping cart plugin that was created specifically for installation inside the WordPress dashboard. The WooCommerce plugin turns a WordPress website or blog into an ecommerce storefront. In other words, WooCommerce has no actual website-building capabilities of its own — WordPress handles that part.

To understand WooCommerce and how it works, you need a little familiarity with WordPress itself. To put it simply, WordPress is a website builder/CMS (content management system) that exists in two forms: WordPress.org and WordPress.com. WordPress.org is the self-hosted version, whereas WordPress.com uses the same basic software as WordPress.org, but provides web hosting for your site as part of its services. Either WordPress version can actually be combined with WooCommerce, but each setup has different implications for cost, site maintenance, etc.

For the purposes of our Shopify versus WooCommerce comparison, we’ll focus on combining WooCommerce with WordPress.org, the self-hosted option. Most ecommerce sellers are attracted to WooCommerce because they already use WordPress.org for their websites, and/or they like the WooCommerce plugin’s “free” price tag in conjunction with WordPress.org. While the WooCommerce plugin itself is always free, you can only add plugins to the dot-com version of WordPress if you’re on the $25/month WordPress.com subscription.

Now that you know the basics, we’ll break down the two platforms into their various components — usability, features, comprehensive cost, and more. It’s basically the same old compare-and-contrast essay we were all forced to write in middle school. The stakes are a bit higher with this particular essay, however. By the time we’re done, you’ll hopefully have a good sense of which ecommerce platform (if either) is best for your online business.

Pricing

Winner: WooCommerce

You might be tempted to think WooCommerce immediately takes this category without contest. After all, both the WooCommerce plugin and the WordPress.org software download are free, whereas Shopify automatically involves a monthly subscription. In reality, you need to invest in a few services (e.g., web hosting) to get a WooCommerce + WordPress.org ecommerce store off the ground. The bottom line is, WooCommerce may be a bit cheaper at the outset, but it’s not 100% free. Just wanted to clear that up first!

Before we run a more detailed cost comparison of the two platforms, here’s a quick look at why WooCommerce wins this category:

  • You can launch an online storefront up for well under $29/month, which is the starting price for a full online store with Shopify.
  • All WooCommerce features are included with the free plugin. You don’t automatically need to jump to higher subscription levels for additional features or staff accounts (you just may need some add-ons as time goes on). In other words, you pay only for exactly what you need.
  • Neither WordPress nor WooCommerce charge any additional transaction fees per sale, beyond those charged by your credit card processor. Shopify only waives its extra transaction fees (that start at 2%) if you use Shopify Payments as your credit card processor, and not everyone is eligible for Shopify Payments.

WooCommerce is the budget option of the two, but only if you have the skills to run your own website and don’t need to hire extra help for web development, site maintenance, security, backups, etc. If you do need lots of extra help, you could still end up paying more with WooCommerce + WordPress in the long run. Fair warning.

That’s the summary explanation. Now, here’s a more detailed pricing breakdown if you’re interested:

Shopify Pricing

  • Monthly Subscription Fee: $9 (no standalone storefront), $29, $79 or $299/month.
  • Domain: Unless you want your store URLs to end in “myshopify.com” (and you probably don’t), you’ll need to purchase or connect a custom domain. Domains from Shopify start at $11/year, or there are lots of third-party options.
  • Web Hosting: Included
  • SSL/TLS Certificate: Included
  • Additional Transaction Fees: 0.5%-2.0% depending on your Shopify subscription — unless you use the in-house payment processor (Shopify Payments), in which case these extra fees are waived. Note: these transaction fees are on top of regular credit card processing fees you must pay per sale with any processor.
  • Additional Cost: Primarily add-ons from the marketplace, and perhaps a one-time purchase of a premium theme.

WooCommerce + WordPress.org Pricing

  • Monthly Subscription Fee: None if you set up a free WordPress.org site. The WooCommerce plugin itself is always free.
  • Domain: Varies, but can start at less than a dollar per month from third-parties.
  • Web Hosting: Rock-bottom hosting can cost as low as around $3/month, but most people end up paying at least $10 per month, depending on the size and traffic levels of their stores.
  • SSL/TLS Certificate: Often included with your hosting or domain provider, but may need to be purchased separately. Basic certificates cost just a few dollars per month.
  • Additional Transaction Fees: None. Neither WooCommerce or WordPress charge a commission per sale.
  • Additional Cost: Add-ons, themes, and any web development and ongoing site maintenance if you’re not taking care of all that yourself.

Sample WooCommerce + WordPress.org hosting

Cloud-Based Or Locally-Installed

Winner: Tie

As we’ve mentioned, a major difference between Shopify and WooCommerce is that your Shopify subscription includes web hosting. No downloads or installations are required. To use WooCommerce, however, you first must download the WordPress.org software and install it on a web hosting server. Then, you add the WooCommerce plugin to that setup. Some web hosts do offer preloaded WordPress + WooCommerce packages or “one-click” installations.

Is the Shopify or WooCommerce method better? This one really comes down to personal preference and ability. The self-hosted setup of WooCommerce requires more hands-on involvement and skill from the user, but you may be just fine with that.

Specific Size Of Business

Winner: Tie

Both WooCommerce and Shopify are scalable, working for small to enterprise-level businesses.

Shopify has predetermined subscription brackets. While none of these put hard limits on your revenue, number of products, bandwidth, or storage, the implication is that you’ll increase your subscription as your store grows. The exception is the jump to Shopify Plus, which is required if your revenue reaches over $1 million per year. These plans cost a couple thousand a month to start, but it can be worth the investment in return for a service that’s tailored specifically for enterprise-level merchants.

You will also need to change your Shopify subscription as you add more staff accounts to your store. For example, the $29/month plan accommodates two admin seats in addition to the owner’s account, while the $299/month plan gives you 15 spots.

WooCommerce also has the potential to grow with your store, but the system is much more fluid. You have 100% flexibility to expand your operation (and perhaps employ more help with your site) in a piecemeal fashion, exactly when and how you see fit. As your site traffic increases, for example, you’ll want to adjust your hosting service accordingly to accommodate more bandwidth.

Hardware & Software Requirements

Winner: Shopify

As a fully-hosted, SaaS platform, Shopify takes care of nearly all technology requirements on your behalf. All you really need is an internet connection and an up-to-date web browser.

With WooCommerce and WordPress.org, most of the hardware and software requirements are functions of your hosting environment. Your server needs to support specific versions of PHP and MYSQL, for example. You’re responsible for staying on top of the evolving requirements for both WooCommerce and WordPress.org when you set up a WooCommerce store. This includes installing updates of both the Worpress.org and WooCommerce software as they are released. Plugins are available to help automate some of these steps for you, but you’re still ultimately responsible for finding and updating those plugins!

Because dealing with hardware and software issues with WooCommerce is more nuanced and requires more vigilance from the user than Shopify’s arrangement, we award Shopify the win.

Ease Of Use

Winner: Shopify

It’s hard to beat Shopify in terms of user-friendliness. Even compared with other all-in-one SaaS platforms designed with the complete ecommerce novice in mind, Shopify usually comes out on top. Open-source software like WooCommerce, on the other hand, is not generally known for its ease of use. You’re trading some degree of ease and simplicity for increased flexibility and customization.

It should be noted, however, that WooCommerce actually isn’t all that bad when it comes to ease of use, especially compared with most open-source solutions. For starters, many folks are already somewhat familiar with WordPress, which gives them a head start in navigating WooCommerce. (Keep in mind that the reverse will apply if you’re not already familiar with WordPress — you’ll be learning two systems at once.)  Once you get everything installed and up and running, day-to-day operations and manipulation of features are all pretty straightforward with WooCommerce.

Still, as we’ve already touched on, it can be quite overwhelming to stay on top of updates, extension compatibility, security issues, and the various tertiary systems underpinning your WooCommerce store. The cliché I’ve often read about WooCommerce is true — you have to be willing to get your hands dirty. Shopify is a much more plug-and-play, hands-free system.

WooCommerce offers to install some additional free plugins (like Jetpack and WooCommerce Services) from the get-go that help bring the system more in line with a fully-hosted solution like Shopify, but you still end up with a sort of cobbled-together setup that is more difficult to manage than an all-inclusive platform.

Have a look at our full Shopify and WooCommerce reviews if you’d like more information on the topic of ease-of-use, but I’ve included just a quick peek at the dashboards of each platform, as well as what it’s like to add a product.

Shopify Dashboard:

After signing up for a free 14-day trial, you’re taken to a clean and easy-to-navigate dashboard, with all your major functions in the left menu, and a few tips to get started in the center:

Shopify — Add A Product:

Shopify has a super-simple product interface. All fields are completed simply by scrolling down the page.

WooCommerce Dashboard:

Below I’ve shown a WordPress dashboard with WooCommerce already installed. If you look closely at the left menu, you’ll see that WooCommerce is just one item of many. I haven’t even expanded its own menu yet, nor the “Products” menu right below. In the center of the dashboard, I’m faced with additional suggested configurations and plugin choices. Do I need them all? Should I set them up now? Just “Dismiss?” It’s certainly all doable, but I find it bit cluttered and overwhelming to get started. Plus, this is all after I completed the setup wizard.

WooCommerce — Add A Product:

Once you scroll past the plugin suggestions, adding a product is quite straightforward with WooCommerce. If you’ve ever used WordPress, it’s a lot like creating a blog post. You’ll just need to configure ecommerce settings like price and inventory levels.

Another aspect to consider is that you won’t be able to test WooCommerce (like you can test Shopify with its free trial) unless you have a host and server already set up to install WordPress.org. Ease of use is always a bit subjective, and it’s hard to get a good feel for usability without testing the software yourself.

Features

Winner: Tie

Although one is software-as-a-service and the other is open-source, both Shopify and WooCommerce actually take a similar approach to features. The basic components to get a store launched and managed on a day-to-day basis are included with the software, but you’re expected to add a few extensions and integrations to either platform in order to tailor your store to your exact specifications.

With Shopify, this occasionally even means bumping up your subscription level, whereas with WooCommerce, features are always expanded through separate add-ons. WooCommerce has also been known to test new features by treating them as extensions first, and then eventually incorporating the features into the core offering once all the kinks are worked out by users. It’s really a community effort with Woo.

However you slice it, a common complaint about both platforms is that extra plugins can cause extra cost and extra headaches. Each system is kept as simple (yet functional) as can be from the outset, so that new users are not immediately overwhelmed by all that’s ultimately possible with these powerful software programs.

Let’s do a couple of quick sample feature comparisons. WooCommerce lets you add unlimited product variations, sell digital products, and incorporate product reviews without separate extensions, while Shopify requires (free) add-ons for each of these functions. Meanwhile, Shopify already includes abandoned cart recovery, invoice creation, and pre-integrated shipping software (Shopify Shipping). You’ll need extensions for these features in WooCommerce.

I’m tempted to give Shopify the win because I feel it comes with a slightly more well-rounded ecommerce feature set out-of-the-box without any plugins. And yet I also don’t want to overlook the enormous capability that comes with an entire WordPress.org ecosystem at your fingertips, nor dismiss the potential to customize each feature to your liking in an open-source environment. There are just too many factors at play to declare a clear winner here. The best advice I can give is to check for the features you need, as well as how they are obtained with each platform.

Web Design

Winner: Tie

I know this makes our compare-and-contrast essay less exciting, but it’s difficult to call a winner in this category as well. Each platform has advantages and disadvantages, and your own perception of what actually qualifies as an advantage or disadvantage will differ depending on your situation.

Below is a quick summary of each system’s approach to the design and customization of your storefront, along with some screenshots to help illustrate.

Shopify Overview:

  • 67 total templates, most with 2-4 style variations
  • 10 templates are free and supported by Shopify developers
  • Remaining third-party themes cost $140-$180
  • Built-in theme editor with drag-and-drop capability
  • Additional customization available with HTML, CSS, and Shopify’s own theme coding language (Liquid)

Shopify Theme Marketplace:

Shopify Theme Editor:

The Shopify theme editor consists of two elements: “Theme Settings” (for changing fonts, colors, etc.) and “Sections” (for dragging and dropping widget blocks up and down your pages).

WooCommerce Overview:

  • Access to thousands of free and commercial/supported WordPress.org themes (over 900 show up when filtering for “ecommerce” in the marketplace)
  • WooCommerce recommends its free “Storefront” theme for foolproof compatibility and web ticket support
  • 14 Storefront “child” themes available (two free, premium are $39 each)
  • Theme editor allows color changes and placement of widgets (but without drag-and-drop)
  • Storefront expansion bundle ($69) allows further customization without coding
  • Theme modification also possible with HTML and CSS (no proprietary coding language involved)
  • Add a free plugin (such as Elementor) for drag-and-drop design editing of WordPress.org pages without code
  • WordPress.org’s new Gutenberg editor provides additional non-coding customization for your overall WordPress site

WooCommerce Storefront Themes:

WooCommerce Theme Editor:

Below, I’ve shown the portion of the built-in theme editor where you can choose widget blocks for various spots within your pages.

So, how do WooCommerce and Shopify stack up when it comes to web design? Does Shopify win for having a drag-and-drop theme editor and font tweaking built-in, or does it lose for making you learn a proprietary coding language if you want to do further template customizations? The new Gutenberg block editor for WordPress enhances your theme editing capabilities without code, and lets you easily place WooCommerce products wherever you’d like within your larger WordPress site — so that’s another factor to consider going forward. It’s issues like these that make this category a toss-up depending on your point of view.

Integrations & Add-Ons

Winner: WooCommerce

Even though I’ve already spoiled the winner of this category, we need to highlight the fact that Shopify also has an amazing app marketplace with around 2500 integrations at your disposal. With Shopify, you have the opportunity to connect with many of the most popular third-party software platforms associated with ecommerce (think shipping, marketing, accounting, and the like). Thousands of developers have invested in creations for the Shopify extension ecosystem. In most ecommerce software battles, Shopify easily wins this category.

All that said, open-source systems like WooCommerce + WordPress.org typically offer more integration possibilities than even the most well-connected SaaS platforms. The whole point of an open-source platform is for users at large to jump head-on into the codebase to customize and build connections. In the open-source world, WordPress has a particularly enormous and active community of developers extending the platform. As a WooCommerce user, not only do you benefit from hundreds of WooCommerce-specific extensions, but also from the over 50,000 plugins available in the WordPress.org marketplace. Even Shopify can’t fully compete.

Some argue that because many WooCommerce integrations are one-time installations, it works out cheaper in the long run, or point out that more WooCommerce plugins are free. In truth, integrations can add to your monthly cost with either Shopify or WooCommerce — especially if your integrations are to third-party software platforms with their own monthly subscription fees (and not just one-off feature installs). Be cognizant of the potential for ballooning add-on costs with either system.

Payment Processing

Winner: WooCommerce

The complete freedom WooCommerce offers to choose a payment processor and associated pricing model that best suits your particular store’s needs is the reason we award the open-source plugin the win in this category.

While Shopify technically offers more pre-built payment integrations than WooCommerce in its respective marketplace, you are actually penalized with an extra 0.5% to 2.0% Shopify commission on every sale if you don’t select the in-house Shopify Payments option. This percentage — 2% for most merchants starting out — is applied on top of the fees charged by your payment gateway itself. Trust me, that extra 2% adds up fast.

Shopify Payments has its own advantages and disadvantages, but for starters, some merchants don’t even qualify to use this processor in the first place. While Shopify Payments definitely works well when it works, a lot of merchants end up stuck in no-man’s land when it comes to payment processing with Shopify. Caught between an extra fee and a hard place, as it were. (Insert your own, better metaphor here.)

While you may need to pay a one-time fee to integrate your favorite processor with WooCommerce (Stripe and PayPal come as free, built-in options), you can ultimately select an option that fits perfectly with your risk level, sales volume, and transaction size. You can also select for any customer support and feature requirements you may have for your payments system.

Customer Service & Technical Support

Winner: Shopify                                  

Both WooCommerce and WordPress have produced a plethora of self-help resources and documentation. Moreover, both boast thriving communities of developers and merchants working with the software who readily share problem-solving advice via forums. This is all very good and helpful.

WooCommerce can’t compete with Shopify when it comes to personalized support, however. A “help desk” is offered with WooCommerce from which you can submit a web ticket for specific purchased items, but a personal response is not always guaranteed.

Meanwhile, along with great self-help resources and community forums of its own, Shopify offers 24/7 phone, email, and chat avenues for contacting live representatives in real time. This is part of the all-inclusive nature of the Shopify platform, and part of the reason you pay that monthly subscription fee.

Now, this is not to say you couldn’t potentially receive personalized assistance from your hosting provider if your site goes down, for example. The quality and availability of this sort of third-party tech support will vary widely by company, though. Not to mention, things can get complicated very quickly regarding exactly who holds responsibility for whatever’s gone horribly wrong with your online store in the middle of the night. Once again, our point is that neither WooCommerce nor WordPress.org has a team of service reps standing by waiting for your distress call. You’re largely on your own.

User Reviews

Winner: Tie

Shopify and WooCommerce each have devoted followings of satisfied users, and both platforms tend to score very highly on user review websites. Shopify merchants love the user-friendliness of a powerful SaaS platform where most things are taken care of for you, while WooCommerce devotees appreciate that most things are not taken care of for you — it gives these users the flexibility and control they desire.

Of course, neither ecommerce platform is perfect. Here are a few of the complaints that arise most often:

Shopify

  • Extra transaction fees when not using Shopify Payments
  • Costly add-ons
  • Poor customer support
  • Frustration with Shopify Payments

WooCommerce

  • Costly add-ons
  • Lack of personal customer support
  • Steep learning curve
  • Technical difficulties (i.e., extensions, themes, updates, etc.)

I’m still calling this one a draw. One platform does not dramatically outshine the other when it comes to real user feedback.

Security

Winner: Shopify

Shopify wins this category because all Shopify stores are automatically PCI compliant out-of-the-box and come with a built-in SSL certificate. With WooCommerce, your store’s security falls more directly upon your own shoulders. You’re ultimately responsible for choosing a secure and PCI-compliant web host and payment gateway, obtaining an SSL certificate, performing Woodpress.org and WooCommerce plugin updates, and staying on top of the latest security patches. As WooCommerce reminds you in its own documentation, “a given WooCommerce site is overall exactly as secure as the WordPress installation itself.”

There’s no doubt that a WooCommerce store can be just as secure in as a Shopify store, as long as all the right pieces are in place and carefully managed. There’s just a higher chance for site security to go (horribly) awry due to mismanagement or innocent mistakes.

Final Verdict

Winner: Shopify

 

This was a tight race, folks. Shopify and WooCommerce have both earned their popularity in the ecommerce world, even if for different reasons and for different segments of online sellers. Based on our experience, as well as our sense of the needs of our Merchant Maverick readership overall, we’re still more likely to recommend Shopify over WooCommerce.

The majority of online sellers will have an easier time with Shopify right out-of-the-box. Shopify is much more “foolproof” and all-inclusive than WooCommerce, with technical aspects like installation, hosting, updates, and security all handled on your behalf. This allows you to expand your focus beyond just building and maintaining your store, even as an absolute web-beginner. The opportunity for 24/7 personalized customer support with Shopify is also a huge factor in our verdict.

All Shopify gushing aside, we firmly maintain that this SaaS platform is not a magic bullet solution for all online merchants, and WooCommerce may be just the alternative you seek. As an open-source software plugin combined with WordPress.org’s vast ecosystem, WooCommerce offers a degree of ownership, control, and flexibility that isn’t possible with Shopify. It’s the perfect platform for the technically-inclined among us who have the time and skill to tinker with code, updates, and integrations to customize their stores at a finely-tuned pace. The freedom to select your own web host, as well as a payment processor that works best for your specific country and risk level without financial penalty (hello, Shopify’s extra transaction fees) is also a big draw for a lot of business owners using WooCommerce. The power truly is in your hands if you go this route.

As the old adage goes, however: with great power comes great responsibility. If you choose an open-source platform like WooCommerce, you should definitely heed this nugget of graphic novel-based wisdom.

Have you worked with Shopify or WooCommerce? Let us know if the comments — particularly if you have experience with both!

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MasterCard SecureCode: What It Is And How To Use It

You may have seen mentions of “SecureCode” around, on TV and elsewhere. After all, when Hugh Jackman (aka Wolverine) stands on a scenic rooftop and asks if we know that SecureCode is a more secure way to pay, it’s hard to ignore.

Mastercard SecureCode

But what the heck is SecureCode?

Simple! MasterCard’s SecureCode is a private code known only to the account holder that provides an additional layer of security for online purchases. The program is free for consumers as well as merchants. 

The Claim:

MasterCard SecureCode ostensibly comes with these benefits:

  • Reducing fraud
  • Guaranteeing e-commerce payments
  • Reduced chargeback risk to merchant
  • Improved cardholder confidence 

With online payment security an ever-present concerns for both online shoppers and merchants alike, these Mastercard SecureCode claims deserve a closer look. Keep in mind that both the merchant and the cardholder need to opt into the program for either party to benefit from it. 

Whether you are a cardholder who is thinking about setting up a SecureCode yourself, or you are a curious business owner who wants to know how you can improve security for online purchases, read on for an explanation of how SecureCard works and whether it’s right for you!

How SecureCode Works For Online Shoppers

no annual fee credit card

The basic concept of MasterCard SecureCode is very similar to using a PIN to process a debit payment at the checkout. Just like during a debit transaction, where the PIN is kept private, the SecureCode should always remain private to the account holder.

When your customer fills their cart with your wares and begins the checkout process, they will also enter their MasterCard SecureCode to verify their identity as the cardholder. But there is one major caveat. Instead of sharing their SecureCode directly with you, the merchant, an issuer-provided inline window appears with a personal greeting that is only known by the cardholder. If the customer recognizes their personal greeting, they enter their SecureCode. In just a few seconds, the issuer verifies that the true cardholder is making the transaction and the checkout process continues. 

How Can Cardholder Enroll?

MasterCard customers who have cards issued from participating financial institutions can enroll in SecureCard and register any of their debit or credit cards. To find out if you can enroll, can contact your institution or view the list of participating financial institutions updated by MasterCard. 

MasterCard SecureCode For Businesses

If you are a merchant wondering why you should bother offering SecureCode, it makes sense to take the time to understand more about it. From a merchant standpoint, MasterCard SecureCode can give your current and future customers greater confidence and security while shopping online with you. This extra layer of authentication and security also protects you from fraudulent use and some types of chargebacks (more on that below).

It is important to note that if you decide to go with SecureCode, it’s not mandatory for all of your customers to enter in a code to finish the sale with you. Authentication with a personal code is only required for customers who have already signed up for SecureCode. Whenever a customer connects a card with SecureCode and the merchant is also signed up, the SecureCode is required, however. But if you decide to offer SecureCode and your customer isn’t signed up, they’ll enter their credit card information just like they would with any other sale, and it is processed as usual. 

For SecureCode transactions, merchants can gain protection from unauthorized cardholder chargebacks, and customers who have activated SecureCode get more protection, too.

How To Offer MasterCard SecureCode

If you are a business owner who is ready to get this new layer of security live on your site, here is what you need to know: Your transaction processor may already support the MasterCard SecureCode program, so give them a call first and see if they can get you started.

The setup process is fairly simple if you’re used to maintaining your website yourself, and involves installing a plug-in to your site. After everything is up and running successfully, MasterCard also provides you with a logo you can put on your site to identify your program involvement.

It’s also worth mentioning that many processing companies, including Stripe, offer an extra layer of authentication through 3D Secure  (sometimes abbreviated as 3DS). 3D Secure is a security protocol that bundles MasterCard SecureCode with the Visa equivalent, Verified by Visa. It gets its name from the fact that a third party, the card network, is involved in verifying the credit card purchase. In some regions, 3D Secure authentication also includes American Express SafeKey. Your merchant account provider may offer 3DS authentication as part of its service, though you might also need to configure this option in your payment options if it isn’t enabled by default.

How SecureCode Reduces Fraud & Guarantee eCommerce Payments

image of man in a hoodie in front of a laptop, overlaid with lines of code

MasterCard claims that SecureCode helps reduce fraud and guarantees ecommerce payments. Let’s say a hacker manages to lift someone’s card number from a skimming device or a compromised website and they post it on the Dark Web. Another scammer buys it and then tries to make a purchase with the card details. A CVV check (another common ecommerce security feature) might stop some transactions, but CVV checks aren’t universally used in ecommerce. Plus, we often give away our CVVs when we place an order over the phone (Chinese takeout, anyone?) — if that business has a shady employee who lifts customers’ numbers, they now also have your CVV. And of course, if a fraudster does get a physical card, they have everything they need to start making purchases.

SecureCode prevents unauthorized use in these types of situations because unlike a credit card number, SecureCode isn’t entered on a business’ site or shared over the phone. The SecureCode acts like a PIN between the issuing credit card company and the customer. If the person using the card doesn’t provide the correct code, or doesn’t enter any code, the transaction can’t go through. 

Keep in mind that SecureCode doesn’t take the place of authorization approval; it is simply an additional authentication step. Every card-not-present transaction, no matter how small, will be authorized by the issuing bank.

How SecureCode Reduces Chargebacks

The Complete Guide to Preventing and Winning Chargebacks

We’ve already talked about how SecureCode protects against unauthorized card use. It also provides protection against friendly fraud via chargebacks. 

For a business owner, a chargeback is a loss of revenue (both in terms of the money refunded to the customer and the fees charged by the processor for the chargeback), and too many chargebacks can negatively affect your standing with your credit card processing company. In essence, a chargeback happens whenever a customer files a dispute with their bank, saying that a charge was not authorized by the customer. 

Despite the somewhat innocent-sounding name, friendly fraud can cause a lot of grief. Friendly fraud refers to a type of chargeback that happens when a customer falsely claims they didn’t make a purchase in order to get their money back. They may have changed their mind or filed a chargeback claim directly with their credit card company instead of returning the product to you. Whether the customer’s intent was purposely malicious or not, these types of chargeback claims can be a big problem for any online retailer. They actually account for the majority of chargebacks.

If you’re a merchant, the great thing about SecureCode’s extra authentication step is that it’s much harder for a customer to claim they never ordered from you if they authenticated their purchase with their private code. You can make a stronger case when it comes to proving your customer actually made the purchase, so much of the liability in these types of “friendly fraud” or chargeback cases shifts away from you and to the user and their bank — which means you don’t lose out on the money from that purchase. 

If you want to read up a little bit more on chargebacks and what you can do as an online merchant, visit our post, The Complete Guide to Preventing and Winning Chargebacks.

How SecureCode Improves Cardholder Confidence

blogging

In the past, MasterCard cardholders and merchants alike had some issues with the user experience because SecureCode used a pop-up window. Business owners were rightfully concerned because customers are naturally suspicious of pop-ups. The last thing any business owner wants when they try to improve security is also to increase cart abandonment. MasterCard took these concerns to heart and improved the experience by switching to an inline window rather than a pop-up for the SecureCode authentication. 

Now, the streamlined experience ensures that the entire checkout and verification process is embedded directly in the merchant site. When you offer SecureCode on your site, it gives your shoppers an added layer of security, too. Especially for smaller businesses, having this added layer of security helps to legitimize your site and improve overall confidence. 

More International Buying & Selling Opportunities

As if adding security in an insecure world wasn’t enough, the MasterCard SecureCode program may help you expand your business internationally! When you add SecureCode to your website checkout, you can start processing payments from customers overseas who use  Maestro cards (owned by MasterCard). This factor can potentially help you expand to Europe and other countries abroad where shoppers use debit cards much more frequently than credit. In countries like Germany, Maestro has replaced the Eurocheque system. All of this gives you extra reach when it comes to processing payments.  

Should I Use SecureCode On My Site?

Now more than ever, payment security is the subject of much focus and debate. While customers expect things to be streamlined and convenient, the truth is that they also expect their data to be secure. In a world where the cost of fraud continues to increase, adding solutions to protect everyone involved makes sense— especially when they involve no extra costs for you or your customers. While it may take a few extra moments for a customer to enter in their personal code, authenticating their identity can prevent fraud and save everyone a lot of heartaches (and headaches).

The truth is that merchants are the ones that shoulder the cost of chargebacks and fraud, so finding better solutions to protect yourself, your time, and your sanity is a very smart business move. However, not all eCommerce processors are the same. Some have robust solutions that keep up with the current threats, and some lag behind. I encourage you to take the time to find out what your merchant account is doing for you in regards to security, and if you don’t love it, find something that is better. We have a plethora of resources for you here at Merchant Maverick.

If you want to find a better payment processor that specializes in online businesses, we recommend checking out our post, How To Choose An eCommerce Merchant Account.

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What Is PayPal Credit & How Does It Work?

It can be a challenge to keep up with all the different payment services PayPal offers because there are so dang many, and new ones seem to come out all the time. PayPal services also frequently change names as they are rebranded or acquired from other companies.

One PayPal service you might be curious about, as it has generated some buzz lately, is PayPal Credit, formerly Bill Me Later. Read on to learn about this PayPal payment option.

What Is PayPal Credit?

paypal credit logo

PayPal Credit is a line of credit issued by Synchrony Bank. This virtual line of credit functions similarly to a credit card, letting you pay for online purchases in installments, rather than upfront in-full.  Approved PayPal users can use PayPal Credit as a payment option whenever they check out using PayPal, either from a website or at a brick-and-mortar store that accepts PayPal.

Note that PayPal Credit is not the same thing as a PayPal debit or credit card.

How PayPal Credit Works

Best PayPal Alternatives Image

PayPal Credit is easy to apply for and start using. But it’s important that you understand a little bit about how PayPal Credit works before you start using this service.

Applying For PayPal Credit

Any PayPal user can apply for PayPal Credit. If you don’t have a PayPal account already, you will be prompted to create one when applying for PayPal Credit. The application is quick and simple: you only have to supply your date of birth, your income after taxes, and the last 4 digits of your Social Security number. Be warned that PayPal will do a hard credit pull, which might ding your credit score a few points. Typically within seconds, you’ll have your approval answer.

PayPal doesn’t have any clearly stated applicant criteria, but applicants with poor credit or limited credit history may be declined.

Once you have been approved and accept the terms of use, PayPal will give you a credit limit of at least $250. PayPal will periodically review your account and may increase or decrease your credit limit.

Note that PayPal Credit is the new name for Bill Me Later, which has been around for more than 10 years. If you already had a Bill Me Later account, you now have a PayPal Credit account.

Using PayPal Credit

Once you have your PayPal Credit account set up, you can use PayPal Credit in conjunction with your PayPal account anywhere PayPal is accepted. You simply need to set up PayPal Credit as your default “preferred” payment option for PayPal, or select PayPal Credit as your payment option when checking out. Some merchants may also prompt you to pay using PayPal Credit instead of your regular PayPal preferred payment option (which is usually linked to a credit or debit card, or your bank account).

You can manage your PayPal Credit settings using a web browser or with the PayPal app. You can also make payments on your balance and see your current credit limit — just like you would for any credit card app you might already use.

As part of its “Cash Advance” feature, it’s possible to use PayPal Credit to send money to someone online using the Send Money tab, the same way you can with any other PayPal Wallet option. You cannot use this feature to send a cash advance to yourself. However, you can receive a cash advance directly from PayPal Credit if you are a furloughed federal government worker: in January 2019, PayPal announced a program whereby PayPal will extend a one-time 0%-interest cash advance of up to $500 to furloughed federal workers via PayPal Credit.

PayPal Credit Terms & Conditions

PayPal Credit requires monthly payments on your balance. You can make the minimum payment at the end of the month, make payments in any other amount whenever you like, or pay your balance in full at any time, similar to a credit card. For new accounts, PayPal Credit has a variable APR of 25.99% on standard purchases and cash advances (at the time of publishing). Being variable, the APR will fluctuate with the Prime interest rate.

PayPal Credit is currently promoting a 6-months special financing offer, in which you won’t have to pay any interest on purchases of $99 or higher for 6 months. You will be charged interest if you don’t pay the balance in full within 6 months.

To send money (Cash Advance) with PayPal Credit, PayPal will charge a flat fee of 2.9% + $.30 US dollars per transaction. This is the same fee you pay when you use a debit or credit card to send money through PayPal.

To qualify for the 0%-interest cash advance for federal government workers, you’ll need to be a U.S. federal government employee with a PayPal Credit account in good standing. This promotion will end once the government reopens and furloughed workers receive their first paycheck, or the $25 million PayPal has set aside for the program has been exhausted.

PayPal Credit Pros & Cons

Pros of PayPal Credit

  • Fast & Convenient: You can use PayPal Credit to make a purchase as soon as you’re approved (usually within seconds). In comparison, you might have to wait a week or longer for a credit card you’ve applied for to come in the mail.
  • Use Anywhere PayPal Is Accepted: This includes thousands of websites and a growing number of brick-and-mortar stores as well.
  • PayPal Purchase Protection: If your online purchase doesn’t match the description or doesn’t arrive, PayPal will refund the full purchase price plus original shipping costs.

Cons of PayPal Credit

  • Low Credit Limit: Unlike a traditional line of credit, PayPal Credit limits are comparable to or even lower than most credit card limits, with most users’ limits ranging from just $250 to a few thousand dollars.
  • Hard Credit Inquiry: The hard credit pull during the application process will likely ding your score several points.
  • Won’t Help You Build Credit: Unlike a credit card company, PayPal Credit does not report your payment activity (positive or negative) to credit agencies.
  • High APR: You can probably get a better APR with a credit card, especially if you have good credit.
  • Risk Of Overspending: You may be tempted to spend more with PayPal Credit than you would with regular PayPal.*

*Note that this pro/con list is from a PayPal Credit user’s point of view. From a merchant’s point of view, there are no major downsides to PayPal Credit, other than the downsides of using PayPal in general (namely, the high transaction fees). However, a potential upside of advertising promotional financing with PayPal Credit as a merchant that already offers PayPal as a checkout option is that PayPal users typically spend more and make larger purchases with PayPal Credit.

FAQ

Can Businesses Use PayPal Credit?

Short Answer:

Yes, your customers can pay using PayPal Credit as long as your business accepts PayPal payments. But when it comes to using PayPal Credit for business purchases, there are better options available.

Long answer:

Businesses that accept PayPal at checkout can offer customers the option to pay with PayPal Credit, either online or in-store. If you accept PayPal as a payment form, PayPal Credit is already available to customers who check out with PayPal at no additional cost to your business.

When a customer makes a purchase using PayPal Credit, PayPal deposits the full amount of the purchase into your account just as with any other PayPal transaction, so there is no added risk to you as a PayPal merchant; accepting a PayPal Credit payment is the same as accepting any other PayPal payment. However, if you make PayPal sales online, you can promote PayPal Credit financing options on your website, which might be of added benefit to businesses that sell large-ticket items online.

How Do You Get Paid With PayPal Credit?

There are multiple ways you can allow customers to pay with PayPal Credit:

  • PayPal Credit At POS: Some, but not all, point of sale systems allow you to accept in-person PayPal payments. Some examples of PayPal-friendly point of sales include Shopkeep, Vend, and of course PayPal’s own PayPal Here.
  • PayPal Credit On Your Website: If you allow customers to check out with PayPal on your website, PayPal will give you promotional banners that let you advertise financing options to your customers. You can also include a PayPal Credit button to prompt customers who don’t have PPC set up as their preferred PayPal payment method to pay using PayPal Credit.
  • PayPal Credit With Mobile Payments: If you accept Google Pay or Apple Pay at your point of sale, and the customer has PayPal with PayPal Credit set up as their default payment method, customers might pay using PayPal Credit using their smartphone.
  • PayPal Credit With PayPal Invoice: When you send a customer a PayPal Invoice, your customer may use PayPal Credit to pay that invoice.

Of course, only customers who have been approved by PayPal Credit may pay with PayPal Credit, and then only up to the amount of their credit limit. Customers who have set up PayPal Credit as their preferred PayPal payment option will automatically pay for all their PayPal purchases using Credit; customers can also choose PayPal Credit in their PayPal Wallet for individual transactions when presented with this option at checkout.

How Can You Use PayPal Credit For Business Purchases?

Businesses might also potentially use PayPal Credit to make business purchases from merchants or vendors that accept PayPal. However, because it is geared toward consumers, credit limits on this line of credit are on the low side and APRs are on the high side. Unless you have a very small enterprise, you are better off getting a traditional line of credit or business credit card to make business purchases.

As another alternative to making business purchases with PayPal Credit, PayPal also offers small business loans ranging from $5,000 to $500,000 with LoanBuilder: A PayPal Service.

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Final Thoughts

PayPal Credit can be a convenient option to have in your virtual wallet if you want to the ability to make purchases with PayPal even when you don’t yet have the funds to do so—for example, eBay businesses frequently make purchases using PayPal. Or, you might use PayPal Credit to finance a large one-time purchase such as a refrigerator.

You can also use PayPal Credit to send someone money, even if you don’t have that money in your account. If you own a business and already accept PayPal, promoting PayPal Credit as an online checkout option could result in higher purchases.

However, using PayPal Credit not an effective way to build credit, as PayPal doesn’t report your payments to credit agencies. Plus, you will be charged heavy fees if you don’t pay off your balance at the end of each month (or the end of the 6-month promotional financing period). If you are looking for a larger line of credit to use for your business, you might want to look at our top-rated business line of credit providers. Or if you’re looking for a more flexible credit option with a lower APR, check out this comparison of our favorite credit cards.

The post What Is PayPal Credit & How Does It Work? appeared first on Merchant Maverick.

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Kabbage VS Fundbox: Which Lender Is Best For Your Small Business?

In the past, getting a business loan was a hassle. Strict requirements, in-person visits to a bank or lending institution, and weeks of waiting could result in a low-cost, long-term loan option … or you could go through the process only to receive a big fat “NO.”

With the rise of the internet has come the emergence of alternative lenders – lenders with easy online application processes, fast approvals, and low requirements.

Kabbage and Fundbox are two leading alternative lenders, providing small business owners with the funding they need to operate or expand their businesses. While the two have similar product offerings, there are a few significant differences. In this post, we’ll compare the two side-by-side, breaking down the features of each to help you decide which is best for your business.

Services Offered

Winner: Fundbox

Through Kabbage, you can receive a flexible line of credit to cover business expenses. Kabbage has one of the highest borrowing limits among alternative lenders that offer lines of credit, providing qualified borrowers with $2,000 to $250,000. Your line is determined by the performance of your business.

Fundbox also offers lines of credit but with lower borrowing limits. With Fundbox Direct Draw, the lender’s traditional line of credit, you can be approved for a maximum of $100,000. Like Kabbage, Fundbox’s lines of credits are based on the performance of your business.

If you have unpaid invoices, you can take advantage of Fundbox Credit, the lender’s accounts receivables financing service. You can receive a line of credit up to $100,000 based on your unpaid invoices. You can only get one financial product through Fundbox, so you can qualify using either your unpaid invoices or your bank statements. We’ll go into borrower qualifications and the application process in more detail later in this article.

With both lenders, there are no restrictions on how you use your funds. You can use your lines of credit to purchase inventory or supplies, cover payroll, pay operational expenses, expand your business, or take care of an emergency.

While both lenders offer similar products, Fundbox comes out on top because you can also use your accounts receivables to qualify for a line of credit.

Borrower Qualifications

Winner: Fundbox

Kabbage Fundbox

12 months

Time In Business

N/A

$50,000 per year

Minimum Sales

$50,000 per year

N/A

Minimum Credit Score

N/A

N/A

Other

At least 2-3 months using compatible software/services

Qualifying for Kabbage is easy for most small business owners. To qualify, you must meet two minimum requirements:

  • At least 12 months in business
  • At least $50,000 in annual revenue OR at least $4,200/month for the last 3 months

Your personal credit score is not a consideration, as Kabbage bases approvals on business performance. However, a hard pull on your credit will be initiated during the application process.

Qualification for Fundbox is based on the product you select. For the Fundbox Direct Draw line of credit, you must meet the following requirements:

  • A business checking account
  • At least $50,000 in annual revenue
  • At least 3 months of transactions in a business bank account

To qualify for Fundbox Credit invoice financing, requirements are similar. You must have:

  • A business checking account
  • At least $50,000 in annual revenue
  • At least 2 months of activity in supported accounting software

With Fundbox’s invoice financing, you’ll link your accounting software to determine if you qualify. Fundbox currently supports 10 accounting software programs including QuickBooks Desktop, QuickBooks Online, Ebility, Harvest, InvoiceASAP, Jobber, Kashoo, FreshBooks, Zoho, and Xero.

It’s easy to see that both Kabbage and Fundbox have more lenient requirements than other lenders. However, Fundbox has the edge in this round because it doesn’t have time in business requirement. With Kabbage, you must be in business for at least a year. With Fundbox, newer businesses can qualify for funding provided they meet all other requirements.

Terms & Fees

Winner: Fundbox

Kabbage Fundbox

Up to $250,000

Borrowing Amount

Up to $100,000

6 or 12 months

Draw Term Length

12 or 24 weeks

1.5% – 10% of the borrowing amount per month

Borrowing Fee

Starts at 4.66%

None

Other Fees

None

Now, let’s explore one of the most important factors of small business financing: how much does it cost? One area where both Kabbage and Fundbox are similar is that both lenders offer transparent fee structures. However, when you break down the terms and fees of each, there are several notable differences.

Kabbage offers terms of 6 months for draws under $10,000. For draws of $10,000 or more, you can select from terms of 6 or 12 months. Through Kabbage, you make monthly payments that apply to your principal plus fees.

Kabbage charges a monthly fee each month you have a balance. Fees range from 1.5% to 10% of the total amount of the loan and are based on the performance of your business. Your fee rate may be lower as you pay off your loan. For example, if you have a 12-month loan, you may pay 3% for the first six months and 1.25% for the last six months. Of course, this is just an example, and you won’t know what rates you’ll receive until you apply for a line of credit.

If you pay your loan off early, there are no prepayment penalties and you will eliminate any remaining fees, so this is a good way to save money.

With each draw, you will receive a breakdown of your loan, including the total amount of fees and the amount of each monthly payment. Your loan documents will include the SmartBox Capital Comparison Tool that will provide information including the disbursement amount, repayment amount, terms, and APR.

Other than the monthly fee, there are no hidden fees or additional costs to make a draw from your line of credit. If you do not use your funds, you will not pay any fees.

Fundbox has repayment terms of 12 weeks or 24 weeks. Weekly payments are applied to your principal plus fees.

Fees and terms are the same for Fundbox Credit and Direct Draw. Fees start at 4.66% of the draw amount and are based on the performance of your business. If you pay your balance off early, all remaining fees are waived.

You will be able to view your fees and repayment schedule after you’re approved for a Fundbox line of credit and initiate a draw. Your borrowing amount plus fees are equally distributed, so you will pay the same amount each week.

Breaking down the APR of each lender makes it a little easier to compare. Fundbox APRs are between 13% to 60%, while Kabbage’s APRs are between 20% and 80%. Based on these numbers, Fundbox appears to be the less expensive option, but you may find Kabbage to be more affordable (your own personalized rates are based on the performance of your business).

The Application Process

Winner: Kabbage

Kabbage and Fundbox have similar application processes, but let’s break down each so you know exactly what to expect.

It’s possible to apply for and receive a Kabbage line of credit in just minutes with the lender’s easy online application. Once you’ve determined that you meet all minimum requirements, you can start the application. This requires basic information about your business including your business name, address, and phone number. At the beginning of the application process, you’ll also enter your email address and create a password that you’ll use to log into your account.

Next, you’ll connect your business accounts to determine 1) if you qualify for a line of credit and 2) your credit limit if you’re approved. You can securely link your bank account from institutions including US Bank, Citi, USAA, PNC, Chase, and Bank of America. You can also link to other business services with revenue transactions, such as PayPal, Square, eBay, Stripe, or Sage.

Finally, you will be required to provide Kabbage with personal information, including your Social Security Number. At this point in the process, a hard pull on your credit will be performed.

Once you’ve submitted your information, you’ll receive a notification of your approval status in just minutes. If approved, you’ll be taken to your Kabbage Dashboard, where you can view your available credit facility and initiate draws. You can make a draw up to and including your credit limit immediately, but there is no obligation to withdraw funds at this time.

After you’re approved, you can also link additional business bank accounts and services to qualify for a higher line of credit. Your linked business bank account will be used for automatic drafts once you have taken funds.

One final thing to note about Kabbage is that you can be approved for a line of credit of up to $150,000 on the spot. Qualifying for funding up to $250,000 requires a manual review.

After you’ve been approved for a Kabbage line of credit, you can request the Kabbage Card. If you request funds to be sent to your bank account, you’ll see the money in 1 to 3 business days. However, the Kabbage Card gives you immediate access to your line of credit.

The Kabbage Card can be used anywhere Visa cards are accepted. Simply swipe your card to make your purchase, and Kabbage will create a loan with the same rates and terms as a traditional line of credit draw. There are no additional fees, and anyone that qualifies for a line of credit can request a Kabbage Card at no cost.

Fundbox has a very similar application process. Start by signing up on the website with your name, business email, phone number, and a password. You will also be required to select the annual revenue of your business.

The next step involves linking an account so that the lender can analyze the performance of your business. If you have invoices, you can link your accounting software. If you do not invoice customers, you can qualify for a line of credit by linking your business bank account.

During the application process, a soft pull on your credit is performed. This will not affect your credit score. However, if you are approved for a line of credit and take funds, a hard pull may be performed.

Most borrowers will know within minutes if they are approved and the amount of the credit line. Once approved, you’ll be able to request funds immediately. Those funds will hit your bank account within 1 to 3 business days. Your linked bank account will be used for automatic drafts of your weekly payments.

Kabbage and Fundbox have similar application processes. Both are automated, easy, and can provide you with instant approvals. In this category, the win came down to the Kabbage Card. The ability to easily sign up for the Kabbage Card, which gives you access to your credit line anywhere Visa is accepted, gives Kabbage the edge.

And The Overall Winner Is …

Although Kabbage and Fundbox have similar product offerings, Fundbox comes out on top. Its relaxed borrower qualifications, invoice financing service, and competitive rates and terms make it a top choice for many small business owners.

However, you may find that Kabbage’s monthly payments, longer repayment terms, and access to fast cash with the Kabbage Card are more suitable for your small business.

Which Is Best For Your Business?

While Kabbage and Fundbox appear similar on the surface, there are a few clear differences that can help you make your choice between the two. The biggest differences to note include:

  • Kabbage payments are made monthly, while Fundbox has a weekly repayment schedule
  • Maximum borrowing limits
  • Time in business requirements
  • You can use your unpaid invoices to qualify for a line of credit through Fundbox

Choose Kabbage If…

  • You need a line of credit that exceeds $100,000
  • You feel more comfortable making monthly payments
  • You’ve been in business for at least one year
  • You want payment terms up to 12 months
  • You want to make instant purchases using the Kabbage Card

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Choose Fundbox If…

  • You’d prefer to make weekly payments instead of one larger monthly payment
  • You’ve been in business for less than one year
  • You want to use your unpaid invoices to receive a line of credit

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Final Thoughts

Kabbage and Fundbox both offer value to small business owners that may not qualify for traditional business financing options. Although the cost of borrowing may be higher than other financial products, the speed of approvals and transfers, the ease of application, and the low borrowing requirements may be worth the extra expense for the business owner seeking fast funding.

Still on the fence? Learn more about lines of credit and accounts receivable financing to determine which — if either — is the best financial option for your business.

The post Kabbage VS Fundbox: Which Lender Is Best For Your Small Business? appeared first on Merchant Maverick.

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Should You Put Personal Expenses On A Business Credit Card?

It’s not easy to raise enough capital to get your business off the ground to the point where it can sustain itself. That’s part of why half of all small businesses don’t make it past five years (stat courtesy of the Bureau of Labor Statistics). When building your business starts stretching your personal finances, a question that may arise is: Is it illegal to use a business credit card for personal use?

(Actually, it’s a question we know arises because we can see what people search for on Google)

Now, the more financially astute among you may scoff at the idea that people would think to try this. Well, don’t scoff. Entrepreneurs are feeling the same late-capitalist crunch the rest of us are experiencing and it’s not crazy that small business owners, most of whom are not lawyers or accountants, will look for any hack or “weird trick” they can find to make ends meet while funding their businesses.

We’re going to discuss the merits of charging personal expenses to a business credit card in this article. For more information on the ins and outs of how business credit cards work, check out our piece on characteristics of business credit cards that you may not be aware of.

Can You Put Personal Expenses On A Business Credit Card?

Well, you can in the sense that nobody will haul you off to jail for doing so. Here are some better questions to ask:

  • Should you put personal expenses on a business credit card?
  • Is it wise to do so?
  • Is it sustainable?

The answer to all three, you’ll be disappointed to hear, is no. For more on why that is, let’s break down what happens when you charge personal expenses to your business credit card.

Pros & Cons Of Using Business Credit Cards For Personal Expenses

Cheaper alternatives to Shopify

Pros

One argument occasionally floated in favor of charging personal expenses to a business card is the fact that expenses rung up on your business credit card, in most cases, can’t hurt your personal credit score because most (not all!) business credit cards don’t report to the consumer credit bureaus. By charging an expense to a business card rather than your personal card, your personal credit utilization ratio is unaffected, thus helping your credit score.

Another argument for making personal purchases on your business card is the fact that you can often earn better rewards by charging things to your business card than you could with your personal card, as business credit cards typically have more lucrative rewards programs. Of course, as we’ll discuss in the Cons section, if your business credit card issuer finds out that you’ve done this, your ability to receive rewards can be imperiled. However, if the expense looks like something that could plausibly be business-related, you might be able to get away with it.

Cons

Wow, where to start?!

For one thing, mixing business and personal expenses on the same credit card can attract the attention and ire of the IRS. If you’re audited, you’ll have to have to demonstrate to the satisfaction of the IRS that every expense charged to your business credit card was business-related, and serious penalties can result if you can’t prove your innocence. However, let’s say you’re not too concerned about the IRS. After all, the IRS seems to be focusing its attention on low-income EITC recipients these days (the working class can’t afford lobbyists). Sadly, you’ll have more to worry about than just the beleaguered IRS.

Let’s say your business credit card ledger includes both personal and business charges. Now, let’s posit that your business fails. If your personal and business finances are comingled, a court could find you personally liable for your business debts even if your company is an LLC or a corporation. This is known in the biz as “piercing the corporate veil.” If your personal finances are hurting to the point where you need to charge personal expenses to your business card to stay afloat, just imagine how much more dire your financial predicament will be if this happens! After all, business creditors are just as persistent as the IRS, and these days, they’re better resourced to boot.

Even if you’re not audited and your business doesn’t fail, mixing personal and business expenses on your business card will make doing your taxes an even more drawn-out and painful process. Every single transaction will need to be reviewed and evaluated to determine whether or not it was a business expense. Talk about a pain in the tuchus!

Another obstacle to using your business credit card to cover personal expenses is the fact that all the major business credit card issuers explicitly forbid it. It’s possible your card issuer could close your account if it finds widespread personal use of your business card. And even if that doesn’t happen, your rewards and perks could be affected by using your card in this way. For example, if your business card offers auto insurance coverage for all business-related car rentals and you use the card to pay for a rental for personal reasons, your insurance coverage can be downgraded.

What’s more, using your business card in this way could prevent you from being able to land a business loan in the future. Business lenders will scrutinize your personal and business credit reports when you apply for a business loan along with your previous year’s bank statements, tax returns, and more. If they find evidence in these documents that you’ve mixed your personal and business finances — and they likely will — they will almost certainly deny you the loan.

Need another reason not to mix personal and business expenses on your business card? The consumer protections that the Credit CARD Act of 2009 extends to users of personal credit cards don’t apply to business card use.

Mixing Personal & Business Expenses

It gets harder every day for a person who isn’t already independently wealthy to launch a successful business while still keeping the rent paid and the kids fed, so I have a hard time summoning up any moral outrage for struggling small business owners looking to catch a break by charging personal expenses to their business credit cards. The most compelling argument against this practice isn’t moral but practical.

Simply put, the potential downsides of putting personal expenses on your business credit card far outweigh the upsides. You’ll be exposing yourself to IRS penalties, additional tax hassles, and personal liability for your business debts if your business fails. You’ll also reduce your own chances of getting a business loan, thus making expansion of your business much more difficult. I understand the temptation and the potential short-term benefits of charging personal expenses to your business card in a pinch. However, it’s simply not worth the immense risk if you’re a business owner with an eye toward the future.

Final Thoughts

Financially speaking, it’s just not a good idea to mix business with pleasure. As the song goes, you gotta keep ’em separated.

Considering getting a credit card to help fund your business? Check out these helpful resources!

  • The Best Business Credit Cards For 2019
  • Personal VS Business Credit Cards
  • The Best Personal Credit Cards For Business Expenses

The post Should You Put Personal Expenses On A Business Credit Card? appeared first on Merchant Maverick.

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11+ Great Shopify Website Examples for Inspiration

Shopify Examples

So you’re considering using Shopify as your online store builder, and you’re looking for Shopify website examples for inspiration and confirmation that you’re making the right choice.

Shopify is one of the biggest names in the ecommerce website builder space. It’s part of a group of turn-key ecommerce (aka “hosted ecommerce”) solutions that provide everything you need to set up and start selling your product(s) to the world, as opposed to you putting all the pieces together yourself.

See Shopify’s Current Plans & Pricing

It’s sort of like hiring a general contractor to build your house, over being the contractor and hiring subcontractors yourself. You’re still in control, but you let the general contractor use their expertise to make the project happen.

Shopify is known for its straightforward user experience, which is great for DIY-ers. All you need to do is pick a Shopify plan that fits your budget and feature needs, point your domain to your store, choose a design/template (you can edit a free one using their drag and drop builder or build one yourself / use a designer), add your content and products, then start selling!

Before we dive into examples of what Shopify websites look like in the wild, there are two things to keep in mind when you’re evaluating a website platform.

First, it’s not just about how the websites look. The functionality matters too.

Think of it like buying a car. You have a make / model in mind, and you’re probably looking to see them drive by on the road to see how they actually look. However, you also care about how they operate. Does it accelerate well? Does it have the hauling capabilities you need? How is the gas mileage?

Looking at a website platform should be done in the same way. We collected the following Shopify examples not just to show you how they look, but how Shopify websites can function so you can be sure you have a website that fits both the style you want and the functionality you need.

Second, it’s not just about how a platform’s website’s look by default. It’s also about how far you can extend a piece of software via plugins, extensions or apps.

Think about it like your phone. Sure, your iOS or Android is great by default. But their “killer app” is the fact that they can have 3rd party apps to do things that iOS or Android alone could never do.

Shopify is similar. They have a a theming language that allows any 3rd party to develop & sell pre-built designs. We collected a few that are purchased themes, and some that are native to Shopify.

Either way – that possibility is something to keep in mind with all these designs. Explore Shopify’s theme options here. Here’s a few Shoipify website examples including examples from general ecommerce, t-shirt stores, dropshipping, and jewelry.

Disclosure – I receive customer referral fees from companies mentioned on this website. All data & opinions are based on my professional judgement as a paying customer or consultant to a paying customer.

General Website Examples

Let’s start with a general round up of solid Shopify website examples. We’ve pulled these examples based on functionality, design, and usability. Again, Shopify can be fairly straightforward to use — they have everything you need to get your shop up and running, minus your products and ecommerce marketing strategy. However, be aware that with this comes trade-offs (i.e. you give up some control, functionality, customization, etc.)

Inherit Clothing

Inherit Clothing

Inherit Clothing’s site is a great example of how built out a “standard” Shopify website can be. Pay special attention to how organized the information on the site is — from the top bar, which for special announcements (like sales, promotions, etc), to the navigation, which is broken down by product category. It’s incredibly easy for a shopper to find exactly what they’re looking for when hitting the homepage, which is one of the hallmarks of a great ecommerce site.

Rocky Mountain Bikes

Rocky Mountain Bikes

On the opposite side of the spectrum is this Shopify website example, which shows what a custom designed Shopify site looks like. Rocky Mountain Bikes isn’t using a theme for their website design, but has created an entirely custom look and feel instead. We especially liked their product page, which goes into extreme detail on bike specs, functionality, and even shows how the bike operates by including a video. If you’re looking to create something entirely unique for your store and need advanced product page functionality, this site is a great place to start for inspiration.

Explore Similar Shopify Templates!

T-Shirt

Online t-shirt shops are all the rage, and Shopify is an incredibly popular platform for these stores. Like any apparel website, you’ll want to make sure your t-shirt site includes high quality product photos, shipping and return information, and an easy checkout process. You’ll also want to be sure your website platform fits your needs in terms of order processing functionality, payment integrations, etc. Here are a few Shopify t-shirt website examples to use for inspiration:

Bird Fur Tees

bird fur

The first thing that stood out to us on this t-shirt website is the homepage. As soon as you get to the front page, you know immediately what the shop is and what their products look like. Bird Fur’s tagline (t-shirts for people) immediately tells visitors what the company is selling and the image carousel underneath is a great way to show the shirts “in the wild” vs. just standard product photos that only show the shirt.

Speaking of product photos, notice how Bird Fur uses bright, high-quality images to showcase their products. The grid pattern below the homepage are colorful, clear, and also gives visitors a way to shop directly from the homepage. Remember that an ecommerce homepage should be easy to navigate and give visitors a clear path to what they’re looking for. By featuring popular products on the homepage of your t-shirt site, you’re giving shoppers an immediate opportunity to browse and add to their cart.

Another feature to call out is this site’s “These are cool too..” section, which shows related products that visitors may like.

Bird fur related products

Showcasing additional products is a great way  to keep shoppers browsing for related items they may not have considered before!

Explore Similar Shopify Templates!

Parks Project

Parks Project

Parks Project initially  started as a t-shirt company and then expanded into other apparel categories. We pulled this Shopify example to show how t-shirt companies with a larger mission (i.e. to save national parks) can utilize their shop to bring awareness to their cause.

At the time of writing this article, Parks Project is using their homepage for a special announcement regarding the government shutdown and how it’s affecting national parks. The How to Help button takes you to a page that tells you more about Parks Project mission and how you can help.

Underneath this section is a “Favorites” category, where Parks Project showcases their most popular products. This is a great way to promote products across different categories, and a format to keep in mind if you’re planning on expanding your t-shirt shop one day.

Parks Project Favorites product organization

Rock City Outfitters

Rock City Outfitters

This Shopify t-shirt website example is all about displaying the most crucial information upfront. Check out the 15% off discount functionality Rock City Outfitters use. A coupon is a great way to capture shopper’s email addresses. It also gives you a way to follow up with them with promotions (without having to spend thousands on advertising!).

The search functionality in the top right is also a great way to provide a solid user experience. Let’s say a visitor is familiar with your shirt shop and wants to find a product immediately. Having a search bar helps them get to their destination quickly, without having to navigate through product pages.

Lastly, Rocky Mountain Outfitters is a great example of a t-shirt website that uses a bold and loud design without being overwhelming. Remember that a “clean” design doesn’t have to mean boring. It just means that your visitors can easily find what they’re looking for and that your information is clear.

Explore Similar Shopify Templates!

Jewelry

Shopify is also a popular choice for jewelry websites and online boutiques. Just like t-shirt shops, a jewelry website should focus on strong product images and descriptions, easy navigation, and a simple checkout process. You’ll also want to be sure you include information like shipping and return policies and jewelry care. Here are a few examples of Shopify jewelry websites for inspiration:

Shore Projects

Shore Projects

If you’re needing to feature customization on your site, this jewelry website example from Shore Projects is a great place to start for some inspiration. Shore Projects allows for custom watch faces and bands. It has functionality on the site that shows you how the different combinations look. We especially liked the different product shot angles, which change which every band / watch face combination.

Explore Similar Shopify Templates!

MVMT

MVMT watches

If you plan on using Instagram in your marketing strategy, this Shopify jewelry website features a neat integration that could come in handy: Shop Our Instagram. It features photos from MVMT’s Instagram profile and gives users the option to shop the look from the photos. When you click on a photo, it triggers a pop-up product page for the product featured in the photo with product specs, an add to cart button, and the option to see the original post on Instagram and/or Facebook.

Biko

Binko

Not all websites needs to be design masterpieces. Biko is a great example of a clean, organized Shopify jewelry website that is well designed without being overly complicated. In fact, the minimalist design keeps the shopper focused on the product photos, simple navigation, and ultimate goal: checkout!

Explore Similar Shopify Templates!

Dropshipping

Not only is Shopify a popular website builder option for ecommerce business, but it’s also particularly popular among dropshippers (a retailer who sells inventory they don’t own until they have the order). Shopify has an API that allows dropshippers to sync with their AliExpress account (or other 3rd party managers like Oberlo), which provide products for dropshippers. Here are a few Shopify dropshipping website examples for inspiration:

TrendyGoods

TrendyGoods

This website is a great example of a dropshipping Shopify site that doesn’t have a specific product category, but sells a variety of viral goods and niches down with platform popularity (Facebook). Notice how TrendyGoods organizes their product categories at the top of the page with icons and shows Facebook views underneath each product. It’s a unique way to organize products that are unrelated without making it messy.

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TurninGear

Turning Gear

On the opposite side of the spectrum is Turning Gear, a dropshipper who specializes in fishing equipment. Notice how their products are organized by product category: reels, lines, lures, etc. We also liked the bottom banner underneath the header image that shows shipping information, customer service info, and their location. This Shopify website also uses product pop-ups, which show the most recent products purchased to spur urgency.

Chakra Collective

Chakra Collective

Here’s another Shopify dropshipping website example, Chakra Collective. What stood out to us about this site was the uniformity of the theme. It actually looks like a traditional fashion line, rather than a dropshipping website. If you’re looking to create a consistent brand with your dropshipping business (like a niche fashion businesses), this website is a great place to start for inspiration.

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Next Steps

At the end of the day, choosing the best ecommerce website platform goes far beyond design. Why? Because all web pages are made of HTML & CSS with a few scripts thrown in. This means that any website template can exist on any good web platform.

What YOU want to focus on is the design elements and functionality that are available on the platform you’re choosing.

If you feel like Shopify fits the design and functionality needs you have for your ecommerce website, you can explore Shopify plans here.

Not sure if Shopify is a right fit? Read my Shopify review and explore other Shopify alternatives here.

The post 11+ Great Shopify Website Examples for Inspiration appeared first on ShivarWeb.

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11+ Weebly Website Examples for Inspiration

Weebly Website Examples (1)

So you’re considering using Weebly as your website builder, and you’re looking for Weebly website examples for inspiration and confirmation that you’re making the right choice.

Weebly is an all-in-one “hosted website platform.” A hosted website platform is where all the components needed for a website come in a single bundle with a single monthly price.

Weebly provides the software to manage your website content; they provide the designs and functionality. They provide add-ons & extensions for unique functionality. And most importantly, they also provide the hosting (aka the server where your website files live) & security all in one price.

Essentially, using Weebly is like renting an apartment. You can customize the inside, but you don’t have as much freedom as owning a condo or a home.

But before we dive into examples of what Weebly websites look like in the wild, there is one thing to keep in mind when you’re evaluating a website platform: it’s not just about how the websites look. The functionality matters too.

Think of it like buying a car. You have a make / model in mind, and you’re probably looking to see them drive by on the road to see how they actually look. However, you also care about how they operate. Does it accelerate well? Does it have the hauling capabilities you need? How is the gas mileage?

Looking at a website platform should be done in the same way. We collected the following Weebly examples not just to show you how they look, but how Weebly websites can function so you can be sure you have a website that fits both the style you want and the functionality you need.

General Website Examples

Let’s start with a general round up of solid Weebly website examples. We’ve pulled these examples based on functionality, design, and usability. Again, Weebly works incredibly well for DIY-ers who want an easy-to-use website that they can throw up on their own without having to worry about the inner-workings. However, be aware that with this comes trade-offs (i.e. you give up some control, functionality, customization, etc.)

Double Arrow Veterinarians

 

Double Arrow Vet

Double Arrow Veterinary Clinic’s website is a great example of  using a basic website template to get the job done. Visitors can immediately book an appointment, the navigation at the top is clear and concise, and the important information bar puts all of the must-know info front and center. If you’re looking for an easy website that allows you to provide crucial information, this template is a great example.

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Pueblo Dental Surgery

Pueblo Dental Surgery

Pueblo Dental Surgery’s website is a great example of a solid, straightforward website. The navigation is clear, the homepage includes an introduction with copy that describes what the center is all about, and the video is a great touch for visitors to dive deeper into learning about their services. If you’re looking for a basic website where you can plug in your services + information, this is a good example to use for inspiration.

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Wedding Website Example

Wedding websites are a great way to give guests information about the big day, show off your personality, and post updates / pictures / anything else you may want to share with those who are involved with your wedding. Given this website has a shorter lifespan than say, a business website, you’ll want something that’s easy to customize, edit, and manage. Here’s a great example of what you can do with a Weebly wedding website:

Forbes and Don

The Wedding of Forbes & Don

Forbes and Don’s wedding website is a great example of how a simple template can look polished and elegant without having to custom-build something complex. Their fonts, black and white photography, and fun copy (check out how they met!) gives the traditional template added personality. Remember, a wedding website has a relatively short lifespan. What you’re looking for is something you can easily customize and add content to without spending a ton of time (or money!).

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Photography Website Example

Photography websites are all about the portfolio of work. When looking for a Weebly website example to serve as inspiration for your photography, pay special attention to the layout options for your work. You want to be sure you’re showing off your photos in a creative way without sacrificing the user experience (AKA fast photo load speed, easy to navigate, high quality images, etc). Here are a few examples of photography websites we liked:

Alex Kormann Photography

Alex Kormann Photography

What makes this Weebly website a great example for photographers is the layout. The simple grid pattern centered on the page immediately draws visitors’ eyes to Alex’s work. If you want to explore a piece further, you can hover over the image to get the story, or click to see the larger photo and read the caption. Alex has given visitors an easy way to view his work in a way that’s sleek, visually coherent across the board, and is easy-to-use — all hallmarks of a great website.

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Tommy Trenchard

Tommy Trenchard

This Weebly website is another example of a great layout for photographers. The use of the carousel of images on the homepage (with the smaller versions underneath) gives the website a unique interactive feel without overloading the functionality or taking the visitors’ attention away from the work itself. If you’re looking for a way to include some interactivity on your site without sacrificing user experience, this is a great way to do it.

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Ecommerce Website Example

Ecommerce websites are all about their products. A good ecommerce website should have high-quality product images, be easy to navigate, and keep the focus on what you have to offer your shoppers! You’ll also want to include strong product descriptions and an easy check out process. Here are a few of our favorite Weebly ecommerce website examples:

The Box Bros

 

The Box Bros website

A great ecommerce website comes down to a few main things: high quality product photos, easy navigation, and easy check out. This website from The Box Bros checks all of those boxes. We particularly liked the product page, where the main focus is on the product images themselves. To get more info, users just have to hover over the image to see the name and price range.

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Star Cleaner

Star Cleaner

Start Cleaner’s website stands out for a two main reasons. First, the header section includes all of the crucial information you need — the product name, what it does, and a discount code you can use when you “buy now”. The navigation is also clear and concise, and the banner at the top that broadcasts free shipping adds a nice value proposition.

Second, the chat with us bar in the bottom right hand corner of the page adds a layer of customer service that’s perfect for ecommerce sites. It gives shoppers an easy way to ask questions or get in touch if there’s an issue.

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Artist Website Example

Need to showcase your art? An artist website is a great way to create a digital portfolio of your work. These websites should be easy to navigate, keep the focus on your artwork, and allow prospective clients / commissioners to contact you easily. Here’s an example of a great artist Weebly website:

Wendy Leach

Wendy Leach

Wendy’s website stood out to us for a few reasons. First, the use of her illustration in the header is a great example of how to implement creativity on your Weebly artist website without having to create something incredibly complex or custom-built. Sometimes, a touch of uniqueness goes a long way.

We also enjoyed the sketch book page of her site. It’s a fun to showcase pieces that perhaps don’t fit with her main work, and a great example of how navigation / website structure doesn’t always have to be your usual “about“, “portfolio“, “contact” pages (just remember not to sacrifice clarity for creativity).

Wendy Leach Sketch Book

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Music Website Example

Similar to artist websites, music websites are all about the music. Which means if you’re creating a music website, you’ll need a player so visitors can listen to your work on your site. You’ll also want to give people the opportunity to connect with you by listing social media channels, tour dates, and places they can buy your albums! Here’s a strong example of a music website created with Weebly:

Boyante

Boyante

Boyante’s website is a great example of keeping the focus solely on the music. Their navigation gives visitors clear directions on how to learn more about them, hear their songs, and buy their music. The social media icons in the top right corner are also a great touch.

Further down the page, the site includes a music player combined with a simple about section. The combination of the player and the text is a great way for visitors to listen to the songs while also reading about the band, and the Spotify Follow button is a great way to move fans to their Spotify channel, where they can stay connected to their music and new releases.

Boyante Music

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Business Website Example

A strong business website showcases your services, gives customers the opportunity to contact you, and builds social proof. Visitors should be able to know exactly who you are and what you do when they land on their site, and should be able to easily navigate to what they’re looking for from your homepage. Here are a few examples of strong Weebly business website examples:

E.S. Johnson Builders

ES Johnson Builders

E.S. Johnson Builders is a great example of a sleek and professional business website that checks all of the boxes: it’s easy to navigate, showcases work and services, and has contact information clearly displayed and easily accessible. We particularly liked the slider at the top of the homepage, which visitors multiple navigation options, like see available homes and view current projects (both essential for homebuyers who want a custom-build).

We also found that the Services section further down the homepage, where they feature a breakdown of their services with buttons to dive deeper into each, was a great way to add another layer of navigation to homepage without making it muddled or confusing.

ESJ Builders Services

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FocusStage

FocusStage

FocusStage is another great example of a sleek business website that hits all the marks for great user experience, clarity of communication on what the business is about and how they can help you, and ease to contact. One of the elements that stood out to us was the video header on the homepage, which adds dimension without complication. We also liked the breakdown of the FocusStage process — it’s a great way to show visitors what it’s like to work with this financial firm.

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Personal Website Examples

Personal websites are exactly what they sound like… personal! Whether it’s a resume / portfolio website you use to get booked or a blog you use to create content, this type of site is all about getting your personal brand online and owning your space on the Internet. Personal website should be easy to edit, manage, and customize. Here’s an example of a Weebly personal website to use for inspiration:

Dave Horak

Dave Horak

Oftentimes, people get so focused on design that they tend to forget that what really matters on a personal website is, well, you. Dave’s site is a great example of how you can build your personal brand and showcase your work without a ton of flair (in fact, great copy will do the trick). If you’re looking for a simple layout that gives you the opportunity to tell everyone what you’re all about, this one will do the trick.

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Next Steps

At the end of the day, choosing your website platform goes far beyond design. Why? Because all web pages are made of HTML & CSS with a few scripts thrown in. This means that any website template can exist on any good web platform.

What YOU want to focus on is the design elements and functionality that are available on the platform you’re choosing.

If you feel like Weebly fits the design and functionality needs you have for your website, you can explore more Weebly templates here.

Not sure if Weebly is a right fit? Explore other Weebly alternatives here.

TK nate links needed above!

The post 11+ Weebly Website Examples for Inspiration appeared first on ShivarWeb.

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How To Use Your Kabbage Line Of Credit

As a business owner, you always have to be prepared for the unexpected. An emergency arises, a bill needs to be paid, you’re running out of inventory … you get the picture.

Have you ever found yourself in a situation where you know you don’t have enough funds to comfortably cover the expense? Have you struggled to deal with that knot in your stomach and a constant feeling of dread wondering how you’ll get the capital you need? You’re not alone.

Or maybe you’re facing an entirely different challenge: business expansion. You’re ready to grow your business, but unfortunately, all of your funds are tied up in operational costs and other expenses. How can you expand your business and boost your revenue if you don’t have the capital you need?

Fortunately, there’s a solution when you need cash quickly: a small business line of credit. With a line of credit from an online lender like Kabbage, you don’t have to worry about waiting for days (or even weeks) to get an approval from a lender.

Kabbage specializes in small business lines of credit up to $250,000. You can use your line of credit for any business expense, from buying supplies and inventory to paying a utility bill or covering payroll expenses. Kabbage’s flexible lines of credit can be used for emergency expenses or to expand your business.

If you have credit challenges, it’s no problem — Kabbage looks at the performance of your business when issuing approvals. Once you’re approved, you can immediately make draws from your line of credit, getting the money you need as soon as the next business day.

In this article, we’ll do a deep-dive into Kabbage lines of credit. From the application process to withdrawing funds, we’ll cover it at all to help you determine if your business should explore this financial path.

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Apply For A Kabbage Line Of Credit

Requirement Minimum requirement
Time In Business: 12 months
Personal Credit Score: N/A
Revenue: $50,000 per year (or at least $4,200 for the last 3 months)

The first thing to do when applying for a Kabbage line of credit is determining whether you qualify. Most business owners will find that qualifying for Kabbage’s line of credit is much easier than qualifying for other financial products. To be eligible, you must meet two minimum requirements:

  • Be in business for at least 12 months
  • Have at least $50,000 in annual revenue or at least $4,200 per month over the last 3 months

Because Kabbage issues lines of credit based on the performance of a business, there are no minimum personal credit scores required to qualify. However, Kabbage does perform a hard pull on personal credit during the application process.

Step 1: Business Information

Once you’ve determined that you qualify, you can start the online application, which takes just minutes to complete. To get started, the application requests information about your business including:

  • Business Name
  • Business Address
  • Business Phone Number

You will also enter your email address and set a password in this first step. This will be your login information for accessing your account on Kabbage’s website or mobile app.

Next, you will provide more information about your business. This information includes:

  • Industry Type
  • Company Structure
  • Date Established
  • Tax ID Number
  • Annual Revenue

You will be asked if you own at least 75% of equity interest and have significant responsibility in managing the business.

Step 2: Connect Accounts

Next, you will connect to your bank account or business services so that Kabbage can review your transactions to see if you’re eligible for a line of credit. In this step, you add the bank or service with the most revenue transactions. You can add additional accounts and services later.

Kabbage can connect directly with multiple banks including Chase, Wells Fargo, Bank of America, BB&T, Capital One, and SunTrust, just to name a few. You can also connect business services including but not limited to PayPal, Stripe, Sage, Square, eBay, Amazon, and QuickBooks.

Step 3: Personal Information

Once you’ve connected your account, it’s time to provide personal information to Kabbage. This information includes:

  • Name
  • Address
  • Date Of Birth
  • Social Security Number
  • Phone Number

Once you input this information and hit “Submit,” Kabbage will perform a hard pull on your credit. Remember, though, Kabbage focuses on the performance of your business — not your credit score.

Once Kabbage’s system analyzes your credit history and your account transactions, an approval decision will be made. Within minutes, you’ll be able to see if you’ve been approved for a line of credit. Once approved, you’ll have access to the Kabbage Dashboard, which features your full credit limit and options for withdrawing funds. You can withdraw the full amount, or you can select the amount and terms that work for you.

One last thing to note is that Kabbage can automatically approve you for up to $150,000. Higher credit limits up to $250,000 require a manual review.

Review Your Rate & Borrowing Terms

Requirement Minimum requirement
Borrowing Amount: Up to $250,000
Draw Term Length: 6 or 12 months
Borrowing Fee: 1.5% – 10% of the borrowing amount per month
Draw Fee: None
Effective APR: 24% – 99%
Learn more

After you’ve been approved for a Kabbage line of credit, you can use the Dashboard to initiate draws, view information about previous loans, see account details, and view or add linked accounts. Account details show the percentage of funds utilized, your next statement date, your next due date, and the minimum amount due.

To review your rates and terms, select an amount to borrow as if you were initiating a draw. If you’re borrowing $10,000 or more, you can select from 12-month or 6-month terms. Loans less than $10,000 can only be taken with 6-month terms.

Once you’ve selected the amount and terms, Kabbage will provide a breakdown of your payment schedule. This schedule shows the date of each payment, the principal amount that will be paid, the rate charged for that payment, the fee amount, and the total amount due for each month. Below your monthly schedule you’ll find the new loan amount, the total amount of fees you will pay, and the total cost of the loan including principal plus fees.

Kabbage also has a loan calculator on its website if you haven’t yet applied. While you won’t know the specific fees, credit limit, and other details until you apply, this can give you an idea of whether or not this financial product is an option that will work for your business.

Kabbage provides you with a summary of your fees when you initiate a draw, but how is this calculated? The lender charges a monthly fee each month that you have a balance. Fees range from 1.5% to 10% and are based on the performance of your business. This monthly fee is added onto your principal balance, which is divided evenly across 6 or 12 months depending on the terms you selected.

As you pay down your balance, your fees will be reduced. For example, you may pay 3% for the first 6 months of your loan, then pay just 1.25% for the last 6 months. There are no prepayment penalties, so you can pay off early and save.
Kabbage is very transparent about its fees and your total cost of borrowing. On each loan agreement you make with Kabbage, you will find a SMART Box. The SMART Box provides important information including:

  • Disbursement Amount
  • Repayment Amount
  • Term
  • Total Cost Of Capital
  • Annual Percentage Rate (APR)
  • Average Monthly Payment

This gives you an overview of all of the details of your loan, so there’s never any question as to how much you are paying to draw from your Kabbage line of credit.

Optional: Request A Kabbage Card

One of the things that makes Kabbage stand out from other lenders is its Kabbage Card. When you make traditional draws using the Kabbage website or app, funds are transferred immediately to your bank account, but this process may take 1 to 3 business days. What happens if you need instant access to cash?

With most lines of credit, you’re stuck waiting it out until the funds hit your business bank account. But with the Kabbage Card, you can immediately access your line of credit anywhere Visa cards are accepted.

The Kabbage Card allows you to simply swipe to make your purchases. Once you’ve made a purchase with your card, a new 6-month loan will be created. This loan will have the same rates and terms as traditional draws from your line of credit. Kabbage does not charge additional fees to use the Kabbage Card, and your credit will not be affected.

All Kabbage account holders are eligible to receive the Kabbage Card and can receive it by simply logging into their account and requesting the card. Once received, the card is activated through the Kabbage Dashboard and can be put into use immediately to purchase inventory, supplies, pay a bill, or cover emergency expenses. You must apply for a Kabbage line of credit in order to be eligible to receive the Kabbage Card.

Withdraw Funds & Repay Your Loan

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Once you’ve opened your Kabbage line of credit, you’re eligible to take draws immediately. Through the Kabbage Dashboard, you can make a draw on your line of credit in just a few easy steps.

Select the amount you’d like to withdraw up to and including your total credit limit. If you select an amount of $10,000 or more, you’ll be able to choose between 6-month and 12-month terms. If the amount falls under $10,000, only 6-month terms are available.

Once you’ve selected your loan amount and terms, you’ll be able to view your repayment schedule. If you approve of the repayment schedule, you can continue to review the loan. The next step will include reviewing the details of your loan and the linked bank account information. If everything looks good, e-sign the agreement and submit. You should then expect to see the funds in your checking account within 1 to 3 business days.

Kabbage makes it easy to repay your loan by using your linked checking account for ACH withdrawals on your due date. You’ll receive a statement each month approximately two weeks before your due date. On your Kabbage dashboard, you’ll be able to view the date of your next statement, your next due date, and the minimum amount due. This amount will be automatically withdrawn from your business checking account on your due date.

You also have the option to make a manual payment to your account through the Dashboard. You can select the minimum monthly payment, the entire amount, or another amount. This is an option you can use if you would like to pay down your balance or pay your loan off early.

If you have more than one loan, you will still just have one monthly payment. You can learn more about each loan through the “Details by loan” tab in your Kabbage Dashboard. This provides you with an overview of each loan you’ve taken, including the date it was drawn, the original loan amount, and remaining balances.

Final Thoughts

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Kabbage lines of credit are ideal for business owners who want quick access to cash without a lengthy, difficult application process. However, it is important to note that these lines of credit do come at a cost. Monthly fees added onto your principal balance are steep when compared to low-interest, long-term financing options. However, if you need business capital quickly and without hassles, the return-on-investment may be worth the additional costs. Check out our full Kabbage review to learn more about this lender and its lines of credit.

The post How To Use Your Kabbage Line Of Credit appeared first on Merchant Maverick.

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