If you’re in the world of online marketing, then you know how important it can be to have a reliable source of revenue coming in regularly. There are lots of ways to make money online, but few of them are as reliable and as steady as selling your own products through stores, affiliates, and drop shippers, and the thing is, you don’t even have to get your own product to do it. All you need is a website and a merchant account, and you can start selling your own products today.
What is a merchant account?
A merchant account is a bank account that online businesses, blogs, and other similar entities can open to purchase online items, such as gift cards and electronic products. You can think of a merchant account as a swipe-and-go account that allows you to make retail purchases online. If you have a business that sells its own products, then a merchant account could be the perfect way to make sure you have a steady stream of income coming in every month.
Is It Really That Simple?
Yes, it is. All you need is a business and a bank account. You don’t need a credit card, because all purchases are processed electronically. You don’t need to set up automated payments, because all you have to do is go into your bank account and pull out the money. It’s that simple.
Is It Worth It?
Yes, it is. There are a few different types of merchant accounts that you can set up, and each one has its perks. Some require a minimum balance to open, while others don’t. You should try to find a merchant account that has the following perks:
- No minimum balance to open
- No monthly fees
- No per transaction fees
- Free transaction limits
- Unlimited online stores
- And the list goes on
How Do I Get One?
The best way to find out if a bank will allow you to open a merchant account is to call them directly. You can also check with the Better Business Bureau to see if they have any feedback regarding the bank you’re considering using. Once you’ve found out whether or not a bank will work with you, then you can start the process of setting up an account. You’ll need to provide the bank with the following documents:
- Personal ID (like a driver’s license or an ID card)
- Business license (if you’re registered as a business)
- Proof of address (like a utility bill or a tax document)
- Bank statement (most banks require a bank statement to verify your income)
What Is The Process?
It depends on the type of merchant account you’ve chosen, but the process is usually the same. You’ll need to fill out a form online to apply for the account. The form will ask you for your ID, business license, and proof of address. You’ll also need to set up a username and password and choose a secure password (at least eight characters, with at least one number and one uppercase letter).
After you’ve filled out the form, you’ll need to make a deposit into the account. The best way to do this is by sending a check or money order to the following address:
The bank that you submit the application with will mail you a confirmation letter once the deposit is processed. From there, you can get the ball rolling.
Once I’ve Got A Merchant Account, What Am I Supposed To Do?
This is the million-dollar question. When you have a merchant account, you’re supposed to do one of the following:
- Set up automated payments to the bank account. You can use tools like PayPal or ACH to automate your financial transactions. Automating online payments makes keeping track of your finances much easier, because all the financial transactions are recorded automatically.
- Sell your own products. You can use Shopify, for example, to get started building your own online store. When visitors make purchases from your store, you’ll receive a commission.
- Use a drop shipper to distribute and ship your products. If you’re looking to start an e-commerce business, then you might want to consider using a drop shipper to get your products to market.
- Use your blog to build a following. Once you’ve gained a certain amount of trust and credibility with your audience, you can use your blog to distribute and ship your products. You can use affiliate marketing to gain credibility with your audience, and once you’ve done that, you’ll be able to get them to click and make a purchase from your website.
What About Security?
Anyone in the world of online marketing, or anyone buying and selling its own products, knows that security is of the utmost importance. It’s sad to see so many companies get hit hard by hackers, but it’s also disheartening to see lots of people believe that getting a VIP membership to a luxury retailer’s website is going to protect their information. This might seem like a no-brainer, but it’s not. Hackers can get into just about anyone’s computer system, regardless of who their bank knows them to be associated with. If your computer system is not password protected, then any hacker with enough motivation can get into it. This means that your customer information is at risk, and this isn’t something you need to share with anyone. Keep all your customer information secure, and don’t give out your customer’s personal information to anyone, unless you’re required to under federal law.
There are lots of different situations where a bank might require you to disclose your customer’s personal information. For example, if a bank requires you to disclose the identity of a person or business that has deposited cash into your account, then it’s obligated to share that information with law enforcement. Also, if you receive a fraudulent phone call and the caller identifies themselves as someone from your bank, then the bank has to reveal your customer’s identity. In these situations, it’s vital that you protect the security of your customer’s information and don’t share it with anyone.
How Do I Keep Track Of Cash?
The best way to keep track of your cash is by using a tool like Xero. Not only does it help you keep track of your finances, but it also provides you with helpful financial reports at the end. You don’t need to be a financial expert to use Xero, and it’s a simple tool that lots of people can use effectively. Keeping track of your finances is a lot easier when you use a tool like Xero, and it makes it much easier to keep track of your money. All you need is a business and a personal bank account to get started.
What About Commissions And Fees?
Most banks that work with online businesses have some sort of commission structure in place that works basically like this: