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Dateline: 04/19/98 E-Commerce: Setting Up to Sell Services On ``Anyone who has never made a mistake has never Not one to shy away from new technology, I recently decided to learn exactly what is involved in selling products and services on a web site. I wanted to offer business plan reviews, web site evaluations and proposal critiques for a fixed price. (Check back--I expect to make it public any day now!) Knowing that, all I needed was to get signed up to accept credit cards for purchases, to obtain a secure server, and to create an electronic order form. The experience was like opening a Russian matryosha doll--you open the outer layer just to find another one inside. If you are considering selling services on-line, this article should help you plan ahead and save some time. What You Will Need
A domain name for your web site can be registered with InterNIC (http://rs.internic.net/rsinternic.html). You already have one if your web is something like ``www.ourfirminitials.com". Your ISP can do this for you, if not. If your account is set up as a personal web site, your provider may charge you a higher monthly rate for using a registered domain name or for setting up secure server access. The secure server is typically run by a provider other than your own; however, your provider will set up the secure account for you and link your order pages to the secure server. You may be required to purchase a ``class 3" digital ID from a company like Verisign (http://www.verisign.com) for transaction encryption. To obtain the digital ID, you must typically furnish the company with a DUNS number, copy of your certificate of incorporation, or your d/b/a certificate for a proprietorship. You may have to pay your ISP higher monthly rates for running a commercial web site. Getting a Merchant Account A merchant account is required by the credit card companies before they can process your transactions. You should start with your own bank (or another ``acquirer" bank--lists are available from the Mastercard or VISA web sites) and tell them you want to set up a merchant account so you can take credit cards over the Internet. Web site accounts are handled as a mail/telephone order account. Your bank will want recent financial statements or, if you are a proprietorship, two years of tax returns. They will need the ``routing" number found on your checks. They will also want to know which company is providing your secure server, and information about your digital ID certificate. The process of getting approval for a merchant account takes about two weeks. The bank will be able to set up accounts with Mastercard, VISA and American Express. Depending on how your transactions are set up, you may be required to purchase a software program such as IC Verify or Cybercash for communicating the sales information to your bank. Transaction Process Once your site is ``open for business," purchasers will enter their information in a form you provide on your web site. The form will be ``sent" to you for fulfillment, and then to the bank. A 3.75% to 4.25% transaction fee, paid to the credit card company, will be deducted automatically from all purchases before the credit card company makes electronic deposits to your designated bank account. Total Cost for One Year As a small merchant, you can estimate that it will cost you roughly $2,500 the first year to set up your web site to accept credit cards. (These numbers are approximate and may vary for your own service providers and type of account you maintain with your ISP.) Domain name registration (first year) $ 70 Total About $2,300-3,000 Next week's feature: Tips for Building Online Communities--Internally and Externally Look here for additional information Internet Credit Card Processing 101 20 Questions About E-Commerce Outsource the Commerce in Electronic Commerce What Sells on the Web NET.WORKING: The eight-fold path to e-commerce The Electronic Commerce Guide Copyright 1998 by Kaye Vivian (kvivian@cloud9.net). All rights reserved. Permission to reprint is granted provided this article is not altered and the copyright notice remains attached |
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