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Want to Reach More Buyers? A Multi-Media Advertising Approach is the Key
Time to use Verified by Visa and MasterCard SecureCode?
Electronic Representment of NSF Transactions
A Serious Look at Electronic Checks as a Payment Option
How long do you want to live?
Selecting a Payment Processor
The Chargeback Process
Continuity Programs – The Ultimate Upsell?
Could DVR be a friend to DRTV marketers?
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A Serious Look at Electronic Checks as a Payment Option

jjensen | 29 March, 2006 16:37

In 1998 it became legal to accept ACH transactions over the phone without an actual check or signature from the customer. This opened the door for the convenience of electronic checks (e-checks) via phone or internet sales. An estimated 40% of all consumers do not have access to a credit card. Therefore, offering e-checks as an additional payment option is an attractive alternative and facilitates faster phone and internet sales.

Advantages of e-checks:

• customer convenience is improved because customers who do not have access to credit cards need another method of payment, e-checks are that method.
• e-checks also make life easier for a customer, instead of having to mail in a check to pay for a product or service, it can easily be paid for over the phone or internet.
• processing speed is increased because electronic checks can be cleared in a matter of days instead of the standard two to three weeks it takes to make sure a paper check has not bounced.
• e-checks have priority over paper checks in the ACH system
• e-checks can be electronically re-deposited for recollection of NSF's up to two more times, instead of only once for a paper check.
• back office time is reduced because tallying deposit slips, copying checks, and going to the bank are all eliminated.
• refunds can also be done electronically. This saves the vendor time and money as no more paper checks need to be drafted and mailed to clients.
• reporting is easy because it is all electronic and available daily on-line.
• transactions are processed in batch mode if desired, for speed and convenience.

• e-checks are typically associated with a lower when compared to credit card costs.

Disadvantages of e-checks:

• some customers may still be unfamiliar with the e-check process (giving their routing number and account number) so you may need to ensure that your call center agents or website is familiar with the process so it works smoothly.

• e-checks can not be authorized or preauthorized as credit cards are. Because of this, merchants must be willing to wait until the e-check clears prior to shipping merchandise unless they want to ship before clearance, which may take between 3 to 10 days.

How long do you want to live?

dpotter | 21 March, 2006 15:15

That’s the question every DRTV marketer must ask before they decide to launch a product. This goes beyond the costs of getting ready to launch a product on television; and, with success, sustaining the spending as long as the MER (media efficiency ratio) remains favorable. It literally means, “How long a life cycle are you willing to create for the product?”

Yes, you are the one who will determine how long this baby of yours will survive in today’s competitive marketplace. If you want to be a DR product only, life will probably be relatively short. In many instances, knock-offs will take advantage of the category awareness generated through your advertising and get to the store shelves in short order. This can cause response for your product to wane, so you end up dumping it on the retail market at a reduced price until the inventory dies away.

Those who take the fast track to retail get the benefit of distribution based on early success. However, being available on store shelves before creating sufficient product interest and brand demand can result in slower than anticipated sales and the ultimate loss of distribution. This, too, shortens the life expectancy of your product.

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Selecting a Payment Processor

jjensen | 13 March, 2006 12:02

Choosing a payment processor can be a difficult choice as there are numerous factors to consider, such as, pricing, customer service, knowledge of your industry, and integration.

1. Research: Research your choices before deciding on a processor. Rates, services, and features of processors can greatly vary.
2. References: Always check references or get a referral of any company you contract to process your payments, as you will be required to give the company access to your checking account. Therefore, it’s important to be sure you find a company you can trust!
3. Reports: Review the reports that will be provided to you. Usually this is something that is not thought about at the start of a merchant relationship because the focus is on rates and terms. The reality is you have to live with these reports every day. Although your fulfillment house can manage much of this on your behalf, you will still need to be able to balance your bank accounts and understand the status of any transactions or chargebacks. Reports also help you to understand why you are losing sales, such as, why are you getting so many declines. Surveying your report codes and analyzing them are a great source of data.
4. Customer Service: Find out about the customer service department. No one ever plans on having problems with their account. The fact is, however, that every account will encounter some issue that requires assistance at one point or another. Whether it’s resolving a chargeback or dispute, increasing your limits, or helping you reduce chargebacks. A good payment processor will be able to assist you in all of these areas without billing you for every minute they are working on one of these issues.
5. Know Your Limits: Research the processing cap limits of your account. If you are in Direct Response, be sure to find a company that is familiar with this industry. Many processors who are unfamiliar with DR will freeze your funds once you start processing beyond the limits of the account because it moves into a possible higher risk category. This can potentially put a company at risk if a freeze like this is unanticipated.
6. Are Big Banks Better: Don't assume a big bank name is any better, more ethical, has lower costs, or is more efficient. Most big banks outsource all of these services and leave the merchant paying high fees. In addition, getting changes or data can be tough if they are not customer service orientated.
7. Cancellation Penalties: Be careful of signing a contract too hastily or for a full year. Read the application carefully because many contracts carry a cancellation clause or penalty. There is nothing worse than being stuck with a company that’s not responsive to your needs because they know you won’t take a financial hit to cancel their contract.

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