INTERNET MERCHANT ACCOUNT SERVICES OVERVIEW The ability of most Internet businesses (service providers, Web-based "storefronts", etc.) to accept Visa & MasterCard credit cards as payment is essential, especially since more and more customers are preferring to pay by credit card due to the convenience and protection a credit card purchase offers. While most banks do not offer this service directly to businesses that obtain the majority of their sales by mail or phone, usually due to the higher risk, it does not hurt to ask. Most banks will also require that you have a storefront. If you can't get a credit card merchant account from your bank, there are alternatives...companies that specialize in setting up credit card merchant accounts for 'non-traditional' businesses. These types of companies are called Independent Sales Organizations (ISO's). They usually are associated with a bank looking to provide merchant card services, and act as a middleman - assuming the risk and insuring the account. Since the ISO's are taking a greater risk than your local bank is willing to take, it is not unusual or unreasonable for them to require start-up costs ranging up to $500. Always ask if your business is qualified before you apply. Also be wary of unbelievably low discount rates, perhaps under 2%, a "hook" which usually has other exorbatant costs attached - or only applies to businesses that have a storefront. To process credit card transactions, you will need to acquire processing equipment - either a 'swipe' terminal or computer software program. Beware of ISO's who require expensive binding equipment leases. If you are accepted and given a merchant account you may get stuck with an overpriced, personally guaranteed, equipment lease on equipment that may be totally useless to you if your account is ever closed. Some ISO's will build the start-up cost into the lease, meaning less or no cost up-front...but costing you much more overall. Most of the credit card processing software or terminals can be purchased for no more than $300 to $400...a huge savings compared to leasing. If you have a computer, try to obtain software to process your credit card transactions. For Internet businesses it is usually cheaper, quicker, more convenient, and more reliable. First Alliance Internet (FAI) is an ISO that offers merchant account services to 'non-traditional' businesses. FAI is a division of Financial Alliance Processing Services, Inc., a subsidiary of Deluxe Corporation and currently supports over 50,000 merchants across the nation. All applications are pre-qualified. We have software programs to process charges that operate in DOS and MAC environments. Qualifications: Company owner(s)/officers must be at least 18, have good personal credit, and the company must be based in the United States. Costs: The following cost structure applies, generally, to businesses whose majority of transactions are 'keyed' (entered manually). Card 'swiped' transactions would pay a lower rate, as may certain other business types: Start-up cost: $195 (application fee, processing & shipping) Processing Software: $295 (DOS single user) $395 (MacIntosh) Visa/MC Discount Rate: 2.70% plus 25 cents/transaction Monthly Statement Fee: $9.50 There are no monthly minimums and no lease to sign. American Express also available, at no extra cost, with a discount rate of 3.50% + 25 cents/transaction for most types of business. For further information, and to apply, please call Dave Dauer at the FA district office...(800)480-6694. Dave Dauer / District Sales Manager Bob Gerver / District Operations Manager First Alliance, a division of Financial Alliance Processing Services, Inc. A registered agent of Old Kent Bank & Trust, Grand Rapids, MI