We all hear the stories about how E-Commerce is the wave of thefuture, and what we must do to compete. Yes, the smallest “Momand Pop” business can compete against the “Big Guys” and make arespectable buck or two. As I’m sure you have, I get emaileveryday about how important it is to be able to accept creditcards on line.

And guess what - this is true. Not only should you be able toaccept credit cards, but also online checks. When a persondecides to buy, you have a very narrow window of time for them tocomplete the order. If you can allow them to make their purchaseand pay for it online, you have a great chance of getting theorder. However, if they have to write a check and mail it toyou, there is a “cooling off period” and you may not get theorder.

So we all agree that accepting credit cards is a good tactic foran online business. To do this, you must have a merchantaccount, and here is where some people get into trouble.

You receive an unsolicited email (spam) that says they will actas your agent, and will accept credit cards and checks on yourbehalf. They then go on to say they will deposit the money inyour account within two working days. If you join within thenext 48 hours, they will waive the usual $695 set up fee and giveit to you for only $39.95 - there will be no monthly fees andthey’ll only charge you 1.75% of the sale - wow what a deal.

I had a call this week from someone who did just that. Now hereis what happened. He didn’t read the “fine print” and when hesigned the agreement, he actually authorized them to charge hisbank account for $295 security which was non-refundable if hisaccount was cancelled, plus the $39.95 set up fee.

Now the plot thickens. He submitted about $1,500 in charges andthe money never showed up in his bank. In coversation with hisbank representative, he then found out about the $295 charge tohis account. He called his supposed contact at the credit cardcompany, found out that they were an independant sales agent, andthe $39.95 was not a set up fee, but a referral fee. When askedabout the $295 charge, his contact pleaded ignorance, told him hewould have to call the Company direct, and was given theirnumber.

He called the Company, asked about the $295 fee, and was toldthere was no one there at that time to answer his questions, butthey would call back. He then asked about the status of thecharges he hadn’t received, and was told he would have to faxadditional information and proof of delivery of his product. Hedid this.

After a few days passed, he checked with his Bank, and the moneystill hadn’t arrived. He again called the Credit Card Company,was told that the information requested was never received, andthey were canceling his account, which they did. He then calledhis customers and sure enough, their accounts were charged forthe amount of the merchandise he delivered.

Now - the plot sickens. He is out the $334.95 for the referralfee and the set up fee no matter what happens. In reading the“fine print” the company can hold his money for 180 days. Willhe get his money then? Maybe - if the company is still inbusiness . In the meantime, his money is most likely in aninterest bearing account, and the company will walk away with theinterest plus his $295. At the end of the waiting period, ifthey pay him the charges they are withholding, the company hasacted properly as far as the law is concerned.

Sounds like small potatoes until you multiply this by severalthousand people. Now, the AG will probably not get involved ifthey return the money 6 months from now - they did nothingillegal, and they cancelled his account for cause.

Will they get a bad rep - sure - and people will stop doingbusiness with them. But as this article is being written, thisparticular sales agent is now operating under a different name,and spamming new suckers.

Now pay attention - First, ignore the email spams you get frompeople promising to process credit cards on your behalf. Theyare simply independant sales agents, and cannot bind the actualcompany to anything, no matter what they promise.

Second, do a little homework - how long has the company beenaround? Can you get contact information from some of theirclients who are using their service? Are these real people orsimply shills working for the company?

Third, and most important, read the fine print - better yet, haveyour lawyer review the contract.

Bob publishes the free weekly “Your Business” NewsletterVisit his Web Site at http://adv-marketing.com/business tosubscribe and place a Free Ad for your business