Class 9 Notes for E-commerce

Learning Objectives:

You will be able to identify considerations when selecting a Merchant Service.

You will be able to describe the Merchant Service process.

You will be able to find a Merchant Service.

Homework: Merchant Service

Read: Book III Chapter 4

What is a Merchant Service and why use one?

Review: An explaination of how Merchant Services work and a video explaining how the merchant service works.

Review: has a great article on setting up a Merchant Service

Review:6 Questions you should know about accepting Credit Cards



Items you should consider when evaluating a Merchant Service:

    1. How much does the service charge per month?

    2. How much does the service charge per year?

    3. How much does it cost to set up?Credit Card

    4. How much does it cost per transaction?

    5. How Long will it take to get your money?

    6. Do you have to pay more for faster transfer of your money?

    7. Do you need a business account with the Merchant Bank?

    8. What protection do they offer against fraud?

    9. What is your liability with fraud?

    10. Do you have to pay for different levels of fraud protection?

    11. Does the Merchant service work with your shopping cart?

Sample Merchant Service Review or top 10 Merchant Services

Merchant Service Review:

You should review 3 Merchant Services (see the services identified bellow) and recommend one and make sure you tell me why!

A good format is to put the info in a table similar to Host Review and use the questions above.

Setup an accounts at (for next week)

  1. Adobe (Free)

  2. PhoneGap (Free) Reminder: Post your articles on Canvas under the Weekly Articles on the Discussion Board Section.

Topics Covered:

60 minutes segment on Data Brokers!

Great 60 Minutes Interview with the Founder of Twitter and Square, Jack Dorsey

Determine which Credit Cards you will accept:

Visa, Master Card, Discover, and American Express

Cost for accepting Credit Cards can be the difference between profiting from a sale or losing money.


Popular Merchants services:

  1. Costco through Elavon

  2. PayPal

  3. North American

  4. Square

  5. Authorize.Net

  6. InTuit

  7. Amazon (Very Expensive!!!)

  8. Your Local Bank (Wells Fargo, Bank of America, MidFirst ... ) or Merchant Warehouses


Shopping Carts:

Shopping carts are database enteries with the customers order and customer data.

Popular Shopping Carts:

Mal's E-commerce (I will show you how to use this one)





Merchant service, Liability, Fraud, Shopping Cart


Final Step:

Review in your mind everything we covered in class and remember to cover it again before you go to bed so your mind to process this information while you sleep.