RE: The Truth About Internet eCommerce

Hello Gede,

Automated, Internet credit card processing systems are targets for international criminals who will use your site to find out which stolen credit cards are valid. It is a very big problem. You can lose your merchant account when your bank closes your account and asks what you are doing to prevent the illegal activity from happening again.

Few, if any, shopcart or "third party processors" actually have reliable security to prevent such criminal activity. Some claim to have secure, real-time, automated processing, but the fact is that it is too risky, and many are processing orders manually, looking at every order for any sign of inconsistent credit card or order data.

When you receive a credit card order, you don't know if the valid credit card was stolen until up to 30 days later when the real cardholder gets their statement and complains to their bank about fraudulent charges, and then your account will be immediately charged-back, and your product will be gone along with your money.

Without the customer's signature on a credit card order, you have no recourse if the customer tries to deny the purchase.

This may be one of the main reasons why Amazon.com and others are losing so much money. Visa says fullly half of all their Internet transactions are fraudulent or disputed.

Customers are using the Internet to find what they want, but very few will enter their credit card order into a web form without talking to someone. A website is not a vending machine.

Not very encouraging, is it?

However, I sell about US$75,000 per month of business videos at BrainwareMedia.com and I'm now doing it with signed, fax orders and telephone orders. It isn't what we had hoped for, but that is what is happening. Sales are growing fast. And so is the phone bill.

I took down my "automated, secure, real-time" shopcart and orders increased. Most of my business is US based. I did not want a "third-party processer" to have my list of customers and my sales volume data. I now prefer to deal directly with my merchant account the old-fashioned way, at least for the time being.

I am no longer in the Internet credit card merchant services business. Below is a list of some of your options for processing.

I do not know what the solution is for non-US eCommerce merchants. I thought we had discovered one, but I am not sure anymore. It may be worth the expense for non-US companies to set up a US presence to qualify for a merchant account if double taxation in two countries can be avoided.

Good luck selling online. It is the toughest thing there is, and perhaps the most profitable.

Phil Doyle
BrainwareMedia.com

Internet Credit Card Merchant Services:
(as of 5/18/1999)

~ eCommerce Credit Card Merchant Services That MAY NOT Require Your Own Merchant Account:

www.CCnow.com (physical products only)
www.iBill.com (intangible products only)
www.epochsystems.com (vague information on website)
www.multicards.com (all merchandise and services)
www.vanserv.com (expensive setup and monthly service)
www.netmoneyin.com (no comment)
www.samay.com (specializing in the travel industry)

~ eCommerce Credit Card Merchant Services That MAY Require Your Own Internet Merchant Account:

www.meramakbankcard.com
www.ChargeSolutions.com
www.anacom.com
www.clickbank.com
www.buyitonline.com
www.gta-tech.com
www.sypro.com
www.regsoft.com
www.pslweb.com
www.internetsecure.com
www.setsystems.com
www.tiesoft.net/tiesecure
www.skipjackic.com
www.otginc.com
www.webcash.com
www.netmoneyin.com
www.natlcard.com
www.charge.com
www.paymentmall.com
www.cybercash.com


~ HIGH RISK

And Watch Out. Credit-card fraud is a major problem for online merchants. An official at Visa International Inc. recently said half of Visa's transactions from online sales are either disputed or are full-fledged frauds. Donn Parker, a retired security analyst and author of the book Fighting Computer Crime, noted that e-commerce fraudsters often rely on automated programs to generate card numbers to bill with false charges.

Many experienced, successful eCommerce sites have stopped accepting automated, online credit card orders, relying instead on telephone orders or signed, secure fax, credit card orders. This may be a solution for business-to-business, US websites.

It is possible that credit cards issued after January 2000 will carry a Personal Identification Number (PIN) as additional identification. If the cardholder does not report a lost or stolen card, the cardholder will be liable for any fraudulant charges. This may help merchants avoid fraud and disputes.

Many eCommerce entrepreneurs choose to join successful, Internet affiliate programs rather than try to solve the expensive challenges of setting up their own, international eCommerce business. The inevitable costs and liabilities of credit card fraud and other Internet marketing and automation costs are high.

~ COSTS

In 1998, the top 100 ecommerce sites invested an average of USD8.6 million on building their online brand and driving traffic to their site, according to the Intermarket Group.

The study found that the smaller companies, those with under 100 employees, spent an average of USD2.2 million on marketing while the larger companies spent an average of USD21.4 million on marketing their sites.

~ TEAMWORK

Whether you are already successful in eCommerce or are experiencing the myriad difficulties of selling your own products online, consider also joining a proven, exciting, successful team with a business-to-business, Internet eCommerce opportunity, such as BrainwareMedia.com.

For instance, BrainwareMedia.com is the largest Internet distributor of affordable, business training videos, audios and CDs. The company grew quickly and quietly in its first year using effective, Internet marketing techniques, including a very successful, Internet Franchise Affiliate Opportunity.

BrainwareMedia.com sells hundreds of new and best-selling, business videos, audios and CDs from the 19 top US producers. The hottest topics are Customer Service, Computer Skills, Communication, and Sexual Harassment. Your competitors may be sharpening their skills and knowledge in these areas. Is your company keeping up?

According to a survey sponsored by the Gallup School of Management and Training Magazine, workers value company-sponsored training. It also increases their loyalty to the employer. Workers say that job training improves how they view their employer and reduces the inclination to jump to jobs elsewhere.

Sexual harassment complaints in the workplace are on the rise, according to a survey by the Society of Human Resource Management (SHRM). This is alarming because the survey showed that a vast majority (97%) of companies had in place written policies against sexual harassment.

~ BUSINESS-TO-BUSINESS, INTERNATIONAL,
WEB-BASED TRAINING, INTERNET AFFILIATE PROGRAM

BrainwareMedia.com Internet Franchise Affiliate Program pays 8% - 25% on your own purchases and on all orders and reorders from customers whom you refer via your own professional webpage that is provided automatically for your site in two, simple steps online - free, with no risk.

It is a proven, turn-key, business-to-business, international, web-based training, Internet eCommerce opportunity.

For complete information and automated, affiliate sign-up http://BrainwareMedia.com

~ MERRILL LYNCH ECOMMERCE REPORT

On 8 April 1999, Merrill Lynch said, "In today's knowledge-based economy, Internet-based training may prove to be the biggest success of the Internet, with online education becoming the Internet's real 'killer application'."

In the new report "eCommerce: Virtually Here," Merrill Lynch analysts call electronic commerce a far-reaching business concept that is revolutionizing global corporate strategies.
http://www.merrilllynch.com/

eCommerce Times article:
http://www.ecommercetimes.com/news/articles/990421-6.shtml

According to International Data Corporation, a market research firm, Internet related business-to-business sales are expected to eclipse consumer spending by accounting for up to 80% of all Internet e-commerce transactions by the year 2001......

U.S. Market for Web-Based Training to Exceed $6 Billion by 2002, IDC Study Finds

FRAMINGHAM, Mass., April 27 -- The U.S. market for Web-based training will exceed $6 billion by 2002, representing a compound annual growth rate (CAGR) of almost 95 percent from 1997 to 2002.

Internet-Based training (IBT) is meeting with enthusiastic support. In a related survey by International Data Corporation, nearly 100% of respondents said they would recommend IBT to companies that are not currently using it, and almost 60% said they would strongly recommend it. Respondents were training managers, information system managers, and business unit managers from companies that have used IBT.......

Simba Information Predicts Corporate Training Market Will Grow
At A Compound Annual Rate Of 8.6% From 1999-2001

STAMFORD, Conn.--(BUSINESS WIRE) -- April 13, 1999
The perpetual need for training within America's workforce will drive corporate training sales up at a compound annual rate of 8.6% from 1998 to 2001, reaching more than $10 billion in 2001, according to Corporate Training Markets, 1999, a new report by Simba Information Inc., one of the nation's leading research firms in the area of corporate training.

Powered by trends including consolidation, global expansion, strategic alliances with companies outside of the realm of training, and multiple delivery offerings, the entire training market generated an estimated $8.1 billion in 1998. These trends are expected to spill over into the training market in 1999 and 2000, fueling the industry's
profitability and paving the way for the emergence of new players.

Thank you.
We welcome your comments.
We wish you success in building your Internet business.

B2B eCommerce Online
published by WebAgency-tm.com
Philip Stills Doyle, President
WebAgency-tm.com
BrainwareMedia.com

2777 Yulupa Avenue, Suite 133
Santa Rosa, CA 95405 US
voice: 707-538-5043
e-fax: 707-885-0470

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