Multiple Merchant Accounts for Multiple Stores?

[Marc Bowker]

I've been running my business as a Sole Proprietorship for the past 4 years, and recently formed an LLC. I'm looking into starting another e-commerce store selling something completely different than what I am selling now and I'm not sure how to proceed Merchant Account-wise.

I already have a Merchant Account, but it's linked to AlterEgoComics.com. My LLC is Alter Ego Enterprises. Should I change my existing Merchant Account over to the LLC name, or should I open up a new Merchant Account in the name of the new e-commerce store?

[hostBrain]

I would probably change it to your LLC name. And you should be able to use it and the merchant account with both ecommerce sites.
Just make it clear throughout both sites that the credit card charge will show up as the LLC name

[StevenAllen]

The most common reason for chargebacks is not having your business name recognized.
I would open the new merchant account. This will help you in both chargebacks and accounting. The best merchant processing programs IMHO allow you to combine your sales to obtain the best overall discounts.

We run 6 consumer sites and when I negotiated the EmerchantsGroup merchant processing program this is one of the issues I kept in mind for myself and others.
If you have additional questions, feel free to drop me a line.

[Shift4SMS]

My recommendation would be to open a second merchant account. As previously mentioned, the most common reason for a charge-back is an unrecognized business name on the customers bank statement or online account.

Most MSP's will significantly reduce or eliminate entirely setup and monthly fees for the additional accounts. Also, the back-end funding side of the account can point to a common account.

Hope this helps. Good luck.

[jrb@w3f.com]

I believe there are two factors.

One is accounting separation, the other is customer comfort.

If your LLC name is all over both sites, and you have no problem comingling the
results of both (or multiple) sites, then everything can be under that one account.

If you want to appear different by each site, and want to lable everything specificlly
toward each individual site, then different merchant accounts could be obtained.

Some co-mingle eveything as their name is similar enough, or they state their
LLC prominantly on all pages, so it no surprise to the customers.

Some want the protection of one bank account from another in the realm of
chargebacks, so they keep them seperated. Some say seperate is easier,
others have no problem with using the same account.

It is a balance of how you implement your brand recognition and your Banking.
Both are important, and for different reasons that only you can decide.

[Peter (IMC)]

Why don't you change your ecommerce system to using its own secure site certificate? Not that expensive and then it's not visible anymore where the payment is done. The buyer stays on your own site during the complete checkout process.

If you can afford to build a new store, you should really consider this step.

[steve0]

Maybe I see it differently..

Each merchant account has a cost associated with it..
A minimum monthly fee as well as the batch/statement etc..fees..
(as well as the soft cost of reconciling the account each month)

If your core business activities are similar.. i.e. retailing..
Why not do a top level company.. "Alter Ego Enterprises"
Buy the domain name "AlterEgoEnterprises.com" (it's available)

Create DBA's for any 'companies' that vary by type of merchandise..
in case you get checks, money orders.. etc..

Get the merchant account with the SIC code of 5990 (Miscellaneous Retail)
(so the business is not limited to a specific type of merchandise)

The bottom of the every page of the web sites should have "site operated by Alter Ego Enterprises"

About pages should mention Alter Ego Enterprises

The checkout pages should boldly state "Charges will appear as Alter Ego Enterprises"..

Order confirmations, receipts and tracking notices should have Alter Ego Enterprises as
well as any correspondence..

On AlterEgoEnterprises.com have some corporate speak.. along with a notice about
"If you found our name on your monthly statement.. please contact us at....."

With one merchant account.. you can use one gateway.. (also reducing cost)
No matter how many web sites you operate as retail outlets, they can all point to the same checkout.

This allows for niche segmentation/specialization of your product line, and selling via multiple websites..

Just my 2 cents.

[craigmn3]

I echo SteveO's comment with one caveat.

Make sure to use your no follow tags, if the robots sniff duplication it could cause you harm. You might even take advantage of the robots unwillingess to navigate frames pages.

[StevenAllen]

Merchants who process over 1MM a year (this can be the aggregate of mutliple businesses) have no monthly fees in our program and any other fees would be the same whether you had one account or fifty.

[Peter (IMC)]

I echo SteveO's comment with one caveat.

Make sure to use your no follow tags, if the robots sniff duplication it could cause you harm. You might even take advantage of the robots unwillingess to navigate frames pages.

Not to be a complainer or anything, but if you try to hide "duplication" then you should find a better way to do it. Nofollow tags don't protect you from anything.