• Posted by Melanie
• 22 January 2011
• Small Business, So you want to be a Shop Owner Series

Owning your own business has long been the American dream. The Internet, ecommerce and vast technology advancements have made this possible for Joe American. However, just like anything else, there are problems. These problems and issues are like a disease eating away at the American dream. Every possible screw up from bad choices, lack of knowledge, outright criminal behavior and stupidity are at your fingertips as you begin to try to fulfill your dream. My goal here today is to give you a quick reference guide on how not to get screwed... or screw yourself as you begin this journey with Zen Cart.

First of all understand that Zen Cart is FREE GPL licensed software. This means in a nutshell that Zen Cart owes you nothing. Lucky for you the development team at Zen Cart takes the development, support and ability of their software very seriously. However, before you get started you need to know that even with all of this support YOU will ultimately be responsible for staying up to date with version, patch, security and other Zen Cart software developments. You do that by subscribing to the Zen Cart release announcements thread. Do this right now.... even if your store is already built.

Modules for Zen Cart are predominantly free and available here. The trick with modules is knowing, researching or seeking advice (from more than one company, person or source) is an absolute MUST DO. While these modules add flexibility and functionality to your store... They have a dark side. The simple installation is generally not very simple for your average shop owner, the installation (even if properly written in overrides) will cause extra costs in future upgrades and believe it or not... Some don't even work. So the simple rules of thumb for Zen Cart modules is don't install it unless you really need it, seek out the support thread for advice and keep track of all the modules you have installed... Preferably keep a folder of the module installation zip.

Think security. Even a small business like yours is susceptible to hacks and business ending fines. You can be penalized by a search engine, hacked and receive a fine from the credit card companies, have your customers orders emailed to hackers, get screwed by developers/programmers/designers and simply suffer the lemon disease where you just continually throw money at your site without any return on your investment. My aim here is to teach you some of the security and business security traits and behaviors you need to have to avoid these dangers. So I have a short list... as I realize we all have short time and attention spans.

• Ask around about your hosting company. Ask about PCI/DSS compliance, security, support and backups.
• Use strong alpha numeric passwords and change them frequently.
• Give others access to your hosting and cart in their own user account so you can easily remove it when their need is done.
• Investigate the modules and addons you need to use, and I don't mean just one resource.
• Checkout any company you intend to do business with. Does their site look professional? Do they have a portfolio and testimonials? Can they provide references? Google a Google search for things like company name +complaints, reviews or check the Better Business Bureau for complaints filed against them.
• Plan your Zen Cart project, keep notes, names, modules installed and anything else you have or are provided during this endeavor. This is not just for prosperity, but rather makes your future development, problem solving and help seeking easier, more effective and fruitful.
• If they say they "Guarantee" to put you on page 1 of the organic results... They are lying. If they claim to be affiliated with Google for example, they are lying.
• If someone tells you they know Zen Cart, invite them to prove it.
• Do not buy or reciprocate (trade) links.
• Do not hide keywords in your code.
• Do not cloak pages for users vs. what Google's crawler sees.
• Make sure you have sought out a legal professional to help you craft your privacy, conditions and shipping & returns policies.
• Read your merchant agreement, and any other for that matter in full. If you don't understand ask.
• Unlimited bandwidth or web space is NOT unlimited. (Read the TOS)
• PCI/DSS compliance is required if you accept credit cards on your site or in your place of business. This is for everyone, and their are no exclusions.
• Email is not secure. Do not send sensitive information in an email.
• If it seems to good to be true it is!
• Take good care of your customers and their issues... One bad bark on the web regarding your company can ruin you.
• Do not let a developer or designer register a domain for you. It's really not that tough and you may be sorry later when you lose the domain.
• Do not rely on just one resource for your website... People come and go at an alarming rate in this business and you need to be able to continue your business.
• Keep a full account backup of your website weekly on your own hard drive. If the hosting company does not have this ability find one that does!
• This is hard work and you will not be rich in a month, but if you work hard and learn the ropes you can make a living.

I may add to this list, but the most important point is that this is YOUR business and YOUR responsibility. Don't blame or rely on others to "own" the responsibility, it will most certainly come back and bite you in the tail.

• Posted by Melanie
• 16 February 2010
• Ecommerce Marketing, Small Business, So you want to be a Shop Owner Series

Merchant Processing Survival Tips 2010

If you haven't read about the new "Brand Damaging" issues and you accept credit cards on your website... You need to. The potential impact on your business is too large to ignore.

Now that you have hopefully informed yourself, let's concentrate on keeping you out of trouble and getting canceled.

The new rules may seem a bit daunting, but they are really pretty simple.... If it's trickery, you cannot do it anymore. You may be sitting there thinking, "I have been running this "Free Money" website for 10 years.... This doesn't apply to me. You are most certainly wrong. These are new rules, new implementations and new punishments for violations.

The cost for violating one of these rules and getting caught (and you will) is at it's best cancellation of your merchant account or gateway account.... At it's worst, very large fines and cancellation. Heed this warning, even if you haven't received any communication from your Merchant services providers.

Merchant Processing Survival Tips 2010

Online marketing campaigns that employ any “Free-Trial”, “Deferred Billing” and/or “Shipping Only” are considered trial offers and are subject to the new rules. Consumers must receive a tangible good or contracted service in exchange for the credit card charge(s). Incentive type discount offers are acceptable ONLY when the cardholder is receiving goods or services in exchange for payment. Having said this, note for example that e-Online will no longer support

accounts engaging in hidden or delayed charges and ‘free’ offers that are not truly free.

1. Avoid using  "free" or "risk free" language on your website and in marketing campaigns (including PPC) .. Unless it is 100% really free.
2. If you use the "Pay Shipping & Handling Only" technique, then these charges must be fair, reasonable and fully disclosed. So if you have been slipping by on the $5 shipping and $20 handling fee, you must stop. Also note that inflating your actual shipping has additional implications as well... Did you know that most states expect you to pay sales tax on overcharged shipping fees?
3. Trial offers need to be no less than 10 days and the trial period should not begin until product is shipped to the consumer or the service has begun. You are not permitted to offer trails with exemptions, filtering or special rules for age, weight, height, geographic location, race etc.
4. Avoid creating a false sense of urgency because if the matter is not genuinely urgent you are in violation. For example if you have the "10 day only" message running on your website for 3 years now... You are in violation. These periods of offers must be genuine and accurate. e-Online has strictly forbid the use of  applications such as countdown clocks, tickers, or language such as “Offer Expires Today!”, for example already.
5. By mandate of the FTC, product claims, promises, guarantees and research claims MUST be accurate and proper. This is pretty unlimited and includes testimonials, endorsements and even product reviews. Don't think for one second that user supplied product reviews are exempt... It is your website right? Not only do you risk loss of merchant services with these issues, but the FTC can fine 11K on top of whatever the credit card companies may choose to fine you for your "Brand Damaging" behavior.
6. How about the FTC's new rules for pricing? Prices must be within reasonable “fair market value”. Any negative options must be clearly disclosed, and you cannot bill for any product or service that the shopper/consumer did not knowingly purchase... Including things like upgrades and software updates, for example.
7. If you have a special offer which includes some shady marketing like exclusions or negative options you are required to have that customer agree to the terms twice before charging them.

The first validation can take place with the initial offer presentation prior to submission of credit card information, and the second during the checkout process. The confirmation order page must also require consumers to acknowledge that they agree to the Terms & Conditions and authorize the merchant to charge the credit card for the disclosed dollar amount. Terms must be displayed adjacent to the “submit”, “confirm” or any other “call to action” button confirming the order. The price must be within 100 pixels of the “submit”, “confirm” or any other “call to action” button.

• Shipping and Handling should not be billed separate from charges for the product or service.
• Terms must be in a minimum 12-point “easy to read” font.
• Avoid visually distracting graphics from the display of terms.
• Pre-checked boxes must never be used.
• Consumers should be required to actively and individually select each offer or bonus during the checkout process when there are multiple offers or up sells presented. No offers or up sells should be pre–selected or pre-checked.
• Consumers should not be able to move forward in the offer or checkout until the box acknowledging the terms is checked.
• Verbiage must clearly disclose the enrollment into an ongoing membership with no distraction. An example of an acceptable disclosure is: “By clicking “Submit” you acknowledge that you understand you are being enrolled in a 10 day trial for $4.95, and after expiration of the 10 day trial period you will be charged $59 per month until you cancel your service”
• All products or services purchased when the call-to-action button is clicked should be billed as a single charge unless the order is fulfilled at different times requiring multiple charges.

REFUND POLICIES

Merchants must not make it difficult for consumers to exercise the disclosed cancellation procedures and all cancellation requests must be honored in accordance with the stated terms of the transaction.

1. Refund policies must be disclosed prior to the sale completion. Establish a clear, concise statement of your refund and credit policy. Your policy should be consistent with the objectives of your business and the products or services sold.
2. Merchants must not require return of any trial offer product samples in order for the consumer to receive a refund, or cancel their ongoing subscription.
3. “Full Money Back” or “Full Satisfaction” guarantees are considered false and prohibited unless the offer provides a full refund on all products, including but not limited to Shipping & Handling charges.
4. Refunds should be for the full amount charged including shipping and handling
5. All future billing to a customer should be canceled when a refund is issued.

All future billing to a customer should be canceled when a chargeback is received.

RESOURCES:

The FTC has published the regulations along with many resources online for businesses and consumers like yourself to learn and understand the new regulations.  A few helpful links provided by e-online are included below:

Commercial Practices Part 425, Use of Prenotification Negative Option Plans

Prenotification Negative Option Plans

Advertising and Marketing on the Internet

Dot Com Disclosures

Direct Response industry publications have provided articles with some clarification regarding these guidelines:

http://www.responsemagazine.com/resources/legal-resources/legal-review-getting-strict-with-negative-option-marketing-1351

http://www.dmnews.com/get-comfortable-with-new-ftc-regs/article/136023/

So, are you scared?

If you have been utilizing these techniques, then you probably should be. Realize that the allowable fines and penalties for violations of these rules can mean the death of many if not most small businesses. On the lighter side, even receiving the cancellation email from a merchant provider, allowing you a very short 2 weeks to make other arrangements for processing or gateway services is enough to put you in the poor house.

Take heed, learn and understand these practices, and when in doubt contact your merchant providers... speak with someone in underwriting and have them look at your website and marketing materials and provide you the correct way to market your products.... Before the axe falls.