How can the creation of a DBA (fictitious name) help me advance my e-commerce business?
DBAs (Doing Business As, or “Trading As”) are great for e-commerce companies because they make it possible to own several websites under one corporation. DBAs make it possible to operate a business under a name other than the corporate name filed with the state, or your personal name. If a corporation has several DBAs, banks will allow that corporation to accept checks made out to the different “trading as” names. DBAs help a company’s credibility because people like writing checks to a company name that sounds similar to the name of the website. Nobody wants to pay Company A for goods/services that come from Company B. Additionally, operating different business each under its own DBA allows better tracking of the performance of each business.
Many start up e-commerce companies name their corporation something fairly generic. Once they have a corporation, they purchase URLs under which to operate their website. Since it is usually easier to file for a DBA then it is to find a URL, companies will find a URL and only then secure their DBA. US Banks accommodate entrepreneurs by separating funds allocated to each unique fictitious name in separate accounts.
If you need a DBA (also known as a fictitious name, or a trading as name) please contact us at [email protected]
Why do many business owners and consumers prefer to transact business with bank wires as opposed to credit cards?
From the merchant’s perspective, there are a variety of different reasons to prefer the use bank wires over credit cards. One important reason is security. Bank wires cannot be reversed so there is no room for “funny business” by the consumer. Business owners often provide goods/services that cannot be reclaimed if a transaction is reversed with the credit card company. Companies may not want to leave it to Visa, Mastercard or American Express to decide to who is at fault in any dispute. Credit card companies often have a bias toward the claims of the consumer.
Many companies like to use bank wires for large transactions because this helps reduce administrative fees. Merchant service companies typically charge 2-3% for the privilege of using a credit card. Bank wire fees are fixed; 2-3% of a large credit card transaction can easily exceed the fixed cost of a wire.
From the consumer’s point of view, wire transfers also have advantages. Some customers do not feel comfortable giving out their credit card number because of fears related to identity theft. Bank wires ensure that only a certain amount of money is given to the vendor. Because credit cards are ongoing lines of credit they are vulnerable to fraud. Some customers will not do business with a website that does not accept wires because they fear having their credit number stored in more places than is necessary.
For both parties, international transactions may be more easily accomplished using wire transfers. This is because checks may take weeks to clear in certain countries. Even in this day and age, credit cards may be difficult to use in foreign countries. In contrasts, wire transfers are secure for both parties and almost instantaneous.