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Will the VoIP reseller need a website, merchant account and other things?

We provide all VoIP resellers with an eCommerce website that includes Member Services area, member only pages, a personalized start page, localized with news, weather and yellow pages to each zip code, automatic provisioning of services and much, much more!

Anyone accepting credit cards needs a merchant account and a gateway service. However, the Alliance VoIP Solution provides the merchant account as part of the total VoIP Success System.

Some Wholesale VoIP Providers require the VoIP Reseller to secure their own merchant account and gateway service. A few, like Alliance Solutions, provide a "shared" merchant account. Each has its advantages and its disadvantages. What is the difference?

Your Own Merchant Account:
The upside for setting up your own merchant account is that it gives you daily control of your money - you receive payments into your account every day. The downside is that it is costly, you have to be approved, it can take up to six weeks to set up, there is a lot of administration, you will probably have to pay higher discount rates and the Wholesale VoIP Provider makes you pay in advance (prepay) for services used by your subscribers. As a result, this can wreak havoc with a Branded Reseller's cash flow - especially in a case with fast customer growth. The faster your customer base grows, the more you must pay in advance each month.

A Shared Merchant Account:
The upside for a shared merchant account is that you save the costs of having to set up your own merchant account (as much as $500), you save the monthly maintenance fees (as much as $50/month), you do not have to be approved, it is available immediately, you save all of the administrative work (this is handled by the Wholesale VoIP Provider), you probably receive lower discount rates (due to the combined volume through the account) and you do not have to prepay for the services used by your customers. The downside is that you receive funds once a month rather than daily.

Why does a Wholesale VoIP Provider require payment in advance?
First, everything in this business is prepay for everyone. This means that the Wholesale Provider must also prepay for all services your customers will use. So by requiring the reseller to prepay, it keeps the provider's cash flow stable. Second, it lowers the risk of bad debt.

Alliance Solutions offers both methods:
With the Alliance VoIP Solution, a VoIP Reseller can choose either method. If you choose to use your own merchant account, you will need to prepay for all services. If you choose to use our shared merchant account, you will not need to prepay for all services.

Using Our Shared VoIP Merchant Account:
In the case of our shared merchant account, we use a "generic" name: "Digital Telephone Services." We collect the funds from the customer through our merchant account, subtract the wholesale costs of the services provided to your customers and send you a check for the difference. The customer sees a charge on their credit card statement from "Digital Telephone Services." Because we collect the funds from the customer in advance, we do not require our Branded VoIP Reseller to prepay for services. Currently 95%+ of our Resellers are using the shared account.

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