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How to Pay for Computer Products Using Your Customers’ Money

​After the customer orders the computer product from your website, (online or by phone) then you will automatically receive a confirmation email from your shopping cart system with all of the details of the order.
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How to Pay for Computer Products Using Your Customers’ Money
Your payment processor and merchant account provider will then process the credit card transaction and deposit those funds into your bank account within 48 hours or less. 

Then you have to contact and order the product from the distributor by phone or from the distributors’ website. The distributor will then ship the product directly to your customers’ location with your company name on the package. This is called drop-shipping. However, when it comes to paying for the products, there are a few ways to do so. You can either pay for the products with your own money, with credit cards or debit cards, or you can use your customers’ money as well. You can also get set up on EFT (Electronic Funds Transfer) and Net Terms.
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​Net Terms and EFT (Electronic Funds Transfer):

Net Terms: When starting off as a new reseller with no credit references, distributors may offer you standard payment terms such as paying for the product by credit card, debit card, (personal or business), COD, money wire transfers or direct debit.

These are the standard payment terms offered to most new businesses that are just starting off and have no prior business credit history. And then after conducting business with distributors for 90 days you can apply and qualify for 30 Days Net Terms and/or EFT (Electronic Funds Transfer) with most major and mid-sized distributors.

In the case of Net Terms, the distributor has recognized that you are a good and steady reseller/customer, in good standings and have been doing business with them for 90 days or more. And at this time, you can apply for 30 Days Net Terms where you can order the product from the distributor today and be billed for the product within 30 days. And by then your customers' money will have already been deposited into your bank account.

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EFT, (Electronic Funds Transfer):

More resellers find that paying for products via EFT can be much faster, more convenient and less complicated than paying for products with credit cards or utilizing Net Term agreements. 

With EFT you can purchase the product from the distributor today and then the distributor will automatically debit your designated bank account for the amount owed within 10 business days. And by that time, your customers’ credit card funds will have already been processed and deposited into your bank account by your merchant account/payment processor. 
It takes the merchant account bank 48 hours to process and deposit your customers’ credit card funds into your bank account. Therefore with EFT and Net Terms you would be able to purchase the products on credit and then pay for them using your customers’ money and none of your own. 

EFT and Net Terms are offered by most major distributors and mid sized distributors as well. For more information on EFT and Net terms please contact the credit department of your choice distributor.
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How to pay for products with your customers’ money:

​In order to pay for products using EFT or Net Terms you may have to be in good standings with distributors for 90 days or less. However, when using PayPal as your shopping cart and payment processor, you can pay for products using your customers’ money right from the start.
​And with close to 100 million PayPal users, it’s no wonder why most internet retailers use PayPal as an additional and even primary payment processing solution to run their internet business. Furthermore, PayPal is not just a payment processor; it’s also a turn key shopping cart solution which can be set up within minutes. And a more popular way for resellers to use their customers’ money to pay for products is by utilizing PayPal as their shopping cart and payment processor as well.
You can open up your own PayPal account and then start adding products to the PayPal shopping cart data base. PayPal will automatically generate an html code with an "Add to Cart" or "Buy Now" button that you can easily place onto your webpage.

Once the customer “Checks Out” using PayPal, then those funds are automatically charged, processed and deposited into your PayPal account and are available for immediate use or withdrawal. 

Then you can obtain a PayPal debit card for your PayPal account. And your PayPal debit card can be used to make purchases for the amount of funds available in your PayPal account.
Then you can pay for the products with your PayPal debit card thereby using your customers’ money right after the customer orders and pays for the product online. And when taking orders by phone you can also enter your customers’ credit card information into your PayPal shopping cart system. Then those funds will become available in your PayPal account for immediate use with your PayPal debit card or for withdrawal into the bank account which is connected with your PayPal account.

After you purchase the product from the distributor using your customers’ money with your PayPal debit card, whatever money is left over in your PayPal account from that sale is your profit. It’s that simple. And as you can see, using PayPal as your payment processor and as your shopping cart solution can become the means of paying for products while using your customers’ money, and none of you own.

Furthermore, you can use the PayPal method permanently or just until you’re able to get set up on EFT or Net Terms with the distributors. The choice is yours. Then you can obtain your own merchant account and upgrade to a complete ecommerce, shopping cart system.
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Many distributors provide several payments options:

IM Credit Departments: Qualified resellers can sign up to receive payment terms of prepay, COD and net terms.

Credit Card: Resellers may also place orders by using personal or company credit cards (Discover Card, MasterCard and Visa). (This is the fastest and most convenient form of payment).

EFT: The Electronic Funds Transfer (EFT) program withdraws funds automatically from participating resellers' designated checking accounts within 10 business days.

Net Terms: Resellers are billed for purchases made from distributors within 30 days from the time of purchase.

Escrow Account Program: Extends participating resellers' lines of credit, letting them purchase additional products.

Financial Services Company: Partner distributors are able to offer a variety of useful financing options for eligible resellers. IFSC programs currently available include: 

-Leasing 
-Lending 
-End-User Financing 
-Credit Card Services 
-HR Solutions 
-Purchase Order Financing 
-Dun & Bradstreet Exclusive Offers

For more information on any of these payment options please contact the credit department of your choice distributor.
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How to Avoid Credit Card Fraud
How to Collect Sales Tax for Internet Sales
How to Charge for Shipping for Products
Shipping Products International and Over Seas
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