01 MERCHANT ACCOUNT

How Merchant Accounts Can Save You Money by: Josh Greth

2009-09-02T09:34:00.001-07:00

We all know that accepting credit cards is the key to online sales. Unfortunately, most merchants are unaware that acquiring a merchant account can actually save them money. And in many cases, big money!

For this experiment, we will use a fictional character named Bill. Bill owns and operates a great online resources for marketing tools and resources. Bills website is a membership based website, and therefore could potentially be approved for both third party processing and an internet merchant account. Bill starts off processing his business with a popular third party processor who offers him the following plan:

Start Up Fee - None

Monthly Fee - None

Transaction Fees - 13.5% (Initial or One Time), 15.0% (Recurring)

Bills sets up his business with this popular third party processor and charges $30 per month. He has built an extensive reciprocal link exchange directory, has purchased some PPC advertising on a few of the best search engines, and has reached a excellent spot in the content based search listings for the top 5 search engines. His customer base has grown from zero before accepting credit cards, to 150 members, is just one month. Bill can’t believe his success at internet marketing, and is planning on building even more web based resources and tools for his website, thus increasing the value and content. He is ecstatic at the initial results, so let’s take a look at Bills numbers:

$30 (Per Membership Sold) x 150 (Memberships Sold) = $4,500.00

$4,500 x 13.5% (Initial or One Time Transactions) - $ 607.50

$4,500.00 (In total sales)

- 607.50 (Total fees)

= $3,892.50 (Net profit after all processing fees have been deducted)

Ok. Well Bill certainly had an excellent first month accepting credit cards with his new business venture. But let’s see how Bill would have made out if he would have secured an internet merchant account for his new business:

Start Up Fee None

Monthly Fee $15.00

Discount Rate 2.35% (Initial, One Time or Recurring)

Per Trans Fee .30 cents

Gateway Mo. Fee $15.00

AVS Fees .10 cents

Now the first thing we see is that the merchant account company is showing us more fees. This may be disheartening at first sight, but we should really explore what these fees are, and how they affect our bottom line.

Start Up Fee: This remains the same. Bill paid zero to get setup with his new merchant account, just as he paid zero to get setup with the third party processing account.

Monthly Fee: The third party processor offered us no monthly fees, yet we must pay $15.00 with the merchant account company.

Discount Rate: The merchant account has labeled one of their fees as “discount rate.” These fees are the fees Bill will pay as a percentage of each transaction. They are similar to the main fee charged by the third party processor. This fee when charged by the merchant account company is substantially smaller than the high percentage charged by the third party processor. But we will wait till the end of this experiment to see who offers the better comprehensive deal.

Per Trans Fee: The merchant account company charges Bill .30 per transaction he processes through his merchant account. Of course, we have already established that Bill will pay no per transaction fees with the package he received from the third party processor.

Gateway Monthly Fee: Because Bill will also need an internet payment gateway for his merchant account to work online with his website, he will also be paying $15.00 a month for his Gateway Monthly Fee.

AVS Fees: The AVS fee stands for Address Verification Service. Bill will want to use this service, to help reduce potential fraud, and customer chargebacks to his merchant account. He will now pay an additional per transaction fee of .10 per transaction.

Let’s see the numbers behind processing with a merchant account as opposed to a third party processor:

$30 (Per Membership Sold) x 150 (Memberships Sold) = $4,500.00

$15.00 (Merchant Account Monthly Fee) - $15.00

$15.00 Gateway Monthly Fee) - $15.00

2.35% (Discount Rate) x $4,500.00 - $105.75

30 cents (Per Trans Fee) x 150 (Memberships Sold) - $45.00

10 cents (AVS Fees) x 150 (Memberships Sold) - $15.00

Total Fees (With Merchant Account) = $195.75

$4,500.00 (In total sales)

- 195.75 (Total fees)

= $4,304.25 (Net profit after all processing fees have been deducted)

With the merchant account, Bill was able to keep substantially more of his sales for himself, as profit. Bill could use these extra resources to advertise more, expand his operation, and even hire someone to work for him, even if only on a part time basis. The point is that that the better deal in credit card processing is always with a merchant account as opposed to using a third party processor. Most third party processors leverage the high levels of risk and chargebacks they must face everyday, by charging enormous fees and rates to their entire customer base. Third party processors are synonymous with Adult related websites. This is the reason for their increased exposure to risk. They must charge high rates to overcome the losses they are subject to by processing for a category of merchants that, unfortunate as it may be for them, falls into a certain level of risk and fraud that most other merchants do not. Because the merchant account company restricts its clientele to only companies with non adult related content, they are able to offer an entrepreneur like Bill, selling online content through his membership based marketing website, a much better deal in credit card processing.

$4,304.25 (Net Profit with Merchant Account)

- 3,892.50 (Net Profit with Third Party Processing)

= $411.75 (Total Savings with Merchant Account)

This experiment has shown that the average website owner can save substantially by choosing wisely when it comes to their credit card processing solution. We have proved that most any entrepreneur can and will save substantial amounts of money by using a merchant account for their online credit card processing, as opposed to processing with a third party processor. In our little test, Bill saved $411.75, and that was just in the first month alone. Remember, that the third party processor will charge more, 15.0% to be exact, per transaction, once the customer is charged on a recurring basis. This means that for the second month, Bill would have paid even more to his third party processor; $675.00 to be exact! And that is just on the first months returning 150 customers. Every time Bill has a recurring payment processed through his third party processing account, he would be subject to a 15.0% transaction fee on all those sales. Not a very thrifty choice for credit card processing.

As with any business decision, be smart. Compare rates and plans, and make sure the “simple” setup is really worth the cost. In most cases, your Merchant Service Provider can setup your merchant account in as little as 24 hours. This is faster than your third party processor, and adds even more value to the otherwise already vastly superior deal you are receiving with your very own merchant account.

Make the decision that is best for your business, and best of luck! Please visit Josh Greth at CardStreet.com.

About The Author

Josh Greth draws upon his 20+ years of Credit Card Processing/Executive experience in the field of Merchant Services. He developed, owns, and is the reigning CEO of CardStreet Cardservice Corp., a company that has been processing credit card transactions for over two decades. To date, they have established over 100,000 successful merchants and helped make their dreams a reality, by creating a simple, yet cost effective, means of credit card processing. For more information on credit card processing, or to obtain your own merchant account for a retail, internet, wireless or phone/mail order business, please visit CardStreet.com.

Credit Cards, Merchant Accounts, And Your Bottomline by: Tim Knox

2009-09-02T09:32:00.000-07:00

Q: I'm opening a gift shop and want to be able to accept credit cards. I talked to the branch manager at my bank, but he didn't seem to know much about how it all worked. He did say that I would need something called "a merchant account" and something else called "a credit card processor." Beyond that he seemed as clueless as I am. I'm thinking about going to another bank. Can you explain how that all works?
-- Mary Ann G.

A: Mary Ann, I'm going to give your banker the benefit of the doubt and say that a lack of knowledge regarding the specifics of credit card processing is not necessarily a reflection of the banker's competence. I have found over the years that most bankers, no matter how experienced or knowledgeable about the banking business they my be, don't really know much about how credit card processing and acceptance really works. That's because the task of accepting and verifying credit card purchases is handled by third party service companies who process and deposit (or settle) the funds into a bank merchant account.

The decision to accept credit cards is a wise one for any retailer. I agree with financial guru Dave Ramsey's teachings regarding the use and abuse of credit cards. Many people dig deep holes with credit cards that are hard to climb out of.

But, from a practical business point of view, any retail business that does not accept credit cards is leaving money on the table. Research has shown that accepting credit cards increases revenue and helps with cash flow since you receive the money within a couple of days instead of waiting up to a week for a check to clear.

Credit cards don't bounce, as some checks have a tendency to do. Credit card users are also more likely to buy on impulse and spend more when they do. Bad news for them, but good news for you. If you have a social conscience concerning the use of consumer credit cards, a retail operation probably isn't the business for you.

To accept credit cards at a brick and mortar location you typically need four things. The requirements may vary a little, but the following applies in most cases.

You will need: (1) A way to enter the customer's credit card information into a verification and processing system. This can be done with a swipe terminal, point of sale system, or by calling the credit card in by phone

About The Author

Tim Knox serves as the president and CEO of three successful technology companies and is the founder of DropshipWholesale.net, an online organization dedicated to the success of online and eBay entrepreneurs. Related Links: http://www.prosperityandprofits.com http://www.smallbusinessqa.com http://www.dropshipwholesale.net

Compare Merchant Accounts by: Shane Penrod

2009-09-02T09:31:00.000-07:00

“Compare Merchant Accounts” is one of the best pieces of information a company owner can receive. All merchant accounts are not created equal, and it will be up to you to find the best package for your particular enterprise. Here are a few tips to keep in mind.

Compare Merchant Accounts for lenders. You need to find a reputable lender that will work with you to protect and grow your company interests. Someone who doesn’t care or who issues a merchant account solely to make money is not the best underwriter to take on as partner. Look at things like how long the company has been in business, who manages it, other services that are provided, and the company’s standing in the business community. You may want to read the newspaper’s business articles archive for recent press releases or company news. You also could browse a few industry publications to get a feel for who the best lenders in the business might be. You want to find a lender with a reputation for integrity, honesty, and professionalism as well as capability.

Compare Merchant Accounts for services. A merchant account’s greatest advantage, at least as claimed by some experts, is the ability for a company owner to accept credit card payments. You need to find out which credit card payment method is best for your company. For example, do you plan to accept credit payments at your company’s location? Or will you or another employee take a wireless unit on the road for point-of-sale transactions at residential or business locations? Perhaps you are thinking about establishing a Website presence to attract customers from every location in the world. Find out what your preferred lender will support, along with possible fees for maintenance and service agreements.

Compare Merchant Accounts for costs. Some lenders may ask you to pay an online application fee. Others may want you to join and pay an annual membership rate. There can be print statement fees, gateway costs, and other expenses associated with your merchant account. In addition, you will have to pay for the actual service that may be calculated on a per-transaction basis costing perhaps a few cents per payment or a low monthly overall interest rate that may or may not impose certain minimums. Read the fine print, ask lots of questions, and be prepared to do your homework before signing the contract. A merchant account may be the single most important decision you will need to make on your company’s behalf.

Compare Merchant Accounts for service. Even in the application stage, does the company provide easy access to personnel who can answer questions or help you understand the process? Are the company associates courteous and knowledgeable? Can you follow their directions? If you experience a problem, is the company prompt in responding to issues and resolving complaints? If a problem arises with the processing services, will the lender work with you to reinstate service as quickly as possible?

Considerations like these can help you competently Compare Merchant Accounts!

About The Author

Shane Penrod is the owner of http://www.merchant-account-quotes.com A site where you can shop and compare multiple quotes from national leading merchant account providers. http://www.merchant-account-quotes.com.

Different Types of Merchant Accounts by: Mike Knudtson

2009-09-02T09:29:00.000-07:00

After cash, credit cards are the most widely accepted means of payment in the world. No matter what business you are running, or what product you are selling. Chances are that you will require a credit card processing system. From American Express to Visa, the brand may vary, and since there is no such thing as an individual payment gateway for each individual company. Every company may have a payment system that is unique to them, but the payment gateway is what is the essential link. But before we go into the technicalities, lets get some of the basics out of the way. Especially some of the terms just used.

Any credit card transaction on the planet acts in a predefined manner, first the customer will offer his credit card details, the credit card details are then processed through a payment gateway, and finally the credit card payment is received in a merchant account. The way in which the credit card payment is accepted is different, you could be using the credit on a EPOS (electronic point of sale terminal), or you could have a successful online store that is accepting payments. The important thing to remember is that the mode in which you are accepting the payment is not as important as having a payment gateway and a good merchant account.

Okay so the next thing to discuss here is what is a payment gateway? well a payment gateway is usually a third party system that processes the credit card transaction it could be the server an EPOS dials out to, an e-commerce system, however the term payment gateway usually refers to the latter, and once the checks are done the funds are then transferred into a merchant account. The essential component is the merchant account, the merchant account is offered by companies and based on the volume of transaction and certain other criteria; the charges and upkeep is different. No merchant account is free as the company is offering you services. Merchant accounts in general are of various categories and depending on the type of business you are running, different monthly charges, and percentage charges are applicable.

Important merchant account types

a) Regular merchant accounts – Although in business there is no such thing as a typical business, however a majority of businesses are usually treated as regular merchant accounts, they have low maintenance fees and lower rates than other merchant accounts.

b) High risk merchant accounts – This category is usually reserved for high risk credit card processing accounts, for example accounts that handle a large volume of transaction that may or may not offer a 100% authorisation rate. An example will be an outbound call centre, that attempts hundreds of credit card transactions to verify the credibility of the credit cards. There are also additional complications like currency conversion involved. Hence the term high risk merchant account.

c) Specialized merchant accounts – There are some businesses that require specialized credit card processing, or might require a specialized merchant account that caters to requirements such as offshore processing, etc. Such merchant accounts are usually referred to as specialized merchant accounts.

About The Author

Mike Knudtson is the co-founder of the http://www.fastcharge.com Payment Gateway and the founder of merchant account provider Electronic Transfer, Inc. (http://www.electronictransfer.com). He has helped thousands of merchants set up retail and ecommerce payment processing for their business. Electronic Transfer, Inc. is one of the leading merchant service companies serving merchants since 1989.

Merchant Accounts - How to save money by: Ben Cloutier

2009-09-02T09:28:00.000-07:00

Your business is successful, but now your ready to take it to the next level and begin accepting credit card transactions, or you have already taken this step but your feeling that your merchant account provider has high fees and your not sure what to do, or what other providers are out there?

You can save hundred's even thousand's of dollars per year by switching over to a new merchant. How is this so?

Just in transaction fees alone if one provider is charging you 35 cents per transaction and another Merchant account provider charges 25 cents you are already saving 10 cents per transaction.

If you process over 1000 transactions per month thats already $100 per month savings and over one year this amounts to $1,200.

Merchant Accounts can make or break your business, whether it is online, retail, phone, mail, or wireless. Every Merchant Account provider has fees that can affect your business in different ways.

We have compared the best merchant account providers currently in the business and we have detailed their fees so you know exactly how much you will be charged.

If you would like to find out who our trusted merchant account providers are and a list of their fees you can find it all on http://www.merchant-account-info-zone.com.

About The Author

Ben Cloutier

You can use any information in this article and can even use it in its entirety, but please make sure you link to my site http://www.merchant-account-info-zone.com.

Simple Way To Handle Different Merchants' Accounts As Easily As Different Mailboxes by: Egidijus Andreika

2009-09-02T09:27:00.001-07:00

Being a merchant with many affiliates can be a very profitable business. However, most of the merchants find it clumsy and cumbersome to handle different merchant accounts in multiple systems. When you are able to offer multiple payment options the sales improve dramatically because it suits more people to do business with you. However, setting up different merchant accounts for each product and payment can be so, so tiring.

So what could be the solution here? It would be just great to be able to manage everything from just one place without the whole thing clogging up your sales-page with many buy-now buttons from all the different systems you man; where just one pay-now button would do the job. This would be not only highly functional but also effective and pleasant to the eye.

The only one buy-now button would mean more freedom, less time spent in manning and simplification of an otherwise highly cumbersome process.

The Benefits Of Handling Everything In The Same Place

There are many payment systems as you very well know and there is the limitation when you use such systems, i.e. you can do sales yourself but you cannot use an affiliate for the same. So, your profits would depend solely on what you can do yourself. If you had this limitation removed and were able to accept affiliates, would it not be great?

As a matter you could do so with the present systems, but the pain in setting up such an arrangements usually deter merchants from taking it up as the effort far exceeds the profits that would accrue from it. An affiliate would not only be able to multiply your profits, but also take a lot of load off your shoulders in promoting your products on different online websites, forums using various online marketing methods. Definitely, having an affiliate would help your business grow exponentially.

In this way you could set up as many affiliates as you have payment systems which would mean you could have the opportunity of multiplying your profits just so many times over.

There is tremendous benefit in being able to coordinate them through one point rather than checking them out individually. Each payment system could have its own separate commission plan, payment schedule, product list and so on. When you have a program that allows you to check on all of them just like you would check all your mail boxes through outlook express – this would save you time and a lot of headache, besides giving you instant information about all the payment systems.

Check For Programs With Which You Could Coordinate Your Affiliates

There are excellent programs out there such as Click2Sell.EU ( http://www.click2sell.eu ) which give you total and full control over your payment systems. This program helps you to have a complete picture in one panel so you could at any time check on any particular aspect of your accounts. Without such a program, it would be extremely not difficult but impossible for you to stay on top of every system; nor would you be able to have your own affiliates.

About The Author

Egidijus Andreika is a creator of Click2Sell.EU affiliate network. Click2Sell allows you to sell your products online and offer multiple payment options for your customers. Track and manage all your affiliates, sales, websites referring sales. Sell products online. Visit: http://www.click2sell.eu

Merchant Accounts and Shopping Carts For Your Wholesale Store: Updated Version! by: Joaquin Reveron

2009-09-02T09:24:00.000-07:00

Do you know what are the best shopping carts for your own beneficial use when it comes to your company e-commerce store as of now? Perhaps you don’t even know what a shopping carts are, its importance or how it can benefit you as a seller at your own e-store or as marketer on eBay. Well, you don’t have to buy anything in order to know few of the best payment processors. You can get the details without paying in this very moment.

A shopping cart being the software that processes your products for final step in a transaction, the customers payment being the last step. Now a merchant account having the additions that not only in the majority of the cases has a shopping cart software integrated, it can process payments from at least two of the most popular credit cards, Visa or Mastercard.

The bottom line being for you, is that it can break your products sale once the customers is ready to finalize payment. So what shopping cart and merchant account gateway you end up using is as we in Puerto Rico say in our own Spanish term say it’s – importante – important!

So the details you want to read. Starting with Google Checkout! Do you recognize that particular brand name? Not the checkout word. The actual part of the phrase that says “Google” first! I know you obviously do and its brand is worth billions. Thanks to the initiative of two of the world’s elite visionaries that had the desire to provide a service in their country when the time was just right.

If you’ve been to quite enough seminars you’ve heard the coined phrased; “Google Me Mate” or, something between the lines. The facts are, anything associated with the brand of Google – at least when it comes to being massively published and known – turns to gold. Their stocks as doing a double check in Morning Star as of today is worth at least twenty times more per stock, than twenty fortune 500 “billion dollar” companies combined, in today’s market.

So as you could imagine, anyone with a nice taste for Pavarotti’s lines (even if he didn’t sang the song for the first time) can happily sing “La Donna e Mobile” with ease when having security as their main process payment objectives. So, yes, Google Checkout is still a preferred checkout system no matter what checkout newly appears online. There are numerous more. But, one more that I definitely want to share with you do to the limitation in length with some of my content publishers.

Thanks a trusted referenced idea of another successful New Yorker. It should definitely be a unanimous decision to have your payments through - what seems to be - according to worldwide feedback and reputation power, an excellent merchant processing company, authorize. I’ve not used the merchant yet, but I saw the process as a customer and I’ll be using it myself after talking with the company to have a few questions sorted out.

If you’ve a wholesale video games store or an electronic merchandise store, just Google the word “authorize”. Google is still way more captivating when it comes to brand association when it comes to your shopping cart logo confirmation. But such dot net version of this last merchant I am adding here has substantial benefits that Google Checkout just doesn’t have integrated yet.

Apart from the numerous merchant versions you’ve seen stripped away across search engines while doing diligence for your store, “authorize” has up-sale capabilities that virtually aren’t popular or seen for Google Checkout. These are the facts!

However, you also need to remind yourself that when you’re starting an internet business and launching fast is a priority to you, the “keep it simple, stupid” famous phrase applies to anyone that wants simplicity. But if you want to do it correctly, right from the beginning, and you happen to have multiple items up for sale – get a programmer to do the dirty work for you in an adequate merchant account.

I mean, if you’re not an Einstein C++ or Linux, PHP look-alike geek or the likes from college A list, consider hiring someone who loves and has studied what he does best –it’s just marketing 101. So before you leave, get this two companies in your mind for long enough as they are two of the best ones you should also have in mind. I think my publishing space is limited? Have fun!

About The Author

Joaquin Reveron is a coach, mentor, speaker and online wholesale veteran. His focus online are on eBay and helping people create wealth through wholesale niche stores. He is also a wholesale powerseller and author of http://www.videogamesmystery.com

5 Steps to VoIP

2009-07-16T12:44:00.000-07:00

5 Steps to VoIP
by: Olivia Tan

So you’re ready to enjoy unlimited long distance calling and lower monthly phone bills. Well, before you make the switch, here are five steps that will help you get the VoIP plan that is best for you.

Make the Decision

Yes, it is new technology, and sometimes we are scared of the unknown. VoIP technology is on the rise and many high profile computer companies are already switching to VoIP and in return are becoming service providers. AOL, Sprint, and Verizon are offering VoIP as well as Internet Messaging services such as Yahoo, MSN, and AOL IM. First you must come to the decision that VoIP is best for you, your family, or your business needs. Research VoIP on the web and its providers. Talk to people that you know have already made the switch. Once you have made your decision to switch to VoIP, you are ready for the next step.

Choose the Plan that is Right for You

A good idea is to make a written list of your needs, wants, and features in a phone. This will help you compare different plans and choose the service provider that will best fit your needs. If you are looking for residential or business service, make sure that you note that in your list. Residential plans usually come in two forms- basic (which is a certain amount of minutes) and unlimited (which will give you unlimited local and long distance talk time). Business plans can include amenities such as multiple phones, greater minute talk time, greater unlimited calling plans, business features bundled with your plan, faxing and voicemail to your computer capabilities, and extras such as yellow page listings. Check with the company to find the plan that meets your requirements.

Setting up the System

Some service providers will send you the equipment that you need to begin using VoIP. You will first need to make sure that your computer system is compatible with the VoIP service. You will also need to have high speed Internet already installed with your computer. If you are using VoIP for a business or for a call center, it is best to leave the installation to a professional. Installing VoIP for a residence or home office is typically simple enough for most residents to do themselves.

Choosing your Phone Number

One of the best features that VoIP has to offer is the freedom to select your own telephone number. If you just want to transfer your old number to your new VoIP system, check with your service provider before making your final decision. Many VoIP providers will allow you to transfer your phone number.

If you want to select a different area code, this option has many advantages. First, for friends and family members who don’t have unlimited long distance calling, selecting the same area code as them can save them money. They will appreciate being able to call you as if it were a local call.

This strategy is also very beneficial for those whose businesses are targeting specific areas. Say there is a California company, yet they want to increase business in Tampa, Florida. By selecting the Tampa, Florida area code, they can increase sales and productivity by having a local number for customers to call. This also reduces the need for a toll free number.

Install your Features and Accessories

VoIP comes with many features included in your service plan. For residential customers these include Voicemail, Caller ID, Call Forwarding, Call Block, and Do Not Disturb. Always check with your service provider for a detailed listing of the features included with your plan. For Small businesses, amenities such as multi phone users, free fax lines, and integrating your VoIP and web features are all available. VoIP also contains many of the same features bundled with basic plans as well. When you are choosing a provider, compare their business plans and select the one that best fits your business needs.

As VoIP technology continues to advance, a new array of accessories appears on the market. Today you can choose from VoIP phones, headsets, and even VoIP videophones that work as a web camera incorporating video with your audio.

About The Author

Olivia Tan is co-publisher of All VoIP Solution. She provides tips and review on Voip conference software and Voip phone service.

allvoipsolution.com

IP Telephony, VoIP & The Syllogistic Fallacy

2009-07-16T12:38:00.000-07:00

IP Telephony, VoIP & The Syllogistic Fallacy
by: David Roberts

To the telephony novice, the world of modern communication can be an intimidating place. In a world so acronym-laden and thick with trade-jargon, it can be tough to know just what it is that you're reading about in the first place. If you're a small business-person, it's even worse (and let's face it, who else is reading this?): not only are you supposed to be familiar with these technologies, you're expected to be able to make informed decisions regarding their use and implementation.

Faced with the daunting array of telecommunications options, you've turned to that trusted informant and advisor of the contemporary techno-savvy citizen, the Internet. A quick search for 'IP Telephony' or 'VoIP' will reveal that it's easy to find virtual heaps of “information” about VoIP or IP phones (try it now!), but it will also present as many problems as it solves. On the one hand you've got the technical articles that immediately lose the reader in thick forests of acronyms that only the technologically initiated can sift through, and on the other (in much greater abundance) you'll get hundreds of thousands of matches (seriously, try it) which at best are links to places to buy something and at worst are thinly veiled advertisements, clumsily disguised as informative articles.

On the Internet, as in the rest of life, nothing is free. The problem is that every company would love for you to believe that the “quality” content they churn out is an act of pure altruism for the benefit of the consumer at large. I won't insult your intelligence by pretending that I don't have an ulterior motive. But today, friends, is your lucky Internet-browsing day! That fact that I'm not pitching any particular brand of anything gives me the rare opportunity to furnish information that I think you might actually find useful. Now that I've gained your trust, let me proceed.

So what exactly is IP Telephony, and how is it differentiated from VoIP? If you refer back to your hypothetical search, you'll find that most companies simply don't distinguish between the two – it's just another synonym that their copywriters can use to avoid using the term “VoIP” too often. But there is a difference. IP Telephony, in it's strictest sense, refers to the use of VoIP, likely in conjunction with other products and services, in a company's communications network.

Let me put it another way. If a company is advertising VoIP and raving about what it can do for your business, take a good look at what it is they're offering to sell you. All that VoIP means by itself is the capability to send voice data over digital lines. This could be as simple as a media gateway, or an IP enabled phone. IP Telephony depends upon VoIP, but VoIP is not IP Telephony.

Don't get me wrong - this is a powerful tool, but by itself it is by no means the business revolution that is so often billed. If all you're looking for is a way to cut down long-term telephone costs a little, that maybe all you need. Most companies, however, are looking for something a little more useful.

All the fancy extras that you'll hear about – vemail, virtual call centers, mobile technology integration, and so on – are actually facets of an IP Telephony platform. IP Telephony refers to the actual service – the package deal from a provider including software, hardware, and knowledge that gives you something more than an advanced phone or a specialized router. When you really think about it, the idea of a company offering to sell you VoIP is an absurd one. That would be like a company advertising TCP/IP or trying to sell the concept of packet switching.

Most websites advertising VoIP are simply trying to capitalize of off a trendy buzzword. It is rare to find an actual IP Telephony platform for sale other than the industry standard (which for reference is Avaya IP Office), though they do exist. One such is a small business-oriented virtual call center affair by the company GotVMail called VirtualOne.

But of course, it's not that simple. There is no standard differentiation in the terms observed by all technology providers (there seem to be few standards on the Internet at all), and this will inevitably lead to confusion. Many companies are as already noted simply trying to sell you an expensive phone by impressing you with the word VoIP, but some more legitimate businesses simply refer to their entire IP Telephony platform as “VoIP service.” Frustrating. It would be nice if we could trust companies to be honest with us, but it's simply not the case. In the end, the burden of research falls squarely upon the consumer. Good luck.

About The Author

David Roberts is a VoIP and technology writer for http://voip-avaya.com/ where he tries to inform prospective users of both the caveats and the advantages of the VoIP phenomenon.

VoIP and the Communications Industry

2009-07-16T12:37:00.000-07:00

VoIP and the Communications Industry
by: Bob Hett

Are you worried about the costly long distance phone rates? Do you want to find some ways on how to call your loved ones in a cheap way? Are you a student who finds it hard to make a call with your parents? Is your company paying too much for long distance call? Have you heard how VoIP contributes in communication business? The waiting is over, VoIP is the answer.

VoIP can eliminate all those expensive long distance rates. To further discuss, VoIP is the newest and most advanced audio communications technology.

VoIP stands for Voice over internet protocol. This latest communication innovation which has a variety of different applications and features in order to give a clear and affordable conversation all over the world.

How does VoIP work?

Many people are quite amazed on how VoIP works. Well, its features work on a revolutionary technology. It has a communication method that streamlines the sending analog audio signal. The signal is converted into a sound to be sent digitally over transmission lines through the internet.

According to the service providers of VoIP, by using this technology the user can have free “by minute charges”. That is one of the great things about VoIP plans.

If the “by minute charges” is consumed, the user will have to pay the monthly fee and make all the calls they want over the computer.

The VoIP procedure is very simple but an elegant and simplistic way of communication. It can be the greatest solution for long distance call problems that everyone is waiting for.

The VoIP works on several ways, in communication, like circuit transmitting, data pocket exchanging and retrieval of information by using the computer.

This communication system can also send the information by finding the open channels that are available rather than out-and-out lines. The information transmitted simply assembled at the source location. Comparatively VoIP works more efficient.

In order to be aware of how VoIP works, it is first important to know the basic concept of traditional analog audio communication. The analog audio communication can be very helpful in terms of VoIP communication.

The basic analog phone calls are actually made on the fiber optic communication network. These networks can make a voice communication by collecting voices communications. The voices are delivered directly to the destination, while the signals are also converted to analog.

VoIP can assure a cheap or even free telephone call for the users. For some companies, it also means generating income. This is good news for the companies who want to cut some of their expenses. Most of the companies spend thousands of dollars per year just because of long distance calls alone.

Now, if the company would like to have far-reaching consultation call, VoIP can make more sense when it comes to that issue. It can also combine conference options like sharing of documents and multiple conversations.

According to some statistics, most of the companies that patronize VoIP has earned 80 percent of its revenues compared to other telecommunication that only gives 55 percent.

The great shift of VoIP is starting to hit top rating national telecommunication industry and international mobile corporations.

As a conclusion, VoIP is indeed a very interesting breakthrough when it comes to communications. It is the most well-organized, accurate, efficient, and much less expensive way of talking to the people you need to communicate to. Why not try VoIP? It can be the answer to all of those communication hindrances.

About The Author

Bob Hett has extensively covered the VoIP Service Provider industry as an analyst and has researched the various companies for factors based on price, reliability, support and overall quality. Learn more at http://www.fullaccessinternet.com/voip.

VoIP is the Bell Killer; Small Business Owners Are Grabbing Lucrative Voice Services Market Share

2009-07-16T12:34:00.000-07:00

VoIP is the Bell Killer; Small Business Owners Are Grabbing Lucrative Voice Services Market Share
by: Martin OKeeffe

When I entered the fledgling cable TV industry in 1979, a newly minted college grad, I remember thinking, WOW, everyone should be in this business. Even discounting those ignorance-on-fire days, the feeling of being in an industry poised to take off like cable did is one I'll never forget.

It's the same feeling I have now, marketing the rapidly emerging broadband voice technology VoIP, and creating a vibrant new revenue stream for my business. Only this time, it's not a new product introduction - the residential, landline voice market in the US alone represents hundreds of billions of dollars in existing consumer spending. It's consumer spending previously held captive by a relative thimbleful of companies due to technology and regulatory constraints. Now this market share "deck of cards" has been tossed up in the telecom whirlwind, with enormous opportunities for individuals and small businesses to tap into huge, recurring, monthly income streams.

The market research firm IDC says more than 10 million residential phone customers are now using VoIP services, and it predicts that the number will grow to 44 million in 2010. The Harvard Business Review, in a recent article predicts not only rapid growth for VoIP but also profound, beneficial changes to the way businesses operate, as a result of VoIP deployment. The impetus for such a rapid, mass shift in market share is simple: Lots more features and functions for about half the price the Bells (over)charge for unlimited local & LD.

And it's getting bigger. My company is already marketing VoIP video phones, and flat-rate global calling plans that the big phone companies can only dream about. And we represent the only VoIP provider in the US currently offering VoIP service in Puerto Rico...WITH Puerto Rican phone #s. Also, right around the corner is IPTV, internet-based video entertainment which promises the same market share impact on the cable & satellite TV business.

Here's some of the things being said about VoIP:

"VoIP will irreversibly alter the world of communications. VoIP is the most significant paradigm shift in the entire history of modern communications since the invention of the telephone."

-- Michael Powell, Former FCC Chairman, Fortune Magazine - July 2004

"VoIP will be the largest transfer of wealth ever in American business history.

-- Business Week magazine, 2004

"There will be 50 million new subscribers to this service by 2008"

-- Harvard Business Review, September 2005

Want to learn more about VoIP? See how you can drastically reduce or even eliminate your phone bill. Plus, learn how to plug your existing business into, or create a new business around, these exciting new revenue streams, please visit http://www.voipaware.com. For a copy of the Harvard Business Review Article referenced above, please send a request to: 1voipgeorgia@comcast.net.

About The Author

Martin O'Keeffe is the founder & president of iMEDIAbuy, LLC, a telecommuniations consulting firm based in Atlanta, Ga.

VoIP Security

2009-07-16T12:33:00.000-07:00

VoIP Security
by: Peter Nisbet

VoIP security has been called in question recently, though there is little evidence to indicate that VoIP security is any less than conventional telephony systems.

VoIP voice data is transmitted via a packet-switched data network using IP. VoIP systems can carry a significant higher number of calls, and very much faster, than traditional PSTN networks due to compression of the voice packets, modern broadband technology and a number of other gateway developments which have reduced the previous packet delivery problems to an extent that the protocol is now a viable mainstream telephony solution to most business needs.

VoIP security should therefore be shown to be at least as effective as that of traditional telephone systems.

There is actually very little difference between VoIP security and that required for any other type of data transmission system. Look on it the same as you do your email system. The same as your office LAN if you have one. You probably have a system in operation whereby only authorized personnel can use certain aspects of the network. VoIP security can, and do, use the same techniques.

However, having said that, let’s have a look at potential weak points in VoIP security that budding hackers may see as good points of attack.

IP PBX CALL MANAGEMENT BOXES

PBX stands for Private Branch Exchange, and is piece of software running on a server. It’s function is to deal with all the switches and connections involved in the telephone system. These can be attacked by hackers or viruses which could compromise sensitive data. VoIP security systems are designed with this risk in mind.

PBX equipment should be placed behind firewalls, locked down and regularly monitored for unwarranted intrusions using intrusion-detection software. It is also possible to put the server in a different domain from the rest of the system, making it much more difficult for intruders to reach. PBX security is a basic aspect of VoIP security systems

GATEWAYS AND DATA PACKETS

The gateway’s job is to convert voice to data packets, transmit them then receive and convert the packets back into voice. These are a potential VoIP security risk in that thy can be hacked into unless there is an access-control system in place to prevent unauthorized people from accessing the system. VoIP calls should only be permitted to specific people, and most good VoIP security systems allow only authorized user to operate VoIP systems under password control.

The data packets themselves can be hacked into using data-sniffing techniques. This can be a serious VoIP security risk and packet sniffers, as they are often called, capture binary data passing through your network and can reroute it to a computer on another network for decoding into a readable form. In order to do this, the ‘sniffers’ has to be on the same network wire as the packet is using to reach its destination. The problem in installing an effective VoIP security system is that there is usually a lot of information passing at any one time, and the hacker has a higher probability of getting useful information than from a conventional telephone system.

Encrypting VoIP traffic and routing it through a virtual private network would reduce the VoIP security risk, and most corporate systems have multiple encryption layers for external messages. Internal security could be improved by running internal VoIP messages through this corporate network. Small businesses should seek the advice of their supplier, or of a security expert if they feel that they may be subject to such attacks.

However, VoIP security advisors can point small to medium companies in the right direction. Corporate VoIP security is generally not so much problem in that it is normally contracted out to expert advisers.

In the final analysis, however, there are no real differences between VoIP security and the normal security concerns associated with any data network service, such as normal office internet and email LANs. The security firewalls and restricted access to use, common on these systems, should suffice to deal with VoIP security

About The Author

Peter Nisbet is an industrial research chemist with almost a fixation with data transfer systems, starting with audio and video file formats and codecs, and here with telephonic transmission systems which allow what is commonly known as VoIP. His fascination with subject is obvious from his website: http://www.data-voip-solutions.com

VoIP Is it Legal?

2009-07-16T12:27:00.000-07:00

VoIP Is it Legal?
by: Lisa Kaye

I have been in telecom for 12 years and for 12 years I have spoken to my mom at least once a week if not more. She always asks me how is work? Are you still doing that little telephone thing? About six months ago she called me up because she had heard something that may be of interest to me on her talk radio program earlier that morning. She did not want to forget to ask me about it so she wrote it down, (my mom will not call before 5 because she still believes the calling rates go down in half after 5), but she can’t seem to find the paper she just had in her hands- she asked if I could hold a minute. After I hear the rotary phone hit the counter and a bunch papers rustling- she gets back on the phone with her revelation. She is going to spell it for me and she wants to know if I am ready to write it down.

They say the definition of insanity is doing the same thing over and over again….expecting a different result. So here I am insane and armed with a pen she starts to spell it for me V-O-I-P. VoIP….. My mom wants to know if I have ever heard of it. I respond with a yes mom that is what I do. She responds with an OK I just wanted to make sure you knew about this new way of calling. They say it is really going to become popular. On that note I shifted the conversation.

Time passed and two weeks ago I called my mom and I got the where have you been? Working mom on a product for small businesses that already have an existing phone system and want to use VoIP. I proceeded with explaining how it will save companies a lot of money on their monthly phone bills and in some cases up to 70%. She responds with “Well Lisa, VoIP- now is what you are doing legal? I was stunned and amused so I responded with well mom I guess I will be find out soon enough if it is legal. It is not like I live a life of a criminal, but as far as my parents and their age group 60-80 if it is new and innovative……it is probably illegal or a scam.

Senior Citizens are the fastest growing population in America accessing the internet today. They also have the most discretionary income. The VoIP providers are really missing out on this market by not educating seniors about VoIP and the amount of savings they can save a month or annually on the phone service.

So as it stands now my mom thinks I am a thug, but the good news is she sent me a clipping from one of her magazines with a little note attached that read Google have you heard of them?

About The Author

Lisa Kaye has been in telecommunications for 12 years.She's the V.P. of Marketing and Agent Development for http://www.telecomarena.com.

How To Compare Residential VOIP Offerings

2009-07-16T12:25:00.000-07:00

How To Compare Residential VOIP Offerings
by: Jon Arnold

Many people are turning to VOIP phone for several different reasons, the biggest reason being cost. The landline telephone has been in existence for one hundred years; however, many people are finding that VOIP offers a great deal more, for a great deal less. There is one requirement though, you must have a broadband connection, otherwise known as a highspeed Internet connection. While there are some minor differences between the traditional telephone and a VOIP phone, many people simply enjoy the money saving features.

What cost savings you say? With a VOIP phone (using your highspeed Internet connection to make and receive phone calls), you can make unlimited local and usually also unlimited long distance calls in the continental US for one price, where that one price is frequently less than the cost of just getting a DIAL TONE from your local phone company. Is it starting to make more sense now?

With VOIP, you receive comparable reliability and quality of traditional telephone service without all the added fees we tend to experience from our phone company. Have you ever opened your bill and noticed the big jump in cost? Here is a personal example, this writer has experienced with a local telephone company. I simply have a phone, yes some of the perks as well, such as call waiting, call waiting plus, caller ID, and caller ID plus. When I ordered the service, of course it was all conveniently placed in a package that was to cost me $35 a month. Imagine my surprise when I open my phone bill and it was $89 for the month, that is just the phone, does not include the cost of internet, which put the bill over $100.

Now you are probably thinking well long distance calls will do that. Yes, it would, except I purposely do not have long distance on my telephone, so that was not the case in this scenario. I had a ton of hidden charges for this, that, and everything else. Now with a VOIP phone, it hooks up directly to your internet connection, and most VOIP providers offer several different packages that are designed to fit both your needs and your budget. For example, one company offers unlimited long distance calling, local calling, plus all the perks such as E-911 service, voicemail, caller ID, call waiting, Call forwarding, 3-way calling, and such others, for only $24.99. That is your bill, one flat rate each month. Tell me, which you would rather pay, $89 a month or $24.99 for just about the same service. The choice is clear.

When considering a VOIP phone it is important that you do some comparison shopping. The internet is full of fabulous deals from VOIP providers and it is important that you take a look at the various companies and find the one that fits your needs, as well as your budget. Another thing about VOIP is that you can choose from several different packages with each provider. Some may include a VOIP phone line with long distance, without long distance, or for multiple phone lines, perfect for kid’s phone or a home office.

There are some disadvantages to computer engineer. For example, your fax machine may not work reliably over the VOIP. Furthermore, if you have satellite internet within your home, you may find that the VOIP fails to work in a reliable manner as well. It is very important that you do your homework, finding out exactly what options you have, and what works best for your specific needs.

About The Author

Jon Arnold is a computer engineer and long-term world traveler who maintains many websites to pass along his knowledge and findings. You can read more about VOIP and a comparison of popular VOIP offerings at his web site at http://www.voipinsideinfo.com

The Real Top Ten Reasons Companies Are Switching To Voip

2009-07-16T12:22:00.000-07:00

The Real Top Ten Reasons Companies Are Switching To Voip
by: Lisa A. Kaye

1. Lower Total Cost of Ownership (TCO) for new businesses or businesses in need of replacing their existing phone system. With a Hosted VoIP PBX companies get full use of a PBX without the costly expense of equipment, upgrades and maintenance. Small businesses can have the appearance of a large centralized business with a Hosted PBX by utilizing the span of features available.

2. No need to purchase new equipment or lose your investment in your current legacy system. VoIP providers over the course of time have spent so much in product development of their Hosted VoIP Solution that many of them are not offering SIP Trunking and many businesses do not realize the benefits of SIP trunking. SIP trunking allows businesses to keep their existing analog PBX and telephones.

3. Lower Monthly Recurring Charges. Bundling voice and data on to one network provides one solution, one bill and one provider. Most VoIP providers offer unlimited local and long distance calling and a good bundled solution should also provide a fast business class internet connection. The benefits to bundled services are that it maximizes the dollars a small to medium size business is spending on telecommunication services.

4. Over 70% of traditional phone bills are wrong. VoIP customers know ahead of time every month exactly how much their bill is going to be for all services except international calling. There is very little room for billing errors and crammed bills full of services not requested or required.

5. Cuts Operating Costs. VoIP solutions are software based and is easily updated, changed and expanded without further capital expense. The hosted PBX is completely maintenance free because there is no hardware. It is a virtual system. Unlike conventional legacy phone system that is hardware based and are expensive to make changes and require costly equipment purchases to expand calling capacity.

6. Streamline Communications. With VoIP companies can take advantage of simple 3 digit transfer to any supported property or office. No matter if one office is in Boca Raton and the other office is in New York the call is transferred as if they were in the same building. Furthermore businesses can consolidate call answering from a central location too. Eliminate the need and responsibility of every office location having to manage their incoming calls with centralized call answering.

7. Disaster Proof a hosted PBX phone system coupled with an IP telephone is disaster proof. Companies lost several thousand dollars because of the loss of communication during and after the hurricanes. The PBX is hosted off site in a secured facility with multiple back up systems and reroutes.

8. QOS stands for “Quality of Service” gone are the days of dropped unclear calls. Business class VoIP maintains a high QOS and technological advances in IP telephony transportation have made Internet calling as good as or better than normal PSTN connections. This is true for high speed Broadband connections and dedicated internet connections, whereas dial up services have some way to go before delivering the quality of PSTN calling.

9. Hybrid VoIP Solution. There are a few VoIP providers that deploy a hybrid VoIP solution that automatically reserves or routes resources for optimal bandwidth allocation. The system automatically ensures that the VoIP call has the bandwidth needed allocated from point to point before the conversation takes place. The second is prioritization: Here, the end point suggests a priority on the packets and each router decides if it will honor this request or not. Voice will always take a priority over data. A hybrid solution furthermore distributes the bandwidth that on a traditional system is not dynamic or flexible.

10. Multi Layered Security Unlike traditional service VoIP attacks are prevented because of the multitude of layers and encryptions placed within the provider’s networks. The layered security approach not only prevents attacks, but the probability that if broached it will meaningfully reduce the probability that the attack succeeds.

About The Author

Lisa Kaye has been in Telecom for 12 years and is currently the Director of Operations for http://www.intralinx.com who has recently launched a low cost Red Bundle Box VoIP Solution for small to medium size businesses.

To VOIP or not to VOIP- that is the question!

2009-07-16T11:22:00.000-07:00

To VOIP or not to VOIP- that is the question!
by: Dottye Blake

I used to love the TV commericals that Vonage, a well-known provider of VOIP or Voice over Internet Protocol telephone service. My favorite one was the one with the rocket that went berserk and flew all over, with people dashing around madly to get out of the way. I watched the wayward rocket totally mesmerized, and then started laughing so hard when the Vonage theme music started playing that I almost fell off the couch! I liked the one where the photographer fell into the fountain, too. I wish Vonage would bring those commercials back- the ones that they show now are so dull in comparison. Most of these ads try to sell their calling services based on how much cheaper they are in comparison to traditional telephoning plans. They also discuss quality and clearness of telephone calls. If you are smart, you have, in all probability, questioned how much of this is honest information and how much is hype.

VOIP or Voice over Internet Protocol is plausibly one of the most radical advances in the telecom industry. It permits you to speak to another person on the other side of the world by employing a digital network connection precisely the same way that you get e-mail or surf internet sites. Due to the fact that your voice is changed into a digital signal, it can be transmitted around the block, on the other side of the country, or around the world for exactly the same price. For VOIP telephone calls, the idea of long distance does not exist. A single basic benefit is its low-price. If you have a fast Internet connection (DSL or cable), you can make computer-to-computer telephone calls anyplace on the globe FREE. Computer-to-phone telephone calls normally have a fee, but are usually still less expensive than typical telephone service. Perks like call forwarding, call waiting, voicemail, caller ID and 3way-calling, are packaged with VOIP telephone service at no additional fee. At the same time you are speaking on the telephone, you can transmit graphics and documents.

VOIP telephoning plans are available in two types; bulk rate pricing and unlimited calling. Bulk rate pricing permits you to receive a monthly ration of minutes to telephone anyone you desire (similar to your cellular telephone ). If you exceed your monthly limit you will receive overage fees. Unlimited calling is precisely the way it is meant- you have no cap on the number of telephone calls you can dial. Limitless telephoning packages start at $35 a month depending on the VOIP service supplier and the extra perks included with your plan. Unless you are making many telephone calls or the limitless telephoning plan is very cheap, bulk rate pricing is normally a more beneficial choice.

Like cellular telephones, VOIP companies permit you to “port” or bring your existing phone number with you into their company. This is very handy since you will not need to advise your friends and family that you have changed your telephone number. Presently there is no law that VOIP suppliers must permit you to take your number with you if you are not satisfied or wish to switch companies. A few of them will, others will bill you an extra charge, and some will refuse to cooperate with your wish. Make sure, then, to take a look at this prior to putting your signature on any contracts.

Another benefit is its flexibility. You can make and get telephone calls as long as you have access to a broadband connection by just logging in to your VOIP account. Because of this factor, using VOIP is as easy as sending e-mail. While you are vacationing, you just take a headset or Internet phone with you; then you can speak to family or colleagues virtually for free.

Phone-to-phone VOIP is also portable. VOIP telephones are pocket-sized and light enough to take anyplace. Once you contract with a VOIP company , the Internet phone or adapter employed by that company is given a unique identification number. This 'phone number' stays valid, even if your VOIP company is in New York and you're connected to the Internet in Tokyo. While connected to a broadband connection, anyplace on the planet, you can make and receive telephone calls just like you were sitting in your own living room .

There are a few bugs that still make a negative impression with VOIP being more popular with the public. Lack of uninterrupted telephone service during power failures and problems with 911 emergency calling make up the 2 largest stumbling blocks.

Traditional telephone service keeps going due to the electric current running through the phone line at the time of a blackout. This is not possible with VOIP telephones. At the same time that the electricity fails, there goes VOIP service. Battery backups and electric generators that furnish power are the present-day answers to this dilemna.

A huge headache involves emergency 911 telephone calls. VOIP services usually aren't useful in emergencies. Traditional telephone gear can trace the locations of telephone calls. Emergency calls are channeled to the closest call center where the operator can distinguish your location, in case you are unable to talk. With VOIP, at this time there is no way to figure out the location from which Internet calls are coming. There is an emerging standard called e911 however, which is trying to resolve this restriction.

VOIP also has voice quality and reliability issues. Data sent through the Internet normally reaches its destination scrambled. E-mail and text files can be reassembled in the proper order when it arrives. Voice data also comes in scrambled, but it's more difficult due to the real-time nature of VOIP. Many data bundles may have to be unloaded when they don't make it in time, in order to make voice connections with the smallest time lag. This can create quick silences in the audio flow.

Space and speed of the connection specify the quantity of data dropped. Many networks get more traffic and therefore are more likely to create audio dropouts. One way to supply superior caliber audio connections is to produce dedicated data routes.

With the unbelievable amount of work committed to VOIP, these bad aspects will certainly be settled withinin the next 2 years. It is forecast that by then VOIP will be better accepted by consumers far and wide.

Please visit VOIP Made Easy http://www.computingninternet.com/2817

About The Author

Dottye Blake is an Educational Consultant and an Internet Marketer.

Please visit http://www.computingninternet.com/

Choosing a VOIP Provider For Your Home: Points to Consider

2009-07-16T11:18:00.000-07:00

Choosing a VOIP Provider For Your Home: Points to Consider
by: Costas Kariolis

If you’re ready to try VoIP for your home, there are several points worth thinking about before you choose your VoIP provider. That way you can be sure you pick the set up that’s right for your family’s needs and your particular set-up.

Do you already have broadband?

You need broadband at home in order to be able to make phone calls using VoIP technology. It’s a good idea to make sure you know whether it’s cable (such as Virgin) or ADSL (such as BT), as this may affect your options.

Do you want to make calls from your PC? Or from a regular telephone?

You can make free PC-to-PC calls if you use a VoIP provider such as Skype. This might be just right for you, as long as you don’t mind being tied to your computer. The person you’re calling must also have broadband, must also have signed up to the same provider, and must also be at their computer. This set-up suits many people. You can also make calls from your PC to other people’s phones, but you will be charged for these. And you will still have to be sitting at your computer, of course.

Alternatively, you can choose to make VoIP calls using your existing telephone (phone-to-phone). This is simply a matter of connecting your telephone to your computer, using an adaptor that the VoIP provider will send to you. This kind of service is not free – you usually pay a low monthly subscription. What you typically get in return is unlimited anytime calls to landlines in countries listed in the call plan you’ve chosen.

Which VoIP providers are popular and reliable?

The chances are that broadband telephony will become the way we all make telephone calls. VoIP has been around for a while, but it’s only recently that it’s started to become mainstream. So you want to be sure that your provider is reliable and experienced. Take a look at customer reviews and feedback, as these will often tell you a lot about the provider.

What is the customer service and technical support like?

Find out whether you can get help and support, from a real person, 24/7. Do you have to pay for this, should you need it?

What call plans do the VoIP providers offer?

Think about the calls you and your family need to make. Are they mostly to UK landlines? Do you regularly call other countries? Or are most of your calls to family and friends in the US and Canada, or in India? Check that the VoIP provider offers a call plan that suits your calling habits.

What about calls to countries outside your call plan?

There’s no point paying for a call plan that includes a ton of countries you rarely call. Check the VoIP providers international call rates. These are usually pretty competitive, so you may be better off going for a call plan that covers the countries you call most frequently, and then paying for the occasional call outside that separately.

What’s your budget?

When you make phone calls the traditional way, using a landline, you pay for the landline rental itself, plus the cost of any calls you make, usually by the minute. This means that people rarely know what their bill is going to be. VoIP providers work very differently. Once you’ve signed up for a particular call plan, you can make unlimited calls to landlines in that plan. No nasty bill surprises: you know exactly what your bill will be, as long as you stick to the destinations in your plan. And that helps with household budgeting, of course.

Are there any hidden costs?

Check what else you may be expected to pay for. Look, for example, for set-up fees, administration fees, cancellation fees/policy, refunds policy, equipment costs etc. Does the VoIP provider try to hide these? Or are they clearly spelled out, which suggests that the provider is committed to transparency?

Do you want VoIP as your only line? Or do you want a second home line?

If you’ve got cable, such as Virgin, then you can cancel your Virgin phone line without losing your broadband connection. That is, you stop paying cable line rental and simply start making all your calls via your new VoIP phone service, using your existing broadband connection. If you’ve got ADSL broadband (such as BT), then you won’t be able to cancel your phone line, because it would terminate your broadband connection. You can still, though, enjoy substantial savings by setting up a second line with a VoIP provider and use that to make most of your calls.

What features do you need?

Does the VoIP provider offer all the features you need? Think about facilities such as caller ID, call waiting, voicemail, 3-way calling, ringback etc.

Can you transfer (also known as port) your number if you want?

Will the VoIP provider allow you to keep your original telephone number? How does this process work?

Can you choose a dialling code that’s local to you?

If you decide to go for a new number, or a second line, can you choose an appropriate dialling code?

What if your broadband goes down?

Be aware that if your broadband connection is lost, however temporarily, you won’t be able to make VoIP calls during that period. Think about what your back-up would be, particularly if you needed to make emergency calls, or someone was trying to contact you. Have you got a mobile?

If you’ve considered all these points, you’re ready to go ahead, choose a and start saving money by making calls through your home broadband.

About The Author

Costas Kariolis – Online Marketing Manager of Vonage UK (http://www.vonage.co.uk). Vonage are leading low rate VoIP providers for home & small business users. Offering cheap phone calls and free international calls to landlines via an internet phone service for a set monthly fee.

Checklist: How to Choose a VoIP Provider For Your Small Office, Home Office Business (SOHO)

2009-07-16T10:47:00.000-07:00

Checklist: How to Choose a VoIP Provider For Your Small Office, Home Office Business (SOHO)
by: Costas Kariolis

Once you’ve decided to use VoIP for your Small Office Home Office, it’s time to get set up. You’re probably keen to get going, find a VoIP provider, and start saving money on phone calls. It’s a good idea, though, to take a little time to consider some of the points on this check list. That way, you can be sure you’ve chosen the VoIP provider that’s best for you, and best for your business.

Who are the best established VoIP providers?

VoIP isn’t new technology, as such, and though broadband telephony is likely to become the way we all make telephone calls, you want to be sure that your provider is reliable and experienced.

What’s your existing broadband infrastructure?

Make sure you know how your existing broadband works. Is it cable (eg Virgin)? If so, you could cancel your cable telephone line entirely without affecting your broadband connection. If it is ADSL (eg BT), however, you can’t cancel your phone line because you’ll lose your broadband, too. You can, though use a VoIP phone line as your second phone line which you could use to make your business calls.

Do you need just one line, or two?

If you work from home, either all the time or part of the time, you may want to separate business from private telephone calls, so a second, cheap VoIP phone line might make more sense, especially if your business is growing or likely to grow.

What features will help?

Will your customers be able to get hold of you whenever they need to? Check that the VoIP provider offers inclusive features such as call-forwarding, three-way calling, ringback, do not disturb, call waiting or voicemail sent to your email address.

Call plans.

Think about what you need in terms of the business calls you make. Do you call mostly UK numbers? Or do you need to call other European countries, or mostly the US? Look at the call plans the VoIP offers. Is there a good choice? Is there one that suits you? Are calls to mobiles included?

What exactly does ‘unlimited’ mean?

Make sure you understand exactly what the VoIP provider is offering. If it says ‘unlimited’, does this mean that the calls really are unlimited to the countries listed in your call plan? Most VoIP providers will have a ‘fair usage’ policy. That is, they will give you have a generous allowance of free minutes, say 2000 (about 33 hours a month). What is the VoIP’s allowance? Is your SOHO likely to use more minutes than that? What will you pay if that happens?

What will you pay if you call countries outside your plan?

Check what you’ll be charged if you call countries outside the call plan you’ve signed up to. VoIP usually offer very competitive rates, but it’s a good idea to check. If you think you may make regular calls to a country outside one call plan, it may be a good idea to see if there’s another call plan that includes that country.

What do its customers say?

Try and find some of the customer feedback about the VoIP provider. Reviews from customers, either satisfied or disgruntled, will often tell you a lot about what you need to know about a company in terms of reliability, customer service, technical support, customer satisfaction etc.

What are the extra costs?

As well as the advertised monthly call plan, make sure you know exactly what else you might have to pay for. The VoIP provider may, for example, charge a set-up or administration fee, a line activation fee, a cancellation fee. There may be charges for equipment, too, though some of it may be free.

Is the VoIP’s website clear?

You don’t want to have to root through a website to discover hidden charges and the small print. A well written, professional, clear website, with all the charges clearly set out, is a sign that the VoIP provider is committed to professional transparency.

What’s the support like?

A phone line is one of the most crucial elements of any SOHO. So it’s a good idea to make sure that the VoIP provider offers technical support and customer service 24/7. Can you always get hold of someone if you need to? Do you have to pay for this?

What add-ons do they offer?

If or when your business starts to grow, can you adapt your VoIP phone system accordingly? Find out whether the VoIP provider offers add-ons such as a second phone line, a fax line, or the ability to make calls from your laptop.

Can you keep your number?

If you’re starting up in business, it may make sense to get a whole new business number. But if customers already use your landline number, you may want to keep that. Check that the VoIP provider offers the option of ‘porting’ your existing number to your new VoIP phone provider.

Can you choose a dialling code?

You may want a VoIP telephone number that’s local to you. Or you may want one that’s local to your customers. Either way, find out what the VoIP offers in terms of choosing dialling codes, and check that the code you want is available.

What about emergencies?

A final important consideration is to think about how your business would cope if your broadband connection went down. If that happens, and your VoIP telephone is temporarily out of action, you need to make sure you have a back-up plan (such as a mobile), particularly in case of critical business calls or even calls to the emergency services.

Once you’ve been through this check list, you should be ready to choose your VoIP provider. It shouldn’t take long to get your VoIP phone line set up, and then you’ll be ready to start saving money by using your broadband to make and receive business calls.

About The Author

VoIP (Voice Over IP) Explained

2009-07-16T10:42:00.000-07:00

VoIP (Voice Over IP) Explained
by: Costas Kariolis

Telephone calls through broadband: this is the future of telephony. Voice Over Internet Protocol (VoIP) technology represents a revolution in the way we communicate. Here’s an outline of three of the most common ways that VoIP can be used to make cheap phone calls.

You’ve probably heard about new technology that allows people to use broadband to make cheap phone calls. Perhaps you already make calls or video-calls yourself from your computer. Whatever you know already, it helps to have a clear, basic grasp of how this exciting new generation of telephone services works and how it can be used.

The technical name for making cheap phone calls using broadband is ‘Voice Over Internet Protocol’. Some people call it ‘Voice Over IP’, or even ‘VoIP’ (say “voyp”). Perhaps you’ve heard of ‘VoIP phones’. VoIP is, basically, the umbrella term for the technology for making telephone calls using the Internet and broadband. It uses audio systems to encode speech in a way that means that it can be transmitted digitally over an Internet Protocol network.

There are many ways of using VoIP technology and a broadband connection to make phone calls. Here are three of the most common.

1. PC to PC

The first, simplest and typically free way to use VoIP is ‘PC to PC’. For this, you’ll need to be at your computer, as will the person you’re calling. You’ll also both need a headset/microphone/speaker. And you’ll need either USB VoIP phone, which plugs into your computer’s USB socket. If you don’t have that, you can install or download a piece of software called a ‘softphone’. This allows VoIP calling without dedicated equipment. Though this is undoubtedly the cheapest way to make VoIP calls, the call quality is often not great. And you’re tied to your computer.

2. PC to Phone

The second popular way to use voice over IP is by using your PC or computer to call a normal landline or mobile phone. The advantage of this is that the person you’re calling doesn’t need to have signed up with the same service, doesn’t need all the equipment etc. You, though, will be charged for these ‘outage’ calls. And you are, as above, tied to your PC.

3. Phone to Phone

A VoIP provider sends you a VoIP adaptor. You use this to connect your normal digital cordless (‘DECT’) telephone to the broadband modem / router on your computer. Once you’ve installed the VoIP provider’s software (this converts the analog signal to a digital one), you continue to use your phone exactly as before, using your existing broadband connection to make cheap telephone calls. To call, you pick up your existing digital cordless (DECT) phone and dial as normal. Your computer doesn’t even need to be switched on. When their phone rings at the other end, they answer as normal.

The beauty of this final method of using voice over IP is that your computer doesn’t even have to be switched on for you to use the VoIP technology and broadband to make calls. The person you’re calling doesn’t have to have signed up to the same VoIP provider. Nor do they need to have broadband, or be at their computer. In fact, they don’t even need to have a computer.

So there it is – three of the most common ways in which you can now use VoIP technology to make cheap phone calls.

About The Author

Costas Kariolis – Online Marketing Manager of Vonage UK (http://www.vonage.co.uk). Vonage are leading low rate VoIP Providers for home & small business users. Offering cheap phone calls and free international calls to landlines via an internet phone service for a set monthly fee.

VoIP – The Perfect Way to Make Cheap Phone Calls

2009-07-16T10:36:00.000-07:00

VoIP – The Perfect Way to Make Cheap Phone Calls
by: Costas Kariolis

Making calls through broadband, using VoIP (Voice over Internet Protocol) technology, tends to work out much cheaper than using conventional phone companies. Here are the main ways in which VoIP providers can keep their own costs low – and thus pass on savings to broadband phone customers.

There are several ways that you can save money by using VoIP to make phone calls. It depends mostly on the type of broadband connection you already have, and how a broadband phone might best fit into your life.

No line rental (cable broadband customers)

The biggest savings will be for people who have the newer, fibre optic based cable broadband technology. In the UK, Virgin is the main supplier of cable broadband. With this, your cable broadband is totally separate and independent from your phone line (which may or may not be with the same company). So you can cancel your phone line at any time without affecting your broadband connection.

This means that you can easily switch to making all your calls using VoIP technology (over your cable broadband), and cancel your old phone line completely. You’ll make savings instantly, because you will no longer have to pay for line rental, which can be upwards of £10 a month. And that’s before you’ve even picked up the phone to make your first call!

A second line for cheap calls (ADSL customers)

Alternatively, your broadband may be the older ‘ADSL’ copper-based technology. BT, for example, uses this. If this is the case, your broadband connection comes through your provider’s telephone line. If you cancel your landline, you’ll lose your broadband connection, too.

If you have ADSL broadband, you can however still enjoy substantial savings by using your broadband to make phone calls. You could, for example, use VoIP to call PC to PC. In this case, most of your calls will be completely free. If you call from your PC to another landline, you will probably pay for the calls. The tariffs, though, tend to be significantly cheaper than those levied by traditional phone companies.

But you’ll probably make the greatest savings by using VoIP as your second phone line – and use that to make your main landline or mobile calls. You could either use it as a second family line, for example, or keep it for business, or start using it to make all your calls. You’ll still have to pay for your line rental with your existing provider and your ongoing broadband costs , but, once you’ve set up your second phone line, you can use that line to make much cheaper calls.

Unlimited anytime calls

VoIP providers offer various packages of different country bundles. Each, though, for a low, set monthly fee, allows you to make unlimited anytime calls to landlines in the countries listed in your bundle. This means no more clock-watching, no waiting until a certain time to pick up the phone, no nasty phone bill surprises.

Traditional phone companies, by contrast, have a range of tariffs (often rather confusing). They may charge different rates for day, evening and weekend calls, for example. And they typically charge by the minute. That is, the longer the call, the higher the charge. Broadband phone providers don’t do this. You just pay your set monthly fee, and that’s it.

Free call features

Traditional telephone companies usually offer 3-5 call features. If you want to set up any other features (such as call divert, caller id or caller waiting), you will be charged. VoIP providers typically offer all the same features, and more, for free.

So whatever your existing broadband set-up, you can make significant savings by using voice over IP to make most, if not all, of your phone calls.

About The Author

Use of VOIP for Businesses

2009-07-16T10:31:00.000-07:00

Use of VOIP for Businesses
by: Mukti Sharma

The benefits of VoIP for businesses are unlimited but much depends on company's current situation, current voice requirements and future plans. Lets just go through various scenarios where VOIP can be beneficial for businesses

1) Relocating to a new office

If you don't have any pre-existing infrastructure to worry about, fitting up a new office is the perfect opportunity to implement VoIP, regardless of your voice requirements because you have to fit out a network infrastructure anyway, no matter how basic. If you followed the traditional model of voice/network infrastructure, you'd have to cable everything up for network communications and lay a separate run of cabling for voice communications. Not to mention the cost of either a dedicated line to the exchange, or a trunk line and local PBX.

2) Existing single office with no PBX

This scenario fits the description of only the smallest of offices with perhaps only one incoming line, much like a residential connection. The benefits of VoIP here are not clear-cut. If you have an Internet connection, it would certainly be worth considering approaching the ISP to see what broadband VoIP deals they can offer. This would give you the flexibility to have multiple handsets on the one line or even a VoIP-capable mobile running off a wireless network. However the decision is more likely to be made on the grounds of functionality and consolidation rather than cost. The cost differential between traditional voice and VoIP is likely to be negligible.

3) Existing single office with a local PBX with single trunks

If this is the case then stick with what you have for the time being until it's time to upgrade, and then future-proof your requirements by spending the money on VoIP. Until that time it's unlikely to be worth the cost. If you're not satisfied with the current system and were looking at upgrading anyway, VoIP is definitely a good move. You'll still need the trunk to the exchange for PSTN connection, but you'll get the internal benefits of running VoIP.

4) More than one office with local PBX at each and multiple trunks

This is a scenario where VoIP truly shines. Each office has a requirement for a local PBX to minimize costs and meet internal voice requirements and as already mentioned, even a VoIP-enabled system eventually requires access to the PSTN. But what you can do is leverage off each office's Internet connection to set up VPN's across the WAN links between each office, effectively making them part of the same network. Upgrade each office to VoIP, have one office hosting the trunk to the PSTN, and route all external calls through this one connection. Slash costs and make every employee's extension effectively internal.

The wonderful advantage of voip is that if a device fails, it's relatively easy to bypass it just by pointing the servers to another gateway and have them disseminate the information to the client machines, plug cables into another switch, rig up a temporary wireless connection, hang a cable from the ceiling anything works. Upgrades are easy and are often done entirely in software so no new hardware required, and telephony capabilities are much more dependent on the individual handsets. By comparison a telephone network is static, inflexible and relies almost totally on the switching hardware for capability and capacity.

About The Author

Author is an expert in the field of VOIP for businesses and the CEO of ITboons more information on this topic is available at http://www.itboons.com/voiceanddata.html and if you need further information please visit the website http://www.itboons.com/networkinstalationsupgrades.html

VoIP Technology: The Most Popular Questions And Answers

2009-07-16T10:23:00.000-07:00

VoIP Technology: The Most Popular Questions And Answers
by: Milad Mir

VoIP Technology: the most popular questions and answers

Introduction

The technology of voice transmission on IP-network (Voice over IP, VoIP) is interesting for many. But what else, because almost every need inexpensive or even completely free calls around the world. Like any new technology, for VoIP there is a lot of questions. For many it remains a "white spot". In this article we will explain what is VoIP and answer the most frequently asked questions.

What is VoIP?

Speaking in simple language, VoIP - a technology that allows voice to negotiate via the Internet. Use VoIP to pay less for Your international calls. For example, a well-known system of Skype, offers calls from anywhere in the world to any other in the average price of just 2 cents per minute. Or many VoIP providers offer unlimited VoIP calling plans to US and Canada.

What is the difference between Device to phone from PC to Phone service?

In the case of device to phone You will use a VoIP telephone or a special adapter, connected to the Internet, but in the case of PC to phone, a special computer program running on a PC or laptop, and so, to make calls You need a computer and Internet access.

You can mak Unlimited free calls to India (PC to PC) using Skype.

Is it possible to use the equipment of a VoIP provider to work with others?

Most often it is impossible. Most VoIP-providers from around the world, such as Vonage, AT & T CallVantage and Verizon Voicewing, blocking equipment for use only in its own network. Some providers offer to lease their equipment.

Instead of VoIP, running on the PC, such as Skype and Yahoo Messenger, do not require any special hardware. Anyone can use any number of VoIP services from one computer.

What are the VoIP requirements?

For any VoIP requires a broadband connection to the Internet (Land line, ADSL, etc.), and the faster will be the channel, the better voice quality. Note that for one user to connect at speeds of 256 kbit/s for incoming flow, and 128 kbit/s for outgoing would be sufficient. If multiple users, the channel will expand.

Hardware Requirements are not so rigid, enough virtually any PC purchased in the last two years (or even older). Of course, the requirements may vary for different providers. Naturally, you need a sound input device (microphone) and output (headphones).

Traffic figures

Many VoIP providers are using the codec G.711 with a sampling of 20 milliseconds, while generating a stream of 64 kbps. Here adds headers IP, and the flow increases up to 71.6 kbps. If you connect to the Internet uses a technology Frame-Relay DSL (or cable modem), the flow increases up to 81.6 kbit / s, and if the ATM DSL (a popular option), the flow increases to 106 kbps. Note that this flow is in each direction, in order to hear and to speak (that is outgoing and the incoming stream to the Internet connection).

About The Author

Milad Mir has worked in communications sector for over 4 years. He is the person behind az-voipproviders.com A website to compare VoIP Providers and a list of Voice over IP Providers.