One more question...
Before going to Cypress or Gibraltar, opening bank accounts, closing bank accounts...

Worldpay is 3.95% per transaction, 250 Euro setup fee + the first annual fee, and then 250 Euro annually from next year, + ~20 Euro a month to transfer the money to our US bank account.
My sales person said that he can not give us a better rate if we do not make 1 million Euro a year... (does it make sense?)

My question is - if we had a merchant account, how much better rate we would get? Doest it worth all the headache? (taking into account all the additional expanses)

Discount rates can vary from company to company & also depending on your type of products / services. There are also some threads in here about Worldpay & the fact that they also want an extra $1,000 before they complete the process.

3.95% seems a bit higher (especially compared to 2.39% standard rate in the U.S.) and 3.5% to some of the international merchants.

3.95% is pretty good if you are in Canada.

:bawling:

But this 2.39% does not include other fees that they have? Gateway, monthly, etc etc... with PaySystems it was 3.95% but it covered everything.

Originally posted by dekel
But this 2.39% does not include other fees that they have? Gateway, monthly, etc etc... with PaySystems it was 3.95% but it covered everything.
And look at where they are today.

But even if you are selling about $1,000 a month, you are looking at a total rate of about 3.9% & that rate significantly decreases as your volume increase.

Can someone write how the fees go down?
If we sell $5000 a month, $10000 a month, $15000 a month etc... How fast does the rate goes down?

This is all up to whatever merchant processor you are using so there isn't really "one" answer to this question. And a lot of times, it may depend on the merchant's processing history to date.

For instance, a good clean account with a great track record, low risk, few or no chargebacks and big volume will illicit a more positive response than an account that has had risk issues, NSF's, lots of chargebacks, etc. and which then grows to the same volume.

CDG is right. Usually the volume is the same for the amounts you stated. I have seen it as low as 1.96% but that was for a high volume account ($1.5 million a month)

As an interesting sidenote, it is possible for the very highest volume merchants in the country to even setup direct connections into the Visa/MC interchange networks.

Those companies usually get Interchange pricing structures w/ a preset # of basis points marked up due to their vast processing volume. Of course, we're talking about merchants that are doing many, many hundreds of millions of dollars in processing volume annually and beyond. ;)

Originally posted by coreybryant
CDG is right. Usually the volume is the same for the amounts you stated. I have seen it as low as 1.96% but that was for a high volume account ($1.5 million a month)

I'm almost jealous.. I thought I had a good rate at 2.03% with my bank.. :D