I am about to set up my first Merchant Account and Gateway to accept credit cards online, but I am still a bit confused about the total fees that result from both of these. I know that I could go through paypal and accept credit cards for a 2.9% fee plus $0.30 per transaction. But if I go through s system such as cdgcommerce using the linkpoint gateway, what are the total costs and fees associated with this method? I only plan on setting up a smaller type business that would take orders and ship out the items.

There is a seperate fee for each of these items it seems. Does this method make it cheaper than what paypal already offers?

Wont be cheaper than what PayPal offers. For your small volume, I suggest sticking with PayPal.

If you are processing more then $750.00 a month it's cheaper to go with your own merchant account. Otherwise it cheaper to use paypal, or other third party processors.

Welcome to the forums strike46!

It all depends. Gateways are usually $15-$50 a month - depending on the type of gateway you get. And some gateways also charge a transaction fee on top of what the MAP will charge.

Your discount rate will vary somewhat right now because Visa is raising the rates at the end of this month. But if you get a contract - you might be guaranteed the lower rate for six months or so.

And usually there is a $10.00 charge by the map per month - either customer service, statement fee, etc - but it is $10.

Take a look at http://www.merchantplus.com. They offer competitive rates on gateways, and it sure beats using PayPal to process cards.

Sam

Hello strike46,

Columbus is right, you don't need a merchant account yet. I would suggest you to use Paypal and 2Checkout together. You will get 40% of your orders via Paypal and the other 60% via 2checkout. If your business does well then upgrading 2checkout to a merchant account could boost your sales by 20%. With a merchant account you look more serious.

Good luck!