Right, I need to make a decision. Should I choose epdq or worldpay for our domain registration site?

Pricing for domains are between £6 to £8 so I need a CC processor that will give me the lowest transaction rate and can possible integrate with an API. Euro, USD and GBP has to be supported and I would preferable like to be payed in GBP.

What % do epdq and worldpay charge and what are their minimum fees per transacion? Are there any better alternatives?

2.5% CC charge and 10p/20p transaction charge would be nice as the profit made on each domain is really small, so every penny saved counts.

It would also be nice if payouts were made adleast every week.

Any help will be great :)

Can anyone help me out on my options?

Right, I need to make a decision. Should I choose epdq or worldpay for our domain registration site?I've not used ePDQ before, but I've used WorldPay for one year now and still continuing to use it. I would personally recommend them. With this in mind, I'll try to help answer the questions below.

Pricing for domains are between £6 to £8 so I need a CC processor that will give me the lowest transaction rate and can possible integrate with an API. Euro, USD and GBP has to be supported and I would preferable like to be payed in GBP. What % do epdq and worldpay charge and what are their minimum fees per transacion? Are there any better alternatives?WorldPay charge 4.5% on each transaction, there's no other charges... other than their WorldAlert service which charges a very, very small fee I think, but not too sure how much. If customers pay by debit card, they charge 50p per transaction and thats it.

2.5% CC charge and 10p/20p transaction charge would be nice as the profit made on each domain is really small, so every penny saved counts.For those kinds of rates, you might need to go for a merchant account. ePDQ may not even take you on as a client as I've heard from others that they were rejected when they were applying with a web hosting company, which includes web hosting and domain name registrations.

It would also be nice if payouts were made adleast every week.Not sure about ePDQ, but WorldPay make their payments every 4 weeks. If you need 1 week payments, then a merchant account would work better as you will get the payment straight away.

Alan

Thanks for the advise ho247 ;)

I was thinking of getting a real merchant account with a bank, then using worldpay for their secure ordering/multi currency/repeat billing etc...

How would the costs work out then if the bank was charging 2.5% for credit cards and 10p per transaction?

Do worldpay add on % costs or would it just be monthly fees? And would it still be 4 weeks pay out :bawling:

As seen as I would have my own merchant account, would it go straight into my bank from worldpay?

Thanks for input.

For those questions you'll have to ask WorldPay, just send their sales team an e-mail.

Alan

WorldAlert costs 6p per transaction. :mad: and itsnt very useful.

www.revecom.com

They can bill your customers in £, and pay you in £.

Very low costs, plus <4 % a transaction, and no need to have a business bank account.

We already have a business bank account.

Originally posted by ubergeek22
www.revecom.com

They can bill your customers in £, and pay you in £.

Very low costs, plus <4 % a transaction, and no need to have a business bank account.

but it need $1 transaction fee. Very expensive.

Especially for domain registrations where you cant afford to have a per transaction charge, as the profit is so small... each penny counts.

Can you use one worldpay account on two sites, but for the same company?

For example a web hosting site and a domain registration site, but they are seperate divisions of a company.

Worldpay pay every week, not every four weeks, but they have a four week delay on payments.

We're paid every 4 weeks here, with 4 weeks of delay, on the WorldDirect service I think, we're not using a direct merchant bank account though.

Alan

Originally posted by blob2
Can you use one worldpay account on two sites, but for the same company?

For example a web hosting site and a domain registration site, but they are seperate divisions of a company.


Yes, as long as the two sites are selling the same services you signed up to sell.
If you are turning over a lot you can get them to reduce their rates.

You might find these examples useful.

UK Sales average cost: 5.5%
US sales average cost: 6.5%

These are our actual figures adjusted up to their published rates
If you are in the UK and reclaim the VAT on their service charge it would be 0,5% less.
(our real figures after VAT are 3.8/4.7% UK/US)
The reason for the difference is that UK customers often use debit cards and on larger sales they are cheaper to process.

These are obviously averages over a large number of transactions.
We still budget 7% and anything saved on that is extra profit.

Gordon

Hi Gordan, would you have any idea what worldpay charge if you had your own merchant status with a bank?

Also, I did'nt know if worldpay charged VAT as I thought they were registered in the channel islands. Our company is registered in the channel islands to avoid VAT on domain name registrations, the web hosting is more of a side line.

So would the VAT be an issue? I have read in posts that worldpay regard your customers as their customers, so what would be implications?

Thanks.

Its true that when customers pay with debit cards, they are cheaper to process but only when they are paying for a large volume.

When a cutomer buys a £8 domain name registration, a 50p debit card charge is very high compared to a credit card charge of around 4%.

Worldpay moved their registered office to the UK 18 months ago so they do charge VAT.


If you have your own merchant account they charge 30p fpr debit cards and 2.25% for credit cards but you will still have similar charges to pay your bank so it makes little difference.

The debit card "high cost" is a bit of a red herring because it all evens out over a large number of transactions and as my real life figures show, they use of debit cards means our overall percentage cost is lower in the Uk because of them.

Gordon

So what does this mean for our company?

Would they charge VAT as seen as our company is not in the UK and not in the EU, so would the VAT charge apply?

They charge VAT on their service charges and commissions.
If you are registered in Jersey you will need to pay the VAT and you will not be able to recover it.

Gordon

I dont see why they would do that. Your not legally supposed to charge VAT to over seas companies.

The thing I'm more worried about is, do they treat your customers as their customers. So if someone in the makes a purchase with us, would woldpay add VAT as seen as they are in the UK? Surely, that should be left to us.

Dont worldpay accept people from countries like the USA? So would they add VAT to their service charges and commissions?

No
They do not add VAT to what you bill your customers.
They are your customers (except when Worldpay decide they arent)
They are not very clear on the ownership issue.

I am not convinced about the Jersey thing.
As long as none of you are not paying VAT on your supplies then it would be OK but if you have to pay VAT to Nominet or other UK suppliers then you are as well being VAT registered.
We reclaim about £500 in VAT per month (cash that comes to us).

Gordon

We dont pay VAT on anything as our business is not in the UK. Nominet force the VAT to be payed, regardless of where your from.

So we have a seperate UK company setup that buys from nominet, claims back the VAT and then sells the domains to the parent company registered in jersey.

So at the end of the day, our company buys the domains at the retail price of £5 with no VAT added on.

So as seen as the account with worldpay would be with the parent company, would worldpay add VAT?

I'm ready to sign up with worldpay as long as the VAT issue has been cleared.

You would have to ask them.
They only charge VAT to their service charge which is already a small part of the transaction.

I thought all trade in the EU was covered by VAT even if the state involved did not have a VAT system itself.

Gordon

Worldpay has both world direct customers and bank aquired customers.
World direct is about 4% per transaction reduces when you do bigger amounts per month.
Bank aquired is somethinng like 2.5% + what your bank would take which can be as low as 1.2%...
Money can be transferred as fast as the 3rd business day to about 4 weeks.

Have a great day :)

regards
amar