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Thread: CC processor

  1. #1
    Join Date
    Sep 2008
    Location
    Sydney Australia
    Posts
    580

    CC processor

    Hey everyone.
    Currently looking to accept credit cards directly and have been quoted $436 per year with a 3.95% transaction charge.

    Does this sound like a reasonable fee? (i've never accepted cards before so not sure what the average is)

  2. #2
    Join Date
    Mar 2010
    Location
    Florida, USA
    Posts
    186
    Emuhost: No such thing as an 'average'. Your rates will depend on many of YOUR unique characteristics, including where you are, your credit, your projected volume and average ticket, how long in business, etc. etc. etc.
    All things being equal, 3.95% might be a tad high for web-based transactions (which I'm assuming yours are), but again this depends on many of the issues quoted above. Also, not sure where the $436 a year' comes from--processing fees are a factor of your volume processed, not generally a fixed fee. What is the source of these numbers you are quoting anyway?

  3. #3
    Join Date
    Feb 2003
    Location
    NY
    Posts
    11,521
    Who are you getting quotes from? Is the fixed rate (436) a fee for the software annually or maintenance support? Seems odd that you're being charged $436 + 3.95% on top of that.

  4. #4
    Join Date
    Sep 2008
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    Sydney Australia
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    580
    It's from RBS worldpay and those are the fees listed on their site.

  5. #5
    Join Date
    Feb 2003
    Location
    NY
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    11,521
    Quote Originally Posted by EmuHost-Pete View Post
    It's from RBS worldpay and those are the fees listed on their site.
    Check out this link http://credit-card-processing-review.toptenreviews.com/. It has a list of the top 10, most of them charge a monthly subscription fee, but it should give you an idea.

  6. #6
    Take a look at cdgcommerce.

  7. #7
    Join Date
    Sep 2008
    Location
    Sydney Australia
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    580
    Quote Originally Posted by praveenkv1988 View Post
    Take a look at cdgcommerce.
    I've had a look at them and while I was quite impressed they don't accept non americans.

  8. #8
    Join Date
    Feb 2003
    Location
    NY
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    11,521
    Quote Originally Posted by EmuHost-Pete View Post
    I've had a look at them and while I was quite impressed they don't accept non americans.
    Ah that might be the case for a few other CC processors as well - didn't see you were from australia.

  9. #9
    Join Date
    Jul 2009
    Location
    Indiana
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    2,193
    That's very high. Check out merchant express. I got a deal with them for 12 bucks a month and 2.02% + 22c per transaction. Not sure what countries they do though.
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  10. #10
    cybersource.com ?

  11. #11
    Make sure you do a great due dilligence...

  12. #12
    Join Date
    Dec 2009
    Location
    Scottsdale, AZ
    Posts
    19
    The $436/year seems a bit strange. Typically you'll find a rate anywhere between 2.9%-5% depending on your product. You will also find a transaction fee attached with each transaction so look out for that as well!
    Allied Wallet
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  13. #13
    I am not sure if they accept customers outside of the US, but take a look at Host Merchant Services, we use them and they give us interchange plus pricing with a $0.10 transaction fee. They have been great so far.

  14. #14
    Join Date
    Jan 2011
    Posts
    905
    You can also have a look at Plimus. They charge a fee based on transaction amount and I think its pretty reasonable. Their verification system sometimes is pain though, other than that its pretty fine.
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  15. #15
    Join Date
    Jun 2010
    Posts
    177
    Hey, I can give a little insight into the rate and fees. The way banks look at it, 3.95 isn't bad if it's a startup without 180 days of processing history. The yearly fee isn't too far off the standard $30 a month fee most charge. The things that really determine your rate and fees are if you have history going back six months, and volume (over 100k per month gets their attention).
    For web hosting, it's not a bad rate and after you have six months of processing statements with a clean chargeback history you'll have more bargaining power to ask your current processor for a review and rate reduction. They'll know at that point you can shop around, so often they will lower your rate.

    Underwriting a merchant account and assuming the liability and risk for them is like investing in the stock market. Banks expect a higher return for an unknown start up who sell a product that is intangible and can't be proven with a tracking number.

    If you think along the lines of an investor it's much easier to see their rates. If you were investing in a company that's brand new and you don't know how they're managed and if they'll succeed vs. one with a proven track record that's been in business for years. It's really the same when it comes to an underwriting bank giving an unsecured line of credit towards six months of processing (the charge back limit for most credit cards).

    Just recently there was a rash of debt collection places starting up and they turned out to be a front web site and shell corporations for escort services. Many merchants just assume a bank will trust them, but if you worked in an underwriting department and gotten burned a few times, this is why start ups with intangible goods get a higher rate than a bowling alley that's been around for years. 3.95 isn't unreasonable. After six months you can apply for a rate reduction, or simply shop around because you'll have a responsible track record, and statements to prove it.
    Niles Bentley
    High risk merchant consultant
    Skype merchantservicetoday3

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