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  1. #1
    Join Date
    Sep 2007
    Location
    Highlands Ranch, CO
    Posts
    20

    Need new processor + gateway

    We currently have ECHO (owned by Intuit) as our payment processor + gateway solution and and just got notice that they will be adding a $0.27 AVS fee (was free), adding a discount rate to returns and credits (was free), increasing discount rate, and increasing incremental fees. They are also tacking on a $21.95 security fee. Enough is enough already! We need a different solution.

    I'm looking for suggestions on a reasonable processor + gateway. Someone compatible with Authorize.NET or eProcessing Network would be easiest for integration to the shopping cart we will be moving to. We are a US based Internet business with a low risk customer base. In 9 years of business we have only had one chargeback and we successfully disputed it. Our business is seasonal, but we never go completely dead. Hopefully, that is enough info to get a good recommendation.

  2. #2
    Join Date
    Jan 2011
    Location
    India
    Posts
    1,446
    Did you tried Paypal and alertpay?

  3. #3
    Hey, I would recommend Host Merchant Services. We signed up with them a few months ago and they have been great. We use their TransactionCentral gateway, but I believe they offer auth.net if you ask. Ironically enough, we used IMS (also owned by Intuit) before switching. If you have any questions, let me know.

  4. #4
    Join Date
    Sep 2007
    Location
    Highlands Ranch, CO
    Posts
    20
    Quote Originally Posted by humawebdesign View Post
    Did you tried Paypal and alertpay?
    We may consider PayPal, but not as our primary processor.

    Quote Originally Posted by Logic Surge View Post
    Hey, I would recommend Host Merchant Services. We signed up with them a few months ago and they have been great. We use their TransactionCentral gateway, but I believe they offer auth.net if you ask. Ironically enough, we used IMS (also owned by Intuit) before switching. If you have any questions, let me know.
    I did a quick check on HMS and they don't have any of their pricing listed on their website. I had a feeling that Intuit acquiring ECHO was not going to be a good thing.

  5. #5
    Join Date
    Mar 2010
    Location
    Florida, USA
    Posts
    186
    Good morning. Let me try to provide some general responses to your quote, will also reply privately. Are you sure the $.27 is an AVS fee??? That is very high...what's the per item fee in addition to the AVS? The $21.95 security fee sounds like a PCI non compliance fee--did you not complete or not pass the required audit? The issue of charging discount on returns and credits means they are switching you from gross to net processing--gross is the industry norm but you may or may not qualify elsewhere for net processing depending on your credit, product/service type, etc. Nine years in biz should help a lot. You are wise to dismiss the misguided suggestions that you reply on Paypal for yor processing needs--surely they could be among your payment options, but never the only payment option for any business aspiring to be taken anywhere near seriously. Also, Intuit processing is making all kinds of drastic changes to their processing program now, many of which you have described happening to you. The truth is, they are a very easy and convenient payment processing solution to use, but that ease and convenience has always come at a very high price, which now is getting higher. If you do any significant processing volume at all, you will be doing your bottom line a great favor by finding a more appropriate solution.

  6. #6
    Join Date
    Sep 2007
    Location
    Highlands Ranch, CO
    Posts
    20
    Quote Originally Posted by amspcs View Post
    Are you sure the $.27 is an AVS fee??? That is very high...what's the per item fee in addition to the AVS?
    Yes, $0.27 is absolutely correct and I was shocked when I saw that in their letter. We pay $0.18 per transaction plus another $0.14 in what they call "incremental fees" per transaction.

    Quote Originally Posted by amspcs View Post
    The $21.95 security fee sounds like a PCI non compliance fee--did you not complete or not pass the required audit?
    According to their letter, that fee is for "investments we have made in tools and technology to minimize fraud and ensure that customer data and transactions are handled safely and securely."

    Quote Originally Posted by amspcs View Post
    The issue of charging discount on returns and credits means they are switching you from gross to net processing--gross is the industry norm but you may or may not qualify elsewhere for net processing depending on your credit, product/service type, etc. Nine years in biz should help a lot.
    We have excellent credit so I don't know why they would be changing our account around. We sell software and supplies to run Pinewood Derby type races. Our customer base is Cub Scout and church groups, which is very low risk for fraud. It is a seasonal business, but we always have some money coming in.

    Quote Originally Posted by amspcs View Post
    Also, Intuit processing is making all kinds of drastic changes to their processing program now, many of which you have described happening to you. The truth is, they are a very easy and convenient payment processing solution to use, but that ease and convenience has always come at a very high price, which now is getting higher. If you do any significant processing volume at all, you will be doing your bottom line a great favor by finding a more appropriate solution.
    We probably should have found another processor long ago, as we have felt that their fees have been rather high. This recent letter is the straw that broke the camel's back.

    We are looking at interchange plus pricing in our search for a new processor, instead of the 4 tiered pricing with ECHO. So far, that looks to provide some substantial savings.

  7. #7
    Join Date
    Mar 2010
    Location
    Florida, USA
    Posts
    186
    Re the $21.95. That's PCI talking. You are required to take and pass an audit and submit certificate of compliance. You can either get it from your processor, or privately. What they're doing is inventing an excuse to make sure they benefit from the contrived cash flow even if you solicit the certificate privately. It all fits in with Intuit' lnog time business MO of what we in the industry call "hostage marketing".

    You are a website processor? Then how the heck did you end up with 4-tier pricing???? And now $.27 AVE???? Whoa.

    Interchange plus pricing is probably a good idea for you IF you qualify for it (internet merchants are always higher than average risk). It depends on Interchange plus WHAT? And that number would depend on your voume and average ticket. In other words, Interchange represents dead cost tot he processor, they don't make a dime. The PLUS is their profit, and of course everybody needs to make a profit somewhere.

  8. #8
    Join Date
    Sep 2007
    Location
    Highlands Ranch, CO
    Posts
    20
    Quote Originally Posted by amspcs View Post
    You are a website processor? Then how the heck did you end up with 4-tier pricing???? And now $.27 AVE???? Whoa.
    No, we are just an Internet merchant. Back when we first signed up with ECHO, it was 3 tier pricing. Over time they added a tier and gradually jacked up fees and rates. We were new to running a business and didn't understand the dizzying structure of credit card processing fees and rates. We should have considered making a switch in processor earlier, but we were working to grow the business. Now with them jacking up the fees and rates even higher, we have plenty of motivation to switch. I bet they will have quite a few customers jumping ship as well.

    Quote Originally Posted by amspcs View Post
    Interchange plus pricing is probably a good idea for you IF you qualify for it (internet merchants are always higher than average risk). It depends on Interchange plus WHAT? And that number would depend on your voume and average ticket. In other words, Interchange represents dead cost tot he processor, they don't make a dime. The PLUS is their profit, and of course everybody needs to make a profit somewhere.
    So far, it seems that we would qualify. We don't begrudge a processor making a profit. We just don't want it to be an unreasonable one.

  9. #9
    Hello, I Personally Use e-onlinedata. Maybe You can check out there website. Maybe they have what You are Looking for. Thanks

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