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  1. #1

    accepting creditcard?

    I was wondering what all do you need to accept credit card, i was going to get modern bill, but do you need anything else to accept it?

  2. #2
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    you need a merchant account, 2checkout, worldpay, paysystems etc
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  3. #3
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    The credit card processors that thelinuxguy mentioned work well with ModernBill. Once you sign up for one (or more) of them, you can configure ModernBill to manage the payments with them.

    I use 2Checkout, and everything works great for me.

    Give them all a look before you decide which to use.
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  4. #4
    Join Date
    Sep 2002
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    You need a merchat account. Alternatively, you can opt for a third-party payment processor like MyPaySystems (http://www.mypaysystems.com/) or 2Checkout (http://www.2checkout.com/).

  5. #5
    Join Date
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    I would suggest considering the amount you are charging. If you are charging a good amount of money every day, I would strongly suggest getting a merchant account with a service like authorize.net as the gateway. These services offer the best rates for credit cards. Visa and Master Card could be as low as %2.1. If you are just wanting to get a feel for the business, and don't anticipate charging a lot of money, you may want to use a service like 2checkout.com. Once you start making a good amount of money, you can always switch to a merchant service.

    2checkout.com alows you to accept credit cards without first becomming incorporated which may be better if you are a startup. They can have you setup instantly for $50. At least, thats what it says on the web site.


    Joel

  6. #6
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    Originally posted by liquidjoel
    without first becomming incorporated
    Are you saying I should first register a company in USA? What if I have a merchant account in, say, Lebanon, or Romania?

  7. #7
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    Can anybody make a bill for all setup expences from the scratch? Starting with the merchant account and SSL certificate.

    PS. This thread seems to pertain to E-Commerce forum.

  8. #8
    Join Date
    Mar 2003
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    Here it is:
    Billing system (I'll take Modernbill) - $24.95/mo
    3rd party processing system (either 2CO or MyPaysystem)- $49/setup
    SSL Certificate (I'll take ChainedSSL at EV1, ChainedSSL is not the best but so far the cheapest) - $21.60/year
    Total: $95.55
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  9. #9
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    Thank you. Considering all taxes and fees, what should be my monthly sales, if no more than 8% must be going for maintaining the billing system?

  10. #10
    Join Date
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    Hi Imago,
    At least $27 is needed each month to maintain your billing system.
    $27 - 5.5% + $0.45 (I'll take 2CO's charges) = $25.07
    $25.07 - $24.95 (Modernbill) = $0.11

    Thanks.
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  11. #11
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    Thanks, KKHost.Net

    Suppose there are 5 sales mo which makes $3 in terms of 2CO taxes.

    $27 + $3 = $30 = 8% - 5.5% = 2.5%

    So, I must process $1200 mo sales to be within my 8% processing expenses. If my most popular plan is priced at $10, I should have at least 120 clients to make good for the above billing system.

    But 120 clients are already $55, which is not the calculated $3. In the final analysis, the system will never work with my 8%, because 2.5% of $10 are $0.25, not $0.45.

    So, the actual cost of this billing system is in all cases more than 10%

  12. #12
    Join Date
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    Just a note. $0.45 applies on EACH transaction. This is where people usually forget.

    Thanks.
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  13. #13
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    Yes, I have calculated it. $0.45 of $10 makes 4.5%, plus those 5.5% = 10% for 2CO only with every $10 sale/transaction

    In other words, my plans should be above the $20 line to be compliant with the 8% billing expences req

  14. #14
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    The transaction rate is usually the biggest killer in micropayments. Are you expecting to bring in over $1000 a month? If so, you might check out a merchant account. I do not use ModernBill but from what I remember on here, it comes with a way to set up the payment gateway authorizenet.com and I think a way to get a merchant account from e-online data or someone like that.

  15. #15
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    Yes, the macroprocessing of microtransactions is killing the idea of microsales. What we need is a international system like the one used by moneybookers, with the ability to accept CC payments.

    The ideal would be my own national bank to provide me with the tools to process CC payments from USA and other International cc holders, not to open a merchant accounts in USA, China, or Australia.
    Last edited by Imago; 04-04-2004 at 09:53 AM.

  16. #16
    Join Date
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    Originally posted by Imago
    Yes, the macroprocessing of microtransactions is killing the idea of microsales. What we need is a international system like the one used by moneybookers, with the ability to accept CC payments.

    The ideal would be my own national bank to provide me with the tools to process CC payments from USA and other International cc holders, not to open a merchant accounts in USA, China, or Australia.
    Takes a lot of work, patience, money, and patience to do it but it can be done. And then you have to wonder after all of that, what happens because it brings you up against chargebacks which can be very detrimental to that business.

    You have some consumers who try to cheat the merchants, some merchants who try to cheat the processors, no one trusting anyone & Visa/MasterCard always re-defining their rules & regulations.

  17. #17
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    The integral problem with micro-payments rests in the core hard cost that it takes to process a credit card transaction.

    Even purely on the Visa/MasterCard Interchange, Dues & Assessments, you're looking at a cost of .10 - .15 per trans plus the discount rate fees which can easily equate to additional pennies or nickels on top of it, even on a low ticket.

    Then you have to take into account the network processing costs. If you use an existing front-end or back-end network, which is usually the most cost effective way to do it, then you are still looking at yet another layer of per transactional costs that adds to the effective hard cost.

    You could, of course, build your own processing network but this is a significant undertaking that requires a large team of experienced industry veterans w/ industry rapport, IT folks, a vast amount of capital, time and dedication without any guarantees of its long term cost effectiveness.

    What would be nice to see would be a new Interchange category specifically for Micro-payments on the VISA/MC New Market side. That would really provide an answer to this problem.

    They have Interchange tiers for government purchases, QSR, various forms of travel and very high ticket/corporate purchases but micro-payments would be an interesting area to see them have a good IC pricing level for to help solve this problem.
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