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  1. #1
    Join Date
    May 2004
    Location
    Midwest, USA
    Posts
    47

    Question Newbie Starting Out-Needs Help

    What are my options for cc processing with no monthly statement fees and no gateway fees and no service fees.

    I know this is asking alot but I am willing to give up 3-4% of the transaction.

    I am just starting up a hosting business and the standard $50.00/month of associated reaccuring fees will eat me up until I can raise my monthly billing to a reasonable level.

    My goal is to find a solution for 6-12 months until I can justify a full merchant account.

    What are my options beside PayPal-I have this but because of some peoples dislike of them I would like to give them an alternative.

    Thanks in advance for your comments.

    Personal experience from those that have started out and how they handled this situation would be most helpful.

  2. #2
    Cyber who have you been talking to that is going to charge you $50.00 a month in reaccurring fees?
    If you are located in the states you should be able to get a merchant account for $7.00 to $10.00 statement fee, and $10.00 monthly gateway fee. Then you have your standard domestic discount rate and transaction rate.

  3. #3
    Join Date
    Aug 2003
    Location
    Chesapeake, VA
    Posts
    3,379
    If you are based in the U.S., it is certainly true that you can get your own U.S. merchant account for less than 1/2 of the monthly fee of $50/month that you mentioned, from more than one provider.

    But if your business is just getting started and you are just testing the waters, you may want to use a 3rd Party Processor to start... at least until you are ready to start actively promoting and growing your business, at which point you would likely benefit from having your own merchant account.
    CDGcommerce.com - Trusted Merchant Account Solutions since 1998
    Many thousands of successful, growing businesses benefit from our expertise every day. You can, too!
    We help merchants to eliminate gateway costs, reduce & mitigate fraud and achieve streamlined PCI compliance.
    Learn more today at http://www.cdgcommerce.com - we look forward to helping your business grow!

  4. #4
    Join Date
    May 2004
    Location
    Midwest, USA
    Posts
    47
    Once you add:
    $10-15 statement fee
    $15 gateway fee
    $25.00 min. monthly fee
    That's $50.00/month

  5. #5
    Join Date
    Aug 2003
    Location
    Chesapeake, VA
    Posts
    3,379
    That is true for most... but there are merchant account programs that do NOT have a monthly minimum requirement whatsoever.

    Most merchant accounts DO - but not all.

    The other thing that you will want to ask of any merchant processor is how they structure their "downgrade costs." For instance, some merchant processors offer a low "qualified discount rate" but then they have large mid-qualified and non-qualified rates which end up costing quite a bit more.

    You'll also want to ask about any annual fees or any termination fees that may apply. These are other hidden costs that can sometimes add up. Not all merchant processors charge the above and some will be willing to waive them.
    CDGcommerce.com - Trusted Merchant Account Solutions since 1998
    Many thousands of successful, growing businesses benefit from our expertise every day. You can, too!
    We help merchants to eliminate gateway costs, reduce & mitigate fraud and achieve streamlined PCI compliance.
    Learn more today at http://www.cdgcommerce.com - we look forward to helping your business grow!

  6. #6
    Who said anything about a monthly minimum fee. I true don't think they are necessary.
    I said you should have a statement fee of $7.00 to $10.00 and, and monthly gateway of $10.00, so that should total $17.00 to $20.00 a month.

  7. #7
    Cdgcommerce, is right, alot of merchant provider like to nickel and dime there merchants. Having application fees, or early termination fee, higher mid- and non-qual rates, the best thing to do is get every charge in writing. That way you have no a bye the way fees that you did not expect.

    You can also ask if the merchant provider if they have your account n pass thru, or a three tier level, better know as swipe, mid and non-qual.

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