I have been looking into merchant accounts and wanted to do a study of what webhosting companies are using for their billing solutions. Ideally webhosting companies could post what they used and then later on I will build up an excel file on popularity and various statistics. Please don't post available options, specifically the solution your using.
There are soo many different options. It also depends on if they have the right structure and credit for some options. International merchant accounts are a little harsh, and then paypal can only hit so many customers, because some refuse to use it, and then others require it.
I personally tell all of my higher end resellers, with at least 15 clients. Get a traditional merchant account, I have no problem finding you the best I can.
What some dont understand, or arent told upfront, are the costs that come with merchant & billing solutions that paypal, 2co dont show. There are batch fees, virtual terminal costs, support and statement fees, and a ton of other considerations. If someone brings it up - Ill take the time to explain even more in depth.
We use Helm with the LinkPoint API with its free recurring billing.
If you are in the United States, doing at least $1,000 a month, then consider a merchant account. You might even want to consider adding Paypal in conjunction with a merchant account. With a merchant account, you also get a virtual terminal so that you can easily charge your consumer via the phone if needed while Paypal and 2Co do not allow that
We use Bluepay from modernauthorize with ModernBill.
If you are in the United States, doing at least $1,000 a month, then consider a merchant account.
Used to be good advice. There are now programs that function exactly like 2checkout and paypal with no monthly minimums, no annual fees, but are real merchant accounts through true gateways for low volume merchants.
Actually, you dont need to be processing $1000 anymore to deal with a merchant account. This is referring to that monthly minimum that most merchant accounts have. It takes about $900-$1300 in processing to make that monthly minimum in fees.
There are also special programs for startup ISPs (Web Hosts are ISPs too) with decent credit, where you can have this fee waived. This helps out a ton. There are also different types of virtual terminals, some of which offer recurring billing automatically, some also have API scripts.
Thankgks for the replies John and John. In respect to starting a busniess where you dont make $1,000 a month; everyone has to start somewhere.. whether it being years ago or just starting out now It seems like their is a lot of diversity and it should be interesting to see how the results balance with more replies.
Exactly. Depending on what merchant account provider that you use. The monthly minimum is calculated by fees. The other 2 replies use the same service. Cardservice International, in which I left over a year ago. They were too high when youre trying to run a promo. Once you got done with all the fees, it was cheaper for a major change.
There arent many merchant services out there where you dont have to deal with processing costs. Then you also have to remember there are Virtual Terminal costs when you have an online business. This is referred to as MOTO (Mail Order Telephone Order) on the merchant side. Your terminal provider may or may not include API scripting, for website integration, and then you also have shopping carts out there like 1shoppingcart.com that will do recurring billing and API for you if you have windows hosting.
It all depends on what type of system that you would like to use. Its not necessary to pay a ton of fees. I personally believe that merchant accounts themselves shouldnt costs you more than $20.00 per month after setup, because you have a virtual terminal to deal with as well.
The whole deal shouldnt be more than $35-$40.00 per month. I was totaling out $60-$80.00 with Cardservice.
I definetely managed to make a rather interesting spelling mistake in my last post for sure. That definetely does sound pretty reasonable at the end of the day, however Im more interested to hear what *The People* are using as I want to create statistics based on whats used.
Personally I have gone through a merchant account or two and switching definetely is not a fun process.
Originally posted by aci-john The whole deal shouldnt be more than $35-$40.00 per month. I was totaling out $60-$80.00 with Cardservice.
Actually it seems that whatever agent you signed up with did charge you more than what was needed. Agents can still charge a certain amount, but usually with Cardservice, there is the $10 month fee (customer service fee - whatever you want to call it - it is $10).
There is the monthly minimum usually of $25.00, but depending on your discount rate, (let's say if it is 2.40%), as long as you do about $1,042 a month, then there is not even that monthly minimum to worry about.
Gateway fees vary depending on the reseller and the what gateway you choose.
Ah - forgot about that. Just pulled out my statement. When I was talking about the "Whole thing" I was talking about the virtual terminal INCLUDED
$10.00 is a support and statement combo fee.
Then the $25.00 Monthly Minimum
Then the Virtual Terminal. Another $20
Certain fees, like batch-outs arent included in those processing fees on certain providers. When they say fees they are talking about Interchange and normal transaction fees.
Then, cardservice also has what they call a full qualification tier system. Some Merchant Providers dont use this for MOTO accounts. The authorizenet / cardservice combo I used, got Mid Qualified rates. Normal Discount Rates are 2.40% is 20 basis points extra markup from normal rates (2.19-2.29%). Ive seen some dish out a 1.99% rate (41 basis point difference) . Web Hosts and ISP's have a much lower 'average tickets' and that also has a big deal to do with it.
yeah - i loved the free recurring billing tool myself, Then I switched to authorize net, and then cardservice started slammin me with mid quals. Funny, I reactivated for 2 months and theirs would give me full quals passing the same info. I think its a hoax. My provider now doesnt have a mid qual. Its either all or none.
As of today. I am now trying the gateway called E-pay in house - and its also 0 transaction fees up to 10,000 transations, and cheaper than linkpoint. Ill let you guys know how it works out.
Sounds like you had a problem with the authorize.net configuration since you only started getting hit with mid quals after you switched gateways. I have never heard of E-pay in house. Are they new? I really dont like to be anyones lab rat. At least I know Linkpoint is part of a multi-billion dollar Fortune 500 company that is traded on the NYSE (First Data, symbol: FDC) so I know they are going to be around 1, 10, 20 years from now. As I build my business I want partners that are going to be able to help me grow and not disappear after a year or 2. But thats just me.