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  1. #1
    Join Date
    Sep 2002
    Posts
    708

    "Rate Adjustment" by e-OnlineData and Batch Header Fees

    After taking 30 days to process our application (they are very difficult to reach via phone), they sent me this in the approval email:

    "After review of the application, the rates on the merchant account have been adjusted to a qualified rate of 3.190% and non qualified rate of 4.490%."

    This is up 1.00% from the quoted rates from this page:
    http://www.e-onlinedata.com/merchant...ts/hostisp.php

    While I realize they are probably within their rights to do this, how often does this occur? Needless to say, I'm not very happy with it, considering Chase Paymentech has quoted me much better rates (and have given me excellent service in the past).

    Additionally, they advertise "No Batch Header Fees", however I am charged $0.05/batch when I walked through the Authorize.net setup proces. E-OnlineData has disclaimed all responsibility from this fee and advised me to contact Authorize.net, and Authorize.net has informed me that the rate was set by E-OnlineData.

    Am I incorrect to think this is deceptive? Has this happened to other EOD merchants?

    - Jason

  2. #2
    Join Date
    Aug 2003
    Location
    Chesapeake, VA
    Posts
    3,379
    A qualified rate of 3.19% and a non-qual of 4.49% is extremely high by industry standards for any U.S.-based business. Did they offer any specifics as to why your rate was so high compared to their listed pricing or other merchants?

    In terms of the Authorize.net pricing, yes - that would be directly set by the reseller who in your example would be e-OnlineData (EOD).
    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!

  3. #3
    Join Date
    Sep 2002
    Posts
    708
    That's what I thought. They said my average ticket of $25 was too high or something and that was the reason for the increase.

    I'll follow up with them on the batch fees. They keep saying it's charged by authorize.net and not by them.

    - Jason

  4. #4
    Join Date
    Aug 2003
    Location
    Chesapeake, VA
    Posts
    3,379
    Hi Jason,

    That's very odd... I can't imagine why an average ticket of $25 would be 'too high' - especially considering that a higher ticket results in a higher net profit on the discount rate to a merchant processor anyways.

    Regarding who "charges" the fees - they are correct in that Authorize.net does physically charge/debit you for the fees, but the fees are still nonetheless set by the reseller so its ultimately just a matter of semantics.

    It would be interesting to know what they tell you in response to your questions as something definitely seems amiss here and out of the norms for the merchant account market in general.
    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!

  5. #5
    Join Date
    Sep 2002
    Posts
    708
    Well, depending on who I call into, I get different explanations ranging from "lack of credit" to "high ticket price". Not sure who to believe.

    Either way, I'm tempted to get setup with Chase Paymentech or another processor if this doesn't work out. My biggest complaint with e-OnlineData is the difficulty of reaching someone to talk to. And after holding the application for a month and giving such a poor rate, I'm not too impressed at this point.

    - Jason

  6. #6
    Join Date
    Dec 2007
    Posts
    1,277
    jasonkw, it's important to note a few factors here.

    If you shop for insurance quotes often times you'll be quoted really good rates. Then once you actually complete the application you'll find that your rate may be higher depending on your driving record or credit history.

    Merchant accounts are the same, we have been using E-Online for about a year or so now and haven't seen any issues outside of what we were possibly aware of.

    They are absolutely not hard to get ahold of for customer service, they have 0 hold time (from all the calls we made). Now it may be hard getting ahold of their associates in the approvals/reviews department but that's because they have dedicated staff in those departments and they have alot of customers/applications.

    If you think the grass is greener on the other side, by all means go somewhere else. See if the deals are all as good as they appear to be once you actually complete an application. After you complete an application you should probably be able to turn it down if you feel it's not for you.

    A $25 ticket isn't too high, what types of goods/services are you offering? You sound like a high-risk merchant with bad credit.

    E-Online also monitors this forum and may respond to you.
    James Paul Woods
    Operations Manager
    HostKitty Internet Services

  7. #7
    Join Date
    Aug 2003
    Location
    Chesapeake, VA
    Posts
    3,379
    As James mentions, the good news with all of this is that you have a lot of options available to you for merchant processing so it probably couldn't hurt to see what options are available to you especially given the pricing that was provided.

    There are other means by which a processor can mitigate their risk beyond charging higher fees such as using rolling reserves or obtaining a co-signer until such a time as your business processing history can allow you to "stand on your own" if there is a concern on the credit side.

    When you are shopping around, there are a lot of things to ask about including:
    - Full disclosure of all merchant account pricing including all line items
    - Full disclosure of all payment gateway pricing (pricing on this varies quite a bit ranging from 100% free to above-market rates)
    - Ask how risk issue decisions are typically made
    - Ask how chargebacks are handled (are you provided only mailed notification or are there online tools to help assist & expedite the representment process)
    - Ask about customer service accessibility and hours
    - Ask about tech support - is it provided in-house or directed to the gateway provider?
    - Are there online portal tools to help you manage your account, view batches, ACH deposits, etc.? (this can be a very nice time saver)
    - Ask about fraud prevention tools & technologies that are included (if any, there is wide variance here)
    - Confirm that there are no PCI "compliance" fees - whether monthly or annual or one-time (as a matter of fact, confirm that there aren't any annual fees)
    - Confirm that there are no Monthly Minimums or Early Termination Fees

    Best of luck in finding a suitable provider for your needs... it's a competitive industry and you DO have options so it can pay to explore your options as this is one of the more important decisions you'll be making with your business.
    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!

  8. #8
    Join Date
    Apr 2008
    Location
    Portland, ME
    Posts
    117

  9. #9
    Join Date
    Apr 2008
    Location
    Portland, ME
    Posts
    117
    Quote Originally Posted by woods01 View Post
    jasonkw, it's important to note a few factors here.

    If you shop for insurance quotes often times you'll be quoted really good rates. Then once you actually complete the application you'll find that your rate may be higher depending on your driving record or credit history.

    Merchant accounts are the same, we have been using E-Online for about a year or so now and haven't seen any issues outside of what we were possibly aware of.

    They are absolutely not hard to get ahold of for customer service, they have 0 hold time (from all the calls we made). Now it may be hard getting ahold of their associates in the approvals/reviews department but that's because they have dedicated staff in those departments and they have alot of customers/applications.

    If you think the grass is greener on the other side, by all means go somewhere else. See if the deals are all as good as they appear to be once you actually complete an application. After you complete an application you should probably be able to turn it down if you feel it's not for you.

    A $25 ticket isn't too high, what types of goods/services are you offering? You sound like a high-risk merchant with bad credit.

    E-Online also monitors this forum and may respond to you.
    Thank you for your support James!

  10. #10
    Join Date
    Sep 2002
    Posts
    708
    e-onlinedata support has PMed me, and I will correspond with them via private messaging.

    Hopefully this gets solved!

    - Jason

  11. #11
    Join Date
    Apr 2002
    Location
    North Kansas City, MO
    Posts
    2,565
    We left e-onlinedata because the merchant fees just kept climbing and climbing, slowly, a little every month until we were at about 5%. We left and halved our CC fees. You might look for a more traditional processor if they can't solve your issue.
    Aaron Wendel
    Wholesale Internet, Inc. - http://www.wholesaleinternet.net
    Kansas City Internet eXchange - http://www.kcix.net

  12. #12
    Join Date
    Jul 2003
    Location
    Florida
    Posts
    337
    We left e-onlinedata as well. We have been with CDG for a while now and works just great with excellent rates.
    Gary Simat
    COLO@ Colocation. Perfected.
    Atlanta - Dallas - Phoenix - Weehawken - Los Angeles - Chicago
    Total Server Solutions - Servers - US Based Support - Server Management

  13. #13
    Join Date
    Apr 2008
    Location
    Portland, ME
    Posts
    117
    e-onlinedata allows customers to maximize their payment processing efficiency, security and investment through a consultative approach, custom fit solutions and 24x 7 customer service. Unlike some processors, we do not outsource underwriting or risk monitoring of accounts. We have a talented team of over 100 employees who remain committed to helping businesses succeed. It’s our commitment to service that makes us the best choice for thousands of online businesses every month.

  14. #14
    One thing that stood out to me is that it took them a month to process the application, this shouldn't be more than a day or two, a week max. $25 average ticket is extremely low and should generally be approved without must hesitation.
    Merchant Account Experts - if you are looking for honest, personal one-on-one service.

  15. #15
    Join Date
    Jul 2005
    Location
    In the Internets
    Posts
    3,622
    I would stay far away from e-onlinedata. I've used them for a few years and they get worst as the years go on.

    As a client, I have the same problem trying to reach them. Lately I had to email them 3 times in order to get someone to respond and they only responded because I told them I was going to move elsewhere.
    StableHost .:. Unlimited web hosting done right. Experience the unlimited difference.
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  16. #16
    Join Date
    Sep 2002
    Posts
    708
    To follow up, just to test things out I signed up with Chase Paymentech as well for our other division.

    3 days processing: we were approved and they gave us a 2.19% qualified rate. $20/month includes Authorize.net. Don't know why EOD was so strict with us.

    Oh well, we'll see if things get better.

    - Jason

  17. #17
    It is so much easier and cheaper to keep a client than gain a new one!
    Merchant Account Experts - if you are looking for honest, personal one-on-one service.

  18. #18
    Join Date
    Apr 2008
    Location
    Portland, ME
    Posts
    117
    While we will not respond to specific allegations out of respect for the privacy of Jasonkw, we feel compelled to respond in general to this string.

    Our standard underwriting approval timeframe is 3-days or less, when an approval takes longer than that it is for very specific reasons. As a merchant processor that is providing, essentially, a line of credit, we take our responsibilities very seriously in both underwriting accounts and in ongoing risk mitigation and as part of that responsibility we are required to take certain actions in order to protect our firm, Visa & MasterCard and cardholders. In regards to customer support we answer all calls in an average of 17 seconds and provide In house 24/7 technical support and customer care.

    We continue to be happy to speak with you directly. Please contact me at Erin Kroll, [email protected] or phone 877-685-6271 Ext 1685

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