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  1. #1

    New merchant account company - DreamPayments.com

    I've been scouring the web for weeks looking for a good merchant account with no luck.

    Basically I've realized there's 3 options available today:
    - PayPal: 2.9% + $0.30 user never leaves your site but only with $30/month fee
    - Google: 2.9% + $0.30 but the user must leave your site to finalize payment
    - Everyone else: Set-up fee, monthly fee, and 2.9% + $0.30 or more

    Google checkout would be awesome if you didn't have to actually visit google.com to finalize the order, and PayPal would be awesome if there was no monthly fee for the api. So I see a need for a new company to come along and provide a better service. I've done some research and may have found a good company that I can work with to provide merchant services from one web developer to another. I plan to offer a simple but powerful api and I'll begin developing modules for popular open source carts.

    I've registered the name dreampayments.com and will be doing my best to make a great service. The current plan is to offer simple, open, honest merchant accounts with:
    - No set-up fee
    - No annual fee
    - No monthly fee
    - No contract
    - 2.9% + $0.30 (hopefully lower)

    Anyway, nothing is set in stone as of yet so please post your comments and requests for what would make a new payment processing company awesome.

  2. #2
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    No better service than PayPal. Go for it.
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  3. #3
    do u have banks which can take merchant accounts?

  4. #4
    I'm currently in discussion with a wholesaler of sorts for merchant accounts and trying to negotiate a good deal. I will post here when more information becomes available.

  5. #5
    i would be interested to hear more what you get...as most wholesalers sell at alot more than 2.9%... iso / tpp / ipsp's with direct bank lines will find it hard to sell at that unless you have very good volume and proven history.... then you will have to investigate PCI compliance.... alot of work when you have to look after other peoples money.... just my 2 cents worth

  6. #6
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    It will be very interesting to see if you gt of with this project and also how long it will last.

    What you are looking into here is a huge investment that has to be made and many have tried this before and failed because of the missing funds. As Yorock already mentioned, you will need to look into the PCI Compliancy, once you explored the requirements to the servers, hosting, software and company itself, I think you dreams of being a payment processor will fall down in a deep hole.

    That said, if you have a lot of money, are a very good programmer, system engineer and have a good knowledge of securing software and server systems or have this expertise available through other in-house staff, you could succeed.

    Finally you will need to have a very good marketing and strategy plan to get the huge volumen in that you will need just to be able to pay your bills.

    Best of luck with your project.

  7. #7
    Join Date
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    I have to agree with Fionix.

    Never underestimate the cash capital you need from A-B before even getting up and running and from there build a profitable business.

    It may sound "easy" but it is very far from being easy.
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  8. #8
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    Hi Hafley,

    To be honest, I think that most of your listed requirements are already met in the market today.

    Specifically:

    - No set-up fee: this already exists with many Internet merchant providers who do not charge application or setup fees of any kind.

    - No annual fee: this also exists with any number of merchant providers although yes - quite a few of them do charge some sort of annual fee.

    - No contract: due to the nature of acquiring banks, a contract is mandatory to protect everyone's rights (both merchant, bank & ISO/MSP) but I think what you are really looking for here is a "no early termination fee." After all, the contract length is irrelevant if there is no financial cost to terminate the agreement.

    - 2.9% + $0.30 (hopefully lower): if you look around you will find that most Internet merchant processors are charging rates just over 2.X% (well below 2.9%) for a qualified rate and other tiers that are at or a little higher than that for other transaction categories. The end result is a cost structure that is lower than the equivalent price of charging 2.9% + .30 for all transactions, for most merchants.

    - No monthly fee: this is a tough one and I'll explain why. Any merchant processor has monthly account-on-file costs with their front-end & back-end networks and/or their sponsoring bank. This is a hard cost so by not recovering this cost with even a small monthly cost of say, $10/month, is really an unsustainable business model for a direct merchant account.

    So I think that the reality here is that there ARE solutions that meet just about everything that you are listing there outside of the "no monthly fee" item.

    The other thing that you need to think about is that providing the merchant account is just one portion of the total equation. You also need to provide merchants with an Internet payment gateway to use.

    Certainly, you can do a licensing or reseller deal with a gateway that is already on the market - but that by itself can add up quickly. And if you opt to build your own, I can tell you first hand this is a very complicated, capital and time-intensive process and if you aren't starting with a very sizable amount of seed capital it can quickly become an insurmountable task.

    There are also a lot of costs inherent simply with being a branded ISO/MSP to market merchant accounts. The smallest of the costs are the registration fees which are $10,000 upfront and roughly half that on an annual renewal basis.

    My suggestion - search around for different merchant processors, do your due diligence and consider starting as an independent agent for one or more of them to get your feet wet in the market and build some experience and then make a determination on how you'd like to grow your business from that point.
    CDGcommerce.com - Trusted Merchant Account Solutions since 1998
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  9. #9
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    And if you do develop your own payment gateway you need to be PCI compliant which in itself cost a lot of money.......

    It is not as easy as everyone thinks to become a proper IPSP/PSP/MSP/Gateway.
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  10. #10
    There is no such thing as wholesaler for the credit card processing industry. We all have the same cost, V/MC Interchange cost.
    Merchant Account Experts - if you are looking for honest, personal one-on-one service.

  11. #11
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    Yes, that is 100% true on the V/MC Interchange level. Those costs are the same for all ISO/MSP's on an Interchange pricing schedule. (which most are)

    However, that is not the case on the authoriation/settlement network side or the payment gateway side where greater economies of scale can be created by higher volumes brought to the table with these respective vendors. So there can be a definite variance on that side of the equation.
    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.
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  12. #12
    Quote Originally Posted by cdgcommerce View Post
    However, that is not the case on the authoriation/settlement network side or the payment gateway side where greater economies of scale can be created by higher volumes brought to the table with these respective vendors. So there can be a definite variance on that side of the equation.
    I know that, but that can come down to a penny or two, but there wont be any merchant on WHT that does that much volume to make that much of a difference... If they are doing 10 million a month at $100 avg tkt, maybe. But then the current low cost some ISO's have with processors, shaving a penny off might be very hard from one ISO to another.
    Merchant Account Experts - if you are looking for honest, personal one-on-one service.

  13. #13
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    On the merchant side, agreed 100%. I was just talking on the processor level.
    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!

  14. #14
    Every time I have heard of a company calling themselves wholesalers, they are the ones you want to run from.
    Merchant Account Experts - if you are looking for honest, personal one-on-one service.

  15. #15
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    Yes, I'm inclined to agree with that comment.

    Especially if they talk about how they are a "massive processor" with a gazillion merchants... and then oddly, they don't even list their sponsoring bank disclosures anywhere. (There was one of those in another recent thread - always humorous to see)
    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!

  16. #16
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    Very good advise fionix,

    You don't just stubmle into the merchant business. It takes a lot of funds and experience both, other wise everyone would be in the business right.


    Cheers,
    getpayfast

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