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What is your fav payment gateway? CC Merchant?

by stevef22
16 replies
I do not run very much a month on my Credit Card machine. But I still get about $20 in taxes and fees.

What is your favorite and lowest CC merchant? Paypal? (I Dont really like paypal, but its easy)

Has anyone heard of the "Square" for iphone? (Im in no way associated with it and dont know about it. what do you guys know about it, any drawbacks? But they want 2.75% from every transaction, Any lower methods out there?

Any suggestions would be much appreciated.

Thank you,
Steve
#fav #gateway #merchant #payment
  • Profile picture of the author stevef22
    Any ideas? I have been researching and havent found much.
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  • Profile picture of the author eshapard
    jvzoo looks pretty good. probably not the cheapest, but they offer a lot of cool features.
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  • Profile picture of the author Steven Miranda
    http://Stripe.com

    It is awesome!
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  • Profile picture of the author stevef22
    stripe does look pretty cool, dude who posted jvzoo should be banned, (this is an ad for multilevel crap)
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  • Profile picture of the author Randall Magwood
    2checkout.com is good. They dont accept "internet marketing" products tho.
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  • Profile picture of the author olalinks
    Banned
    [DELETED]
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    • Profile picture of the author Jeff Henshaw
      dude who posted jvzoo should be banned, (this is an ad for multilevel crap)
      That's a pretty harsh statement.

      What in your opinion is wrong with using JVZoo?

      Jeff.
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      • Profile picture of the author stevef22
        I went to JVZoo and they are not cc processors. Simple
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        • Profile picture of the author Bryan Zimmerman
          Originally Posted by stevef22 View Post

          I went to JVZoo and they are not cc processors. Simple
          No JVZoo is not a CC processor. Paypal processes all the payments. I'm pretty sure he made an honest mistake. Banning does sound a bit harsh for it lol.
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          • Profile picture of the author Centurian
            You have a merchant account with monthly fees and minimums. The best solution is to secure an account that does not have minimums.

            The cheapest merchant account these days will probably be just under $5 a month even if you don't use it. The government keeps throwing new mandates like 1099 reporting which adds a few dollars even to "free" accounts.

            You are correct about the fees. That's why it depends on what account you secure. You can get a "free" account, but you pay higher processing rates. To save money in the long run, it's better to secure lower rates even with a $5 to $20 a month fee. You're going to spend way more money for that "free" account.

            2CO charges 5.5%, with an option for 4.5%. That's way too high for what you can get for less.
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            • Profile picture of the author Alexa Smith
              Banned
              This thread is full of nonsense.

              "Credit-card processors", "payment gateways" and "merchant accounts" are three different things.

              I'm "just saying" ... :rolleyes: :p
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              • Profile picture of the author Centurian
                Originally Posted by Alexa Smith View Post

                This thread is full of nonsense.

                "Credit-card processors", "payment gateways" and "merchant accounts" are three different things.

                I'm "just saying" ... :rolleyes: :p
                You're absolutely right Alexa.

                But then you always are.

                That's why these one-size-fits-all solutions don't always work for everyone.
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                • Profile picture of the author Alexa Smith
                  Banned
                  Originally Posted by Centurian View Post

                  That's why these one-size-fits-all solutions don't always work for everyone.
                  LOL - fair comment ... I was not having a go at your post (and am not sure I should have posted at all, to be honest - apologies).
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            • Profile picture of the author Josh Anderson
              Originally Posted by Centurian View Post

              The cheapest merchant account these days will probably be just under $5 a month even if you don't use it.
              For ecommerce you need a merchant account + a gateway. Gateways pretty much run a standard fee of $20-$30 a month... even if you don't use it. The merchant account connected to it will generally charge you MORE if you don't use it or don't meet a monthly minimum volume of transactions. Sometimes you can get charged $20 a month for a merchant account where you might eliminate that fee if you were actually using it.

              People who have a merchant account but do not use it should expect to pay around $50 a month. If you have an American express account connected to that merchant account expect to pay an additional $7 a month in statement fees unless you go paperless.

              Anyone who thinks they can get a merchant account and gateway for $20 or less is mistaken.

              If you do not want to pay monthly fees go with a third party payment processor like PayPal or Stripe.com

              If paying $20 a month is a concern for you then your business is probably not yet big enough to warrant a merchant account.

              My advice for anyone starting an eCommerce business is to expect to budget at least $200 a month to cover the costs of a Merchant account and Gateway, Shoppingcart, Email service provider, and hosting.
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  • Profile picture of the author Josh Anderson
    For those who need a lesson in definitions:

    Merchant Processor = Merchant Account + Gateway or Third Party Processor (PayPal)

    Steve, in regards to your question...

    Gateway fees generally run around $20 + a small per transaction fee. That does not include Merchant processing fees. Merchant processing fees generally average between 2.2 and 2.9%.

    PayPal, which is not a merchant account, is the cheapest option for third party processing. Fees start at 2.99% + .30 per transaction but can be reduced if you are doing more than $10k a month.

    Even though advertised rates for merchant account providers and third party processors start at a certain % they are often increased by a number of factors. For example online transactions generally are considered "non qualified" because they are card not present. Additionally costs associated with rewards and loyalty programs are passed onto the merchant. So even if a merchant provider quotes you 2.3% in fees you will likely end up paying 3.25-3.5%

    PayPal is a great option... for one time transactions. I would NEVER recommend you use it for any type of recurring transactions though... but that is another discussion. Just search the forum and you will learn the dangers of PayPal.

    I would recommend you have BOTH a PayPal business account and a Merchant account... and if you are doing singificant volume have two merchant accounts from two different providers.

    Also to protect yourself from loss you should use an ecommerce automation solution that handles billing for you outside of your merchant gateway so that if one has issues you can seamlessly switch to another.

    If you are doing offline processing for card present transactions then square is a very low cost option at 2.75% and easy to use as well. Every offline merchant just starting out should consider using it. If you are doing significant volume or higher transaction amounts you may want to contact them and discuss if they have any limits.

    Other than that just about ANY merchant provider will do but its best to look for one who has clients in your market and therefor understands the kind of transactions you will be processing and provides you with a knowledgeable account rep who you can call in time of need.

    Don't get hung up on $20 in fees a month for your gateway. Be grateful you have options to process payments, recognize that is a normal fee for a gateway, and make sure you ALWAYS have a fall back method of processing payments.
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  • Profile picture of the author Teez
    I think this question is especially for Josh & Centurion and everyone who can help

    I basically want to create a site which offers membership at various packages.

    It will be a UK site and lets say
    Package 1 = £1
    Package 2 = £2
    Package 3 = £3
    (NOT real figures)

    Now with all the warnings about not using PAypal for large recurring fees I also heard about Freshbooks but then I saw when I skimmed through freshbooks that they used paypal.

    I've been too busy to get round to taking the tour on freshbooks or authorize as these have been recommended.

    But the whole thing is confusing me especially as it's a new business start up so won't have enough working capital for the expenses of a Merchant account even though after reading through this Im still not sure I know what a merchant account is.

    My initial thought was set up 3 paypal subscription buttons and send them via email after deals closed but with all the paypal warnings saying that could be dangerous for recurring fees I'm kinda back to square one and a lil confused.

    So all help and advise will be appreciated especially as these other payment processors eg Authroize.net and Freshbooks are brand new to me so I also want to reduce the learning curve as much as possible.
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  • Profile picture of the author WarriorDiscount
    paypal, it`s very secure and easy
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