Let me first outline our current situation. We're selling very popular IM software products, most of them come with a yearly subscription. We made over $100,000 in sales last month alone. On average, we make approx. $50,000 in sales per month and the numbers are growing steadily.
So far we've been using PayPal to process these payments, however a "PayPal horror story" happened to us 5 weeks ago.
Even though our refund rate has been 1.5% ever since we opened our PayPal account 14 months ago, PayPal has imposed a $50,000 fixed reserve and a 30% rolling reserve on our account. Currently they are holding $70,250 of our money (68% of our current balance) and they WON'T release it even though our refund rate is 1.5%.
They know we cannot close our PayPal account and claim these reserved funds because we have thousands of active subscriptions tied to our account, and these are very valuable for future business. They are basically abusing their power and holding our money without any explanation and without even paying any interest on it.
Bottom line, we need a new payment processor.
If this payment processor comes with an integrated affiliate program that takes care of everything for us and brings in an active network of affiliates, that's even better.
What option would you recommend? ClickBank? JVZoo? Click2Sell? PayDotCom? Commission Junction? ShareASale? Anything else?
How do these compare in terms of:
- transaction fees
- affiliate program handling
- rolling reserves
- fixed reserves
- signup fees and other costs
- payout (withdrawal) methods for our EU-based company
- other upsides and downsides
- potential horror stories
For instance, I've heard ClickBank usually means higher-than-average refund rates because of their 1-click refund system. People are also supposedly buying products through their own affiliate links on ClickBank, etc. It might still be the best option, though - that's why I need your opinion and your experience with these payment processors.
I would sincerely appreciate all your help and suggestions.
Thank you very much in advance,