Merchant Account/Payment Gateway Fees

by LAHETR
15 replies
Can anyone share the current average rates & fees for accepting and processing credit card payments on my website?

One service quoted me on a set-up fee, annual fee, monthly fees, 2.29% processing fee, and $3.60 per transaction fees, including a $1.95 Federal government fee.

This doesn't sound right.

Any suggestions on the best Merchant Banks/Payment Gateway vendors?

Thanks!
#account or payment #fees #gateway #merchant
  • Profile picture of the author youngsiteowner
    Banned
    I don't know the rates but I suggest just using either PayPal or WePay. You can find WePay's fees at https://www.wepay.com/fees

    I don't suggest accepting credit cards directly though.
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  • Profile picture of the author fghaegele
    Originally Posted by LAHETR View Post

    Can anyone share the current average rates & fees for accepting and processing credit card payments on my website?

    One service quoted me on a set-up fee, annual fee, monthly fees, 2.29% processing fee, and $3.60 per transaction fees, including a $1.95 Federal government fee.

    This doesn't sound right.

    Any suggestions on the best Merchant Banks/Payment Gateway vendors?

    Thanks!
    Government fees?! Sham city.

    2- 3ish percent , $0.25-0.50 minimum, + monthly fees are more appropriate.

    Paypal offers more combos than you can shake a stick at. Try googling "paypal alternatives" if you've heard to many horror stories about them!
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  • Profile picture of the author VinnieVegas
    Practice Pay Solutions charges me $52 a month for my merchant account, and authorize. net charges me $10 a month. Then about 2.5% per transaction plus 30 cents.

    I've been working with them for a decade. Works for me.
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  • Profile picture of the author Mark F Hall
    I saw somebody mention in another thread about a site:

    Merchant Money Back .com (I can't post links)

    They match or beat your current rates and give you back a monthly rebate which actually makes the cost even less. They have removed the Sales Agent and are giving their commissions back to the merchants. They also offer a lot of free equipment and accept online merchants. You also earn commissions when you refer other businesses.

    I would at least check them out, even if you don't go with them.
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  • Profile picture of the author seasoned
    Originally Posted by LAHETR View Post

    Can anyone share the current average rates & fees for accepting and processing credit card payments on my website?

    One service quoted me on a set-up fee, annual fee, monthly fees, 2.29% processing fee, and $3.60 per transaction fees, including a $1.95 Federal government fee.

    This doesn't sound right.

    Any suggestions on the best Merchant Banks/Payment Gateway vendors?

    Thanks!
    In the US, last I knew, there weren't any federal fees! There is an account,bill fee, and gateway fee, and each could be about $25/month, last I knew. Transaction fees might be excessive, but that means maybe as much as $.70 TOTAL. The "discount" could go from supposedly .75% to maybe 15%. The higher rates are if you have REALLY bad credit and/or a high risk business. BTW Some DO charge a one time setup fee. That can be on the order of $100-$300. I'm not aware of annual fees.

    Steve
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    • Profile picture of the author ronr
      Can you send me a PM?

      I use a good merchant provider, no set up fees, good monthly rates.

      No set up fees
      Discount rate 2.25%
      Transaction Fee .029
      Gateway fee: $15/month
      Monthly Statement Fee/24/7 support: $10/month
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  • Profile picture of the author Dan Grossman
    Are you planning to do at least $3-5,000/month in volume right off the bat? That's what it takes to make opening (and negotiating reasonable fees for) a merchant account make sense financially.

    Up until that point, a 3rd-party processor like PayPal or Stripe with a flat fee schedule (2.9% + $0.30 per transaction to start) will usually be cheaper once you factor in the monthly fees all the per-transaction fees a merchant account adds on top of the discount rate (mid-qual and low-qual downgrades, AVS fees, international/cross-border payment fees, etc.).
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  • Profile picture of the author equity4t
    Two words for you Interchange Plus. Google it. North American Bankcard can set you up this way if you are interested. Message me if you are interested. Don't go for any account set up fees either. Any merchant provider worth your time will set you up for free.
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  • Profile picture of the author rackspace
    wow, thats too much. try authorize.net
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    • Profile picture of the author Dan Grossman
      Originally Posted by rackspace View Post

      wow, thats too much. try authorize.net
      Authorize.net is not a merchant account provider. It's only a gateway, the software that connects your website to a merchant account. You have to get a merchant account first.

      Originally Posted by equity4t View Post

      Two words for you Interchange Plus. Google it. North American Bankcard can set you up this way if you are interested. Message me if you are interested. Don't go for any account set up fees either. Any merchant provider worth your time will set you up for free.
      I have an Interchange Plus priced merchant account. The effective rate I get is around 4% because of all the business cards -- high interchange on those. I do better at PayPal where I qualify for their 2.2% merchant rate because there are no downgrade fees.
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      • Profile picture of the author Walter Parrish
        its been awhile for me, but the cheapest I've seen was.

        .30
        2.25
        35 mthly fees

        but sometimes i think as online merchants we get ripped off. years ago one of my mentors told me anything about 1% is to high, of course this was offline business but i still think we get ripped off online.
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        • Profile picture of the author Dan Grossman
          Originally Posted by Walter Parrish View Post

          but sometimes i think as online merchants we get ripped off. years ago one of my mentors told me anything about 1% is to high, of course this was offline business but i still think we get ripped off online.
          It's any card-not-present transaction (mail order, telephone, etc), not just internet, but yes, the CNP interchange rates are significantly higher because of the increased risk of fraud. We can't tell if a man presents a card with a woman's name on it. We can't ask for ID on the spot. We can't check if the back of the card is signed. We can't ask for a signature on the receipt, etc.
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          • Profile picture of the author Walter Parrish
            Originally Posted by Dan Grossman View Post

            It's any card-not-present transaction (mail order, telephone, etc), not just internet, but yes, the CNP interchange rates are significantly higher because of the increased risk of fraud. We can't tell if a man presents a card with a woman's name on it. We can't ask for ID on the spot. We can't check if the back of the card is signed. We can't ask for a signature on the receipt, etc.
            lol Dan, but how many even check these things in the real world?

            When I was married I often used my ex wife's cards and id's with her picture on and her name, some of the cards she didn't even bother to signed and on others she wrote check for id. None of that stopped the merchant from taking the cards. Of course this could just be happening in Arizona, but to me it was an eye opener.
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            • Profile picture of the author Dan Grossman
              Originally Posted by Walter Parrish View Post

              lol Dan, but how many even check these things in the real world?
              Nobody's expected to check them most of the time, only when something looks suspicious. If you walk into a big box electronics store and try to walk out with 3 60" TVs while looking at the security cameras, they're gonna check your card and your ID.

              On the internet, most transactions look fine too, but when we see a suspicious one, we can't easily check the card and ID on the spot. We can't tell someone looks shifty, or even that they're using a US-issued card and are currently connecting to the internet behind two proxies from Pakistan.

              Not having the person in front of you with card in hand increases the risk of fraud.
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  • Profile picture of the author ekomolova
    Braintree is a full-stack payment platform that offers everything companies need to accept online and mobile payments. We offer 2.9% and 30 cents per transaction. With Braintree you can also accept payments in 130 countries worldwide. We don't have any monthly fees, no minimums, and you get your money in 2 business days for most transactions. Let us know if you have any more questions. Disclaimer: I work at Braintree
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