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  1. #1
    Member
    Join Date
    January 18th, 2005
    Posts
    153
    <BLOCKQUOTE class="ip-ubbcode-quote"><font size="-1">quote:</font><HR>The standard charges affiliated with merchant accounts are your discount rate, a transaction fee ($0.25-$0.30), a batch fee ($0.25-$0.30 per day), a monthly statement fee ($25), and monthly minimum fee ($25 a month). Internet businesses that utilize a real-time processing solution also pay a monthly $15 gateway fee. The gateway is your 24/7 connection to the processor. While some merchant services providers bundle these rates into your discount rate, we prefer to list them separately for you so you know exactly what you're paying. All of these rates are determined by the type of business you have, the products/services you're selling as well as your monthly volume.
    <HR></BLOCKQUOTE>
    I understand the transaction fee but what is a batch fee? I assume the minimum monthly fee would be applied if I didnt make the 25 dollars in transaction fees (I probably shouldnt assume anything though)
    Now as for monthly pricing what are acceptable prices

    Monthly payment - 39.95 mo for 2 yrs - 49.95 for 1
    discount rate -2.29%
    transaction fee - .30
    gateway fee - 15.00 mo
    statement fee - 7.95 mo
    batch fee ??? - .30
    monthly min??? -25.00
    So as far as I can figure I would be spending at least 63.00 a month just for having a merchant account
    Any help would be appreciated

  2. #2
    Member
    Join Date
    January 17th, 2005
    Posts
    92
    That monthly payment (setup fee??) is a bit high. I use authorize.net and I think it was only $299 to setup.

    Everyday all sales are combined and then batched/propagated to your bank account. This usually takes 2 days per batch to hit your account.

    The type of product and anticipated volume should be taken into consideration. There are many other solutions that do not cost much at all to setup. The fees are a little more per transaction but if you're just doing 10 sales a day it may be better to start with a free/low cost setup provider to start so you can recoup some cashflow. I think the cheaper ones don't do daily batches but monthly or bimonthly checks. Of course, I don't know your budget.

    Good Luck

  3. #3
    Full Member
    Join Date
    January 18th, 2005
    Posts
    256
    What I did when searching for a CC processor was set up an Excel spreadsheet with all the different fees across the top and all the different merchant account providers down the left side. Then I started entering in the info from each.
    Once this was done, I fooled around with different transaction volumes to determine who would be the best for me at this time and also in the future.
    I settled on Beanstream.com, but there were several who were close.

    The other thing to consider is that if you have a shopping cart on your site, it must be compatable with the merchant account provider you choose. Not all carts are compatable with all CC processors.

    [ 02-02-2002: Message edited by: WorkerBee ]

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