Best way of accepting credit cards?

[joburnet]

There are a ton of companies that want to let you accept credit cards but they can be pretty expensive, $400 + $25/mo + 6% or something like that. I've thought about paypal but that isn't a very efficient way of accepting credit cards over the phone which is something that I need to do. Has anyone here had expirence setting this up and if so what have you learned? Thanks.

 

[tcsenter]

Be wary of merchant services. 95% of the web 'companies' offering credit card processing and merchant services are nothing more than resellers. I use the term 'companies' loosely, as many consist of a dude (marketer) operating out of his home.

I lifted this from a previous discussion on this subject, but I do not remember who posted it, so I cannot give proper attribution except to say it isn't mine:

You have two choices:

1) Third party payment processor such as (listed in order)

WorldPay.com
Paysystems.com
2checkout.com

These have low start up costs, sometimes no monthly fees and no requirement of a business license or merchant checking account. My favorite is Paysystems, you pay a one time $49 setup fee, no monthly fees or minimum requirements, you are paid every Friday directly into your banks account via ACH (just like direct deposit).

2) The BEST option is to get a merchant account with your bank and an account with authorize.net this gives the merchant the most protection. With the first choices if a customer disputes it although you provided services and/or goods, chances are you will lose, the customer will win PLUS you are charged a $25 "charge back" fee.

So imagine how pissed you would be if someone pays for $10 of web hosting, they get pissed off at you, dispute the charge, not only is the $10 taken back PLUS you are charged a $25 charge back fee as well.

 

[RossMAN]

Originally posted by: tcsenter
Be wary of merchant services. 95% of the web 'companies' offering credit card processing and merchant services are nothing more than resellers. I use the term 'companies' loosely, as many consist of a dude (marketer) operating out of his home.

I lifted this from a previous discussion on this subject, but I do not remember who posted it, so I cannot give proper attribution except to say it isn't mine:

You have two choices:

1) Third party payment processor such as (listed in order)

WorldPay.com
Paysystems.com
2checkout.com

These have low start up costs, sometimes no monthly fees and no requirement of a business license or merchant checking account. My favorite is Paysystems, you pay a one time $49 setup fee, no monthly fees or minimum requirements, you are paid every Friday directly into your banks account via ACH (just like direct deposit).

2) The BEST option is to get a merchant account with your bank and an account with authorize.net this gives the merchant the most protection. With the first choices if a customer disputes it although you provided services and/or goods, chances are you will lose, the customer will win PLUS you are charged a $25 "charge back" fee.

So imagine how pissed you would be if someone pays for $10 of web hosting, they get pissed off at you, dispute the charge, not only is the $10 taken back PLUS you are charged a $25 charge back fee as well.

Guilty as charged

 

[TheToOTaLL]

Originally posted by: RossMAN

Guilty as charged

Doesn't suprise me

 

[joburnet]

Thanks for the info.

 

[Gunslinger08]

Costco offers the best service/fees.

 

[RossMAN]

You can also get a merchant account which gives you a lot more flexibility.

The only downside is a $35/mo fee for the payment gateway and statements.

 

[Enderet]

Dont help this guy... he was recently trying to scam people on the Hot Deals forum, by posting up some site where you could supposively get a vacation for two for 20$. The thread was locked and then deleted. Dont help him... maybe this is part of the whole thing he did.

 

[RossMAN]

Originally posted by: Enderet
Dont help this guy... he was recently trying to scam people on the Hot Deals forum, by posting up some site where you could supposively get a vacation for two for 20$. The thread was locked and then deleted. Dont help him... maybe this is part of the whole thing he did.

If this is true then I hope he doesn't get a merchants account because that gives the merchant, the most protection against chargebacks.

 

[new2AMD]

Is it easy to get a merchant account? Just more expensive then places like paysytems?

 

[RossMAN]

Originally posted by: new2AMD
Is it easy to get a merchant account? Just more expensive then places like paysytems?

Yes it is easy but it costs $35/mo fee even if you do $0 transactions.

It's better than using a 3rd party payment processor (like paysystems.com) but it's the fees which kills the deal for me.

 

[JonnyBlaze]

im just looking into this also. im getting this nextel phone that has a card reading built into it.

i have a friend who works for a compant that processes transactions for you. i think its around 2% per transaction.

whats the normal charge??

JB

 

[Ausm]

I just use my paypal mercant account

Sysadmin

 

[Entity]

Have a business license?

http://www.cdgcommerce.com

That's who my company uses. Monthly fees still exist, but the customer service is excellent, and overall percentage of sales taken is relatively low.

Rob