Merchant payments

[fenton]

How much do people pay per year for transactions with paypal, nochex e.t.c. Lets base this on £50.000. Just to clarify I was wondering how much I would expect to pay in charges from them.
Thankyou

[Steve2507]

Hi,

It depends on the value of the individual transactions and if they are spread evenly throughout the year.

Nochex is about 4% + 20p per transaction and Paypal is about 3.4% + 20p per transaction. But with PayPal it does depend on your previous months transactions (I think).

[fenton]

It is quite expensive to run a payment system then. Call me stupid but I did'nt realise how much it cost. Guess it would be around £2000 average for every £50.000 spent. Seems alot of money they must be making a fortune.

[Steve2507]

It is expensive to go through Nochex and paypal.

What you could do instead is get your own Internet Merchant Account (IMA). With an IMA you essentially go to a bank and apply for one. You may then get rates as low as less than 2%, depending on what you are selling, your credit rating etc.

[blown away]

Even the lowest rate for paypal (taking over £15k per month) is higher than a 'real' IMA.
You can set up with streamline for £150, with no monthly minimum charges, secpay is from £10 a month.

[fenton]

Thanks guys, I guess it may be an idea to start off with paypal and then move to a full merchant account as the business grows.
Anyone using Paypal Pro how is it?

[Steve2507]

Thanks guys, I guess it may be an idea to start off with paypal and then move to a full merchant account as the business grows.

Why don't you approach your bank now to see about a real IMA, that way you may be saving yourself a lot of money even when you are just starting off.

Seems alot of money they must be making a fortune.

Just look at the banks profits that they recently announced.:mad:

[Christiane]

I use Paypal Pro, whereby the customer doesn't leave the site and has no idea the transaction is going through Paypal. TBH it's not my choice but my new website provider has limited payment options. So far so good but it's only been three weeks!

[WebPageOne-Solutions]

I like Google Checkout, its secure and cost effective, easy to setup too :-)