Can someone explain payment provider charges and whats the best option

[midiman]

Hi, can someone please explain how PSP's go about charging.

eg.

My business has tight margins and I need a PSP with low transaction charges.

I,ve used PayPal before on Ebay but they are very expensive. They charged 3.4% of my transaction + 0.20p!!

I couldnt afford that for my online business because that would eat most of my profit!!

I have looked at options like SagePay and they say they charge around 0.40p per transaction and £20pm. That would be ideal for me.

I also understand I need to apply for a merchant account to accept Credit/Debit card payments online.

Basically, I would like a PSP that charges a transcation fee and not a percentage of my transcation like PayPal.

Can somene help please.

 

[TheDude]

Check out cardsave, they quoted some good rates for ima + gateway, just about to send off my application. Will update with the application process ;-)

 

[midiman]

They don't have any costs on their site. What I would like to know is how these PSPs charge their customers.

Are they all like PayPal or do they charge a monthly fee + a low transaction fee?

Thanks

 

[Sparx]

CardSave can typically offer you the full package (merchant account for eCommerce and MOTO) for roughly £19.95 per month. This includes everything you need; the merchant account, payment gateway along with a virtual terminal account. You get 350 free transactions per month - anything after that, it is 10p per transaction. The actual transaction charges that the bank charge (in our case, Streamline) all vary dependant if you are a New To Cards customer, what industry your business operates in, have previous trading history, business turnover, etc.

Rates with a merchant services provider compared to PayPal are 'set' in a sense. By that I mean all debit cards are charged at a set 'pence' figure (ball park figure 15-35p) no matter what the value of the transaction is, while credit cards are all charged as a percentage of the transaction value (ball park figure 1.4% to 3%).

For example - if a customer ordered £100 worth of products from you and paid with a debit card, you would be charged a set 15-35p while if they paid with a credit card it could be 1.8% so you would be charged £1.80. Meaning if you sell high value items, you may want to encourage your customers to pay with a debit card to retain a higher profit margin - although it is still much cheaper than PayPal!

If you would like a quote, drop me a PM (name, number, postcode) and I can have someone from our Sales team contact you when convenient and they can provide you a no obligatory quote.

Hope that helps and clears a few things up for you. If you have any more questions, please feel free to ask - I'd be happy to help!

 

[midiman]

CardSave can typically offer you the full package (merchant account for eCommerce and MOTO) for roughly £19.95 per month. This includes everything you need; the merchant account, payment gateway along with a virtual terminal account. You get 350 free transactions per month - anything after that, it is 10p per transaction. The actual transaction charges that the bank charge (in our case, Streamline) all vary dependant if you are a New To Cards customer, what industry your business operates in, have previous trading history, business turnover, etc.

Rates with a merchant services provider compared to PayPal are 'set' in a sense. By that I mean all debit cards are charged at a set 'pence' figure (ball park figure 15-35p) no matter what the value of the transaction is, while credit cards are all charged as a percentage of the transaction value (ball park figure 1.4% to 3%).

For example - if a customer ordered £100 worth of products from you and paid with a debit card, you would be charged a set 15-35p while if they paid with a credit card it could be 1.8% so you would be charged £1.80. Meaning if you sell high value items, you may want to encourage your customers to pay with a debit card to retain a higher profit margin - although it is still much cheaper than PayPal!

If you would like a quote, drop me a PM (name, number, postcode) and I can have someone from our Sales team contact you when convenient and they can provide you a no obligatory quote.

Hope that helps and clears a few things up for you. If you have any more questions, please feel free to ask - I'd be happy to help!

Thanks I just spoke to someone from Cardsave and they said they would get back to me.

I also spoke to SagePay and they where helpful.

I understand I need to get a merchant account first of all. They charge £20pm ex vat and then it's 0.40p per transaction, which is around 300 transactions per month and then 0.10p after.

I,m starting out so anything is better than PayPal fees!!! Because I will be selling items that avg around £100-£200.

 

[That Guy]

SagePay have always been helpful when I have spoken to them.

You will need a merchant account but another thing to find out is how long it takes them to release the funds to you, may lead to cash flow problems if its too long

Hope this helps!

 

[hitari]

Apply for a BarclayCard merchant account to be used with SagePay gateway.

However, you still get charged percentage as most of them do anyhow.

Better to shop around and contact all major providers to find out prices and compare as some have different facilities and services to others etc...

Good luck.

 

[mdhanda]

Today I came across CharityClear somewhere in this forum only. They charge £18/month with 350 free transactions and 9.9p per transaction afterwards.

They claim that 100% of their profit goes to Charity. Just visit there webpage harityclear org uk

I hope it will help someone.

 

[CardsaveAccountsExecutive]

Hi midiman,

Hope you are well, I am one of the Cardsave Accounts managers. I have also been dealing with TheDuke.

I can certainly offer you the most competitive rates on the market for a NTC (New to cards) merchant accepting card payments. More importantly we do the whole package in one low monthly fee as sparx explained.

Is it ok if i PM you a quote?

Kind regards

Scott Laughland
Cardsave Accounts Manager
01159487619
[email protected]

 

[Dialagenie]

Hi

Midiman, I hope you don't mind me asking for help on the same topic. I do not want to start yet another thread, and there have been many similar threads in the past. Also didn't think it to be a good idea to PM any of the guys who have provided valuable info without permission.

I run a small handyman business at the moment, payment is by cheque and bank transfer. Now i am in the process of setting up an internet furniture retail, while the e-commerce site is being developed i plan to soft start with publishing a price list online on my brochure site (orders over the phone). I am a member of the FSB and they have a deal for members with Worldpay/streamline. Has anybody done anything with streamline / via say virtual terminal and then having a payment module for eCommerce?

Also would like to know how long do these guys hold on to you funds as cash flow can be an issue. Ideally looking for someone who would transfer max weekly.

Also any input on choice of eCommerce cart will be appreciated. The product is kitchens and bedrooms, so you have brands->styles-> colours-> sizes-> accessories like handles, plinths and so on. Has anybody developed anything similar?

Many thanks

 

[CardsaveAccountsExecutive]

Hi Dialagenie,

I can give you some light on this.

Firstly i have to be completely honest, The business sector you plan to trade in (Kitchens & Bedroom) is a very strict sector when it comes to merchant services. As you are aware normally with kitchens/Bedroom fittings its not really a stock item and most products would be produced to fit.

We always have to look at the risk involved with every sector (MPL) Merchant potential liability/Loss.

Now this is where the maths comes in and starts to cause problems for this sector.

For instance say you take payment and have a lead time of 21 days before the products can be manufactured and delivered, Average transaction at £1500. On the basis of one sale a day we would times the total transaction amount £1500 x Lead time (21 days) = £31,500. This would then be the potential loss to the card acquiring bank if any problems were to occur.

This does not mean you will not get a payment facility, But it does mean more information is require to minimise risk involved.

All the maths a side on onto the techy bits, Cardsave can provide and all in one solution both combining a Virtual terminal and Payment gateway with both Ecom and Moto merchant accounts. I can also provide a far better deal than the FSB with competitive rates when it comes to choosing a Payment solution provider.

In regards to your E-commerce cart have a look at our extensive list of different providers http://www.cardsave.net/shopping-carts/. Some are free (Opencart) to other that have monthly fee's.

If i can be of any more assistance please feel free to give me a call, or send me an email on the below details.

But for now as its a Sunday night and Wild at heart is about to start i best get off the computer before the other half tells me off. Ill check back in the morning once in the office 0830hrs.

Kind regards

Scott Laughland
Cardsave Accounts Manager
01159487619
[email protected]

Hi

Midiman, I hope you don't mind me asking for help on the same topic. I do not want to start yet another thread, and there have been many similar threads in the past. Also didn't think it to be a good idea to PM any of the guys who have provided valuable info without permission.

I run a small handyman business at the moment, payment is by cheque and bank transfer. Now i am in the process of setting up an internet furniture retail, while the e-commerce site is being developed i plan to soft start with publishing a price list online on my brochure site (orders over the phone). I am a member of the FSB and they have a deal for members with Worldpay/streamline. Has anybody done anything with streamline / via say virtual terminal and then having a payment module for eCommerce?

Also would like to know how long do these guys hold on to you funds as cash flow can be an issue. Ideally looking for someone who would transfer max weekly.

Also any input on choice of eCommerce cart will be appreciated. The product is kitchens and bedrooms, so you have brands->styles-> colours-> sizes-> accessories like handles, plinths and so on. Has anybody developed anything similar?

Many thanks

 

[Dialagenie]

Thanks Scott.

Yes MPL is always an issue, of course a bigger deal when it comes to high value low volume transactions.

Will be in touch

Thanks

 

[PayPoint net]

Hi

It can be quite confusing when starting out but the good thing for you is that there are a lot of payment providers so you will be able to get a broad range of quotes. Basically you have two options:

1. You can go to your bank to organise your Merchant Account and then speak to a PSP (a few already mentioned in this thread) to add on the payment gateway; or

2. You can get an all-in-one solution where you get the merchant account and the payment gateway from the one provider.

Sometimes new businesses may find it difficult to get a merchant account from their bank (some will require approx 6 months trading history). In this case they would get an all-in-one solution and then after 6-12 months see if they can negotiate a better rate.

We provide both services and publish our rates. For start-ups / SME's who have managed to get a merchant account we offer 350 inclusive transactions for £20 /month (.15 per transaction) for the payment gateway.

For those who require the full solution we charge £75 set up fee, £20 / and a typical transaction charge of 1.95%. Details of our merchant account and payment gateway pricing and features are listed on our site.

We, like any of the payment providers in this thread, are happy to provide a quote for your business. Shop around and find out which solution works best for your business.

Best of luck
Siobhan

Hi, can someone please explain how PSP's go about charging.

eg.

My business has tight margins and I need a PSP with low transaction charges.

I,ve used PayPal before on Ebay but they are very expensive. They charged 3.4% of my transaction + 0.20p!!

I couldnt afford that for my online business because that would eat most of my profit!!

I have looked at options like SagePay and they say they charge around 0.40p per transaction and £20pm. That would be ideal for me.

I also understand I need to apply for a merchant account to accept Credit/Debit card payments online.

Basically, I would like a PSP that charges a transcation fee and not a percentage of my transcation like PayPal.

Can somene help please.

 

[CharityClear]

Hi, can someone please explain how PSP's go about charging.

eg.

My business has tight margins and I need a PSP with low transaction charges.

I,ve used PayPal before on Ebay but they are very expensive. They charged 3.4% of my transaction + 0.20p!!

I couldnt afford that for my online business because that would eat most of my profit!!

I have looked at options like SagePay and they say they charge around 0.40p per transaction and £20pm. That would be ideal for me.

I also understand I need to apply for a merchant account to accept Credit/Debit card payments online.

Basically, I would like a PSP that charges a transcation fee and not a percentage of my transcation like PayPal.

Can somene help please.

Hi Midiman,

We offer two tariffs:

- £18 per month, 350 free transactions, 9.9p thereafter
- £10 per month, 50 free transactions, 15p thereafter

We don't charge set up fees or for additional services such as Virtual Terminal. As someone else said earlier in the thread, all our profits go to charity.

We can also assist with setting up a merchant account, for that you're looking at rates of 1.5% for credit cards and 22p for debit cards.

Hope that helps.

Marc.

 

[junipaire2009]

I've not used them yet as still setting all up but I was recommended them Authorize they are called, just google them, (I need 15 posts on the forums apparantly to provide a link). Don't know if they are what you are looking for but might be worth checking out.

 

[PayPoint net]

Just an update - our payment gateway (hosted solution) is now £19 per month. This includes 350 free transactions and any transaction after that is 10p.

Hi

It can be quite confusing when starting out but the good thing for you is that there are a lot of payment providers so you will be able to get a broad range of quotes. Basically you have two options:

1. You can go to your bank to organise your Merchant Account and then speak to a PSP (a few already mentioned in this thread) to add on the payment gateway; or

2. You can get an all-in-one solution where you get the merchant account and the payment gateway from the one provider.

Sometimes new businesses may find it difficult to get a merchant account from their bank (some will require approx 6 months trading history). In this case they would get an all-in-one solution and then after 6-12 months see if they can negotiate a better rate.

We provide both services and publish our rates. For start-ups / SME's who have managed to get a merchant account we offer 350 inclusive transactions for £20 /month (.15 per transaction) for the payment gateway.

For those who require the full solution we charge £75 set up fee, £20 / and a typical transaction charge of 1.95%. Details of our merchant account and payment gateway pricing and features are listed on our site.

We, like any of the payment providers in this thread, are happy to provide a quote for your business. Shop around and find out which solution works best for your business.

Best of luck
Siobhan