The difference in Payment Processors

[wayzgoose]

Is there a site that lists the different payment processors but one that will actually drill down to the nitty gritty about the way they work?

To explain further, we have been with SagePay for many years. They are what I would call a "proper" payment processor. Looking into cutting costs we recently signed up for a Nochex account which on the surface leads you to believe the same service is provided but paid for in a different way (instead of a monthly charge, the percentage is a little more plus a 20p per transaction charge).

Unfortunately, the system is not the same. Firstly, when a customer uses Nochex they are told that they are purchasing "E-money" which must be very confusing for them. Then you discover that your business name does not show on their credit card account - just Nochex instead. I would think that's a typical reason for a chargeback when the customer forgets what they have ordered and paid for.

This is where some proper information about the different types of processor would be extremely useful. Knowing what I know now (yes, I know, it was probably in the terms and conditions if I'd read them properly !) I could have save the £50 sign up fee for the Nochex Merchant account.

 

[Alan]

When I dumped sagepay (for cost reasons) in my e-commerce biz a couple of years ago, I just went for paypal.

I don't know of any 'compare the business payment processor' sites ... now theres an idea...

 

[Rosewood Farms]

I also use Paypal & you get the option to change in the settings what appears on credit card bills, I think you can do the same in Nochex, which I have also used in the past but am not doing at the moment due to my website being configured to PP. I have Worldpay Pay & Go as a physical & virtual terminal on a higher transaction fee but no monthly charge, which suits us well as we tend to do more online than face to face or MOTO payments, so it just plugs a gap.

I recently signed up with Retail Merchant Services looking to reduce fees but have since regretted it as it turns out the information they told me to get me to sign up isn't actually true and then when you try and leave they turn into one of the more expensive companies to get away from, so that was a complete false economy. If you get a call from them, just put the phone down, it'll save a lot of hassle in the long run.

 

[WolfStores]

I am not aware of a comparison website for payment gateways but having tried many in the past we now exclusively use PayPal and thoroughly recommend it to all of our customers.
PayPal is reliable, safe (you do not even need an SSL certificate for your site if you are using PayPal) and trusted by millions. You cannot go wrong if you use PayPal.
Your business name will come up in the statements of your customers (you can specify this in the settings of your PayPal account) when your customers pay you either via their own PayPal account or by Credit Card via PayPal.
Hope this helps

 

[Nochexman]

Hello faze3.

I work for Nochex.

Nochex provides 'proper' payment processing as you call it, and, we provide you with an internet merchant account within the same service package at no extra charge.

Moreover, we actually get relatively few chargebacks.

Would it be helpful to you to get on a call when we can explain how Nochex works, and answer any questions you might have about payment processing?

One of the benefits of our service is that you are welcome to ask us as many questions as you need answers to. Please call your account manager who will be delighted to help you.

Best wishes,
- Peter

 

[Sparx]

Is there a site that lists the different payment processors but one that will actually drill down to the nitty gritty about the way they work?

I don't know of any 'compare the business payment processor' sites ... now theres an idea...

I am not aware of a comparison website for payment gateways but having tried many in the past we now exclusively use PayPal and thoroughly recommend it to all of our customers.

I guess you haven't come across www.paymentbrain.co.uk on UKBF yet then? It's a payment gateway comparison site, it may not as 'nitty gritty' as you may like, but it is very informative.

Have a look at this page in particular: http://paymentbrain.co.uk/gateways

 

[WolfStores]

Hi Sparx,

Nice contribution
I was indeed not aware of this site which, although useful for cost comparison purposes, it still does not help with faze3's original question.
I would still recommend PayPal over any other payment gateway available today.
And no, I do not work for PayPal nor do I take a commission

 

[Ian Spielman]

Hi Guys.

A couple of things. Paypal is wonderful for ebay, because they offer a guarantee on the sale in case of mis-selling etc. However, its important to note that this doesnt apply to 3rd party sales. in addition to get the lowest rate available i.e. 1.45% + 20p you need to be turning over £55k + A MONTH!! and that needs to be maintained otherwise you drop a level. their atandard rates are 3.4%-2.9% + 20p per transaction regardless. (both CC & DC)
However, other companies will charge you £19.99 a month or £200 P/A (which includes approx 350 free transactions a month and that is cheaper the PayPal - do the maths) plus approx 2.5% for CC and 30-35p for DC which is a much cheaper option.



Good luck

 

[wayzgoose]

Thanks for all the replies and the comparison site link. Digging through my current knowledge and others opinions right now

 

[Ian Spielman]

If you need any help just holla as I actually work in the industry. (not for RMS I might add) ;-)

Sent from my GT-I9100 using UK Business Forums

 

[nextec]

Hello faze3.

I work for Nochex.

Nochex provides 'proper' payment processing as you call it, and, we provide you with an internet merchant account within the same service package at no extra charge.

Moreover, we actually get relatively few chargebacks.

Would it be helpful to you to get on a call when we can explain how Nochex works, and answer any questions you might have about payment processing?

One of the benefits of our service is that you are welcome to ask us as many questions as you need answers to. Please call your account manager who will be delighted to help you.

Best wishes,
- Peter

I had a Nochex account for many years which I used as the mail payment processor for our web site (we also had paypal as an option)

In all this time I only ever had 2 charge backs, both were covered by retained funds. Each time the customer had received the product and I had no reply from Nochex to my email stating that the charge back was not correct)

Following the second chargeback Nochex locked the account, without telling me, I only found out when customers started telling me that they couldn't pay.

I tried to log into Nochex to get the name and phone number of my account manager to find out what was going on but was locked out of that as well.

Eventually after about 3 weeks and 3 different support tickets I finally got a reply stating that my account was closed and no further communication would be entered into. It was several months before I received the retained funds back.

I would not use Nochex again if you paid me which is a shame because the system is very good for small businesses and if it was managed properly could be up there with paypal

 

[sophieperrone]

PayPal is reliable, safe (you do not even need an SSL certificate for your site if you are using PayPal) and trusted by millions.

Why you need SSL even you use paypal?

Customers enter their private information on an order process page that is hosted on your server. To secure that information, you must install an SSL Certificate on your website.

Here you can see what paypal says about having an SSL on your website. https://www.paypal.com/cgi-bin/webscr?cmd=xpt/Marketing/merchant/CompatibleSSLCertPartner-outside

 

[WolfStores]

Why you need SSL even you use paypal?

Customers enter their private information on an order process page that is hosted on your server. To secure that information, you must install an SSL Certificate on your website.

Here you can see what paypal says about having an SSL on your website. https://www.paypal.com/cgi-bin/webscr?cmd=xpt/Marketing/merchant/CompatibleSSLCertPartner-outside

Hi there,

the link you provided refers to the PayPal 'Payflow Gateway' which actually stores information on your server hence in this case you would need SSL.

I was referring to the much simpler and much more popular 'PayPal Payments Standard' which does not store info on your server hence you do not need SSL. Please have a look at https://www.paypal.com/webapps/mpp/paypal-payments-standard

Hope this helps to clarify things

Best Regards,

Tim

 

[Nochexman]

Hi nextec. I was really sorry to read your story. If you PM me with your details I can investigate this for you. Yours sincerely, Peter

 

[Payatrader]

Hi,
I work for Payatrader.com & we provide low cost card acceptance for businesses that take low volumes of payments or who have an infrequent need for card services - e.g trades, professionals, start up etc.

There is a site you can use to compare, albeit a bit basic called Paymentbrain.co.uk.

This allows you to find a provider based on simple parameters such as the number of transactions you expect to take and average value. The results will bring back the cheapest provider.

That said, it's possible that other fees will apply when you follow up the result - such as merchant account fees, minimum usage charges, PCI compliance costs etc.

Also, it's not very easy to see what you get for your money in terms of channel availability - i.e can you take a payment online, by phone, mobile, email etc.

Hope this helps

 

[RyanMitchell]

I had a Nochex account for many years which I used as the mail payment processor for our web site (we also had paypal as an option)

In all this time I only ever had 2 charge backs, both were covered by retained funds. Each time the customer had received the product and I had no reply from Nochex to my email stating that the charge back was not correct)

Following the second chargeback Nochex locked the account, without telling me, I only found out when customers started telling me that they couldn't pay.

I tried to log into Nochex to get the name and phone number of my account manager to find out what was going on but was locked out of that as well.

Eventually after about 3 weeks and 3 different support tickets I finally got a reply stating that my account was closed and no further communication would be entered into. It was several months before I received the retained funds back.

I would not use Nochex again if you paid me which is a shame because the system is very good for small businesses and if it was managed properly could be up there with paypal

Oh dear! that sounds like a nightmare..

 

[Payatrader]

Hi Ryan,
Have you looked at payatrader.com? It's great value for money & gives multiple payment channels. We always respond to our customers and listen to their ideas for improvement. We've also been shortlisted for 3 awards this year.

 

[Nochexman]

Is there a site that lists the different payment processors but one that will actually drill down to the nitty gritty about the way they work?

To explain further, we have been with SagePay for many years. They are what I would call a "proper" payment processor. Looking into cutting costs we recently signed up for a Nochex account which on the surface leads you to believe the same service is provided but paid for in a different way (instead of a monthly charge, the percentage is a little more plus a 20p per transaction charge).

Unfortunately, the system is not the same. Firstly, when a customer uses Nochex they are told that they are purchasing "E-money" which must be very confusing for them. Then you discover that your business name does not show on their credit card account - just Nochex instead. I would think that's a typical reason for a chargeback when the customer forgets what they have ordered and paid for.

This is where some proper information about the different types of processor would be extremely useful. Knowing what I know now (yes, I know, it was probably in the terms and conditions if I'd read them properly !) I could have save the £50 sign up fee for the Nochex Merchant account.

Hello wayzgoose.

What did you decide to do in the end?

Just interested.

 

[PayPoint net]

Hi all

As well as PaymentBrain there is also http://www.electronic-payments.co.uk/ (they have recently updated their site and have had a rebrand so just another comparsion site option for you).

Siobhan

 

[wayzgoose]

Hello wayzgoose.

What did you decide to do in the end?

Just interested.

Stayed with Nochex in the end. Couple of things I wish worked differently and were much better with Sagepay but you can't have everything.

One definite plus I have found with Nochex is how much easier the paperwork is to get sorted. With Nochex it's just a case of keeping track of the lump sums that are transferred whereas with Sagepay, each individual payment is transferred to the bank every night. A nightmare trying to balance the books at the end of the month when some payments haven't gone over. A definite tick in the Nochex box !

 

[Edward Ashton]

Hi Wayzgoose,

I work for a company called CashFlows, we are a Gateway, Merchant Acquirer and just about to release a business account too.

If you are still shopping around for an alternate provider drop me a message and we can have a chat.

Regards,

Edward

 

[dolphinformations]

If its any help to anyone else reading when i did research into card processors i found these to offer very competitive rates:
www.cardsave.net
www.charityclear.com
There was also Elavon - http://www.elavon.com/acquiring/united-kingdom/payment/credit-debit.aspx
I'm looking into all this as well as starting own ecommerce retail business!

 

[Edward Ashton]

If its any help to anyone else reading when i did research into card processors i found these to offer very competitive rates:
cardsave.net
charityclear.com
There was also Elavon - elavon.com
I'm looking into all this as well as starting own ecommerce retail business!

We are actually partnered with Charity Clear and there gateway fees are extremely competitive!

 

[ian-d]

I use Sagepay and Streamline.

Sagepay charge 10p per transaction (because I do more than 1,000 in 3 months) and Streamline charge around 1.2% per credit card (24p per debit).

I can't see any other payment processor, combined or otherwise competing.

 

[PayPoint net]

Throwing another option into the arena

I work for PayPoint.net and with our gateway service we charge maximum 10p per transaction (with 350 inclusive per month).

 

[ZipserSir]

Throwing another option into the arena

I work for PayPoint.net and with our gateway service we charge maximum 10p per transaction (with 350 inclusive per month).

So do you need a merchant account with that? How much extra does that cost?

 

[PayPoint net]

Hi

It would depend on which bank we felt was best suited to your business model. We have a number of relationships with acquirers and can arrange a merchant account on your behalf. it would be great to get a bit more detail of your business and then I can put together a quote.

PM me if you are interested.

Best
Siobhan

 

[ZipserSir]

I turnover between £500 - £2000 each month and sell riding goods. Typically prices are £20 - £80. We don't get many requests for refunds and I can't remember the last charge-back we had. Can you indicate what sort of merchant fees we might pay?

 

[Payatrader]

Hi,

I work for Payatrader - a low cost card acceptance services designed for businesses that take small volumes of payments. One of the main benefits of Payatrader is it's a Pay As You Go service - which means there are no monthly fees or minimum usage charges. Plus there's no requirement to set up a separate merchant account. With the service you can take payments online at your website, by telephone using a FREE virtual terminal, mobile, email, and using our 24/7 payments line.

You can also add a Chip & pin terminal as an optional extra, if needed. If you would like more information, please visit our website at www.payatrader.com or call us on 0333 123 143.

Regards
Linda

 

[ZipserSir]

Thanks Linda - what is the weekly fee amount?

 

[Payatrader]

Hi,

There are no weekly fees unless you opt for the GPRS Chip & Pin terminal (PayMate). If you do want Chip & Pin this costs £3.00 per week +VAT, plus the transaction processing fees.

If you just need web & telephone payments we do not charge for the payment button or use of the Virtual Terminal - only the transaction fees which are 2.3% to 2.9% based on your total weekly card turnover. This is explained on our website under "fees".

The transaction fees for the terminal are the same.

Regards
Linda

 

[PayPoint net]

Do you have a website you could share with me so I can have our team quote? If you would like to PM me the URL (or share it here) I can start the process.

Many thanks
Siobhan

I turnover between £500 - £2000 each month and sell riding goods. Typically prices are £20 - £80. We don't get many requests for refunds and I can't remember the last charge-back we had. Can you indicate what sort of merchant fees we might pay?

 

[CharityClear]

I use Sagepay and Streamline.

Sagepay charge 10p per transaction (because I do more than 1,000 in 3 months) and Streamline charge around 1.2% per credit card (24p per debit).

I can't see any other payment processor, combined or otherwise competing.

Sagepay don't offer the most competitive payment gateway tariffs on the market.

CharityClear for example offer two tariffs:


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

These prices are inclusive of VAT, we never charge set up fees and access to our Virtual Terminal (for manual/phone payments) is included in these prices. We’re a social enterprise and all of our profits go directly to charity.

We also integrate with all UK merchant acquirers and can assist with an application for a merchant account.

Marc.

 

[Payatrader]

Hi,

Just to clarify with Payatrader there are no monthly fees and no need to set up a separate merchant account either - potentially saving £25-£40 per month depending on the provider you select.

You need to do the math on "inclusive transactions offers" as they can prove expensive if you only take a few. Plus there's the merchant account costs to pay.

The basis of Payatrader is PAYG, that is you only ever pay when you use the service. No need to open a separate merchant account either.

Hope this helps.