I have UC installed and working with the uc_recurring module to run a membership site. I know I can process CC with paypal using their WPS, but it forces a user to sign up for a paypal account to process the CC. I know I can sign up for WPP version for $30/month, and process cards that way without a paypal membership, but I need to keep processing costs low until the website takes off. Which method is the most cost effective to process credit cards in the US?
Thu, 03/11/2010 - 12:50
Re: Which CC payment gateway is the most cost effective?
There are a lot of determining factors to your question including transaction volume, transaction quantity, your business's credit worthiness and age, etc... But, generally you are better off with a merchant account if you are willing to make the commitment to their contract. The rates will be better and the fees about the same as WPP. If you are concerned about the commitment, do WPP until your ready to get a merchant account. At least that is my opinion.
Re: Re: Which CC payment gateway is the most cost effective?
Thanks Andy, that's about what I was thinking. It's a start up business, so it's both new and probably not very credit-worthy because it's new. The volume is going to be low initially too. I assume that will change, but of course, that depends on how viable the business ends up being.
Could you clarify the difference between rates and fees? I assume the rates are the percentages per transaction and the fees are a fixed monthly charge? What brand of merchant account do you recommend? Are there big differences between merchant accounts?
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You interpreted my use rates and fees correctly. Sorry about the ambiguity. Yeah, you should probably start off with WPP until you get some volume and 6 months - 1Year under your belt. There is a huge difference between merchant accounts. I could rant for days about my experiences, but I'll try to be brief.
The entire industry very deceptive. I compare it to trying to buy an airline ticket, mobile phone service, and a used car all at once. The pricing structure is intentionally obtuse and incomprehensible.
So, my recommendation. Try Cybersource or please consider my company. Prima, LLC. I got so frustrated with the system that I jumped through the hoops to get set up as a provider for my own accounts, and I can offer you a great deal if and when you are interested.
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That's interesting, I'll look into cybersource and your company when the time comes. I thought the pricing at paypal seemed pretty upfront--although I have no idea how those prices compare to others. They list exactly what percentage they'll charge per transaction and the monthly fee is a flat rate. Did you find there were hidden costs with either WPS or WPP? Who did you think were the worst offenders as far as being deceptive?
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I was talking about merchant accounts, not PayPal. You are correct. PayPal is pretty up front, but they tend to average .2% - 1% higher then merchant accounts depending on your volume.
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Isn't the WPP a merchant account where buyers can process credit cards without a paypal account?
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WPP is still PayPal, and Andy was referring to other traditional providers of Merchant Accounts. Banks and other financial providers can be much more competitive if you push them a bit. It might take some work to find a good situation, but it's worth it in the long run. Our local bank has better rates for a merchant account than any PayPal option and we have a local branch we can do business with, though we do offer both to our customers. Our retail store and online store share the same merchant account so the bookkeeping is less.
If you're serious about selling online, you'll probably do better to move in the direction of having your customers pay with a credit card through a gateway, and then you can go with PayPal standard for customers who are still unsure of your site. WPP allows people to stay on your site but they do charge more for it.
I'd love to dump PayPal altogether, but seeing that all the credit card companies are slashing customers credit lines or looking to boost the APR's and fees, we still see a fair number of PayPal transactions and will likely see it for a while.
Re: Which CC payment gateway is the most cost effective?
have UC installed and working with the uc_recurring module to run a membership site. I know I can process Oto kiralamaCC with paypal using their WPS