Accepting credit cards for very low markup goods

I may be selling some digital goods that have VERY low markup. So I guess my question is, what 3rd party payment processing would give me the lowest fees and costs? sale revenue - paypal fees = no profit. So, it must be cheaper than paypal. Thanks.

 

propay.com i guess, i dunno their fees though

 

Good luck. Paypal is as cheap as it gets.

 

It really depends on what country you are in - but if your markup is that low are you really making enough money to stay in business and earn a living?

 

I am in the U.S. As far as earning a living, I am currently a college student with pretty much no expenses at the moment, so breaking even for awhile is ok. Evening losing a tad is ok. Websites are more of a hobby for me, rather than a business venture. However, I do hope it to be profitable within time.

 

If you need a merchant account, you might check out www.cdgcommerce.com - some merchant account processors usually charge $15 minimum (which is usually about $685 a month in volume). I don't think he charges that monthly minimum, but there is probably a statement or customer service fee as well as a gateway fee. It might be better to use that and increase your prices enough to cover those extra expenses.

 

I guess I should be a little more specific:
Average sale amount: $7
Average monthly sales: 1000
Total amount in sales per month: $7000

 

Then most merchant account providers will suit you. Some gateways are going to charge you $.10 per transaction on top of what the merchant account provider charges. Some give you between 250-1,000 free and some gateway providers only charge a flat monthly charge.

So depending on what gateway you choose, that would be between about $300-$400 a month in transaction costs. You would probably be spending about $480.00 for that type of volume with a merchant account

 

I have evaluated your posts. With your volume, I can set you up with a merchant account with much less cost than $485 month. Please contact me privately for more details.

Best of luck.
Kathy Hase

 

Looking at a really quick breakdown.

At $7000 / month, 1000 transactions and an average ticket of $7.

Lets say you have an amazingly low rate of 2% and a transaction fee of $.25 including AVS (These are really low).

Processing Fees: $140 ($7000 * 2%)
Transaction Fees: $250 (1000 * $.25)
Gateway Fee: $15
____________________________________________________
Total: $405

If anyone even thinks of quoting you much lower than this they are probably trying to rip you off.

Once you take a monthly statement fee, downgrades, and any other fees into account you are probably going to be looking at a real cost of at least $500 / month. Some gateway's will be free, and some will more more or less by a little bit, but no matter what, there is a minimum cost that you will actually end up paying.

 

go with paypal micropayments
5% and .05 cents per transaction
so thats 6.60 per sale for you

 

WOW! Thanks a bunch, that will work. Didnt know paypal offered that. Any idea if you can also accept credit cards with that? Couldnt find a straight answer on their forums. Thanks.

 

yeah, they do
email for info
cheers, good luck- i had the same problem as you

 

Thanks, rep added.

 

Micropayment works for US to US or UK to UK and EU to EU transacations but they are only for transactions which are under $2.

See https://www.paypal.com/cgi-bin/webs...rior_transaction_id=246583&answer_id=16777216