Minimum processing costs

Discussion in 'Payment Processing' started by JohnUK, Apr 15, 2009.

  1. #1
    Hi Guys,

    Its free to do bank transfers from one account to another so why does it cost about 4% to process payments online?

    Whats the minimal processing costs that can be achieved without paying a fixed amount. I think google checkout offer about 2% which is quality.

    Cheers,

    J
     
    JohnUK, Apr 15, 2009 IP
  2. terminator69

    terminator69 Notable Member

    Messages:
    4,872
    Likes Received:
    260
    Best Answers:
    0
    Trophy Points:
    230
    #2
    You pay nothing if you have a personal paypal account.
     
    terminator69, Apr 15, 2009 IP
  3. JohnUK

    JohnUK Peon

    Messages:
    178
    Likes Received:
    0
    Best Answers:
    0
    Trophy Points:
    0
    #3
    That is a possibility but I want it to be professional as well. doesnt look good if i just ask them to transfer the money.
     
    JohnUK, Apr 16, 2009 IP
  4. texanweb

    texanweb Active Member

    Messages:
    377
    Likes Received:
    9
    Best Answers:
    0
    Trophy Points:
    58
    #4
    Think about it, how do you think PayPal can make profit... thats just how businesses works. You cant be personal but yet be professional at the same time when it comes to dealing with money.
     
    texanweb, Apr 16, 2009 IP
  5. tycoon.vg

    tycoon.vg Peon

    Messages:
    25
    Likes Received:
    0
    Best Answers:
    0
    Trophy Points:
    0
    #5
    tycoon.vg, Apr 17, 2009 IP
  6. p3durungan

    p3durungan Banned

    Messages:
    264
    Likes Received:
    1
    Best Answers:
    0
    Trophy Points:
    0
    #6
    because online payment has to make profit so they charged fees on you.
     
    p3durungan, Apr 17, 2009 IP
  7. iseree

    iseree Peon

    Messages:
    129
    Likes Received:
    1
    Best Answers:
    0
    Trophy Points:
    0
    #7
    Bank transfers are not free.

    Maybe if you do it between people of the same country you will get free charge but if you make overseas you will get a fee of 40$ minimun because it is the SWIFT message and correspondent bank fee.

    Like you said above, the online payments get 4% because they haven't got withdrawal fees to customers but they paid to the banks.

    There are payment processors with withdrawal fees but the cost to send payments are 1% like HooPay or Moneybookers 1,9% (merchants) etc.

    In my experience I prefer 1% to receive payments and have withdrawal fees one time a month instead of 4%-5% like paypal (every time that I receive) and no withdrawal fees one time a month.
     
    iseree, Apr 18, 2009 IP
  8. Cathy L

    Cathy L Peon

    Messages:
    30
    Likes Received:
    0
    Best Answers:
    0
    Trophy Points:
    0
    #8
    Wow, I didn't realize google was as low as 2%. I use a merchant account and pay 2.5% on the overall average. However, since they add other fees like monthly service charge and etc. I just figured out I am paying 3.8%.

    I also pay by pay pal and and 80% satisfied with them. Basically only have had one big issue with them and I am paying about 4%.
     
    Cathy L, Apr 18, 2009 IP
  9. texanweb

    texanweb Active Member

    Messages:
    377
    Likes Received:
    9
    Best Answers:
    0
    Trophy Points:
    58
    #9
    OK... I am little lost as Paypal fees ranges from 1.9% to 2.9% + $0.30 USD.

    Now, yall are saying your paying 4% or more for Paypal. Why is this? Is it because yall are not in the US or what?
     
    texanweb, Apr 18, 2009 IP
  10. JohnUK

    JohnUK Peon

    Messages:
    178
    Likes Received:
    0
    Best Answers:
    0
    Trophy Points:
    0
    #10
    Yeah in the UK its about 3.9% +0.20GBP. Unless you have a large amount of business and then the rates start to go down.
     
    JohnUK, Apr 19, 2009 IP