Which will suit me best

Discussion in 'Payment Processing' started by Contort, Feb 1, 2011.

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  1. #1
    I am starting a new website that will be taking thousands of payments that are $1.25. If people use their credit card I am pretty sure Paypal takes 2.9% and 30 cents. This is going to make my business unprofitable if Paypal is taking this much from me after each transaction.

    Is there an alternative method I can use?
     
    Contort, Feb 1, 2011 IP
  2. nitinleew

    nitinleew Well-Known Member

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    #2
    I dont't think you can find anything cheap than paypal
     
    nitinleew, Feb 2, 2011 IP
  3. Contort

    Contort Active Member

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    #3
    wow this is bad. I am going to talk with my local bank and see if they can process credit cards.
     
    Contort, Feb 2, 2011 IP
  4. highriskprocessing

    highriskprocessing Member

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    #4
    Consider a processor that will write your rate as Interchange PLus (maybe 30 to 50 basis points)
     
    highriskprocessing, Feb 2, 2011 IP
  5. msinfo

    msinfo Active Member

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    #5
    Actually you can find something cheaper than PayPal - this forum is flooded with Paypal posts and you would think that they really are the best solution for everyone but they are NOT the best solution for merchants that are looking for more than a third party solution. Like highriskprocessing said Interchange Plus with a "real" merchant account provider has much better per transaction pricing than Paypal. But really, as someone that has worked in this industry since the 90s I have given this advice to other merchants in your situation: At only $1.25 per sale I would STRONGLY encourage you to incorporate a credits model into your web service. At those low amounts you could allow customers to pre-pay for a certain number of credits (lets say make them buy 10 credits at a time), and each credit allows them to make a further purchase on your site. Again this is not always the best approach but at online amounts as low as yours I would strongly advise you to look into incorporating a credits model.
     
    msinfo, Feb 3, 2011 IP
  6. black.hat

    black.hat Active Member

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    #6
    If you are based in US, yes i can recommend you a merchant account provider that will be able to charge you only 1.99%+15cents. just PM me
     
    black.hat, Feb 5, 2011 IP
  7. Contort

    Contort Active Member

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    #7
    This is what we will be doing for sure.

    Thanks
     
    Contort, Feb 5, 2011 IP
  8. andydraysen

    andydraysen Peon

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    #8
    Just reading the posts, I learned something new today...Thanks!!!
     
    andydraysen, Feb 7, 2011 IP
  9. gtmel85

    gtmel85 Peon

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    #9
    Creditcard processor gateway is more expensive and localbank is only for offline processing but they still charge you % of every transaction, not sure how much in your region though. 1.5-3% i think
     
    gtmel85, Feb 7, 2011 IP
  10. jNorth

    jNorth Peon

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    #10
    actually, for CNP, you won't find any cheaper
     
    jNorth, Feb 9, 2011 IP