posted on June 21, 2005 09:43:55 AM new
We're in the process of evaluating Merchant Account gateway providers and wondered if anyone here has any good stories to tell about any they've heard of. (Horror stories are always interesting and would help us form questions to ask...)
For those who have their own merchant accounts set up, what kind of questions should we be asking them? What would you wish you had known before selecting someone?
We're currently looking at:
Authorize.Net
Card Service International (owned by the same parent that owns Western Union, I believe)
Any suggestions, ideas, thoughts, would be much appreciated.
Wayne
Never explain -- Your friends do not need it and your enemies will not believe you anyway.
~ Elbert Hubbard
posted on June 21, 2005 09:52:26 AM new
one word -FEES!!!!!!
Transaction fee,batch header fee,AVS fee,chargeback fee,monthly statement fee,annual fee,discount fee,tier 1,2,fee,non qualified fee,foreign transaction fee is usally reflected in higher discount fee.
how good is their customer service and is there a toll free number to call?
can they help you with questions on chargeback,foreign cards,or just verifying name of the cardholder??
some may have low discount fee,but they will nickel and dime you to death with fees.
and not all cards enjoy the same discount rate,those cards which earn mileage are slapped a higher rate.
-sig file -------
Eat grass,kick ass,never go belly up!
posted on June 21, 2005 09:57:02 AM new
Basically, they get you no matter what. I recommend taking your normal sales for a month, and then calculate how much each company charges based on that. Each company makes their money one way or another. Some charge alot for monthly statement fees, some charge more percentages, some charge more transaction fees, batch fees, etc. Some will charge you set up fees, some will charge you if you call in to speak with a rep, etc. These are no different than banks.
Also, each company charges a tiered rate. They don't tell you that, but they do. Though they show a percentage of 1.49%, that is only for cards that can be swiped at the point of sale with a signature. If the magnetic strip is bad or it is a phone order and you manually enter the number or call it in, that rate can easily double or triple depending on the company.
If you have a Cosco membership, they actually have a pretty good deal. The best is if you have an Executive Account. No start up, no monthly statement fees.
posted on June 21, 2005 10:16:48 AM new
Fees for everything....my account with CSI I had to pay $55 per month even when nothing was used!!! And they are tough to get your account closed when you want to close it...more fees!!!
posted on June 21, 2005 02:16:21 PM new
Oh,i forgot about the MINIMUM DISCOUNT FEE,if you dont give them enough business say 25 dollars minimum,they will charge you that much anyway.
some may have a fee for closing your account.
Also,these days if your customer does not enter that CVV code,or that code does not match,bingo,higher rate.
-sig file -------
Eat grass,kick ass,never go belly up!
[ edited by stopwhining on Jun 21, 2005 02:17 PM ]
