CC acceptance

[swish]

Built in MaxMind Fraud Protection = Peace of mind for you

[JasonF]

It is nice. Forgot to mention they also give you the credit card's phone number if you want to do more investigating.

 

About the fees, in Feb I took my total fees divided by my total credit card sales and I paid 7% on each transaction. That includes the monthly fees, declined transaction fees, batch settlement fees and credit card company fees. Personally I am going to talk to them about lowering their prices or I may bail to Authorize.net

[DougK94]

Authorize.net fees will end up in the same ballpark......

[JasonF]

Authorize.net fees will end up in the same ballpark......

 

No back talk old man :p:p:p

[Defcon|Rich]

First, EVERYTHING is negotiable - second, CDG offers some fraud protection stuff others dont and AFAIK will pay all chargebacks.

 

 

I read some of their fraud protection plans and have to agree they offer better value in that department but I don't see how any company could offer a service that automatically pays for all charge backs especially since they make a note that disputes are charged $25 per instance which is standard in the industry.

[Defcon|Rich]

It is nice. Forgot to mention they also give you the credit card's phone number if you want to do more investigating.

 

About the fees, in Feb I took my total fees divided by my total credit card sales and I paid 7% on each transaction. That includes the monthly fees, declined transaction fees, batch settlement fees and credit card company fees. Personally I am going to talk to them about lowering their prices or I may bail to Authorize.net

 

Ouch, 7% on each transaction? Without doing the math I would estimate the difference to be several hundred above what we pay now.. I did notice they offer a rate matching plan though so you may have the option of negotiating that with them.

[DougK94]

I seriously considered switching to them, but on doing all the math, it all came out about the same in the end for me. Esp since I already use maxmind

[JasonF]

Keep in mind that percentage includes transaction fees for people that tried to use a credit card and were denied. If you take all of the fees and divide it by my credit card sales total it comes out to 7%. I shot them an email asking for a break in some fees or I was going to bail.

[ECF]

7% is steep. You should be in the 1.x to 2.x% range. Possibly a little higher if they deem your product high risk, which some account providers may.

[DougK94]

For any merchant account, you need volume for it to be cheaper than just using PayPal. Sure the percentage rate is lower, but when you add in all the other monthly fees, PayPal's percentage fees may be less in the long run. It your volume is high enough, then a merchant account is they way to go. For me, 75% use credit cards, so a merchant account works......

[JasonF]

7% is steep. You should be in the 1.x to 2.x% range. Possibly a little higher if they deem your product high risk, which some account providers may.

 

ECF, that is all fees figured into the total. Here is CDG's fees:

 

$10/month - merchant fee

$.30/transaction - declined transactions

Visa/MC Per Sale Fee - 2.25% + $0.30

Amex/Discover/JCB Per Transaction Fee - 1.50% + $0.10

Address Verification Service (AVS) - $0.05/transaction

ACH Deposit - $0.25/deposit

 

You add up all of those fees and it easily gets to 7% of the total cc sales.

[Defcon|Rich]

Looking at our fees with e-onlinedata we pay a straight .25 per transaction and $15/mo. for the gateway. Authorize.net is another $10 but ACH fees are not charged. I do however like CDG's fraud suite which e-online seriously lacks.

[DougK94]

Rich, you can get a maxmind account and add that in It might take a bit of work tho to integrate into MB v4 tho. WHMCS and Clientexec support it out of the box.

 

My e-onlinedata fees are very similar.

 

 

2.10% VISA/MasterCard Qualified Discount Rate

$0.20 per Transaction

$9.95 Monthly Service Fee (includes Monthly Statement)

$0.00 Monthly Processing Minimum

$10.00 Gateway

[Defcon|Rich]

Rich, you can get a maxmind account and add that in It might take a bit of work tho to integrate into MB v4 tho. WHMCS and Clientexec support it out of the box.

 

My e-onlinedata fees are very similar.

 

We use fraudguardian which I would guess is very similar and integrates with mb4 without a problem. I was more referring to their whole suite for fraud prevention and how disputes are handled which look to be pretty solid.

[DougK94]

Yes, that is what had my interest too, but then I decided to stay were I am

[ECF]

ECF, that is all fees figured into the total. Here is CDG's fees:

 

$10/month - merchant fee

$.30/transaction - declined transactions

Visa/MC Per Sale Fee - 2.25% + $0.30

Amex/Discover/JCB Per Transaction Fee - 1.50% + $0.10

Address Verification Service (AVS) - $0.05/transaction

ACH Deposit - $0.25/deposit

 

You add up all of those fees and it easily gets to 7% of the total cc sales.

 

That is in the ballpark with most account and gateway providers out there. I thought you were saying they wanted 7% of each transaction + the other fees.

 

We pay something like $10/month for our gateway fee which includes our statement. %rates I do not recall off the top of my head, but they are high 1% to low 2% I believe. And $.25 per transaction we run.

 

You will also pay $5 per month to Amex if you choose to accept them.

 

We also use Fraudguardian, but I am not really happy with it. It seems to let a lot slip through. I think we will be signing up for Authorize.net's fraud prevention program shortly which is $5 per month.

 

Also, you should expect chargebacks. They are part of doing business and will happen to you sooner or later.

[JasonF]

Also, you should expect chargebacks. They are part of doing business and will happen to you sooner or later.

 

Are chargebacks a big issue for TCAdmin's business? I have always wondered how many you guys experience in a year.

[Defcon|Rich]

We tried the fraud suite authorize.net offers but didn't find it very useful. The only thing of value is the ability to block ips from sending transactions to the gateway which is nice but can be accomplished the same by typing "apf -d xx.xx.xx.xx"

[ECF]

We do get chargebacks just like any online business. Most are stolen credit cards that people use to order and we don't find out about it until a couple months later when the little old lady who the card belongs to happens to looks at her statement and calls the bank.

 

As for the number we get, I am not sure. But it is not an overly large amount.

 

Just remember you will get chargebacks, but the are tax write offs at the end of the year anyways. But having a good fraud prevention system in place can help you a lot.

[JasonF]

I had a transaction 1 wk ago. The name and address they used were listed as NY but the user's IP was Venezuala. I looked at the credit card transaction details and nothing matched and they highly recommended voiding it. I voided the sale and marked the user as fraud in Modernbill. That was the closest I have come to a chargeback in 1 1/2 yrs I have been in business.

[lkonig]

once I am up and running i will reply at a later date on my findings. It is great though ready everyones experience. It is very helpful and can guide on in the right direction.