Guest jltools Posted October 19, 2006 Share Posted October 19, 2006 Theres a long list of gateways, but i need to know the best solution, paypal take 3.5% which destroys profit on my products, so i need a cheaper alternative, so thought i would ask here as you guys probably know best! Quote Link to comment Share on other sites More sharing options...
vokf Posted October 19, 2006 Share Posted October 19, 2006 Theres a long list of gateways, but i need to know the best solution, paypal take 3.5% which destroys profit on my products, so i need a cheaper alternative, so thought i would ask here as you guys probably know best! You may be able to get it to 2% using a merchant account, but you'll have set-up fees, and may also have a monthly charge. If you include these fees in your transaction costs, you may find the actual costs are higher than PayPal. BTW. PayPal is actually 3.4% + £0.20, so for a £5 transaction, you'll pay £0.37 - the US PayPal site appears to offer 2.9% + $0.30USD For low value items, the £0.20 is a killer. If you're UK based, then NoChex offer 2.9% + £0.20 per transaction, so for a £5 transaction, you'll pay £0.345 This won't help low value goods that much, but its a start.. Other choices could be to use Mals Gateway to take (and hold) credit card details for you to process offline. With PayPal and other processors, it does get cheaper as you process more sales. Jason Quote Link to comment Share on other sites More sharing options...
Guest kaskudoo Posted October 19, 2006 Share Posted October 19, 2006 i found paypal to be in a good midfield of price cost. many charge monthly and paypal is alright with 20$ US a month. many charge between 2.2 and 3.5% per transaction, so paypal is no difference. i also pay for a security certificate. one cheaper way would be paypal IPN oppose to the direct payment option, i think you can skip the monthly payment then, but you also cannot run CC via phone or any other way, but on the paypal site. last reason to use paypal is, that they are in the business since a while and kinda know what they are doing - and everyone knows them. we are just starting out and the cost seems steep, but you gotta put he cost to the customer, so that you don't lose too much on your product - maybe through shipping? Quote Link to comment Share on other sites More sharing options...
Guest jltools Posted October 19, 2006 Share Posted October 19, 2006 Well for an sale of 365 they charged £10 and the profit on that item was only £15 Found another company which is £10 a month + 29p an item which is very good since he would have only lost 29p profit on one item. Quote Link to comment Share on other sites More sharing options...
Guest Posted October 21, 2006 Share Posted October 21, 2006 Okay, I have to wonder why for a sale of 365 your profit was only 15??? Generally, your markup should be 30-50% at a minimum in order to make money, so I'm thinking your prices are way too low. With a decent markup, you should be able to absorb any processing fees for payment. Quote Link to comment Share on other sites More sharing options...
Guest EverythingWeb Posted October 21, 2006 Share Posted October 21, 2006 We pay 1.5% on credit cards for a merchant AND processing facility (combined) however we pay £25/month standing charge for it. Saying that, in the last 14 days we have processed just under £1500 of transactions through our merchant service and having the direct credit to our Bank Account within a few days is a requirement for us */* Quote Link to comment Share on other sites More sharing options...
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