Quote:
Originally posted by goBigtime
Let's talk about the pro's & con's as well as setup charges and options for both.
One of the more obvious bonuses is a lower discount rate (fees):
I haven't looked very hard yet.. but so far I found an "ADULT OK" merchant account with pricing like this:
======== Merchant Account 1 ==================
Application Fee $195 +$2000 for "High Risk"
(I think the visa/mc regs are standard everywhere
3.65% + 35cents per transaction.
5% Reserve for 6-12 months.
$0 Upfront deposit
$25 minimum monthly transfer fee.
(This is not through me or anyone I know.. jsut found it on the web..if you know of other deals please post them)
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Another benefit is I think you get the money credited to your account ~3 days after the charge is made.
One of the drawbacks of course is you would need to do your own customer support & reporting.
The thing thats funny to me about all this Visa regulation stuff is now we techinically have our own merchant accounts under the IPSPs, and they are doing Gateway+ processing for us.... the fees should be CONSIDERABLY LOWER now, because the level of service we are getting is lower (our chargeback/refund umbrellas no longer exist) and it's now up to visa if we get terminated as well as the IPSP's.
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Well, since you asked?
1. IPSP?s have the financial liability.
2. The volumes on your own merchant accounts are small.
3. The services we provide are not diminished.
4. You still have protection from an ?aggregated? account in that your chargebacks may fluctuate, but we can work with you to bring them back into compliance without a fine.
5. Customer Service is key. We have 24x7 inbound toll free for most countries around the world (the US too?) and Customer Service Reps that speak, read and write in those languages.
6. If you have over ?X? count in chargebacks you are liable for a $25,000 fine.
7. Rules change and your bank may not tell you until it is too late.
There?s more, but just wanted to give you our thoughts.
C