Quote:
Originally Posted by KRosh
Beaner,
If I understand your statement correctly here, you want to become your own payment gateway?
I am sure you realize, to get a relationship with Visa and MasterCard you need to become a Member Service Provider (MSP) and Independent Sales Organization (ISO).
This costs about $10,000+ up front and then $5,000+ a year if you are approved. A background check and review is involved. This is done by your sponsoring bank, which you also have to find.
Then you have to become PCI DSS compliant (costs vary)
You have to get certified by the processing networks
You have to store the data for many years
Some other things, although minor, need to be taken into consideration. SSL - ECI Compliance, and anti fraud tools.
Probably not as easy as one might think!
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I am very interested in pursuing gateway/billing services as a company. Those fees you quoted I have not looked into all of them, but they seem very reasonable if starting a billing service.
1 step at a time though...
I am setting up billing to show that high risk, 15%, is not required. I believe some pretty slick individuals have cornered the market and convinced the majority that those who process must pay 15%.
I will quote my own message... just because:
"I will:
Here's a tip for you. If you are a ccbill client paying 15%.
The *only* downside is you have a ccbill form with their requirements and look, placement of text, etc. and their scrub settings.
Ok here we go:
Let's say you are paying 15% currently.
Go to ecsuites, ask them for merchant account. Say you want to handle affiliates and customer support. You want the credit card form to be on their servers, just like CCBill is.
Contact Marco at Sliiing. Ask for an account.
Let's say ecsuites get's you in at 5.5% (that is very doable), sliiing at $50/month. If you are billing 10K per month you just saved 9% yearly. Let's knock it down to 8% to be conservative with whatever fees I'm forgetting about.
That's doing hardly any additional work. You need to pick up the phone once in a while, respond to chargebacks if it is justifed. Send affiliates money once or twice a month and you can send sliiing it in bulk and they will cut the checks if you want.
8% more money, per year, in your pocket, doing hardly any more work. Is it really that hard to provide customer service? Send some money?
I'm not doing it that way, but I could have, and the savings would be immediate.
The above is an example that would compare an adult merchant account to a mainstream merchant account with the forms that everyone are comfortable with and the merchant just doing what merchants should be doing."