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vicki · 01-06-2005, 08:03 PM

I think what you are confusing is third party processing and merchant account processing. Although in the end the principal is the same (getting to accept cc & checks online) they have marked differences in character.

A third party processor such as ccbill, epoch etc MUST charge higher rates because in essence they are covering your hides under their merchant accounts amongst other things. Its a high risk for them and it's evident in their rates.

With a merchant account, the vendor applies to a merchant bank for an account (we are only the delivery vehicle). In this case they are called MOTO's (mail order, telephone order - that includes internet) and because the vendor signs an agreement directly with the banking institute they in essence cut out the middleman. The vendor has much more control over his own funds and saves money by cutting out the middleman. The funds are also deposited directly into the vendors bank account.

The rates offered by the banking institute have nothing to do with us as a gateway except for the fact that we've established a solid relationship with them to help acquire vendors. The better our standing with banking institutes, the more banks wanting to do business with us.
Basically .. the more vendors the bank has, the more money they make. And they like working with companies that have solid financial and business reputations when trying to obtain them.

There are a couple of other merchant account processors that deal in adult and if familiar with them you would see their rates are comperable to ours .. the difference is that we choose to give a full pricing package and full cost disclosure (for both merchant account AND use of our gateway) up front rather than trying to slide hidden costs in on you like some others do.

There are no smoke and mirrors involved.
I can't honestly claim we bury our competitors with our prices but I can say we are DA*M competitive and do NOT hide any of the cost!

The high percentages you are thinking about are most certainly for 3rd party processing, not merchant account processing. Now if I told you our brick and mortar merchant rates it might throw you into a tailspin at how low those are so i'll refrain hehehe

And shame on you JSA, a simple sense of humor that is fitting of the board(s) i'm posting on lol ;)

HKS sounds kewl, my icq is 74296746

01-06-2005, 08:03 PM
vicki Confirmed User Industry Role: Join Date: Feb 2002 Location: Deep in the heart o' Texas Posts: 1,478	I think what you are confusing is third party processing and merchant account processing. Although in the end the principal is the same (getting to accept cc & checks online) they have marked differences in character. A third party processor such as ccbill, epoch etc MUST charge higher rates because in essence they are covering your hides under their merchant accounts amongst other things. Its a high risk for them and it's evident in their rates. With a merchant account, the vendor applies to a merchant bank for an account (we are only the delivery vehicle). In this case they are called MOTO's (mail order, telephone order - that includes internet) and because the vendor signs an agreement directly with the banking institute they in essence cut out the middleman. The vendor has much more control over his own funds and saves money by cutting out the middleman. The funds are also deposited directly into the vendors bank account. The rates offered by the banking institute have nothing to do with us as a gateway except for the fact that we've established a solid relationship with them to help acquire vendors. The better our standing with banking institutes, the more banks wanting to do business with us. Basically .. the more vendors the bank has, the more money they make. And they like working with companies that have solid financial and business reputations when trying to obtain them. There are a couple of other merchant account processors that deal in adult and if familiar with them you would see their rates are comperable to ours .. the difference is that we choose to give a full pricing package and full cost disclosure (for both merchant account AND use of our gateway) up front rather than trying to slide hidden costs in on you like some others do. There are no smoke and mirrors involved. I can't honestly claim we bury our competitors with our prices but I can say we are DAM competitive and do NOT hide any of the cost! The high percentages you are thinking about are most certainly for 3rd party processing, not merchant account processing. Now if I told you our brick and mortar merchant rates it might throw you into a tailspin at how low those are so i'll refrain hehehe And shame on you JSA, a simple sense of humor that is fitting of the board(s) i'm posting on lol ;) HKS sounds kewl, my icq is 74296746 __________________ If at first you do succeed - try to hide your astonishment. HR merchant accounts from 3.45% solid biz since 98 victoriakozub AT gmail.com skype: victoria.kozub \| ICQ: 74296746 Last edited by vicki; 01-06-2005 at 08:06 PM..*