I was wondering how billing companies justify taking 10-15% of the gross revenue a site brings in through them. Why is this % so high? 5% would put them in poverty or what?
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Last edited by xNetworx; 04-25-2006, 01:03 PM. -
This one should get some nice answers -
volume is the leverage factor.
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well how they justify it is that they handle the customer support. which in turn keeps you cb rate low. plus they bundle you with tons of other people to also help keep cb ratios cool if a few people cross the threshold. of course they do all this groovy scrubbing (over scrubbing) to help with cb issues too.
all in all, they provide a nice service but i think 10-15% is too high. i would be happy to see all the services provided by a ccbill or a paycom at 6-8% with no volume commitment...
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ibill takes 100%Comment
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Originally posted by DAVESNOTHERE
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I vote for this post as reply of the yearOriginally posted by DAVESNOTHERE
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You really do need to take into account the customer support and affiliate program tools.
Unless you are a very large player, it is simply not cost effective to have 24-hour telephone support for credit card users with issues, or to create your own member management software and affiliate program, plus handle the payments to affiliates.
That said, I'd like the percentage to be lower, too... but the fact is that everything is expensive these days. You just need to pass it along to the customer.
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Yes Ibill is a good example. I do good volume and yes the CCbill % is a big chunk monthly. The upside is they have a high volume business with a good income for themselves and I even like the hard scrub...... protects them and that in turn protects me.
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I second that ...Originally posted by JOKER | JOKEREMPIRE Inc.I vote for this post as reply of the year
http://www.ibillsucks.infoI know that Asspimple is stoopid ... As he says, it is a FACT !
But I can't figure out how he can breathe or type , at the same time ....Comment
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....well that's a good Q!! I think eveyone is looking for more money..
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The same reason a dog licks his own nutssig too bigComment
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It's fair. After thier costs and all it makes sense. Its not like we are processing non adult stuff. In that case you can expect 6% rates. Adult is only a few % more.I've trusted my sites to them for over a decade...
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You think a party bus is cheap?-uno
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This came to my mind first...
Customer Support (consumer)
Customer Support (merchant)
Hardware
Merchant accounts
Staffing
Programming
Buildings/Offices
Redundancy
Security
CollectionComment
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Due to the risk as wellComment
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Hi,
Alot of the 10-20% has to do with risk, especially in this industry. Merchants willing to take the risk on their own accounts through a merchant account will simply pay less for processing and have a greater amount of control.
Our average high risk merchant pays a total of about 6% (depending on average ticket price) and our average mainstrema client pays about 3.5-4%.
Questions?
Mitch
Mitch Farber
CEO - NETbilling, Inc.
Email / Phone: 888-357-8166 / 661-252-2456
Transaction processing & 24/7 call center services with exceptional rates and flexibility, since 1998!Comment
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You have to understand how merchant accounts work...ever try to go to your local bank and ask them for a merchant account?
Do well all know what a merchant account is, and how they work?
When you're granted a merchant account, you're essentially granted the right to use VISA/MC/AMEX, and you're also granted a line of credit...against your sales.
THe banks determine the risks of granting a merchant account on 3 basic tiers:
1) the lowerst amount of risk is when you have a storefront. you see the person, you see their ID, and you take their card, and you see them sign for what they just bought.
2) let's say you own a store, and your primary source of revenue is phone sales. you don't see them, you don't see an ID upon purchase, you don't get a signature for the item sold. Riskier. But you spoke to them on the phone.
3) Internet sales carry the most risk for credits, chargebacks, and fraud. no one sees anything. no contact is made on any sort of level. remember, this is for non-adult merchandise.
toss "porn" into the equation, and the banks run for cover.
now, i'm not sure, exactly, how the banks work with CCBill and Paycomm, but I do have a merchant account, and I tried to get one for adult stuff, and I was laughed at (basically).
Toss in 24/7 customer support and chargeback/credit shit they deal with, and 15% is a bargain.
Or, just the cost of doing business.Comment
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Originally posted by NetBilling
Yes! Netbilling rocks
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coz they like to take your money?Comment
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LOL.... IBILL takes 200% all of your sales thru them plus the interest on your late fees on your mortgage,car payment,hosting etc!
SwirlsGirlComment
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Absolutely awesome!Originally posted by DAVESNOTHERE
- PornAddictComment
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cause you pay what they charge
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You think 15% is a bargin? LOLOriginally posted by billywatsonComment
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IMO 10% is justified, but up towards 20% is just too much
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the workers slave, the rich get more
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plus someOriginally posted by DAVESNOTHEREDARKSOUL: thanks but no thanks, your over priced.
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Maybe because they are in business to make money? Or maybe because they are dirty pigs that should die.SEO Strategy - Digital Strategy - Cannabis Lead Generation
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Originally posted by DAVESNOTHERE
why didnt i think of that.Comment
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that's why I love vxsbill they charge 50 euro cents per transaction plus the
VISA/Mastercard fee of roughly 5%
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credit card processing is a headache and a half, i used to manage the fraud prevention for one of them and trust me its not a walk in the park.Comment
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CCBill is a bargain at 12.5% It allows me to focus on the core of my business - serving up damn good porn.Comment
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Originally posted by A1R3K
why didnt i think of that.
i know this because i use to work for the fucked up companyComment
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Because they can
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