Why do billing companies take such a large %?
 

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?

This one should get some nice answers

volume is the leverage factor. :thumbsup

my guess is they want to make a lot of money.

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... :2 cents:

ibill takes 100%

:1orglaugh :1orglaugh :1orglaugh

I vote for this post as reply of the year :1orglaugh :1orglaugh


:Oh crap

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.

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.

I second that ...

http://www.ibillsucks.info

....well that's a good Q!! I think eveyone is looking for more money.. :smokin

The same reason a dog licks his own nuts

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.

You think a party bus is cheap?

This came to my mind first...

Customer Support (consumer)
Customer Support (merchant)
Hardware
Merchant accounts
Staffing
Programming
Buildings/Offices
Redundancy
Security
Collection

wouldnt you?

Due to the risk as well

short is "because they can"

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

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.

Yes! Netbilling rocks :)

coz they like to take your money?

A men....

LOL.... IBILL takes 200% all of your sales thru them plus the interest on your late fees on your mortgage,car payment,hosting etc!
SwirlsGirl

Absolutely awesome!

- PornAddict

cause you pay what they charge

You think 15% is a bargin? LOL

Yes (in adult).

IMO 10% is justified, but up towards 20% is just too much

the workers slave, the rich get more

plus some

Maybe because they are in business to make money? Or maybe because they are dirty pigs that should die.

:1orglaugh :1orglaugh :1orglaugh :1orglaugh

why didnt i think of that.

that's why I love vxsbill they charge 50 euro cents per transaction plus the
VISA/Mastercard fee of roughly 5% :thumbsup

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.

CCBill is a bargain at 12.5% It allows me to focus on the core of my business - serving up damn good porn.

i know this because i use to work for the fucked up company

Because they can :banana