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Keep in mind, a merchant account is going to cost you monthly fees for the account + payment gateway (like, $50-60/mo, atleast). Plus a deposit. Plus a credit c
by stevencorona 14y ago
Keep in mind, a merchant account is going to cost you monthly fees for the account + payment gateway (like, $50-60/mo, atleast). Plus a deposit. Plus a credit check. Plus several day wait. Plus nasty APIs.
In the end, you might save a little bit, but likely not much since you're still processing without the card being present. If you're doing enough sales for .007% to be big difference, it's worth it. Otherwise- how much is your time and frustration worth? Even on a million dollars in revenue, .007% is only $7000.
IMO, Stripe is the holy grail for most startups.
- shiftpgdn 14y agoI don't agree with you at all. We started out using PayPal which has a really similar fee schedule to Stripe ($30/month, swipe fee, 2.9% of the total etc.) One of my cofounders did some research and we switched over to Authorize where after some negotation we get 1.7% transaction fee, $20/month for the account and then $99 up front. That 1.2% we are saving made up for the labor cost of doing the switch and the cost of the application fee within the first few days. We are now saving enough money that we may be able to bring on an extra person before the end of the year.
- _pius 14y agoWe started out using PayPal which has a really similar fee schedule to Stripe ($30/month, swipe fee, 2.9% of the total etc.) Stripe doesn't have a monthly fee at all.