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So you'd have to pay interchange, plus whatever your processor charges on top of that, which will depend on them, and volume. You can definitely shop around a l
by jeffasinger 13y ago
So you'd have to pay interchange, plus whatever your processor charges on top of that, which will depend on them, and volume. You can definitely shop around a little bit, there's probably several local people who can talk you through it and bring you some offers to the table from various processors, but also get a quote from people like TSYS, First Data, and Chase Paymentech directly.
I'm remembering fees varying from $.05 to $0.10 and 0.10% to 0.15% on top of interchange. The visa interchange rates are available at (1) to give you an idea. You're mostly interested in the eCommerce categories probably, so you'll be paying 1.80 to 1.95% plus $0.10 on top of whatever you're paying from you're processor for credit cards, debit cards are cheaper.
Many people that do micropayments will try to combine some transactions together, in order to save money. That said, you might be interested in paypal micropayments (2), as they only charge $0.05 + 5%, which for a $2 transaction, is a big savings.
1: http://usa.visa.com/download/merchants/visa-usa-interchange-reimbursement-fees-april2013.pdf http://usa.visa.com/download/merchants/visa-usa-interchange-...
2: https://www.paypalobjects.com/IntegrationCenter/ic_micropayments.html https://www.paypalobjects.com/IntegrationCenter/ic_micropaym...
- ashray 13y agoThanks for the detailed information. That certainly clears things up a bit. I've been using Paypal micropayments for the past year or so and it's been the best bet for $2 transactions (I pay 6%+$0.05 for cross border payments). Ends up being $0.17 per transaction. I haven't come across anything that beats that by a large enough margin so as to replace Paypal yet. The only downside is that Paypal is applying the standard 6% fee to $20 transactions as well (as opposed to the lower 2.9% fee), so I either need to route these transactions to a non-micropayments Paypal account or do something else with them... this is what I am currently working on solving. The difference doesn't come out to be much for a $20 transaction but with higher transaction volume it will certainly stick out as a sore point.