3 ms·

How much do they charge you for credit cards? Do they add a % for AMEX, Discover + "unqualified" transactions? What about monthly fees?

dangrossman 13y ago
The same as debit: interchange plus 0.04%+$0.10. Even though I sell mostly B2B, Visa debit cards make up over 25% of my transactions, all at 0.05% interchange. Interchange on CNP credit ranges from 1.6% to 2.8%, but most cards are closer to the low end. There are no extra fees for Amex/Discover, and "unqualified transactions" (which is nothing but commercial purchasing cards sent to the gateway without line-item info) are <5% of volume over the past 12 months. The MAP charges $15/mo in fixed monthly fees, which includes paying for a 3rd-party for PCIDSS compliance (the SAQ and quarterly scans). The payment gateway costs an extra $20/month I think. Regardless, the savings on transaction fees pays for them immediately.
- rebelidealist 13y ago
  Mind if I ask what is your recent total rate for Credit Cards (interchange plus 0.04%+$0.10.)? You must being doing a ton of volume to get this rate.
  - dangrossman 13y ago
    No, they gave me that rate when I was doing just a few thousand a month in volume, before I launched my current SAAS business and switched off PayPal subscriptions. I'm getting that through Vantage now. I used to use FDIS, which initially gave me similar rates, but they had a habit of adding new fees every month which is why I switched to a processor that does interchange-plus instead of a rate table. http://www.vantagecard.com/ http://www.vantagecard.com/ I happen to have this picture I took for someone else that didn't believe me a few months back. This was the rate sheet in the paper application I signed to open the account. http://i.imgur.com/Od6510E.jpg http://i.imgur.com/Od6510E.jpg
    - b1daly 13y ago
      Do you think there is a value to the somewhat ubiquitous use of paypal in the consumer online space in that many customers have paypal accounts? In the sense that it is a bit more frictionless? I can see how a B2B market might be different.

dangrossman 13y ago

The same as debit: interchange plus 0.04%+$0.10. Even though I sell mostly B2B, Visa debit cards make up over 25% of my transactions, all at 0.05% interchange. Interchange on CNP credit ranges from 1.6% to 2.8%, but most cards are closer to the low end. There are no extra fees for Amex/Discover, and "unqualified transactions" (which is nothing but commercial purchasing cards sent to the gateway without line-item info) are <5% of volume over the past 12 months. The MAP charges $15/mo in fixed monthly fees, which includes paying for a 3rd-party for PCIDSS compliance (the SAQ and quarterly scans). The payment gateway costs an extra $20/month I think. Regardless, the savings on transaction fees pays for them immediately.

rebelidealist 13y ago
Mind if I ask what is your recent total rate for Credit Cards (interchange plus 0.04%+$0.10.)? You must being doing a ton of volume to get this rate.
- dangrossman 13y ago
  No, they gave me that rate when I was doing just a few thousand a month in volume, before I launched my current SAAS business and switched off PayPal subscriptions. I'm getting that through Vantage now. I used to use FDIS, which initially gave me similar rates, but they had a habit of adding new fees every month which is why I switched to a processor that does interchange-plus instead of a rate table. http://www.vantagecard.com/ http://www.vantagecard.com/ I happen to have this picture I took for someone else that didn't believe me a few months back. This was the rate sheet in the paper application I signed to open the account. http://i.imgur.com/Od6510E.jpg http://i.imgur.com/Od6510E.jpg
  - b1daly 13y ago
    Do you think there is a value to the somewhat ubiquitous use of paypal in the consumer online space in that many customers have paypal accounts? In the sense that it is a bit more frictionless? I can see how a B2B market might be different.