Thousand Percent started this topic @ 11:21 on 31/05/2007
I'm thinking of setting up a site which will need secure transactions and payments.
I'm aware there are 'packages' you can buy for a yearly fee but thats about as far as i've managed to get so far.
Any advice/inside knowledge or experience of such a thing from anyone on here??
To expand i'd be mainly dealing with low monetary value transactions via creditcard/debit card with some online payment systems as well such as paypal although to a lesser extent.
So far i've come across some scary figures quoted back at me.
Example Costs
Set-up Recurring Costs Charges
Generic Acquiring † £200 £10 2 - 3.35% per credit card transaction
£0.25 - £0.35 per debit card transaction
NetBanx PSP ± £75 £10 from 4% to 1% per transaction
Worldpay‡ £200 £360 (annual) 4.5% credit cards, £0.50 debit cards
For starters 35p for a single transaction by switch couldn't be coped with without compromising the whole idea i have going.
The 2-3% per credit card transaction I could cope with for sure, but taking debit cards off would limit the market vastly.
RE: Transactions/secure payments
SysOps | 31/05/2007 12:42 PM
I'm afraid those charges are typical. You can get a little bit lower, but not much, unless you have very high transaction volumes.
Does the business model call for very high volumes? Going by what you said about Debit Card transactions, I'm guessing yes. If so, is there a possibility of accepting the higher charges initially (in effect subsidising them) until you can generate higher volumes?
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0845 009 8230
UK web solutions
RE: Transactions/secure payments
Thousand Percent | 31/05/2007 03:37 PM
i'd be taking up to 1500 payments per day maximum.
It would entirely depend how many people paid by direct debit and how many by other means.
For instance 85% credit/ 15% debit could be handled without too much revenue loss, maybe even 20% debit, but predicting what methods people would pay by is maybe out of my hands.
Restricting the number of debit card payers would be adverse to the idea, so its a tricky one.
The transactions will be small amounts also from £1 to maybe £20
RE: RE: Transactions/secure payments
SysOps | 31/05/2007 04:39 PM
Originally posted by: Thousand Percent
i'd be taking up to 1500 payments per day maximum.It would entirely depend how many people paid by direct debit and how many by other means.
For instance 85% credit/ 15% debit could be handled without too much revenue loss, maybe even 20% debit, but predicting what methods people would pay by is maybe out of my hands.
Restricting the number of debit card payers would be adverse to the idea, so its a tricky one.
The transactions will be small amounts also from £1 to maybe £20
I think at that volume you would be able to negotiate a very favourable rate, but you'll need to reach that volume first. The credit card rate should drop to around 1.5% at that volume. The debit card rate will always be a fixed amount, possibly as low as 10p.
The only problem you'll face is that no one will give you these low rates to start with, so you will have to run at lower margins for a while, until you have the volume.
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www.symworks.com
0845 009 8230
UK web solutions
RE: Transactions/secure payments
Thousand Percent | 31/05/2007 07:39 PM
thanks for the knowledge.
working on reduced margins wouldnt be a massive deal, plus the chances of over say 50% of transactions being debit is unlikely.
i'll continue to look into it.
RE: RE: Transactions/secure payments
SysOps | 31/05/2007 08:15 PM
Originally posted by: Thousand Percent
thanks for the knowledge.working on reduced margins wouldnt be a massive deal, plus the chances of over say 50% of transactions being debit is unlikely.
i'll continue to look into it.
You're welcome. Sounds like an intriguing project - keep us posted, and reveal more when you can.
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www.symworks.com
0845 009 8230
UK web solutions
RE: Transactions/secure payments
ohsoinviting | 31/05/2007 11:01 PM
Could you not pass the cost of the charges on to the customer at all??
Not ideal but many companies do it. Like Ryanair for instance, charges 2% for paying by certain cards.
The banks are normally quite flexible once you have a steady amount of transactions going through and you can really start to haggle.
Good luck!
Sarah
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www.ohsocherished.co.uk
RE: RE: Transactions/secure payments
Thousand Percent | 01/06/2007 03:04 PM
Originally posted by: ohsoinviting
Could you not pass the cost of the charges on to the customer at all??
Not ideal but many companies do it. Like Ryanair for instance, charges 2% for paying by certain cards.The banks are normally quite flexible once you have a steady amount of transactions going through and you can really start to haggle.
Good luck!
Sarah
I wouldn't like to pass the cost on as it would compromise the whole idea in some respects.
I have thought about it and won't totally rule it out as an option.
Just got in touch with Business Gateway today and will hopefully be able to get some good advice and help from them in what to do next and where to go, plus they do grants for young startups so see how it goes.
RE: Transactions/secure payments
Thousand Percent | 02/06/2007 12:44 AM
Reduced Monthly Fee
MONTHLY FEE: £15
CREDIT CARDS: 3.95%
(2.45% IMA Fee, 1.5% processing fee)
UK DEBIT CARDS: 45p
(25p IMA Fee, 20p Processing fee)
FREE INTERNET TERMINAL
Fraud detection: 6p per transaction
Setup Fee: £200
Reduced Service Charges
CREDIT CARDS: 3.45%
(2.45% IMA fee, 1% processing fee)
UK DEBIT CARDS: 40p
(25p IMA fee, 15p Processing fee)
MONTHLY FEE: £30
FREE INTERNET TERMINAL
Fraud detection: 4p per transaction
Setup Fee: £200
seems hellish expensive from WorldPay..
RE: Transactions/secure payments
sarahjones | 03/06/2007 11:34 AM
Googlecheckout is what I have started using and it has been fine, also transactions are all free until next year so worth giving it a go! www.beautyparlor.co.uk