Credit Card Processing
I made this post over on the, "The Business of Software" forum. I've been talking with a rep at Cardservice international about charging credit cards. Here are the numbers we've been talking about:
Honestly, it was a lot more than I was expecting, but no one on the forum seemed to point out that the fees were out of the ordinary.
Before I had the conversation with someone at my Credit Union I didn't realize how many companies are involved to charge a credit card and for you to get the money.
You need a bank account at your bank, a merchant account with a merchant servicer, and a payment processing gateway.
That's 3 companies!
Now, there is a large player named, First Data, which (I'm pretty sure) owns Cardservice International (merchant servicer) and LinkPoint International (payment processing gateway). But it's still 2 different entities.
I think I'm going to end up using Autorize.net. I've heard good things about their API, and I really need something that's easy to program against.
Using Cardservice w/Authorize.netIf I use their recommended gateway processor, Linkpoint, which also has an API like Authorize.net, and there would not be the additional 10 cent fee transaction fee. My "Transaction Fee" would only be 25 cents.
Setup......................$99
Visa/Mc Discount Rate......1.99%
Transaction Fee............$0.25 + $0.10 to Authorize.net
Monthly Support/Statement..$10
Gateway Fee................$20
Monthly Minimum............$15
Honestly, it was a lot more than I was expecting, but no one on the forum seemed to point out that the fees were out of the ordinary.
Before I had the conversation with someone at my Credit Union I didn't realize how many companies are involved to charge a credit card and for you to get the money.
You need a bank account at your bank, a merchant account with a merchant servicer, and a payment processing gateway.
That's 3 companies!
Now, there is a large player named, First Data, which (I'm pretty sure) owns Cardservice International (merchant servicer) and LinkPoint International (payment processing gateway). But it's still 2 different entities.
I think I'm going to end up using Autorize.net. I've heard good things about their API, and I really need something that's easy to program against.
Labels: business_of_software
posted by Michael Sica at
11:36 PM
5 Comments:
I used Authorize.net last year for a client, and it was pretty easy. Their sample code (PHP anyway) was slightly confusing and not 100% in sync with the docs from what I recall, especially in the area of test transactions vs live transactions, but overall it was one of the easier services I've had to integrate with.
Michael,
You should also take a look at ECHO. They have their own gateway, so there is just one company (plus your bank) to deal with and no extra gateway fees. There is no setup fee or monthly minimum. Their API is easy to use. Their discount rate is slightly higher than what you were quoted (2.25%). I've used them for several years and have been pretty happy. Caveat: They were just acquired by Intuit. So things could change.
Thanks for the info guys.
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