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:
Using Cardservice w/Authorize.net
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
If 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.
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