merchant account fees

spottybox

i just want to ask which bank charge less for taking payments directly from my on line shop? how much it will cost me a month to take payments?? anyone knows? any bank will let me open merchant account or any restrictions?? thank you

galwayjohn89

I would recommend starting off with Stripe or Paypal. I personally would go for Stripe much better integration and looks better but people seem to like Paypal. They charge 2.4% + 24c per successful charge + VAT.

skelligs

applying for merchant facilities is like applying for a loan (a little easier). Credit checks are done on you and the business and the overall business is evaluated.

A minimum monthly charge is applied and you will probably have to have a gateway payment processor.

Monthly charge will probably be about €30-€40 (commission rates for small customer will be circa 1.75%-2%+vat) plus a gateway provider like Realex will charge min €29.

So monthly charge will be about €60 minimum.

Going the paypal route, the commission is higher, but no minimum charge and there's a huge amount of trust of the paypal name.

Unless/until your sales are over 4k/5k a month, its probably not worth going the merchant account route.

spottybox

thanx for answer.i will start from paypal;)

En.pointe

Hi,
I'm about to launch my own online business and I'm going to start with Sage - they have a flat rate of €30 per month for the first 1000 transactions per quarter. Personally I think Stripe and Paypal are very expensive - I anticipate my average transaction to be circa €50, that could be 86cents per transaction (before VAT, if you're not VAT registered that will be €1.06!).

If you're processing less than 35 transaction a month the stay out with Paypal, but if you're processing more then you should look at another provider. Sage also recommend a number of merchant account providers that they work with.

All the best!

galwayjohn89

En.pointe wrote: »

Hi,
I'm about to launch my own online business and I'm going to start with Sage - they have a flat rate of €30 per month for the first 1000 transactions per quarter. Personally I think Stripe and Paypal are very expensive - I anticipate my average transaction to be circa €50, that could be 86cents per transaction (before VAT, if you're not VAT registered that will be €1.06!).

If you're processing less than 35 transaction a month the stay out with Paypal, but if you're processing more then you should look at another provider. Sage also recommend a number of merchant account providers that they work with.

All the best!

Interesting, last time I check merchant account worked out more expensive. How much are you paying for the merchant account?

Graham

En.pointe wrote: »

Hi,
I'm about to launch my own online business and I'm going to start with Sage - they have a flat rate of €30 per month for the first 1000 transactions per quarter. Personally I think Stripe and Paypal are very expensive - I anticipate my average transaction to be circa €50, that could be 86cents per transaction (before VAT, if you're not VAT registered that will be €1.06!).

Are you including the merchant charges in your calculations?

2.5% credit cards 49c for debit cards. Add an extra .5% if you're not using 3d secure. Plus the €30 per month for the first 1000 transactions

spottybox

this is to much cost for the start. maybe i should stay with paypal for now.

Peterdalkey

Stripe is cheaper than Paypal!!

spottybox

Peterdalkey wrote: »

Stripe is cheaper than Paypal!!

Which is morr popular paypal or stripe? I did not hear about stripe before

galwayjohn89

spottybox wrote: »

Which is morr popular paypal or stripe? I did not hear about stripe before

Paypal would be more well know to non-techy people. Stripe however is much easier to integrate and looks far more professional. Also never had any issues with Stripe 'freezing funds' for security issues unlike PayPal.

skelligs

If you are selling to public, then Paypal is the one to go with. - Brand recognition is extremely important in the payment sector.

If selling to trade or to a specialist group, Stripe can be good.

As for En.Pointe comment - sage / realex etc all charge about €30 amonth miniu=mum, byut they are only gateways. You still need a merchnat provider who will also charge minimum €30 a month EVERY month. So for start off, use paypal and build the business without having a minimum monthly payment cost base of €60 even if total sales were zero.

The Pontiac

70% of my customer choose Stripe (credit card) over PayPal.

You really need both. Some people hate PayPal, and visa versa. Ideally you need to give your customer a choice.

Peterdalkey

The Pontiac wrote: »

70% of my customer choose Stripe (credit card) over PayPal.

You really need both. Some people hate PayPal, and visa versa. Ideally you need to give your customer a choice.

do you find stripe faster or cheaper... or both or neither?

The Pontiac

Peterdalkey wrote: »

do you find stripe faster or cheaper... or both or neither?

It takes seven days for the Stripe money to reach my bank account (automatically paid). But Stripe only charge 2.4% + 30c per transaction, whereas PayPal charge me 3.4% + 35c, but payment is instant.

I would highly recommend Stripe. There's no commitment and it simple to use and setup. Anyone starting a website should avail of it, and maybe down road apply for a bank merchant account if the site is a success. But I think if volumes are high Stripe may drop their fees also.

lakill Farm

signed up with a crowd yesterday

Credit cards 1.6%
Business credit cards 2.2%
Debit cards 0.26c

no monthly minimum. terminal rental €21 i think he said plus vat. We have a GSM one ordered for €30 plus vat a month. Document fee is €100 once off.

all processed via a large international bank . Worst part is 3 year contract, but there is a 1 year termination clause with €140 fine