Forum Moderators: buckworks
I am trying to sign up for authorize.net gateway, but i contacted a reseller of authorize.net and they told me I might also need a merchant account too.
Currently I am using paypal and I'm trying to switch over, but it seems confusing with all this other stuff that pops in.
Basically I need to clarify:
- what is a merchant account and why do i need it?
- Can i just get the gateway without the merchant account?
- Why get the authorize.net from a reseller when i can just get it from authorize.net?
I am using osCommerce and all I'm going to do is install the authorize.net mod. Also, I want to get access to the API so i can make a custom page where people can just pay for the product on the same page without having to add anything to the cart.
Any recommendations would be great.
- what is a merchant account and why do i need it?
This is a bank account. It seems your checking account or CD. Money goes from customers' credit accounts (their credit cards) on your merchant account.
- Can i just get the gateway without the merchant account?
No. Actually you asked this: "can I get online bill payment system without bank account" :)
You can use third part processor like 2checkout.com (or paypal.com. But you've been using it :) )
- Why get the authorize.net from a reseller when i can just get it from authorize.net?
Because authorize's account is useless without a merchant account. Those guys need to be sure that all paperwork done fine. The reason is very simple. Frankly speaking merchant account is a credit account. You go there and say "customer gave me this credit card's number and I promise to send him a widget" Those guys will charge peoples credit cards basing on your word only. So they need to be sure who you are etc. "Reseller" provide a set up. All this paperwork.
By the way there are modules connecting oscommerce and authorize. It's pretty simple to use them. I'll send you a sticky with the example.
I hope you can understand my English :)
Any of them ask for about $200 as an application fee. Any of them will need your SSN to check your credit score. Then they send you an offer (do not worry, you can refuse it : )
The offer says:
2.4% fee from transaction
$0,1 authorize fee
......
There will be a lot of fees. So you'll pick the best offer.
By the way, do not forget that ALL resellers are dirty lying bastards :) The main way to cheat is pretty simple. You will not get list of ALL fees. There will be a small letter in the bottom of the page "...other fees are blah-blah-blah" So later you'll figure out that foreign credit card are not qualified for 2.4% fee but 5.8%. Check it out. You need written confirmation that all fees are in the document. Do not trust. Written only!
[edited by: lorax at 3:15 pm (utc) on Sep. 24, 2005]
[edit reason] delinked [/edit]
At the risk of being redundant...
Drop by Authorizenet's site and check out their list of resellers known as merchant account providers. There you can find several that don't charge an application/setup fee for a merchant account, and a nominal setup fee for Authroizenet set up- say $20 (or free). You will actually be setting up two accounts: your merchant account provider will set up your gateway account for you as part of their service.
You gotta have a gateway "account" - such as Authorizenet - they're the "go-between". Without one you can't send transaction requests to the BANK that your merchant account provider is an agent for.
Your merchant account provider is an agent for a bank that actually does the moving of the money from your customers credit card account to your business bank account. Another "go-between"! So you have to establish two relationships to get the job done, but your merchant account provider is your vendor for that - they get it all done for you - and take a piece of the ongoing action as their fee. You'll get a monthly statement from them and probably one from your gateway provider.
In the world you're about to step into, you be playin' with the big boys so get all the fees you're responsible for in writing, as well as any contract length you'll have to agree to and ask your sales person (merchant accout provider) every question you can think of over the phone.
And try to find a provider that has NO "early termination fee"! Oh, and remember that there are three tiers to Visa/MC - your provider will advertise the lowest discount rate, but there are two more: the mid level, which as I understand it is most corporate cards and "milage plus", "rewards" and "cash back" cards (for my business these predominate) and the highest level, which'll run around 5% and is known as "non-qualified" which is simply higher-risk cards.
Common fees:
Discount rate
Per-item fee
Authorization & capture transaction fee (sometimes waived for level 1 transactions)
Daily batch deposit fee
Statement fee
Minimum monthly fee (if you do zero or miniscule business)
-Corey
