Direct Merchant Account needed

[Realweb]

Hi, I've got a payment headache which hopefully someone can help me with. I am looking into getting set up with a merchant account for my online store (selling kids clothing, toys and gear).

I searched for direct merchant account and I am a bit confused now. They all have their benefits, and their downside and I need the best option. My internet company turns over approximately 90 000k per month, with the average transaction ranging from 50 dollars to 300. We currently use PayPal and are unhappy with fees and we're not convinced this is the best way forward. I would be grateful if anyone could recommend a specific payment processor which would be ideal for my business? It would also be nice to have a payment service which allows me to take credit and debit card payments on the telephone!

What provider do you use? Why? What are the costs? And what would you advise me to avoid?

Thanks in advice, guys

[not2easy]

Have you talked to the people at the bank where your business accounts are handled? They may offer financial services such as order processing, or have ties to these services. Telephone order processing can be had at lower rates than online processing, but you will do without the authentication services you currently pay for online processing, or pay an additional fee for those services.

Years ago I started out using PayPal, then moved to Verisign which was taken over by PayPal before my contract expired. I moved to Authorize.net which was slightly more expensive. Over several years of looking for better options I came to the conclusion that you can only cut those costs so far before you start cutting yourself. So it comes down to the level of risk you wish to carry yourself vs. paying for services.

[djramix123]

After working a few years in the merchant services industry let me clear some facts up. There is no such thing as "the best merchant account" every merchant account is unique and is made to work with your business parameters. You need to find a merchant account provider that has a comortable rate and that can work with your existing shopping cart.

I personally use <snip>. Their rates are very fair, and they have a friendly support team. They specialize in high risk and e-commerce so I believe they will be of great help to you.

With that beig said I am sure there are plenty of other companies out there that do a good job with a good rate. PayPal's rate is pretty high compared to private merchant account providers...

[edited by: buckworks at 11:53 pm (utc) on Jul 21, 2014]
[edit reason] No promotional links; see Terms of Service [/edit]

[onlinesource]

@realweb,

I don't see why your business would be considered high risk. If I were you, I'd simply fill out an application with a merchant processor like Authorize, who can shop you around to different processors. Somebody will take you because toys are generally considered low risk. There is no reason to be paying 10% per each transaction. A site like Authorize will find you a solid company to process with and they will handle your charges as the gateway.

Personally I am dealing with a real high risk situation, and dealing with such banks is a major pain in the butt! Be glad you do toys and use that to your advantage.

[votrechien]

We have a non-PayPal merchant account and PayPal. PayPal is by far the best of the two.

Their fees are completely transparent, there's no monthly fee, and they have a fair dispute mechanism in place. With a lot of merchant providers, expect a statement that is near impossible to understand, has a number of fees you won't understand, and if a buyer ever disputes a transaction with you you're normally out of luck.

There are some advantages to other merchant providers, but PayPal really isn't that bad.

[Kendo]

We currently use PayPal and are unhappy with fees

I found them the most economical and very much cheaper than using a merchant account provided by a bank.

It would also be nice to have a payment service which allows me to take credit and debit card payments on the telephone!

You can do this with Paypal no problem. Your staff can can debit any card while on the phone... simply put the details through your normal order form on the client's behalf.

[Mattreg]

Realweb

What are you currently using now? I'm interested as I have the same queries as you.

[piatkow]

Your staff can can debit any card while on the phone... simply put the details through your normal order form on the client's behalf.

@Kendo is that actually allowed by the PP terms of service?
My processor would have banned me on the spot for doing that and now insist on 3-D Secure processing for on-line transations.

[Wallet14]

Realweb,

I noticed in the banking business there are so many hidden fees.
So when you applied for a merchant account you will notice there will be many subcategory of fees.
For example, there's the transaction percentage (per swipe)
Then there such a thing called approved or authorized transaction fees.

There is monthly fee, annual fee and the big one is integration or set up fee.

Find a processor who provides all of these for free. Try up and coming providers, they offer no fees to build their business. Try Paymill, Kayswallet, Braintreepayments (owned by Paypal now, try I'm not sure but they did offer no fees)

There are other fees like charge-back but that is depending on your business.
Decline fee, but this is normal as long as it's not too high.
Basically just question your contract.

[Kendo]

Your staff can can debit any card while on the phone...

If you have a card gateway interfaced from your web page, whether it be serviced by your bank or Paypal, there is nothing to stop you from submitting the client's details on their behalf.