Good Replacement for IBill?

IBill has announced rip-off changes to their Visa CC processing..

[andrey_sea]

Does anyone know a good replacement for IBill for online subscription sales? Supposedly VISA is now charging high fees and they are passing them on, is this true or is it possible to accept Visa through some other service and pay less fees? Is PayPal an option and how good of a replacement that is for IBill?

Here is what IBill did:

Each Sponsored Merchant must complete a registration form that iBill will submit to Visa on their behalf.

Visa and our processor will require an initial registration fee of $750; $500 will be paid to Visa and $250 to our processor.

Visa and our processor will require an annual registration fee of $375; $250 will be paid to Visa and $125 to our processor.,br>
Sponsored Merchants must be approved by Visa before we can begin processing Visa transactions.

[Slade]

You can pay less than that for a real merchant account. Just look for one of those.

Parsons Technology (quickbooks, quicken, etc) have a low startup cost version. You might have to pick up one of their products to use it though (not 100% sure).

[The Contractor]

<<Sponsored Merchants must be approved by Visa before we can begin processing Visa transactions.>>

Why not just get your own merchant account?

Mine costs $30.00 per month + $10.00 per month Authorize.net + 2.25% of sale + 0.20 a transaction. This is to accept MasterCard and Visa.

[andrey_sea]

You know, in the past it was very easy to set up iBill, we have been with them since 1999. That was the original reason to go with IBill.

But now our sales have grown and seems like merchant accounts are now much cheaper... so perhaps we will have to set one up...

These new fees on top of 15% cut and 10% witholding is a rip off!

So merchant account is the way to go?

[The Contractor]

So merchant account is the way to go?

Yes, it definitely is - IBill is just like a middle-man. I must say they are collecting some handsome fees for their services ;)

[martinibuster]

handsome fees for their services

With services like that, who needs the mafia?

[Slade]

I would guess MC/Visa came down on them and told them they couldn't do what they do anymore. (Allow people without merchant accounts to charge cards.) So, they want to stay in business by converting everyone to real merchant accounts they just aren't telling you that.

Could be interesting... Will hostcharge, and others fall out of favor soon too?

[innerstudio]

Getting your own merchant account is a no brainer if you aren't involved in risky or adult-oriented websites. Visa's new policy targets high-risk and third-party accounts. iBill isn't the only company to get slammed with this...every third-party biller I've called is in the same boat. And worried.

iBill's email about new regulations should scare anyone in this situation...sadly, many have no other choice. Who's to say after you pay the $750 one-time extortion fee and $375 annual extortion fee that they won't just terminate you because you don't meet the standards they set...the standards they don't even disclose?!?!?! If your charge-back rate is too high...you're gone. If your volume isn't high enough...poof, good-bye $750. If your refund ratio is too high...see ya later alligator.

Visa stands to make millions from this move and while it's not all economical, it is defended as a way to reduce charge-backs and reduce customer confusion. IMHO, an adult website customer is usually confused because he doesn't want to admit to the charge..."gee, what could that be? Hmmm, better take it off just to be safe."

I have 2 merchant accounts for two separate businesses and I would never contemplate using a third party biller if I didn't have to. You lose 25% off the top and while 10% comes back six months down the road, it's operating capital you need. In my two accounts I lose 2.3% and .30 off the top...no reserve. Now that's smart money. On a $100 sale I keep $97.40 instead of $75.00. That's a huge difference.

Sorry to blather on, I just think this is shameful. Anyone with the means should absolutely get their own merchant account...believe me, after this announcement it won't be hard to find companies willing to work with you.

Here's to better and smarter e-commerce!

Greg

[RobinL]

We switched to 2Checkout.com, but I'm not sure if you qualify, they have stricter requirments. We've seen our sales really increase, 1. because we can make the entire shipping experience look like our site and 2. because we can accept international orders.

[rewops]

Many different merchant account companies. Different rates, etc. What is the risk of using a cheaper merchant account? What is quality in a merchant account?

[KevinC]

As far as your question goes I think all billing companies have been hit by the Visa fee. I know CCBill can let you make payments on the fee and spread it out over a few months; they don't take as high a % from you either. For Adult sites wich come and go I doubt there are many who will sign up merchant account.

Ibill has the option to not pay the $750 and only except mastercard. I did learn that 80% of their sales are from visa cards. Something to think about

[TammieJ64]

Globill is not currently charging the Visa fee

[vik_c]

Clickbank.com is not charging the fee either so far.

[Mike_Mackin]

If it is not adult then you have many choices.
If adult, try ccbill.

The POWER of a large firm will help you in the long run.