Have you ever sat down and added up how much you spend in fees each year paying companies like Paypal for accepting payments and credit card payment fees etc? I can't believe how much some people are charged and paying each year.
This is a huge cost for our company. We factor this into how much we charge for our services and have changed merchant accounts to get better rates. You also have to take into account that paypal has tiered fees so the more you use them them better the rate you get.
If you are working in multi location, as us. You can think about local payment systems for local country customers, not only paypal.
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Of course we know to the penny how much we spend in fees, but that's simply the cost of doing business. Like Joe said, shop around for the best rates to lessen your expenses. Credit card charges don't bother me nearly as much as all the taxes we pay.
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Yes, A lot of people dose this, But for many people out there after all these's days it might just not pay its self off. But for those big companys like hostgator and stuff I think we can't tell if there making money or not. Just because they have a lot of clients and domains it dosn't mean they are making money. You know how much money they spend in bills like what you listed above?
What I pay is pretty close to what the market is. 1.9 - 2.9% and .25 per transaction I think.
We know how much we pay, but it's the cost of doing business you know. You gotta do it to make it in this industry.
We offer 4 ways to pay, CC, paypal, google, check. I'd say my CC fees are the worst, but I at least found a place that isn't killing me the monthly fees.
We had blue pay and probably sent them nearly 50/mo in just monthly fees alone, and then when we canceled they nailed us with termination fee that I don't ever recall signing a paper about. I would never recommend these guys to anyone.
CDG Commerce is where we are now (thanks whmcs for the referral), it's 10 bucks a month, and then your transaction fees which I feel is pretty reasonable.
I do not do all of our accounting so I wasn't aware just exactly how much of the "processing fees" were coming from Paypal and such. I think they are great until you start taking cheaper items. 30¢ plus 2.9% on $1 is too much to pay. Not that I do many $1 transactions but just looking at it from that perspective.