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Payment Processor Fees

Does your payment processor charge you the credit card fee they pay  in addition to their transaction fee? I end up paying about 8.5% total, including the credit card fee of about 4%.
Bill Anonomist Send private email
Thursday, October 02, 2014
 
 
That seems extremely high these days,
Scorpio Send private email
Friday, October 03, 2014
 
 
They also calculate their transaction fee after the sales tax or VAT is added.  Is that typical of most processors?
Bill Anonomist Send private email
Friday, October 03, 2014
 
 
4% seems a little off.

Isn't the base credit card transaction fee more like 0.25% plus various nickel and dime fees that can run 10-50 cents a transaction?
Scott Send private email
Sunday, October 05, 2014
 
 
OK here's a source.

http://www.cardfellow.com/blog/average-fees-for-credit-card-processing/

average total cost for swiped card at retail business: 1.95% - 2%

average total cost for card-not-present (ie online): 2.30% - 2.50%

So 4% would be 1.5% above the top of that range.
Scott Send private email
Sunday, October 05, 2014
 
 
(I'd tell you what ours is, but I don't actually know, I have someone else handle all that stuff. I do think overall though it costs quite a bit more than 2% when everything is accounted for including chargebacks and whatever.)
Scott Send private email
Sunday, October 05, 2014
 
 
Is that high? Considering they usually handle the license delivery and local taxes as well. Fastspring charge 8.9%, and they seem to be the touchstone these days.
Marlee Ammon Send private email
Sunday, October 05, 2014
 
 
That sounds high.

We switched from FastSpring to Stripe over a year ago, and haven't looked back.

With FastSpring we were paying 5.9% + $0.95 per transaction. And for non-USD payments we were also getting gouged for an additional 3% since they use exchange rates that are way off the bank rates - BTW, note that they don't advertise that at all!

With Stripe it's just 2.4% + £0.20 per transaction. For non-GBP (our home currency) payments it's 4.4% + £0.20 per transaction. And they use bank exchange rates too. Nice and transparent, and it was really easy to get started using it.

I highly recommend Stripe.
Cocowalla Send private email
Monday, October 06, 2014
 
 
Stripe does not handle sales tax /VAT. That may not be an issue for some. I have a lot of sales in many EU countries so I would have to not only calculate and add the charge, but also remit payment. My current processor does all the above  which is why they charge more -although they may still be a bit higher than other full service providers. I also suspect they are tacking something onto their credit card fees.
Bill Anonomist Send private email
Monday, October 06, 2014
 
 

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