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credit card processing with cart?

Posted on 2007-11-16
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Last Modified: 2008-02-11
Hi,

I have a joomla website that uses virtuemart, but I have to setup some payment method apparently. I guess you go through some 3rd party which handles the actual processing of the cart items etc. Does anyone know about how much this costs? Is it a one time thing, or do you need to give them some money for every transaction made?

Thanks
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Question by:DJ_AM_Juicebox
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pigmentarts earned 500 total points
ID: 20304606
You need a payment gateway, which gateway you pick depends on if you have a merchant account or not.

If you have a merchant then you have a vast pick of their own gateways i.e. your merchant gateway or 3rd a party like Protx which uses your merchant number. If you don’t have a merchant account or can not get one from your bank then you have to go with a solution like paypal, worlpay etc which act like a merchant account in a way as well as proving the gateway you need. Either way they all take a percent of the transaction, no getting away from that I am afraid.
 
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by:tesla_V
ID: 20373923
DJ_AM_Juicebox,

I also use Joomla and Virtuemart. I will let you know what I use.
For direct Credit card transaction I use Ipayment as my merchant account and Authorize.net for my gateway.

Merchant Account: Is the company that accually processes the credit card and then deposits the money into your back account in 2-5 days depending on your contracted and risk.
There are many providers who act as merchant accounts. Many banks offer this server. Big name you might Know Wells fargo is one.

Most banks are going to charge higher rates there other merchant accounts where that is all they do.

Names to look into, Pivitalpayments.com, IPayment, 1stNationalprocessing. Watch out for 3rd party sales sites as they can be very miss leading and dishonest as they will do anything to close a sale so they can sale it to "real" merchant processor.

Gateway: the gateway is the service which accepts data from your site and sends it to the merchant processor. I use Authorize.net there are others.

Fees: Most merchant accounts have a set up free $100-200 is typical. sometimes can be lowered or waived.
There are seperate fees involved with most Merchant accounts and the gate way even though your merchant account may set up the gateway...

Per transaction.
2-3% is what you should be paying. Rates are based on monthly sales. The more you have the better the rate.
per transaction fee .10-.20+ cents each. So if you charge a $1.00 charge you pay the transaction fee + the %.

The gate way also has per transaction Fee of around .10 I get the first 250 free.

THe monthly fee for my date way is $10.00

THe merchant account has a minimum of $20.00 fee. If my % reaches that then it comes from there. if I have no sales in a month then i still pay the $20.00


The process is not hard, but can take time. They will require a credit check and bussiness information.

Things to watch out for and terms you should know.

There are different rates including but not limited to.

Qualified:
Mid-Qualified
Non-Qualified.

In adition to the rates above there are Swiped transaction and keyed (non swiped or internet)

You need to know and have it specified in the contract which rates aplly to which.
 
Good rates. (aproximations)
Qualified: 2.15%-2.5%
Mid-Qualified 2.35-2.75
Non-Qualified. 2.75-3.5%
per transactions: 10-15 cents
batch fee 30 cents.


Bad rates. (watch out for really good offers in one area and then they make up the money in other) Example only.
Qualified: 2.15%-2.5%
Mid-Qualified 3-10%
Non-Qualified. 5-15%
per transactions: .30- 1.00 cents
batch fee .30-1.00 cents.

Just make sure you know all the rates and fees. and get it in writing on the contract before you sign anything.
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