[2 days left] What’s wrong with your cloud strategy? Learn why multicloud solutions matter with Nimble Storage.Register Now

x
?
Solved

Payment Processor

Posted on 2016-07-24
17
Medium Priority
?
83 Views
Last Modified: 2016-08-22
Hi,

I have been using Stripe for the last few years but I find them too expensive, as they don't put a cap on their fees. One of my clients processes €5,000 payments with a fee of €120.

01 - does anyone know of a cheaper payment processor?

02 - I presume it is very difficult to build your own... regulated by the bank, PCI compliance, etc.?
0
Comment
Question by:oo7ml
[X]
Welcome to Experts Exchange

Add your voice to the tech community where 5M+ people just like you are talking about what matters.

  • Help others & share knowledge
  • Earn cash & points
  • Learn & ask questions
  • 6
  • 5
  • 3
  • +2
17 Comments
 
LVL 49

Expert Comment

by:Jackie Man
ID: 41726484
Can you give a breakdown of your $120 fee?

What is the average amount of your transaction?

There are not many choices.

Braintree might be a better alternative as they only apply the standard rate when your monthly transacted amount is over $50k.

https://www.braintreepayments.com/braintree-pricing
0
 

Author Comment

by:oo7ml
ID: 41726489
Thank you.

Braintree is still very expensive.

2.4% of $5000 = $120
0
 
LVL 98

Expert Comment

by:John Hurst
ID: 41726491
The overall fee (2.4%) is only a bit high. We have done a bit better with Global Payments but I think that is higher volume than you are talking about. Your fee probably reflects lower volume.

Q2. Not a chance. Bank compliance is an expensive and time consuming process (more than 6 months if you can get it correct on the first try).
0
What does it mean to be "Always On"?

Is your cloud always on? With an Always On cloud you won't have to worry about downtime for maintenance or software application code updates, ensuring that your bottom line isn't affected.

 
LVL 98

Assisted Solution

by:John Hurst
John Hurst earned 332 total points (awarded by participants)
ID: 41726494
In terms of payment processors for the example above, you are talking about $20 (or 20 Euros) because getting below 2% requires very high volume and perhaps some negotiation .
0
 

Author Comment

by:oo7ml
ID: 41726501
Yes, but even paying $50 (1%) for one transaction is far too high.

The work involved in processing $5 vs $5000 is the same so there should be a cap.
0
 
LVL 98

Assisted Solution

by:John Hurst
John Hurst earned 332 total points (awarded by participants)
ID: 41726505
You will not get a 1% fee, Cannot happen.  Bank draft fees are as high or higher except they might be capped. Wire transfer fees are very expensive.

Even credit card fees are 2% or more.
0
 

Author Comment

by:oo7ml
ID: 41726510
So do Stripe pay the bank and credit card companies some of their fee?
0
 
LVL 98

Expert Comment

by:John Hurst
ID: 41726538
I do not know for Stripe, but in general, every middleman takes their cut.
1
 

Author Comment

by:oo7ml
ID: 41726550
Ok, thank you.
0
 
LVL 84

Assisted Solution

by:Dave Baldwin
Dave Baldwin earned 332 total points (awarded by participants)
ID: 41726724
My main client was whining last night that Paypal is increasing their rates to 2.9%.  He also keeps saying that Braintree is the processing arm of Paypal.
0
 

Author Comment

by:oo7ml
ID: 41726746
So PayPal plan to increase their fees?
0
 
LVL 98

Expert Comment

by:John Hurst
ID: 41726747
It will probably depend on volume how much fees go up. Competition works to keep fees down.
0
 
LVL 70

Accepted Solution

by:
Jason C. Levine earned 1004 total points (awarded by participants)
ID: 41728584
Competition works to keep fees down.

And collusion between the banks and gateways keeps them up.  This is not a battle you can win, don't even waste the energy to fight it.  Find the best rate for your volume and go with it but expect to pay at least 2.5-2.9% for this stuff.
0
 

Author Comment

by:oo7ml
ID: 41728947
Thanks.

We (Europe) only page 1.4% with Stripe which is good, but it still doesn't make large transactions feasible through online payments.
0
 
LVL 70

Assisted Solution

by:Jason C. Levine
Jason C. Levine earned 1004 total points (awarded by participants)
ID: 41728962
This is just the way it is.  You pay the percentage or don't take credit cards.
0
 
LVL 49

Assisted Solution

by:Jackie Man
Jackie Man earned 332 total points (awarded by participants)
ID: 41728980
Large transactions are subject to more rigid compliance issue in order to control money laundering.
1
 
LVL 49

Expert Comment

by:Jackie Man
ID: 41755349
Well thought answers which should help all members.
0

Featured Post

Concerto's Cloud Advisory Services

Want to avoid the missteps to gaining all the benefits of the cloud? Learn more about the different assessment options from our Cloud Advisory team.

Question has a verified solution.

If you are experiencing a similar issue, please ask a related question

This article was initially published on Monitis Blog, you can read it here . When it comes to deciding which approach to website performance monitoring is best for your business, unfortunately, like so many options in life . . . it depends. In th…
Ready to get certified? Check out some courses that help you prepare for third-party exams.
The viewer will learn how to dynamically set the form action using jQuery.
The is a quite short video tutorial. In this video, I'm going to show you how to create self-host WordPress blog with free hosting service.
Suggested Courses

656 members asked questions and received personalized solutions in the past 7 days.

Join the community of 500,000 technology professionals and ask your questions.

Join & Ask a Question