Transaction - added to the discount rate, a flat rate on each transaction

Monthly Minimum - what you will be charge regardless of the level of sales each month

Reserve - some providers require you to maintain a certain level in the account to cover chargeback fees.

Chargeback - the killer fee which may cost you up to US$30 per fraudulent transaction (which includes any client disputing a transaction successfully).

New online business?

If you are a new business with an untested product range, consider using a well established third party credit card processor such as Paypal or 2Checkout while you test the waters, which will incorporate a payment gateway with a merchant account. Although their transaction rates are a little high, neither charge monthly fees. Both Paypal and 2Checkout also incorporate shopping cart applications and other free tools as part of the deal.

Rushed decisions in choosing your ecommerce applications, elements and third party services will dramatically increase the likelihood of your business failure. This is definitely an area where if you spend the time fully investigating all the options open to you - you'll reap the rewards after implementation.


Michael Bloch
Taming the Beast
http://www.tamingthebeast.net
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