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Thread: E-Commerce Gateways

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    E-Commerce Gateways

    Hi.

    I am looking at accepting credit cards on my online shop.
    I haven't got a merchant account, so I was looking at either mygate.co.za who have a supermerchant account, pricetag.co.za or setcom.co.za ... which one would you guys use.
    I see pricetag's maximum is 5.7% but I'm not sure how good they are with graud detection, but they offer negotiable rates once you achieve over 40k a month.
    Mygate is 6%, and they have a fraud module, but I'm not sure if they are negotiable.
    What are my risks ITO fraud with these providers ... and do you know how much they refund you in case of a charge back?
    Also, how long does it take to access the funds from these gateways as I need the funds to purchase and send the products.
    Do you guys think that customers will object to paying 3% extra on the fees to use a credit card, otherwise in some cases, I will make a loss.

    Regards

    Itai

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    Site Caretaker Dave A's Avatar
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    The only one I can give some sort of an answer on is
    Quote Originally Posted by eitai2001 View Post
    Do you guys think that customers will object to paying 3% extra on the fees to use a credit card, otherwise in some cases, I will make a loss.
    It's not the customers you have to worry about. Normally the merchant agreement specifically states you may not charge a different (higher) price because the bill is being paid by credit card.

    You would have to change your base price regardless of payment method to solve the "loss" problem.
    The trouble with opportunity is it normally comes dressed up as work.

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    I have seen some sites where they do that ... can't remember which ones though. If I remember correctly, there was an argument (loophole) around that ... I can't remember how it worked though. Something to the effect that you are charging them extra for the convenience of having credit card facilities and not for the fees. But I'm not sure.

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    just me duncan drennan's Avatar
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    Just watch out, for some of them you have to have a merchant account with a bank (I know mygate is like this), so you will also have to pay extra merchant fees to the bank as well (unless they already build this into their pricing).
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    Mygate has something called MyGate Express which is a super merchant account ...
    My biggest questions with them and Pricetag is fraud risk, chargeback risk and amount of time to collect the cash.

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    Moderator IanF's Avatar
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    Eita
    When I got the speedpoint machine I was told that you can't charge more for using a credit card, but you could discount for cash cheque etc.
    Only stress when you can change the outcome!

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    Platinum Member Chatmaster's Avatar
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    I used Setcom on one of my sites before. They are pretty good but expensive. Haven't used any of the others. Can I ask you what you are selling? Also is it aimed only at the SA market?

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    Bronze Member Karenwhe's Avatar
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    We have merchant account with bank directly. We negotiate with them prices and then use VCS for clearing which is pretty cheap.

    Maybe there are better solutions out there but we found at that time this to be the most cost effective while preventing fraudulent transactions.

    For us cost was important at that time (and still today) as some of our sites resell electrical hardware and the margins are small.

    If there are better solutions today, as I have not re-checked for a while, I would love to know also.

    The other option that we found (but not used as yet due to trust management break even point), is to set up an offshore trust, which can cost anywhere from 16K and you can then add many more payment systems including PayPal and costs are ridiculously cheap compared to what is offered right now in SA. The cheap cost of transaction does make up for the management costs of such trust with the right amount of sales. We did not use it as we trade in SA only, but I did see one SA person that is doing this as his product is information and appeals to a very large international market, which makes this worth while for him.

    Hope this helps.

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    Platinum Member Chatmaster's Avatar
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    I have converted all my sites to use moneybookers.com and one is using Neteller but then, they are all international sites and must be able to take payments from most countries, including South Africa.

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    Bronze Member Karenwhe's Avatar
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    We tried moneybookers and had some very unpleasant surprises in terms of process administration and stuff like that which resulted in money going well, lost. We still await money they have to pay us from some 6 months back. Luckily it is not that much, needless to say, we don't want to do anything with them again.

    I hope you have a better experience and they improved their processes.

    I have not tried Netteller, can you tell us more about your experience with them from SA (the good and the bad) and for how long you used their service?

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