E-Commerce Gateways

**Chatmaster** · 10-Feb-08, 06:36 PM

Originally Posted by Karenwhe

Last I checked you were not allowed to discount for EFT or vice versa, increase price for Credit Card. Maybe I am wrong, but there used to be some rules in regards to this. I am not sure what is going on now, maybe that has changed, or I was given the wrong the advise at that time.

Karen to be honest, I have no idea if there is such legislation. It is good you are highlighting it though because in mind, it doesn't make sense. If one payment method is more expensive than the other, surely you can charge a admin, delivery or shipping fee for both, but discount the cheaper one as incentive to the consumer for using it?

I would like to know for a fact though, maybe someone more qualified than me can shed some light on it.

**eitai2001** · 10-Feb-08, 06:47 PM

I know it is against VISA and Mastercards T&C to charge extra for credit cards, but there is a loophole that you can have a cash discount. The problem is that if I charge extra with a cash discount, my prices advertised on the comparison search engines will be the higher prices and will make me look expensive. I think I will avoid credit cards for a while longer. Also ... I don't want to use someone like Setcom unless I know I can get the full amount within 2 days are so ... because I need the cash to buy stock.

**Chatmaster** · 10-Feb-08, 11:40 PM

I fully understand your dilema eitai2001. I really hope that a solutions to your issue are found soon. Just a question how badly is the fluctuation in purchase prices for your products? I understood that the prices changes very frequently.

**eitai2001** · 12-Feb-08, 06:47 PM

Fluctuation is a big problem ... I have to update prices weekly ... which is a pain ... I've created a makro that shows me what has changed since the last pricelist (New, Discontinued, Price Changes) ... but its not flawless as it works according to model numbers ... and if those change, it becomes a pain. But now with the rand dollar ... its gonna be a mission, cause PC pricing is based upon Rand Dollar.

**daveob** · 13-Feb-08, 12:47 PM

I have been using the services of NetCash ( www.netcash.co.za ) based in Cape Town for about the last 5 years to process our monthly debit order subscriptions. Never a payment problem and their online client admin area works great.

They recently introduced a Credit Card gateway for Visa and Mastercard, with no monthly fees and only 5% ( + R1 ) per transaction.

If you meet their account criteria, it can be a great option.

We have already have set up an online payment option on our site ( uses PHP ) and would be willing to share the php code if you require it.

**NETCASH** · 22-Feb-08, 12:01 PM

Hi there
Yes netcash offers a range of services which includes debit order, EFT payment and Credit Card services (terminal and gateway), and Credit validation services.

WRT "Originally Posted by Karenwhe
Last I checked you were not allowed to discount for EFT or vice versa, increase price for Credit Card. Maybe I am wrong, but there used to be some rules in regards to this. I am not sure what is going on now, maybe that has changed, or I was given the wrong the advise at that time."

That is correct. Banks do not allow that their merchants charge costs of transactions to the end user. Thus it is illegal and against your merchant agreement to increase pricing if someone pays by i.e. credit card. There are several merchants that do this and if 'caught' stand the chance of losing their merchant account at the banks...

**Dave A** · 22-Feb-08, 01:23 PM

Welcome to The Forum SA and thanks for clearing that up.

I have a question, though.

Originally Posted by NETCASH

Banks do not allow that their merchants charge costs of transactions to the end user. Thus it is illegal and against your merchant agreement to increase pricing if someone pays by i.e. credit card.

If a merchant gives a discount for paying by a certain method, for example for payment by cash, would that be a contravention of the merchant agreement?

Another one I see a fair bit of is a discount for paying by debit order.

**IanF** · 22-Feb-08, 01:23 PM

Originally Posted by NETCASH

That is correct. Banks do not allow that their merchants charge costs of transactions to the end user. Thus it is illegal and against your merchant agreement to increase pricing if someone pays by i.e. credit card. There are several merchants that do this and if 'caught' stand the chance of losing their merchant account at the banks...

Netcash
Hi Netcash
Are there any rules regarding minimum amounts?

**Chatmaster** · 14-Feb-08, 02:05 AM

Sounds very interesting thanks daveob!

**SilverNodashi** · 15-Feb-08, 05:05 PM

I can also vouch for Netcash, their products & support is good, and prices are low (lower than Iveri & Setcom). You also don't need a Merchant account, and with CC payments you can get the money within a day or 2, depending on who you bank with.

I'd suggest, to make provision with the CC costs, setup your price like you want them, and give cash discount on EFT / bank deposits. If you use something like ZenCart as a shopping cart, this can quickly be setup as an automated thing