Oh man, one of my favorite shows ever!!!
NickJ, not to completely set your now burst balloon on fire, but I'd suggest you rethink your business model.
The first reason that people go with a CCBill or Paycom is because they have no history in processing, they don't want or can't afford to pay the application fees, the upfront reserves (that one without history will likely encounter) nor can they make the volume commitment that the majority of acquiring banks require in order to issue MIDs and TIDs. They also have no idea how to handle customer service or what to do when they get a retrieval or a chargeback notice.
Then of course there is the processing discount rate, which in high risk is generally around 4.5-7%, based on volume (and to get 4.5 you'd better either have a really old account or be doing some really good volume, as in 7 figures a month plus), plus the per transaction rate, which runs anywhere from .45 to .80 per transaction, depending upon what region you settle your transactions. Let's not forget your declines, that run you between .10 - .25 each...
Now, with your own merchant account, you also pay for retrievals, generally around 15-20 dollars each, chargebacks at around 25-35 dollars each, and you'll need customer service, which even outsourced is still going to cost you in the neighborhood of .75 to 1 dollar per instance.
One chargeback on your $2 sale model will cost you a minimum of $18 IF you are doing a high volume and have the best of all rates going and you don't attempt to fight the chargeback, which will cost you time and money in having someone actually attempt to prove that a non-signature charge of $2 isn't your fault.
Just some food for mad cow disease...
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Originally Posted by MikeFold
...still thinking.....
----denny crane------
i may have mad cow disease, but i smell the smoke AI
(o;
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