Verotel drop their bomb..

[DMc]

Originally posted by WannaShagg
Great so with that said our Verotel fee should drop drastically as you are the merchant of record.

Then what if you do not want all your records to say Ticketsclub, because you use Ibill, Ccbill, Probilling & Verotel.

Domain name records that do not have correct info on them anyway, is illegal. So if you have a doamin as your client and they do not have proper info, delete their account.

the biggest benefit of all this would be a drastic cut in fees from Verotel. The discount rate they are probably paying is 1.5%. so why then if they are going to be the merchant of record, should we be paying, what is it? 14.5%?!

I will not do this. I process with 4 ipsp because none of you are reliable. I am able to get my ownmerchant account with standardpayments. So if I can get my own merchant account, so can you guys.

Only problem, I can get merchant acct and gateway. But i need backend billing software that will talk to the gateway and add username/pass. I am not a techy chick so I am having toruble with the last piece of the puzzle.

Standard payments will give adult site a merchant acct but you need billing software. Card member services still processes for adult sites, so i was told, and they are next on my list.

Now if you pro webmasters can help me out with software, we all share info and knowledge we can all have our own merchant accounts and not have expense passed on for high risk sites to us. We are no all high risk and mismanged. I haven't had one chargeback with any of the 4 processors i use all year.

So verotel what's up? You are only seeking to benefit your selves. Where are the benefits of cost savings you will enjoy being passed onto us?!

To begin with, I'm not sure how a connection got made between the transparency that the credit card companies are looking for and lower processing fees (1 + 1 not equal to 3). TicketsClub receives no discount from our banks for doing this and therefore there are no "savings" to pass on. Furthermore, people always assume what the processor's discount rate is and I don't mind saying they are OFTEN way off the mark as here also is the case.

Another thing that most webmasters don't consider when weighing the pro's and con's of having their own merchant account is that there is a lot more that goes into credit card acceptance than just automating a computer process to accept transactions. For example:

1. Fraud scrubbing
2. Customer Service
3. Technical Support & Programming
4. Payment disbursement
5. Toll Free telephone numbers
6. Financial bookkeeping
7. Risk Management
8. Gateway software

Also realize that payment processing companies are doing all of this for thousands of websites/merchants which means an office building, employees, employee benefits, payroll, taxes, vendors, suppliers, etc. Of course the overhead would be less for a webmaster that was only doing all of the above for only his/her sites.

In principle I have to agree with you. If you can manage to keep your own merchant account in good standing with your acquiring bank and end up paying less fees than what you would pay with a payment processor (all expenses considered) you would be dumb not to go that route. However, the reality is totally different. I'm sure you've heard of webmasters/merchants who at one time or other had a merchant account and "burned it", "lost it", "got eaten up by fines", etc. I also know many webmasters that still have their own merchant accounts but only use them for the lower risk transactions (e.g., selling products where shippments are signed for, for loyal subscribers that would never think of doing a chargeback, etc.)

If you want a better picture of what you're paying your payment processors for, bump up the discount rate at least a few more percentages, then add a percent for every extra service payment processors provide then add another couple of percent on top of that for taking ALL THE RISK and you'll probably be more in the ballpark.

And just for the record, I wish you the best of luck with your own merchant account but I would venture to guess, sooner or later, you'll be back on the IPSP or 3rd party model just from all the headaches in trying to keep your merchant account in good standing - that is if you don't go bankrupt from the Visa/MC fines everytime you go over the 1% CB level.

My $0.02 ;-)