Feeling a bit thick .. payment charges ..

[davidfarndon]

Sorry for what is probably a really dumb question .. I have a Sellerdeck site which has for some years used PayPal and PayPal Pro. It's worked reasonably well all this time, but I am aware I am probably paying through the nose for the transactions.

I am considering quite strongly moving slightly sideways and (whilst continuing to offer payPal as an option) provide customers with an alternative. A couple of folks have suggested Sellerdeck payments as an option .. bearing in mind it appears to integrate into the sellerdeck software - so I don't need to learn anything much extra. But I'm a little confused by the charges .. I can see something like Payments 350 costs £25 a month and 10p per transaction .. but is that IT ? Or are there other charges per transaction that I'm not seeing?

Hope someone can shed light on this, or suggest alternatives of course. The man from Barclaycard seems keen .. but ..

David

[Golf Tee Warehouse]

You will also need a Merchant Account with someone like Worldpay who will charge you 1%-2% of each transaction, the exact amount will depend on the volumes and risk profile.

[davidfarndon]

thanks ..

Thanks for that .. I had a feeling there was something extra.

For relatively low turnover - around 5 - 10k a month does anyone have recommendations?

typical order value from £30 to £400 (with the odd £1000 order occasionally).

[malbro]

Thanks for that .. I had a feeling there was something extra.

For relatively low turnover - around 5 - 10k a month does anyone have recommendations?

typical order value from £30 to £400 (with the odd £1000 order occasionally).

Some years ago I did a spreadsheet comparing the various vendors and if you are looking around 30 to 90 transactions per month then the low cost Sellerdeck Payments option is the best value. I worked on anaverage transaction value of £30 in the spreadsheet. The Sellerdeck Payments A800 allows up to 800 transactions per year and then 35p per transaction or upgrade to the next level. Bear in mind that the next level is £300 per annum and A800 is £127.50 so you can afford to take an extra 364 payments at the .35 rate i.e. a total of 1164 payments, before you reach £300.00. I suspect that is still the cheapest option if you have less than say a 1100 transaction per year.

[fergusw]

David, there are several options available from different providers.
- Some have no ongoing cost, just a transaction fee e.g. PayPal
- Some have a fixed monthly cost and a variable transaction cost (depending on card type etc)
- Some have a fixed monthly cost and a "credit based" transaction fee i.e. you pre-pay for x-number of transactions per month at a fixed amount (with cost per transaction reducing with a higher pre-pay level)

From your figures you gave you could average out some meaningful figures to test against the various providers.
e.g. If you take an average order value of £215 (mean of £30 + £400) and an average order/transaction quantity of 35 orders per month (£7500 / £215).

If these figures "feel" close to the actual averages you get, then you can apply these figures to the various providers models to work out which one would provide best value.

Also, bear in mind that transaction charges are always negotiable with the provider. Cheaper costs are based on volumes, occasionally on membership of bodies such as FSB but always worth discussing with the provider. Even PayPal will give better rates for merchants who work closely with them to provide higher transaction levels.

Hope this helps.

[malbro]

. But I'm a little confused by the charges .. I can see something like Payments 350 costs £25 a month and 10p per transaction

The 10p is the extra cost of transactions over 350 per month not a payment per transaction. I found the old spreadsheet and updated the Sellerdeck prices and Paypal prices but all the rest need updating to current figures, see the zip file attached.

You will need to replace the banking figures with those relating to your Merchant Account. The highlighted boxes show the best return for the number of transactions