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Originally Posted by Zprogramz
Run your own merchant accounts and pay 1/2 of that in processing fees. It will increase you botom line for sure.
Z
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The above assumptions were - let me quote it again -
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Trial $2.95
Recurring $39.95
Ratio 30%
Avg Months 3
Gross $38.91
Proc. Fee $5.84 (15%)
Refunds $3.89 (10%)
Net $29.18
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How on earth will you bill this at 7.5% with your merchant account?
Gateway fee: 15 cents
Merchant Bank per Transaction: 50 cents (paid on every approved and declined (!) transaction)
Merchant bank: 4-6%
CB Fee: $35-$50
Refund fee: $0-$5
Throw in a couple chargebacks & refunds and you're quickly paying 9%-14% billing costs with your merchant account (assuming you have trials - and the CB, RF & decline numbers are industry standard). A merchant account is *NOT* cheaper than 3rd party on trials. This is a myth, a lie. It doesn't compute. Anything below 15% is good. That's the truth.
I see you in every thread throwing sand into people's eyes like that. Why? What is the purpose of this misinformation?