Third party credit card payment processors comparison chart.
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You have two options to accept credit card payment:
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Acquire your own Merchant Account
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Use a third party credit card processor
You may want to use third party credit card processors if:
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You sell a limited number of products
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Your product/service or credit history are not qualified for a merchant account
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You live outside of US
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You have little cash on hand
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You want to get it done with little effort
Instead of waiting for replies, paying setup fees, transaction fees, statement fees, discount fees and the like, you can simply sign up for a third party credit card processor and pay 10-15% of the sale price of each product.
These services are getting more and more popular with small online businesses, especially those just starting out. The transaction fees are usually higher than owning a merchant account, but there is no minimum monthly charge and no hefty deposit requirement so you are only charged on sales you have made.
Also, third party processors often provide some extras such as check payments option, free affiliate program, etc.
Some webmasters just want to do it in the simplest way: sign up with a third party processor, insert several lines of HTML code, and that's it! The service provider will take care of the rest.
The third party credit card processor handles payment by credit card, and sends the vendor a monthly (typically) check, minus various processing fees, which vary from service to service.
You may need some extra features sometimes such as download facilities or sending registration codes. If you ask around, many webmasters will suggest ClickBank which is a good service with large and free affiliates base. But if you need to send buyers unique usernames and passwords, like I do with eBook How to Create A Fortune on the Internet in just 4 Simple Steps, it would be difficult with ClickBank.
Below, I present the calculated processing fees for popular services, for a variety of product prices. Following that is a brief summary of the transaction and other associated fees for each service and extra features. Please note that some services have "setup fees", and most, but not all, charge the vendor each time a customer requests a refund.
| Service |
$10 | $20 | $35 | $50 | $100 | $250 |
| ClickBank | 1.75 | 2.5 | 3.63 | 4.75 | 8.6 | 19.75 |
| 2CheckOut | 1 | 1.55 | 2.38 | 3.2 | 5.95 | 14.2 |
| PayPal | 0.59 | 0.88 | 1.32 | 1.75 | 3.2 | 7.55 |
| iBill | 1.5 | 3 | 5.25 | 7.5 | 15 | 37.5 |
| CCNow | see description below | |||||
| RegSoft | 3 | 3 | 3.5 | 5 | 10 | 25 |
| DigiBuy | 3 | 3 | 4.87 | 6.95 | 13.9 | 34.75 |
| Kagi | 1.75 | 2.25 | 3.5 | 5 | 10 | 17.5 |
| DigitalCandle | 1 | 2 | 3.5 | 5 | 10 | 25 |
Sign-up fee:
$49.95
Transaction Fees:
$1+7.5%
Refund fees:
$5-25 for chargeback
Payment types accepted:
Online checks, Visa, Mastercard, American Express, Discover, Eurocard,
Bravo, Visa Debit, Mastercard Debit, and Novus
Other services:
Free affiliate program management with 100,000 affiliates base
Downloadable products only
2CheckOut
Sign-up fee:
$49
Transaction Fees:
$0.45+5.5%
Refund fees:
$10-30 for chargeback
Payment types accepted:
Online checks, Visa, MasterCard, Discover, American Express, Diners
Club, JCB and debit cards with the Visa, Mastercard logo
Other services:
Compatible with shopping carts
Tangible and digital products and membership sites
PayPal
Sign-up fee:
None
Transaction Fees:
$0.3+2.2-2.9%
Refund fees:
$10 for chargeback
Payment types accepted:
Visa, MasterCard, Discover, and American Express.
Other services:
Compatible with shopping carts
Tangible and digital products and membership sites
Buyer has to register as PayPal
member
Membership available in 37 countries
iBill
Sign-up fee:
None
Transaction Fees:
$0-9,999 - 15%
$10,000-24,999 - 14%
$25,000-49,999 - 13%
$50,000-99,999 - 12%
Refund fees:
?
Payment types accepted:
MC, VISA, JCB, AMEX, Discover, and check
Other services:
Built-in affiliate management
All products
Turnkey solution, but a bit complicated
CCNow
Sign-up fee:
None
Transaction Fees:
US vendors: $9.95 monthly promotional program cost + 9% of your total
sales in excess of $100.00
International vendors: $11.95 monthly promotional program cost + 11%
of your total sales in excess of $100.00
Refund fees:
$10-80 for chargeback
Payment types accepted:
Visa, MasterCard, American Express, and Discover/Novus
Other services:
Pays you interest at the rate of 1.5% APR on funds in your account
Tangible goods
Provides shopping cart
Compatible with most affiliate tracking systems
RegSoft
Sign-up fee:
None
Transaction Fees:
10%, $3 minimum
Refund fees:
No chargebacks or refund bank fees will be charged to the vendor
Payment types accepted:
Visa, American Express, Mastercard, Discover/Novus, Money Orders, Checks
by mail, Eurocheques
Other services:
Custom CD Delivery
Automatic registration code delivery
Free affiliate management
DigiBuy
Sign-up fee:
$29.99 (Essential)
$199.00 (Advanced)
$9.99 for each additional product
Transaction Fees:
13.9%, $3.00 minimum.
Refund fees:
$2
Payment types accepted:
Visa, MasterCard, American Express, Discover and Diner's Club, Fax,
Phone, Mail, Wire and Purchase Order Options
Other services:
Download facility, $0.01 per 100,000 bytes
Automatic registration code delivery
Shopping cart provided
Compatible with popular affiliate programs
Kagi
Sign-up fee:
None
Transaction Fees:
$0-25 - $1.25+5%
$25-100 - 10%
$100 above - 5%+$5
Volume discount available
Refund fees:
$10 charge-back fee
Payment types accepted:
US and foreign cash, US checks, Visa, MasterCard, AmericanExpress, Optima,
Discover (Novus), Diner's Club, Eurocard, Carte Blanche, JCB
Other services:
Customizable order page and confirmation email
Compatible with most affiliate programs
Download facility
Shopping cart compatible
Full feature but not that easy to use
DigitalCandle
Sign-up fee:
None
Transaction Fees:
10%
Refund fees:
None
Payment types accepted:
Visa, MasterCard, Discover, Amex, Diners Club, JCB, Purchase Orders,
Paypal, Checks, Cash, Money Orders, and Wire Transfers.
Other services:
Key code generator
CD delivery of products
Marketing services (closed temporarily)
The information was gathered from the web site of each service, and is believed to be accurate, but be sure to check with the actual service.
If any credit card processor notes an error in any of the information here, please let me know and I will be happy to correct it. Likewise, if a service not listed wishes to be listed, contact me with the details/transaction fees, and I may include them in the next update of this page.
I didn't and will not list services who charge more than 15% transaction fee (not worth it) or don't describe service details clearly at their web sites. There ARE services that you can't find out what credit cards they accept after one hour's exploring:(
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