NYCPHP Meetup

[Keith Casey]

On 9/23/07, Cliff Hirsch <cliff at pinestream.com> wrote:
> Easiest way is to either get a merchant # through the client's bank or
> through the shopping cart provider you will be using. Just get it -- don't
> worry about rates unless you have a very low margin biz. The quoted rate is
> B.S. anyway. Ideally you want a cost+plus rate, meaning Interchange + the
> processors markup (typically 25 cents) + the gateway fee, which is usually
> 5-10cents per transaction. But for symplicity, just get it and don't worry.

True... the more dangerous thing is the chargeback rate.  Some
processors, if you hit a certain % of chargebacks (in terms of dollar
amount), they usually have the right to cut you off immediately.  If
the company has a long history with the provider, the % will probably
be higher.  I seem to remember 5% as a common number...

A chargeback is when someone talks to their cc company and requests
the charge to be removed.  The cc company will immediately issue a
refund, the processor will immediately issue a refund, and your
account will be debited the amount.  I was working with a dating site
that got cutoff about 4 days before Christmas, it took them 2 weeks to
get back online.

kc

-- 
D. Keith Casey Jr.
CEO, CaseySoftware, LLC
http://CaseySoftware.com