How Do Online Payment Processors Work?

[bsymons]

Hi
I am fed up with all the processors like INTgold, Egold,
PayPal and others stealing my funds. I have a few processor scripts but would like info on how to set up Do i need a special bank account or what I just need to know how they work
Can anybody help?
Bruce

[Jim Guinn]

You will need to apply for a merchant account. This can usally run from being free to a $139 application fee. Shop around. You will pay a monthly statement charge....usually anywhere from $17.95 to $29.95. Then, once all is in place, you are charged a discount fee...about .239% to .259% (that's $2.39-$2.59 per $100 transaction) plus $0.30 per transaction. The better your credit, usually the more you can save....so shop around. If your credit is poor, don't bother to look for a merchant account. They won't accept you. When you make a sale, the money is usually deposited in your account (checking) within 24-48 hours by the merchant account.

Before you shop for a merchant account make sure you know what "gateway" your script can work with. Think of a gateway as the "mechanism" that allows the merchant bank to "talk" with your business. If your script does not support the same gateway(s) as your merchant bank, you will need to find a suitable script.


Jim

[bookscanning.com]

[bookscanning.com]

[robert adams]

[Lynn Terry]

I'd be curious to know the same...

What kind of problems have you had with these payment processors, specifically?

[Jim Guinn]

Not sure about Bruce and what he means when he says "stealing" his funds, I can share the following with you though.

If you sell digital download products, or sell non-tangible services (like traffic) think twice before using PayPal. A few months ago I had a rash of people buy digital products and services. I delivered and then they began charging back saying they never received the goods or services. With PayPal, you as a merchant are guilty until you can prove yourself innocent. Even though I could supply customer orders and my own vendor orders that corresponded with my customer orders, PayPal refused these as proof. They only accept a shipping bill as proof that the customer received the "goods". Since you don't "ship" digital products and services, they said I had no proof that I "delivered" the products and services. They allowed all the chargebacks, plus assessed me fees for the chargebacks. I had NO recourse. They just took back the money and chargeback fees. All the time it took to resolve this, my account was frozen.

I know a lot of people have never had a problem with PayPal and they are very popular with over 86 million accounts. I once too thought they were great until I experienced my own horror story with them. They are most happy to take your money.

Jim

[robert adams]

sorry to hear about your troubles with paypal, that really sux.

chances are , that the same thing would have happened regardless of who your payment processor is. regular merchant accounts do this all the time.

luck,
robert