[Discuss] payments on the web over 10k?

[jack at coats.org (Jack Coats)]

Google has a pay feature (unless it is one of the things they did away with).
I figure if they are trying to compete with Amazon, that is something
they want to do.

Just a thought.


><> ... Jack
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On Tue, Aug 20, 2013 at 1:42 PM, Tom Metro <tmetro+blu at gmail.com> wrote:
> Jack Coats wrote:
>> Eric Chadbourne wrote:
>>> A client of mine needs a store on his site that can accept payments well
>>> over $10,000 per transaction. Paypal can't cut it. Any suggestions?
>>
>> If I remember the banking rules, PayPal might not want to deal with
>> this because it REQUIRES a report be made to the Feds for each
>> transaction at that level.
>
> It is my recollection as well that there are extra federal reporting
> requirements for transactions of $10K or greater.
>
>
>> Might be better to go to a bank to get a commercial account and a
>> charge card merchant account.
>
> Yes, quite possibly.
>
> A typical online payment setup consists of these elements:
>
> 1. shopping cart or other e-commerce software;
> 2. payment gateway (API used by your shopping cart);
> 3. merchant account (a service that takes credit card transactions,
> verifies them, and obtains funds from the CC provider);
> 4. bank account;
>
> and you'll find varying combinations of bundling. PayPal, for example,
> does all of these (they sort of provide a bank account; they're happy to
> hold your money and let you spend it through a debit card). Most vendors
> you'll find in the payment space do #2 and many bundle #2 and #3. Most
> banks will provide #3, in addition to #4, of course.
>
> I'd say if Braintree, which does #2 and #3, handles $10K+, then probably
> any other payment gateway provider will as well, as the reporting
> requirements likely fall on the underlying bank providing the merchant
> account or the bank account.
>
> The percentage-based transaction fees tend to be set by the merchant
> account (#3) provider, so you'll benefit from shopping around for that
> portion. Braintree, for example, will charge you 2.9% for their bundled
> solution, or you get your own merchant account and they'll sell you just
> the gateway (#2) service for $50/month. (There are also fixed
> per-transaction fees of $0.10 to $0.30, but irrelevant for large
> transactions.)
>
>
> Eric Chadbourne wrote:
>> These guys look interesting, https://www.braintreepayments.com/,
>> but I have never used them.
>
> I don't have direct experience with them, but they are the vendor Google
> has endorsed as the successor to its Google Checkout service, which it
> is shutting down[1] in a few months.
>
> 1. https://support.google.com/checkout/sell/answer/3080449
>
>
> Stripe (https://stripe.com/) provides the same level of bundling, with
> an emphasis on developer friendly APIs. Their pricing is the same 2.9%
> as Braintree and most other bundled providers.
>
> At $10K+ the commission fees are going to be significant, so you'll want
> to shop around. Ease of integration might end up being a secondary
> concern, as it won't take many transactions before you'll break even on
> higher up-front setup costs.
>
> For example, take a look at Amazon Payments
> (http://payments.amazon.com/), which offers a turn-key service covering
> #1 (a "Pay with Amazon" button) through #3 and charges commission on a
> sliding scale, with transactions of $10K+ costing 2.2%.
>
>  -Tom
>
> --
> Tom Metro
> Venture Logic, Newton, MA, USA
> "Enterprise solutions through open source."
> Professional Profile: http://tmetro.venturelogic.com/
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