Hey everyone,
So I’ve been looking at purchasing a copy of the MV edition for quite some time but put it on the back burner and now I am back into the full swing of things.
Everything is going well so far with preparations but I am really stuck with the payment processing and vendor payment side of things at the moment. I’m just wondering if anyone cares to shed some light on their current routine of paying vendors? I have been phoning banks to find out the costs for a merchant account as well as eWAY for the payment gateway. This whole process seems somewhat expensive. I can understand the costs are absorbed when you are making a high volume of sales but for start-ups, the payment processing costs are a little scary.
I have had a look at using Paypal as an alternative because the fees look like they may even match eWAY and the banks but without the need to set up a merchant account, but the one thing I realised is that it can take a few days for the payment to transfer to the vendor. This would really be the case with the banks as well anyway wouldn’t it?
Is anyone finding this to be a deterrent for potential vendors, and better yet can anyone provide advice here?
Thanks
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I don't use the MV edition but maybe this info helps.
I just pay my vendors by bank transfer. Free within the EU, to the US I pay 0,10% to my bank which is a hell of a lot less then any PSP asks.
My wholesale clients also pay me by bank transfer. Why would you throw away 2% - 3% on every sale!?
My vendors also love me because of this, because they don't loose any fee (2 - 3%!) to the credit card companies.
If this doesn't work, I use Moneybookers (soon to be Skrill). For some reason payments to the US don't work though.
Thanks for that! I'm not too sure how it works in Europe but the banking and money transfer is hopeless here in Australia. It sounds like your credit card fees are ridiculously high over there though! I've been quoted between 1.08 - 1.15% per transaction here. I'd much prefer to do bank transfer but the time it takes for payments to show up in the account would make for very poor shipping turnaround and just wouldn't be practical. The other benefit of NOT using live credit card processing would be situations where refunds are necessary.
I'm just going to see how things go and make adjustments if necessary I guess.
Ah, banks here are pretty good. Transfers within the same country are done on the same day and to other EU countries usually take 1 or 2 days.
I'm not sure about credit card fee's here but let's say it is 1,1%, plus the fee I have to pay to a processor, would still make it 2 or 3% right? Let's say I have 100.000 euro turnaround… that's 3000 euro I'm giving away. I'd rather give it to my wife to go on a shopping spree (and god knows she's good at those).
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Ah, banks here are pretty good. Transfers within the same country are done on the same day and to other EU countries usually take 1 or 2 days.
I'm not sure about credit card fee's here but let's say it is 1,1%, plus the fee I have to pay to a processor, would still make it 2 or 3% right? Let's say I have 100.000 euro turnaround… that's 3000 euro I'm giving away. I'd rather give it to my wife to go on a shopping spree (and god knows she's good at those).
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U mean all your sale payment are offline payment?
I feel confuse with the vendor payout as well… As I notice after trying the demo, the customer place order and payment is made to the admin(web owner)… And there is not information stored for Vendor payment information(merchant account)… So, I wonder how the payout could be done to the vendor after the customer paid their order???
Innervision I too was looking at Paypal but I think I found where it is a violation of their terms to operate as a “payment service” using Paypal. Under their prohibited activities they have listed:
“relate to transactions that (a) show the personal information of third parties in violation of applicable law, 
support pyramid or ponzi schemes, matrix programs, other “get rich quick†schemes or certain multi-level marketing programs, (c) are associated with purchases of real property, annuities or lottery contracts, lay-away systems, off-shore banking or transactions to finance or refinance debts funded by a credit card, (d) are for the sale of certain items before the seller has control or possession of the item, (e) are by payment processors to collect payments on behalf of merchants, (f), are associated with the following Money Service Business activities: the sale of traveler’s checks or money orders, currency exchanges or check cashing,or (g) provide certain credit repair or debt settlement services”
Items d and e are the ones I’m concerned about. If I’m reading this right, us multi-vendor processors will need to go the merchant account route. Thoughts?