Higher Merchant Fees for Visa Cards

[Nutcase]

Is there a way to receive payments online without going thru a Merchant Facility of a bank? or gateway like eway, SecurePay etc ?

Does Visa and mastercard allow small business to deal directly without routing thru a bank (for small business) ?

Try Paypal - But be warned its not cheap.

Given that the banks own Visa and Mastercard good luck trying to find a way around it.

The only organisations that go around this are Woolworths and (I think) Qantas who have direct agreements with each acquiring bank (no interchange).

 

[oz_mark]

Does Visa and mastercard allow small business to deal directly without routing thru a bank (for small business) ?

I don't believe it is part of their operational model.

 

[Chicken]

Is there a way to receive payments online without going thru a Merchant Facility of a bank? or gateway like eway, SecurePay etc ?

No. You need an acquirer to process your transaction.

PayPal is one which is reasonable for low volume, so good for new business start up. PayMate is another one, but they want about 8% commission, which is a highway robbery.

Does Visa and mastercard allow small business to deal directly without routing thru a bank (for small business) ?[/QUOTE]

No.

Visa & MasterCard are schemes, they are not acquirers.

 

[bambbbam2]

Read yesterday that Telstra are hiking up their credit card processing fees from
0.69% to 1% *Visa/MC/Amex*
1% to 2% *Diners*

I can't currently locate the online article..

 

[Mal]

I can't currently locate the online article..

Here's one of them:
Telstra customers slugged fee to pay bills in person | Australian IT

 

[zzyss]

So would it be fair to say that considering most retailers charge a "flat" credit card surcharge, that non-Platinum card holders are effectively subsidising Plat card holders (and I say this as a Plat card owner)?

 

[Nutcase]

So would it be fair to say that considering most retailers charge a "flat" credit card surcharge, that non-Platinum card holders are effectively subsidising Plat card holders (and I say this as a Plat card owner)?

Correct!

There is some evidence to show that merchants are on to this and arent accepting Corporate cards.

Some banks charge their customers a blended rate - many do not and this is a good thing in as much as there is transparency in pricing.

 

[Nutcase]

Read yesterday that Telstra are hiking up their credit card processing fees from
0.69% to 1% *Visa/MC/Amex*
1% to 2% *Diners*

I can't currently locate the online article..

Wholesale interchange rates increased this month, hence the increase in fees.

 

[ChrisFlyer]

PayMate is another one, but they want about 8% commission, which is a highway robbery.

While I agree that 8% would be highway robbery, you'll actually find that PayMate charge approx. 2.4% for Australian Visa/MC cards (just like PayPal), and no, they don't add another 5.6% commission on top of that.

 

[serfty]

Paymate charge the seller a 2.4% fee on a basic "STANDARD" account when monthly transactions exceed $200.

Forex transactions incur an additional 1.5% fee.

Sellers can opt to absorb the 3% + ~AUD0.50 Byer Fee - or not, in which case the purchaser pays that.

All in all a seller could be up for [2.4% + 1.5% + 3% + 50¢] or 6.9% + 50¢.

So for transactions below $46, 8% is a reality.

https://www.paymate.com/cms/index.php/faq/46

 

[ChrisFlyer]

Paymate charge the seller a 2.4% fee on a basic "STANDARD" account when monthly transactions exceed $200.

Forex transactions incur an additional 1.5% fee.

Sellers can opt to absorb the 3% + ~AUD0.50 Byer Fee - or not, in which case the purchaser pays that.

All in all a seller could be up for [2.4% + 1.5% + 3% + 50¢] or 6.9% + 50¢.

So for transactions below $46, 8% is a reality.

https://www.paymate.com/cms/index.php/faq/46

Wow - that really is shocking!!

When I contacted them when I was looking for a method to accept credit cards, they just sent a message back stating 2.4% as the overall fee (for Visa & MC only) - no mention of any fees for buyers, but there was mention of higher fees for foreign cards. Is the 3% fee new, or has it been around for a while and they simply "forgot" to tell me (in the hope of getting another client)? lol