[thelist] Payment Processor Suggestion

Fred Jones fredthejonester at gmail.com
Tue May 8 19:08:42 CDT 2012

I have a client with a online business. He was using just PayPal Pro
for CC transactions until this year when someone advised him to try
CDGCommerce. PayPal takes 2.5% + $0.30 per transaction.

With CDGCommerce the fees are higher. He's paying more than their
advertised high end rate of 3.75% plus $.40 per transaction because
they "pass on to you" any fees from Visa or Mastercard. The only
advantage is that they have no reserve whereas PayPal has this awful
"rolling reserve" which for him has grown to over $8,000.

The reserve is 30% of each transaction, released in 90 days. That
means he grosses around $9000 in sales a month I believe.

I wrote now to an Authorize.net reseller as he did email him two years
ago and then said that it only pays to switch once you have $5K
monthly, which he now has. :)

Any other suggestions for a payment processor which doesn't have a
reserve and doesn't require a merchant account? This reseller
apparently said he would supply the merchant account.


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