Upload
oliver-mason
View
224
Download
2
Tags:
Embed Size (px)
Citation preview
Payment Gateway & Merchant Account
1. Sagedirect (merchant) submits card transaction on behalf of customer to payment gateway.
2. Payment gateway passes the transaction to the Sagedirect (merchant) account
3. Sagedirect (merchant) bank processor submits the transaction to the credit card interchange.
4. The credit card interchange routes the transaction to the customer’s credit card issuer.
5. The credit card issuer approves or declines the transaction. If approved, the funds are sent back through the credit card interchange.
6. The credit card interchange relays the transaction results to the Sagedirect (merchant) bank’s processor.
7. Sagedirect (merchant) bank’s processor relays the transaction results to payment gateway.
8. Payment gateway stores the transaction results and sends them to the customer and/or Sagedirect (merchant).
9. The credit card interchange passes the appropriate funds to the Sagedirect’s (merchant) bank.
Payment Gateway&
Merchant Account
Payment Gateway & Merchant Account
Merchant Accounts:
Chase Paymentech (http://www.chasepaymentech.com/)
Authorize.net (http://www.authorize.net/)
E-online Data (http://www.e-onlinedata.com/)
Website Payment Pro (http://www.paypal.com/cgi-bin/webscr?cmd=_merchant-outside)
Merchant One (http://www.merchantone.com/index.php)
Payment Gateways:
Authorize.net (http://www.authorize.net/)
Verisign Payflow Pro (http://www.verisign.com/)
LinkPoint (http://www.firstdata.com/linkpoint/)
Plug ‘n Play (http://www.plugnpay.com/)
On average a gateway charges $100 set-up, $0.10 authorization fee and a $20.00 monthly fee.
On average a merchant account charges a per transaction fee of $0.25 - $0.30, a general percentage rate of 2.19% - 2.29% plus an additional percentage (0.70%) for all rewards cards. A Monthly statement fee of $10.00 and monthly processing fee of $25.00
Payment Gateway & Merchant Account
Recommendation:
Payment Gateway: Authorize.netIndustry StandardRecommended by all top Merchant Accounts
Merchant Account: Chase PaymentechAuthorize.net partner
Set-up fees waivedAuthorization fees eliminatedReduced monthly fee
Individual rates based on credit card typeLower transaction fees
Payment Gateway & Merchant Account
Recommendation (Fees):
Payment Gateway: Authorize.netMonthly fee $10.00Waived - $99.00 set-up and $0.10 per authorization
Merchant Account: Chase PaymentechAuthorization fee - $0.05 eachCredit card transaction fees = $0.10 eachCredit card rates
Visa - 1.85% (rewards 1.90%)Master Card - 1.89%Discover - 1.92%AmX - 3.25%
Monthly statement fee - $7.50Minimum monthly processing fee - $25.00
Transaction example:
Purchase = $100.00
Authorization fee = $0.05
Transaction fee = $0.10
Rate (Visa) = $1.85
Total = $98.00 (minus portion of monthly fees)
E-commerce Platforms
IBM WebSphere
ASP Dot Net Store Front
Nexternal
Volusion
GoE Cart
AmeriCommerce
Home Depot
Lowes
Sears
McDonalds
Crocs
Z gallerie
Kodak
PGA Tour
Virgin Mobile
Chicago tribune
Obama ’08
Crutchfield
Pez
USA Today
Hanes
IRiver
Uniden
Alcoa
Electrolux
ShopSite
IBM WebSphere
ASP Dot Net Store Front
Nexternal
Volusion
Platform starts at $100k
Requires their accounting, inventory and CRM software
Software cost - $2500.00
Needs to be hosted, SSL Certificate
Dedicated programmer
Monthly Cost
Not fully integrated with UPS
Set-up fee - $1,000.00
% of monthly sales
GoE CartSoftware cost - $11,000.00/YR.
Set-up Cost - $1,000.00
Intergrated with UPS but costs extra
Shop SiteSet-up fee - $1295.00
Monthly Cost - $125.00
Small Business Orientated
No Marketing capabilities
AmeriCommerceCost - $3,000/YR.
Small Business Orientated
No Marketing capabilities
Extra cost for customer service
E-commerce Platforms
E-commerce Platforms
Recommendation: Nexternal
Most Comprehensive offeringSoftware is easy and quick to get up and running NOWDedicated Customer SupportNo contractBuilt in marketing and promotional tools
Live stats and reportingBuilds customer databaseEmail marketing campaigns (opt-in)Optimizing dynamic data for search engines (Google and yahoo)Google analytics integration
Efficient order processingFully integrated with UPS/USPSBuilt in shipping cost calculatorCalculates tax by price, tax status and stateFull tracking tools
Product and inventory managementAble to handle eaches, innercartons and casesInventory tracking
Business to Business (B2B) ModulePassword protected entryProduct pricing by customer typeProduct allocation by customer typeCaptures PO numbersExempt sales tax
Free upgrades and seamless updates
E-commerce Platforms
Nexternal Fees:
Set-up fee - $1000.00Monthly fee based on monthly sales:
Monthly Online Sales Monthly Cost
$0 - $8,333 $250
$8,333 - $50,000 3% of sales*
$50,000 - $100,000 2% of sales *
$100,000 - $500,000 1% of sales*
above $500,000 0.5% of sales*
2007 - $322,503.00
2008 - $309,000.00 (thru 10 months) – projected $370,000.00
Currently sells 40 Sage products
Sage CS rep 1-2 referrals each per day to HDIS
Usually refer for Oral Care / Bath / Shield to Walgreens
According to HDIS 42% of business comes from Sage CS referrals
$370,000.00
x2 (markup)
$740,000.00
/42%
$310,800.00
HDIS