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Ecommerce Gateways is a confused topic indeed. So the purpose of this article is to outline a few costs, pros and cons of different setups.
Keep in mind that the prices noted change regularly. They may have been accurate at the time of writing this article, but they should be confirmed before proceeding.
Paypal Free Accounts:
Paypal accounts are free to initiate. There are other Paypal accounts that charge a service fee, but we will not cover these in this article.
Transaction Fees start at and 2.4% + 30c per transaction for a business account. These fees are reduced depending on the monthly sales you do. If you do over $150,000 a month, the Fees drop to 1.1% + 30c.
If you transfer less than $150 out of your paypal account into your bank account, you get slapped an additional fee
Pros:
- You don't get charged if you don't sell anything
- Cheap
Cons:
- Paypal holds your money until you transfer it to your bank account. If there is a problem - PayPal holds the money. If a buyer disputes a transaction - your account gets locked!
- PayPal is governed by US laws - not Australian laws.
- In 2010 PayPal requested additional information from several existing Australian merchants (copies of passports). Paypal locked their accounts without warning until this information was submitted. Some of these merchants could not (or were not willing) to submit the information and as a result these merchants lost access to their paypal merchant account and the funds within.
- PayPal's customer support is simply appalling.
Cost Case 1, $200,000:
$200,000 of transactions per year, averaging at 2,000 x $100 products.
Total Annual Fee: $4,800 + $600 = $5,400
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Cost Case 2, $50,000:
$50,000 of transactions per year, averaging at 1,000 x $50 products.
Total Annual Fee: $1,200 + $300= $1,500
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Merchant Accounts with Third Party Gateway:
These vary from bank to bank. Fees also vary from bank to bank. The information below should be checked for your own case with the bank directly.
At the time of writing this page, the banks offered the following Merchant-Hosted API interfaces...
| Bank: |
NAB |
Westpac |
ANZ |
CommBank |
Bendigo |
| Plan: |
Transact API |
Payway API |
eGate |
Commweb |
No API Service! |
| Method: |
XML API |
Client API + SOAP |
API POST |
Client API |
|
| Merchant Facilty Setup: |
inc below
|
$110 |
inc below
|
?
|
|
| API Setup Fee: |
$199 |
$220 |
$99
|
?
|
|
| Monthly Charge: |
$35 |
$22 |
$39.95
|
?
|
|
| Min Monthly Service Fee: |
$22 |
$22
|
$29
|
?
|
|
| Transaction Fee: |
$0.35 |
$0.165 |
none
|
?
|
|
| Credit Card Fee - Standard Cards: |
2.2% |
1.1% |
1.8%
|
?
|
|
|
Credit Card Fee - Premium Cards*:
|
3.2% |
1.1%
|
1.8%
|
?
|
|
| Annual Fee |
$28
|
none
|
$29.95 |
? |
|
Account Closure Fee
|
$150
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$550 within 3 years
$105 thereafter
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$250
|
?
|
|
| Accepted Cards |
Visa
MasterCard
(AMEX possible
but difficult)
|
Visa
MasterCard
AMEX
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Visa
MasterCard
AMEX (3.25%) |
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Please consult your bank for updates and confirmed quotes. The information above is indicative only for accounts with $50,000/annum transaction volumes, $100 transactions amounts at the time of our enquires.
*Premium cards are International, Corporate, Commercial, CUP and Platinum cards.
Cost Case 1 (NAB), $200,000:
$200,000 of transactions per year, averaging at 2,000 x $100 products.
First Time Setup fee: $199.
Total Annual Fee: $4,400 + $700 + $35*12 + $28 = $5,548 + third Party Gateway Costs
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Cost Case 2, $50,000 (NAB):
$50,000 of transactions per year, averaging at 1000 x $50 products.
First Time Setup fee: $199.
Total Annual Fee: $1,100+ $350 + $35*12 + $28= $1,898 + third party Gateway Costs
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SSL certificates are not required, but it helps for customer confidence.
Pros:
- The bank looks after the security
- Governed by Australian Laws
- Payments go straight into your bank account automatically.
- Cheaper for heavy use
Cons:
- Setup Cost and Minimum Service fee cost.
- Not all Banks have an API interface. Westpac, ANZ, NAB and Commonwealth have API accounts. Bendigo doesn't.
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