How much does it cost to process online credit card payments?

How much does it cost to process online credit card payments?

Customer Focus websites are integrated with PayPal and Authorize.net. These are PCI compliant payment processors that protect the integrity of your customers' payment details. They provide a payment gateway from your website to your merchant account.

Authorize.net LogoPayPal Logo

Of these providers, we generally recommend Authorize.net, as it allows you to authorize payment (i.e. check that the funds are available!) but not immediately process it. If you do need to increase the value of the invoice after the sale, you can do that. PayPal is, however, more cost effective!

You will also need an Internet Merchant Account which securely transfers the payment to your bank account (within 2-3 business days).

Here's an example of fees:

You will get charged per transaction by Authorize.net - $0.10 (https://www.authorize.net/solutions/merchantsolutions/pricing/?p=gwo), plus a monthly fee of $25.00 for utilizing the service.

Your Internet Merchant Account will charge you a fee per transaction as well. As an example, Merchant Focus' fees are $0.24 per transaction (https://www.merchantfocus.com/ratesandfees.html).

The Internet Merchant Account will also charge you a % of each transaction; in Merchant Focus' case it's 2.19%. Their monthly fee is $10.

The following are additional fees which all Internet Merchant Account providers have to charge:

Credit Card Assessment Fees

  • Visa: 0.13%
  • Mastercard  < $1000: 0.12%
  • Mastercard >= $1000: 0.13%
  • Discover: 0.105%

What does this look like in practice?

Let's say your customer orders $500 worth of merchandise from you and pays via Visa. Your fees would be as follows:

$500.00

Subtract $0.10 (Authorize.net per transaction fee)
Subtract $0.24 (Internet Merchant Account per transaction fee)
Subtract 0.13% = $0.60 (Visa credit card processing fee)
Subtract 2.19% = $10.95 (Bank processing fee)

= $488.11 (plus the $35 monthly fee to use the service).

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