Merchant Account Comparison
The following is a price comparison for a variety of merchant account/online payment options. I have created 5 different scenarios which vary the # of transactions and cost of widgets sold per month. Within each scenario are the price breakdowns for the following services: Google Checkout, Paypal Standard, Paypal Website Payments Pro, 2checkout, Electronic Transfer, Payquake, Greenzap and SWREG.
| Scenario One | ||||||
| Widgets | Cost/Widget | Total Sales | ||||
| 100 | $10.00 | $1,000.00 | ||||
| Gateway Fee | Statement Fee | Discount Fee | Transaction Fee | Monthly Total | % of total Sales | |
| Google Checkout | $0.00 | $0.00 | $20.00 | $20.00 | $40.00 | 4.00% |
| Paypal Standard |
$0.00 | $0.00 | $29.00 | $30.00 | $59.00 | 5.90% |
| Paypal Pro |
$0.00 | $20.00 | $29.00 | $30.00 | $79.00 | 7.90% |
| 2Checkout | $0.00 | $0.00 | $55.00 | $45.00 | $100.00 | 10.00% |
| Electronic Transfer | $10.00 | $10.00 | $21.80 | $39.00 | $80.80 | 8.08% |
| Payquake Pro | $9.95 | $9.95 | $23.90 | $30.00 | $73.80 | 7.38% |
| Greenzap | $0.00 | $0.00 | $0.00 | $100.00 | $100.00 | 10.00% |
| SWREG | $0.00 | $20.00 | $60.00 | $100.00 | $180.00 | 18.00% |
| Scenario Two | ||||||
| Widgets | Cost/Widget | Total Sales | ||||
| 100 | $100.00 | $10,000.00 | ||||
| Gateway Fee | Statement Fee | Discount Fee | Transaction Fee | Monthly Total | % of total Sales | |
| Google Checkout | 0 | 0 | $200.00 | $20.00 | $220.00 | 2.20% |
| Paypal Standard |
$0.00 | $0.00 | $250.00 | $30.00 | $280.00 | 2.80% |
| Paypal Pro |
$0.00 | $20.00 | $250.00 | $30.00 | $300.00 | 3.00% |
| 2Checkout | $0.00 | $0.00 | $550.00 | $45.00 | $595.00 | 5.95% |
| Electronic Transfer | $10.00 | $10.00 | $218.00 | $39.00 | $277.00 | 2.77% |
| Payquake Pro | $9.95 | $9.95 | $239.00 | $30.00 | $288.90 | 2.89% |
| Greenzap | $0.00 | $0.00 | $0.00 | $100.00 | $100.00 | 1.00% |
| SWREG | $0.00 | $20.00 | $600.00 | $100.00 | $720.00 | 7.20% |
| Scenario Three | ||||||
| Widgets | Cost/Widget | Total Sales | ||||
| 1000 | $25.00 | $25,000.00 | ||||
| Gateway Fee | Statement Fee | Discount Fee | Transaction Fee | Monthly Total | % of total Sales | |
| Google Checkout | 0 | 0 | $500.00 | $200.00 | $700.00 | 2.80% |
| Paypal Standard |
$0.00 | $0.00 | $550.00 | $300.00 | $850.00 | 3.40% |
| Paypal Pro |
$0.00 | $20.00 | $550.00 | $300.00 | $870.00 | 3.48% |
| 2Checkout | $0.00 | $0.00 | $1,375.00 | $450.00 | $1,825.00 | 7.30% |
| Electronic Transfer | $10.00 | $10.00 | $545.00 | $390.00 | $955.00 | 3.82% |
| Payquake Pro | $9.95 | $9.95 | $597.50 | $300.00 | $917.40 | 3.67% |
| Greenzap | $0.00 | $0.00 | $0.00 | $1,000.00 | $1,000.00 | 4.00% |
| SWREG | $0.00 | $20.00 | $1,500.00 | $1,000.00 | $2,520.00 | 10.08% |
| Scenario Four | ||||||
| Widgets | Cost/Widget | Total Sales | ||||
| 10000 | $25.00 | $250,000.00 | ||||
| Gateway Fee | Statement Fee | Discount Fee | Transaction Fee | Monthly Total | % of total Sales | |
| Google Checkout | 0 | 0 | $5,000.00 | $2,000.00 | $7,000.00 | 2.80% |
| Paypal Standard |
$0.00 | $0.00 | $4,750.00 | $3,000.00 | $7,750.00 | 3.10% |
| Paypal Pro |
$0.00 | $20.00 | $5,500.00 | $3,000.00 | $8,520.00 | 3.41% |
| 2Checkout | $0.00 | $0.00 | $13,750.00 | $4,500.00 | $18,250.00 | 7.30% |
| Electronic Transfer | $10.00 | $10.00 | $5,450.00 | $3,900.00 | $9,370.00 | 3.75% |
| Payquake Pro | $9.95 | $9.95 | $5,975.00 | $3,000.00 | $8,994.90 | 3.60% |
| Greenzap | $0.00 | $0.00 | $0.00 | $10,000.00 | $10,000.00 | 4.00% |
| SWREG | $0.00 | $20.00 | $15,000.00 | $10,000.00 | $25,020.00 | 10.01% |
| Scenario Five | ||||||
| Widgets | Cost/Widget | Total Sales | ||||
| 10000 | $100.00 | $1,000,000.00 | ||||
| Gateway Fee | Statement Fee | Discount Fee | Transaction Fee | Monthly Total | % of total Sales | |
| Google Checkout | 0 | 0 | $20,000.00 | $2,000.00 | $22,000.00 | 2.20% |
| Paypal Standard |
$0.00 | $0.00 | $19,000.00 | $3,000.00 | $22,000.00 | 2.20% |
| Paypal Pro |
$0.00 | $20.00 | $22,000.00 | $3,000.00 | $25,020.00 | 2.50% |
| 2Checkout | $0.00 | $0.00 | $55,000.00 | $4,500.00 | $59,500.00 | 5.95% |
| Electronic Transfer | $10.00 | $10.00 | $21,800.00 | $3,900.00 | $25,720.00 | 2.57% |
| Payquake Pro | $9.95 | $9.95 | $23,900.00 | $3,000.00 | $26,919.90 | 2.69% |
| Greenzap | $0.00 | $0.00 | $0.00 | $10,000.00 | $10,000.00 | 1.00% |
| SWREG | $0.00 | $20.00 | $60,000.00 | $10,000.00 | $70,020.00 | 7.00% |
Rate information is linked to below. Additional details:
Google Checkout currently has one level of service. Google eliminates the gateway and statement fees of a typical merchant account. This scenario also assumes no Adwords spending. Google provides a certain amount of transactions for free depending on how much a seller spends on Adwords.
Paypal has several levels of service. I show both their Standard service and Pro service. The Standard service has no setup fee. The merchant rate is used when sales amounts in the scenario qualify.
Paypal Website Payment Pro service is the closest to a true merchant account. This service allows online, phone, mail, and in person payments just like a merchant account. There are two rates for this service: Standard and Merchant. The merchant rate is used when sales amounts in the scenario qualify.
Electronic Transfer is a true merchant account and has one of the lowest merchant account costs around. There is a $50 gateway setup fee.
There is a $49 setup fee for 2checkout.
There is a $89 setup fee for Payquake Pro. There is also an Annual Fee of $49.00.
There is a $100 dollar setup fee with Greenzap Gold. However, this is money that fills your account and is usable. Greenzap requires buyers to have a Greenzap account.
There is no setup fee for SWREG.
Rate Information:
Google Checkout
Paypal Standard
Paypal Pro
Electronic Transfer
2Checkout
Greenzap
Payquake
SWREG
Besides cost, there are other issues to consider.
Where does the payment transaction happen?
For the common user, switching to another website to make payment is scary. The savvy user understands the various payment programs and doesn’t mind being switched to a different site to make the payment. Are the products on your website geared towards the common Internet user or the savvy Internet user? That will help determine what kind of payment system you use.
Google Checkout, Paypal Standard, 2Checkout, Greenzap, and SWREG all conduct the transaction on their own website.
Paypal Pro, Electronic Transfer and Payquake are all true merchant account solutions which integrate with a shopping cart that would exist on your own website. Paypal Pro still requires you employ a mechanism to allow Paypal users to use their Paypal account.
Advantages of true merchant accounts:
- Accept payments via website, phone, mail and in-person. Most offer virtual terminal services that allow sellers to make a transaction via a website portal.
- Fraud protection including Address Verification Service.
- Merchant accounts and their providers are more highly regulated and “watched” than third party merchant provider like Paypal Standard.
- Money you earn is deposited directly into your bank account unlike third party services.
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