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osCommerce

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Before I link autorize.net contribution


minuteago

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I am getting my web site finalized and need to set up authorize.net. However, what is the first step? I guess I have to get a merchant account.. but from where? I checked the autorize.net website and they referred some resellers' list.. should I have to get my merchant account(gateway ??? I'm not sure ).. then what's next..

I've been searching for similar topics but can't find relative one...

 

Can anyone give me a general information about how to use autorize.net payment modules before I install Authorize.net v17(I guess I have to install this contribution)..

 

 

I'll appreciate for any help..thanks

 

 

minuteago

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Ok. The answer is yes. You need a merchant account. Authorize.net is a gateway that mant mercant account providers use. The mercant account (or reseller) will provide you with access to a gateway (such as authorize.net).

 

This is why you don't get a response to topics such as this on this board. It''s a confusing topic that not many people understand. I can't explain why you need both. All I can tell you is that you do. I won't recommend any particular company, since I don't know if I've simply had good experiences or use good companies.

 

What I did is went to google. I searched for "merchant accounts" You'll get a TON of stuff. Try to look at everything.

 

Most merchant accounts have a few components. I'm not an expert. Here's what I remember:

 

1) Gateway fee -- this is the fee the merchant account place is charging to access your gateway (say authorize.net)

 

2) Discount rate -- a percentage taken from each transaction by the merchant account processor

 

3) Transaction fee -- a flat fee cahrged in addition to discount rate by the processor

 

4) Monthly minimum -- I have yet to find a mercahnt account without one. Normally this calulation will not include transation fees.

 

5) Statement fee -- If you want a statement, most processors charge you for it.

 

So lets play with an example. You choose Foobar Credit for your merchant account. Let's pretend the monthly minimum is $10. Let's pretend the discount rate is 2.5% and the transaction fee is $0.75. You want a statement at a fee of $5.00/month.

 

Scenario 1) You take 1 payment of $100.00 in the month

$100.00

- 0.75 -- transaction fee

- 2.50 -- discount rate

-----------

96.75 -- subtotal before monthly fees

- 7.50 -- $10.00 monthly fee - any discount rates applied

- 5.00 -- statement fee

-----------

$84.25 the amount you end up receiving at the end of the month.

 

 

I think you get the idea. You can get to the point where you're not paying the minimum, but there is no maximum on discount rates, so if you took in $1000.00 worth of transactions, you'd pay a $25 discount rate, but the minimum wouldn't be charged.

 

Whew, now you know why we like answering OScommerce questions, not financial stuff. :)

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