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danix

authorize.net gateway without cancel fees?

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Everyone comes on and asks the same question. What's the best authorize.net payment gateway, ie with the lowest fees?

 

I do think there should be some type of a survey or recommended top 10 processors linked somewhere, since it's such a FAQ, but this time I have a new twist to the question.

 

How many processors have decent fees but don't charge a cancellation fee?

It seems that most of the places I've tried (including GoDaddy and Wells Fargo) charge a cancellation fee of around $300-400 if you cancel in the first 1-2 years.

Personally, I have a hard time committing to this because they are making money off my ability to grow my business, so if I go bust, why on earth would I hand them even more money?

 

I doubt there is any way around this but if you know of one, I'm all ears.

Otherwise, Wells Fargo seems to have a decent pricing structure and is a name I can trust.

 

Thanks.

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Great idea danix. I'm just about to go with Wells Fargo, but wasn't aware of this cancellation fee... (obviously, the rep on the phone didn't bring it to my attention).

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Great idea danix.  I'm just about to go with Wells Fargo, but wasn't aware of this cancellation fee... (obviously, the rep on the phone didn't bring it to my attention).

 

I had to ask as well. I only became aware of it based on the terms and conditions displayed by GoDaddy. It seems like a standard clause and I'm tempted to chalk it up as a cost of doing business, but as I said, if they are making money from my increased business, it sucks to charge me an exit fee as well. Reminds me too much of the cell phone companies if you ask me.

 

I'd be willing to commit to a 1 year term and eat the fee, but after 1 year, there should be no fee.

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I simply asked my processor (capital merchant solutions) if this fee could be waived if my business failed. They sent me an addendum to the contract and I now have that clause in my contract. If your processsor won't work with you, find another.

 

I had to ask as well.  I only became aware of it based on the terms and conditions displayed by GoDaddy.  It seems like a standard clause and I'm tempted to chalk it up as a cost of doing business, but as I said, if they are making money from my increased business, it sucks to charge me an exit fee as well.  Reminds me too much of the cell phone companies if you ask me.

 

I'd be willing to commit to a 1 year term and eat the fee, but after 1 year, there should be no fee.

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A long overdue update.

I have continued searching for a provider with reasonable fees and no exit fees.

I think it's ridiculous for a company to make more money off me if I go broke, after having made money for N months. Salt in the wounds?

 

Wells says the terms are the terms and cannot be changed.

 

I am looking at Millenium Bankcard (www.mbankcard.com) who has fees comparable to Wells Fargo, but no activation, no exit fee, and in fact, no contract.

I have yet to see the paperwork but it sounds good.

 

I only know of one person on these forums who has recommended them, has anyone else tried them?

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I just found www.e-onlinedata.com, who did not have a cancellation fee. You have to give 60 days notice, and pay for the fees for those 60 days but no more.

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I just found www.e-onlinedata.com, who did not have a cancellation fee. You have to give 60 days notice, and pay for the fees for those 60 days but no more.

 

I've heard bad things about e-onlinedata.com. You might have better luck joining the Webhostingtalk.com forums and searching through the posts there. They have forum sections devoted to eCommerce.

 

Although I've never dealt with them, I've heard nothing but good things about cdgcommerce.com. Do some googling on them.

 

As far as cancellation fees... if you are truly going to go out of business, or feel your business is too much of a risk, then stick with a 3rd party payment processor until you get stable.

 

The whole cancellation fee thing reminds me of why I do not own a cell phone!

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Great idea danix.  I'm just about to go with Wells Fargo, but wasn't aware of this cancellation fee... (obviously, the rep on the phone didn't bring it to my attention).

 

I recently called authorize.net directly and they told me about a package with wells fargo and I asked if there was an early termination fee for either the authorize.net portion or the merchant (Wells Fargo) portion and they said NO

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I recently called authorize.net directly and they told me about a package with wells fargo and I asked if there was an early termination fee for either the authorize.net portion or the merchant (Wells Fargo) portion and they said NO

 

The cancellation fee is from Wells Fargo.

I confirmed this fee with them.

 

I still haven't decided but will be doing so by week's end.

Any other recommendations out there?

 

15.4 Early Termination Fee. You and Wells Fargo acknowledge and agree that in addition to any remedies contained herein or otherwise available under applicable law, if You cease to submit transactions under this Agreement (including such act in connection with Your terminating the Agreement under Section 15.3), or if the Agreement is terminated by Wells Fargo based on an Event of Default under this Agreement, then Wells Fargo will suffer a substantial injury that is difficult or impossible to accurately estimate. Accordingly, in an effort to liquidate in advance the sum that should represent such damages, You and Wells Fargo agree that in such event You shall be liable for early termination fees as a reasonable pre-estimate of Wells Fargo?s probable loss. If You represented (through the Application or other communication to Us) that You will process less than $500,000 in credit card processing in one year, You agree that the following amounts constitute a reasonable pre-estimate of Our probable loss: (i) for termination within the first year $299 per location; and (ii) for termination within the second year $199 per location. If You represented (through the Application or other communication to Us) that You will process over $500,000 in processing, then such early termination fee shall be calculated by multiplying either the (i) the average actual monthly fees under this Agreement for the preceding twelve (12) months (or shorter period if applicable) of the Term, or (ii) the average projected monthly fees for such period, whichever is higher, times the number of months remaining in the Term, times the following percentage:

 

in the first year of the Term, sixty percent (60%);

 

in the second year of the Term, forty percent (40%); and

 

in any extension term, twenty five percent (25%).

 

For example, if You cease submitting transactions or are terminated in the ninth (9th) month of the Term, and You paid or were charged for $4,500 in fees during such 9 month period, and projected that You would incur fees of $400 per month or $3,600 for nine months, You shall be liable for an additional $4,500 ($500 X 15 months X 60%).

Edited by danix

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The cancellation fee is from Wells Fargo.

I confirmed this fee with them.

 

I still haven't decided but will be doing so by week's end.

Any other recommendations out there?

 

I've just spent some time chatting (on-line) with a MerchantPlus.com Exec V P. They use Authorize.net and their fees seem OK. $7.95 for the Authorize.net gateway and a $9.95 statement fee Plus $25.00 monthly minimum charges for the merchant account (JPMogan Chase). They can also act as the merchant account and save you $10.00 a month. They also have a cancellation fee, $295 if you cancel in the first 12 months.

 

Does this sound good? Can anyone recomend anyone cheaper? Any bad news about MerchantPlus.com?

 

Thanks,

Rick Knight

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