[affiliate_area]
[affiliate_area]
[content name=disclosure-statement]
“Return wealth and power to the creators of value.”
AngelPay | Authorize .Net | Elavon | Braintree | Amazon Payments | First Data | Heartland Payment Systems | Quickbooks Payments | Flagship Merchant Services | National Bankcard | PayPal | Square | WePay | Stripe | Trans First | Chase Paymen Tech | TSYS | |
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Markup % | 0% | 1.00% | 0.20% | 1.00% | 1.00% | 1.50% | 0.40% | 1.45% | 0.30% | 0.30% | 1.00% | 1.00% | 1.00% | 1.00% | 0.20% | 0.30% | 0.40% |
Added $ Markup Per Txn | $0 | $0.30 | $0.10 | $0.30 | $0.30 | $0.25 | $0.05 | $0.25 | $0.10 | $0.19 | $0.30 | $0.30 | $0.30 | $0.30 | $0.18 | $0.15 | $0.10 |
Mthly PCI Fee | $0 | $0.00 | $35.00 | $0.00 | $0.00 | $19.95 | $8.95 | $0.00 | $8.25 | $6.58 | $0.00 | $0.00 | $0.00 | $0.00 | $6.27 | $0.00 | $6.25 |
Mthly Stmt Fee | $0 | $0.00 | $19.99 | $0.00 | $0.00 | $9.95 | $15.00 | $0.00 | $7.95 | $9.95 | $20.00 | $20.00 | $20.00 | $20.00 | $5.00 | $9.95 | $10.00 |
Setup Fee | $0 | $49.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $99.00 | $25.00 |
Charge-Back Fee | $10 | $25.00 | $20.00 | $15.00 | $20.00 | $30.00 | $25.00 | $0.00 | $25.00 | $25.00 | $20.00 | $20.00 | $20.00 | $20.00 | $25.00 | $10.00 | $20.00 |
Mthly Gateway Fee | $0 | $25.00 | $10.00 | $0.00 | $0.00 | $18.00 | $7.95 | $0.00 | $7.95 | $9.95 | $30.00 | $30.00 | $30.00 | $30.00 | $5.00 | $9.95 | $10.00 |
Mthly Min Txn Volume | $0 | $0.00 | $35.00 | $0.00 | $0.00 | $0.00 | $4,167.00 | $0.00 | $25.00 | $25.00 | $0.00 | $0.00 | $0.00 | $0.00 | $5.00 | $25.00 | $25.00 |
Termination Fee | $0 | $0.00 | $0.00 | $0.00 | $0.00 | $495.00 | $295.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $250.00 |
Total $ Cost per Month | $200 | $1,329.08 | $364.99 | $1,300.00 | $1,300.00 | $1,839.15 | $506.48 | $1,700.00 | $424.15 | $516.48 | $1,350.00 | $1,350.00 | $1,350.00 | $1,350.00 | $396.27 | $478.15 | $549.17 |
Total % Cost per Month | 0.20% | 1.33% | 0.36% | 1.30% | 1.30% | 1.84% | 0.51% | 1.70% | 0.42% | 0.52% | 1.35% | 1.35% | 1.35% | 1.35% | 0.40% | 0.48% | 0.55% |
% Higher Cost than AngelPay | - | 564.54% | 82.50% | 550.00% | 550.00% | 819.58% | 153.24% | 750.00% | 112.08% | 158.24% | 575.00% | 575.00% | 575.00% | 575.00% | 98.13% | 139.08% | 174.58% |
Transparent Fees | Yes | Yes | No | Yes | Yes | No | No | Yes | No | No | Yes | Yes | Yes | Yes | No | No | No |
Req. Long-Term Contract | No | No | No | No | No | Yes | Yes | No | No | No | No | No | No | No | No | No | Yes |
Online Processing Since | 1996 | 1996 | ~2008 | 2007 | 2007 | ~2000 | ~2000 | ~2007 | 2001 | 2001 | 1998 | 2009 | 2008 | 2011 | ~2000 | ~2000 | ~2000 |
Note # | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 | 13 | 14 | 15 | 16 | 17 |
Notes:
1. This is when our team founded and launched Authorize.net.
2. This is when our team founded and launched Authorize.net.
3. PCI fee is a mthly “PCI Non-Compliance” fee.
4. Acquired by PayPal in 2013.
5. Amazon was founded in 1994, but their payments service was launched in 2007.
6. First Data usually only works through resellers unless you’re a large company.
7. Approximate start year.
8. Approximate start year.
9. $99/year PCI fee converted to mnthly rate.
10. $79/year PCI fee converted to mnthly rate.
11. Mthly fee adds recurring billing & fraud protection.
12. An integrator/reseller
13. An integrator/reseller
14. An integrator/reseller
15. $75.20/year PCI fee converted to mnthly rate.
16. Many acquisitions make it difficult to identify first online payment processing year.
17. 3-yr contract. TSYS has existed for many years, but online processing since ~2000.
For today’s lesson, memorize the following alien terms:
“tiered”, “qualified”, “mid-qual”, “non-qual”, “Visa Interchange vs. MasterCard Interchange”, “Interchange-Plus”, “PIN vs. EMV”, “Billback”, “ERR”, “chargebacks”, “Discount Rate”, “card-present vs. card-not-present”, “Signature Debit”, “Durbin Amendment”, “ISOs”, “MSPs”, “CPS Regulated”, “MOTO”, “swiped vs. keyed”, “credit vs. non-PIN debit”, “PCI fees”, “IAS”, “TAS”, “auth fees”, “batch fees”, “ACH fees”, “gateway fees”, “IRS fees”, “statement fees”, “AVS fees”, “setup fees”, “risk surcharge”, “cross-border settlement fees”, “token and encryption fees”, “early termination fees”, “access fees”, “ECA fees”, “Escheat Research Fees”, “balance inquiry fees”, “cart fees”, “tax handling fees”, “minimum monthly volume fees”, “compliance fees”, “(fill-in-the-blank fees)”
Levels | Achievements | Guidance | |||
---|---|---|---|---|---|
Min # Members | Min Mthly Volume | Avg Mthly Volume / Member | Reward Rate | ||
Novice | 0 | $0.00 | $7,000 | 20% | |
Apprentice | 5 | $100,000 | $20,000 | 23% | |
Executive | 10 | $500,000 | $50,000 | 26% | |
Star | 20 | $1,000,000 | $50,000 | 29% | |
Hero | 30 | $2,000,000 | $67,000 | 32% | |
Epic | 45 | $5,000,000 | $111,000 | 35% | |
Legendary | 60 | $10,000,000 | $167,000 | 38% | |
Mighty | 80 | $25,000,000 | $313,000 | 41% | |
Superhero | 90 | $50,000,000 | $556,000 | 44% | |
100 | $100,000,000 | $1,000,000 | 47% |
[CP_CALCULATED_FIELDS id=”15″]