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Dolby

Dolby

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Does anyone have a recommendation for higher volume transactions ?

I'm not super concerned with the setup or a monthly, but the transaction costs add up fast. Payfast works to around 5% per transaction in the end, which is a fair chunk. Initially, I thought it was great because of the zero monthly fee ... but it's becoming an issue recently.

I notice a few others have a monthly free - but far lower transaction, which I prefer. BUT I need to have merchant facilities (I'm with that) and my understanding is the bank takes 3.5% of every transaction? Or is the only if I use a speed point?

If not, that works to around 5% as well ... any way of getting past this?
 
Well the 5% is for lower value transactions. R500 paid with a credit card will cost 4.5%. I don't know who offers lower fees than that to any Joe Soap. And of course, PayFast will give you better rates if you can get your numbers up.

They have great customer service, best-in-class integration, don't require a merchant bank account etc. I dig PayFast.
 
There must be alternatives though, and reason people use this?

5% of a R5,000.00 transaction is R250.00 just for the processing. If it's faulty or returned, you don't get that back processing fee back? And you have to pay a courier to fetch? Surely there are cheaper and people choose them?

I understand they're good - I'm looking for an alternative and seeing what else is available ie monthly fee, but less transaction. I'd rather pay R1,000pm with low fees
 
Dolby said:
There must be alternatives though, and reason people use this?

5% of a R5,000.00 transaction is R250.00 just for the processing. If it's faulty or returned, you don't get that back processing fee back? And you have to pay a courier to fetch? Surely there are cheaper and people choose them?

I understand they're good - I'm looking for an alternative and seeing what else is available ie monthly fee, but less transaction. I'd rather pay R1,000pm with low fees
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Are you sure of your calculations? 3.5% of R5000 is R175, then add R2 and 15% VAT for a total of R203.55, or 4.1%.

That's life though. Cards are costly to process, and businesses go to great lengths to minimise the likelihood of returns. You can also list InstantEFT first in the payment options, which costs less and might then be used more frequently by indifferent customers.

People use PayFast for the reasons I mentioned above. Their rates are competitive, not needing a merchant bank account is also great, integrations are excellent, customer service rocks etc.
 
Dolby said:
I mean this is a fair amount cheaper

https://mygate.co.za/payment-solutions/payment-gateway/pricing/south-africa-merchant-account/

I'd pay R135.00 inc VAT as opposed to R200.00 on each high value transaction. And unsure what this is (that's why I'm asking here) - but this seems even better than the previous

https://mygate.co.za/payment-solutions/payment-gateway/pricing/south-africa-gateway/
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Merchant fees add up though. I don't think entry-level rates will ever be materially better than what PayFast offers, and it's much more hassle.

If your business is big enough for better merchant rates, it probably also qualifies for better PayFast rates.
 
Try push zapper and snapscan on checkout, other than that theres not a whole lot else you can do.
 
This is something I'll be looking into too quite soon. Need to keep all variable costs to an absolute minimum.
 
Give Sage Pay a go. Part of the Sage group. Fees are less than what you have mentioned here and u do not need to open a merchant acc. You get a dedicated account manager and support staff as well as more than just cc payments on the gateway.

Let me know if i must pm my details as i work there.
 
Micdew said:
Give Sage Pay a go. Part of the Sage group. Fees are less than what you have mentioned here and u do not need to open a merchant acc. You get a dedicated account manager and support staff as well as more than just cc payments on the gateway.

Let me know if i must pm my details as i work there.
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I just looked up your fees and they start at 3.8% for credit cards though. How is that better than PayFast's starting 3.5%?
 
Dolby said:
Bryn - but this one ?

https://mygate.co.za/payment-solutions/payment-gateway/pricing/south-africa-gateway/

They have some pretty large clients and, at the end of the day, one can save a bit over the year? I have no issue with them and been using them for over a year, but if something comes along that is cheaper, I'm for it
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Well, the monthly fees are R350 and then there's 2.95% + 60c + 60c per transaction and .25% settlement. MyGate has infamously crap customer service and their payment portals look pretty janky. And InstantEFT is better than the BankEFT they offer.

And don't forget that big sellers get better rates from PayFast. Even Takealot uses PayFast. The fees are comparable imo and I'll always pay a slight premium anyway for the simplicity and quality of PayFast.
 
That is the starting point, it can go lower from there, negotiation is always an option. Make sure about the 3.5%
 
Takealot only uses payfast to clear bank eft payments, not for cc or other payment methods
 
Micdew said:
That is the starting point, it can go lower from there, negotiation is always an option. Make sure about the 3.5%
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You can go to PayFast's website and check their rates. Definitely starting at 3.5%. They also negotiate lower rates. And importantly, it's a much simpler service.

Not hating on Sage, but maybe just offer folks starting out a better intro rate without the need to negotiate. And simplify the convoluted fee structure.
 
Site states promotional rate. I will gladly invite you to come and try, many people happier because of lower fee, easy integration and quicker pay out.
 
Micdew said:
Site states promotional rate. I will gladly invite you to come and try, many people happier because of lower fee, easy integration and quicker pay out.
Click to expand...

Most low-key businesses I've helped use Shopify, which you guys don't support. Appreciate the gesture though.
 
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