Prohibitive % Bank charges on PayGate 4 online shops

vicarious

Member
Joined
Feb 4, 2004
Messages
17
Hello to the myADSL community.

Anyone out there who has a hint for us on an "affordable option" to accept credit cards online in RSA, for a small online gift shop without having to pay fees as explained below?

We considerd PAYGATE but opted out due to prohibitive charges.

a/ Standard Bank although issuing us with an approval codes for each transaction would not guarantee the security of the transaction.
If at a later stage a card transaction is found to be fraud, we would have to re-emburse Standard Bank.

This is an unacceptable condition compared to the rest of the world, where once an approval is issued the sale is secured. Here at no stage the Bank takes any risk and us the potential client takes all the risk and pays for the service on top of it.

b/ Standard Bank does not offer any insurance option to cover against the above discribed possible missfortune.

c/ Charging a 6% fee is are extremely high and serves no purpose when they offer us a later options to re-negociate and LOWER the % taken on each trasaction when business is growing and turn over increases. It is like to offer in 1/2 umbrella when it rains and two for free when the sun shines.

d/ When putting all the fees together with ISP server etc. SSL needs for PAY GATE and osCOMMERCE the monthly fee reaches nearly above 800R with the largest part to Standard Bank and Paygate.

We are now considering AUTOPAY instead . Till now we find that most customers have no objection to internet transfer into our account.

Are we right or wrong?

What is the opinons of you the ONLINE shop keepers in our community,
on RSA onoline buyer habits?

Do you find the credit card acceptance a necessity or is net transfer and acceptable solution by the majority ?

AUTOPAY offers a 3% fee. + 140 R a month.

Thanks for any opinon advice or guidance on this subject.
 

tibby.dude

Executive Member
Joined
Oct 29, 2004
Messages
6,018
vicarious said:
If at a later stage a card transaction is found to be fraud, we would have to re-emburse Standard Bank.
Chargebacks is a worldwide accepted credit card practise.

The bank under certain conditions will debit your trading account in case of fraud or a customer complaint.

But you can enter in a dispute with the bank concerned and prove to them that you did the transaction in good faith.

Btw 6% is not that bad ... I have seen much worse.
 

vicarious

Member
Joined
Feb 4, 2004
Messages
17
tibby.dude said:
Chargebacks is a worldwide accepted credit card practise.

Acceptance goes only till it becomes unacceptable. The sad thing is that in RSA every one winds about things but accepts the Banks policies. Fees for using ATM that saves them money. IN EUROPE or USA they WANT U TO USE ATM & DIRECT DEBIT to save money on staff. They won't charge ATM or DEBIT CARD transactions.I have lived and worked in 12 countries etc.on 5 continents.

In CHINA you send money from one bank to another over the Net it takes 5-10 minutes. HERE it takes 1-2-3 DAYS. Who cashes in on the short-term millions of RANDS deposits ?

I agree with your reply to a certain extend. BUT ONLY if the seller has provided a BAD SERVICE or BAD QUALITY/FAULTY product!

Otherwise Backback is a not practice towards the seller in case the buyer uses a stolen or fake cards etc.

In most countries The Banks and CC facilities PROTECT the buyer and seller against such fraud with insurance covers and both sides can take out additional insurance covers( for minimal fees) that will even cancel and admin fee in case such a problem occurs. Here I am told IT DOES NOT EXSIST but we are woking on it.

Once the APROVAL CODE is given to the seller, he wshould not have to re-emburse the CC or Bank. It is the card owner duty to notify in time the theft or loss of a card and then the Institutions . Then it is the DUTY of the institurion to protects both honest parties against card fraud!

If my card is stolen and some one buys something with it and the shop gets the approval code. The bank can not charge the owner of the card if he/she can prove that they had it cancelled within a required set time time frame, neither does the shop have to re-emburse the Bank or CC company as he got an approval code for a quality service/product provided.
 

tibby.dude

Executive Member
Joined
Oct 29, 2004
Messages
6,018
vicarious said:
The sad thing is that in RSA every one winds about things but accepts the Banks policies.
I used to work for a local bank and it was always a laugh when met visiting overseas banking folks and they discovered we actually charged our customers to deposit money into their accounts :).

Well imagine that ... we charge YOU to take YOUR money and keep it for you for OUR benefit.

The costs of maintaining our expected by the S.A middle class consumer first world infrastructure i.e the networks and the bricks and mortar were rather prohibative.

Also lack of competition in the industry.

vicarious said:
Once the APROVAL CODE is given to the seller, he wshould not have to re-emburse the CC or Bank.
It is not an approval code but rather an authorization code i.e the funds are available but it does not mean that the actual card is okay or not or that the actual customer ordered the goods.
 

vicarious

Member
Joined
Feb 4, 2004
Messages
17
tibby.dude said:
It is not an approval code but rather an authorization code .

Sorry my GERMAN English :) your term is the correct one!

AS you say son well.
It leaves us to do as the locals accept and live with it all.
ON the other hand no where is more beautful than here
Lifestyle Weather all together
after I spend 20 years in HKG and CHINA I apreciate every bit of it.
Thanks for your exchange of views.
 
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