Top Ten Reasons to have a ModernAuthorize account.
Cost
One of the many concerns facing a company choosing a merchant gateway is what their monthly and annual costs will be in having a particular vendor. The initial choice in that process is whether to go with a full merchant account solution like ModernAuthorize or to go with a third party gateway like 2checkout, WorldPay, or Paypal. These third party gateways attract customers just breaking into the business by offering the prospect of low initial costs. However, a review the following chart demonstrates that while these offers can seem promising at first glance, they will cost you more money even at very low income levels. Notice the higher discount rates and transaction fees.
| Discount
Fee | Transaction
Fee | Monthly
Fee | Annual
Fee | Setup
Fee |
|---|
| PSIGate |
3.75% |
0.50 |
$39.95 |
$0.00 |
$0.00 |
PSIGate(CDN)
(approx. USD) |
3.75% |
0.37 |
$29.32 |
$0.00 |
$0.00 |
| 2Checkout(USD) |
5.50% |
0.45 |
$0.00 |
$0.00 |
$49.00 |
| WorldPay CDN (USD) * |
3.35% |
0.44 |
$51.00 |
$0.00 |
$399.00 |
| WorldPay Int (USD) + |
5.45% |
0.44 |
$51.00 |
$0.00 |
$399.00 |
| PayPal CDN(USD)* |
3.40% |
0.41 |
$0.00 |
$0.00 |
$0.00 |
| Paypal Int(USD)+ |
3.90% |
0.41 |
$0.00 |
$0.00 |
$0.00 |
Lets take a look at a very typical example to see how the math works. The following example assumes a startup webhosting company with 400 customers averaging $13.00 per transaction for monthly sales of arround $5200 over 1 to 2 servers.
| Entered Info- Transactions Per Month: 400 |
Average Sale: $13.00 |
| Discount
Fee | Transaction
Fee | Total
Monthly
Fees | Annual
Fee | Total
Yearly
Fees | Gross
Income | Net Income |
|---|
| PSIGate (CDN) |
$168.75 |
$150.00 |
$358.70 |
$0.00 |
$4,304.40 |
|
|
PSIGate(CDN)
(approx. USD) |
$168.75 |
$110.70 |
$308.77 |
$0.00 |
$3,705.24 |
$54,000.00 |
$50,294.76 |
| 2Checkout(USD) |
$247.50 |
$135.00 |
$382.50 |
$0.00 |
$4,639.00 |
$54,000.00 |
$49,361.00 |
| WorldPay CDN (USD) * |
$150.75 |
$133.20 |
$334.95 |
$0.00 |
$4,418.40 |
$54,000.00 |
$49,581.60 |
| WorldPay Int (USD) + |
$245.25 |
$133.20 |
$429.45 |
$0.00 |
$5,552.40 |
$54,000.00 |
$48,447.60 |
| PayPal CDN(USD)* |
$153.00 |
$123.00 |
$276.00 |
$0.00 |
$3,312.00 |
$54,000.00 |
$50,688.00 |
| Paypal Int(USD)+ |
$175.50 |
$123.00 |
$298.50 |
$0.00 |
$3,582.00 |
$54,000.00 |
$50,418.00 |
Notes: *Paypal CA refers to transactions by CA merchants in CDN dollars from customers within the CA + Paypal Int refers to transactions by CA merchants in CDN dollars from customers outside the CA
Notice that this webhost will benefit from saving of several hundred to several thousand dollars per year. If you would like to see how this might affect your business, please try our Calculator and enter your own figures.
In certain situations, the cost benefit of ModernAuthorize is only slight or even not a cost savings at all. However, even in these situations we highly commend that there are nine other very good reasons to use a ModernAuthorize account, any one of which would be sufficient reason to choose it.
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