When starting with Kwakkelflap
, I didn't know many payment processors. So I went with RegNow, which seemed the most popular at that time. It's not bad, but the fees are high: 20% on each sale, excluding any affiliate fees. They do have a '6.9% + $1' plan, but there are disadvantages:
- The 'extended download service' is enabled by default. This means the customer will pay an extra $7 US if they forget to disable it. It actually makes our product more expensive, without any real gains. So I feel it's actually a '6.9% + $8' plan.
Take a Watchdog - O - Matic professional license: with the 20% plan, I receive $32 on each sale. With the 6.9% plan, I'd get an actual $36.24 but a 'virtual' $29.24. So, yes I will receive more, but the customer has to pay more. I can simply increase my price if I want to earn more for each sale. The result would be the same for the customer. $40 + $7 (download service price) - 20 % = $37.6. So I would earn more at 20% and the customer has to pay the same. He/she won't have the download service off course, but they don't need it anyway. I don't want the customer to pay more than what I put on my site. It will probably give them a bad feeling if they have to pay an extra $7 out of nowhere. So this is something that's not acceptable. Note: these calculations are not 100% accurate, there are other factors to.
- You no longer have fraud control. This means that if an order is fraudulent and there is a refund, you will eat the cost. '6.9% + $8 + $x for fraudulent orders' anyone?
- You are not allowed to have any other payment processor. So I'd have to remove PayPal from my buy page. This is not as bad as it sounds. If I check my orders, about 99% is with RegNow and 1% with PayPal. And RegNow features PayPal too, so customers who prefer PayPal can still use it. Also, with PayPal, I have to answer each order manually.
But I just don't understand why I can't have another payment processor. They say it is to protect the affiliate system. Well, I have news for RegNow: I use a RegNow system that makes sure customers from affiliates don't see the PayPal option. They are redirected to another buy page that only features RegNow as an option. Affiliates, rest assured. You will get credit for the sale due to this system. So what's the problem? Don't you trust your own system?
I won't change to the 6.9% plan anytime soon. I am checking out other payment processors. Most of them are ok, but they don't have an extensive affiliate system as RegNow. I don't want to win $1 for each sale, if I lose 1% of my sales. I'll have to check if it's worth it.