Entrepreneurship & Small Business

Most cost effective way to accept credit card payments

  • Last Updated:
  • Mar 4th, 2020 10:43 pm
[OP]
Deal Fanatic
Oct 7, 2007
7405 posts
3519 upvotes

Most cost effective way to accept credit card payments

A friend has a small business that currently accepts credit card payments as a one-off and uses paypal when needed. However, the cost is something like 2.9%.

Is there a more cost-effective solution for this that offers the following benefits:
1. Lower commission cost
2. Can set up monthly subscription billing to automatically charge customer credit card
3. Can handle a variable component to monthly customer charges

Any advice would be most helpful. Thank you.
13 replies
Deal Expert
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Aug 2, 2010
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Here 'n There
I use Costco Elavon, way cheaper. Not sure about the variable stuff.
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Feb 18, 2014
242 posts
48 upvotes
Due to limitations of the Converge Gateway, Elavon won’t be of value for item 3. Other options available. As long as you’re processing more than 3k / month, it will be cost effective. Feel free to message me for additional info.
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Mar 1, 2020
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I am currently using Moneris for all my businesses.
Some have terminals and a few are doing monthly recurring.

It is much less than 2.9 BUT all depends on card type. AMEX is always gonna be high BUT people that have rewards cards or gold platinum type will be slightly higher.

Depending on how they do business there can be ways to defeat it but from what I remember 1.5-1.75 is gonna be lowest.
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Btw, Elavon does do monthly recurring, but you also want to do variable recurring and I am not sure exactly what that means actually. Do you want to somehow do a data dump into the credit card processing system from another system with the amounts changing all the time? I don't know any system that does that. You would have to enter it manually I think.
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Feb 18, 2014
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eonibm wrote: Btw, Elavon does do monthly recurring, but you also want to do variable recurring and I am not sure exactly what that means actually. Do you want to somehow do a data dump into the credit card processing system from another system with the amounts changing all the time? I don't know any system that does that. You would have to enter it manually I think.
Variable recurring means that the customer's card information is masked and stored by the Virtual Terminal. Transaction amounts are not necessarily the same amount, or at the same time. Benefit is that they will still receive the preferred Interchange. As mentioned previously, Elavon's Converge Gateway will not capture these transactions as recurring, which means that the OP would pay more for these transactions, if he were to go with Elavon. Therefore, I would not recommend Elavon for this situation.
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I use Elavon for exactly the purpose you described which I didn't know was called variable recurring. I receive the same rate I do on my other transactions. So yes, Elavon can be used for this.
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May 30, 2005
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eonibm wrote: I use Elavon for exactly the purpose you described which I didn't know was called variable recurring. I receive the same rate I do on my other transactions. So yes, Elavon can be used for this.
I think what he meant was that he wants to be able to get that benefit of lower interchange via recurring payments, but apply it towards a variable amount charged each month.

Think like a mobile phone subscription where the customer has subscribed to auto-pay via credit card. The amount may change from month to month based on usage.
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Jon Lai wrote: I think what he meant was that he wants to be able to get that benefit of lower interchange via recurring payments, but apply it towards a variable amount charged each month.

Think like a mobile phone subscription where the customer has subscribed to auto-pay via credit card. The amount may change from month to month based on usage.
Yes and that is exactly what I do with Elavon and I don't pay any extra.
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Mar 18, 2013
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Toronto
We have a payment integration relationship with multiple payment terminals and payment gateways within Canada. If you're interested, we can take down all your requirements and send it to all our partners and they can compete for your business as long as your business needs are being met. Feel free to PM me.
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Feb 18, 2014
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eonibm wrote: I use Elavon for exactly the purpose you described which I didn't know was called variable recurring. I receive the same rate I do on my other transactions. So yes, Elavon can be used for this.
It’s not actually called variable recurring, but that’s not really relevant. The fact that you get the same rates proves my point. Other virtual terminals will provide a lower Interchange for these types of transactions.
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I get the lowest rates that Elavon has. You can't go any lower than the lowest lol.

So your point is not proven at all.
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Feb 18, 2014
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eonibm wrote: I get the lowest rates that Elavon has. You can't go any lower than the lowest lol.

So your point is not proven at all.
Rates and Interchange are 2 different animals...but that’s ok, I’m tired of you.
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gamechanger wrote: Rates and Interchange are 2 different animals...but that’s ok, I’m tired of you.
Likewise as it's obvious you have no clue what you are talking about. I know what rates and interchange are. Sheesh!

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