Paysystems: Type A or B discount rate?

[Miguel]

I noticed when you sign up at Paysystems, they want you to choose a discount rate: Type A is 3.95%* and $1.00* | Type B is 5.5%* and 0.45*.

Question for Paysystems users (et. al.): Is it possible to change discount rates after signing up? Since there's obviously a big difference in fees, I want to make sure I choose the right discount rate from the start or make changes as business progresses.

Thanks in advance for your replies...

[Aussie Bob]

Yes, you can change the discount rate after you apply. Just setup a spreadsheet and see which rates are better for you and your business. We use the Type B. It was cheaper for us than the Type A. Albeit, only about US$100.00/mth cheaper, but that's still 100 bucks a month in my pocket than theirs. :D

[alpha]

hrm, where exactly can you change this in the MCC?

I thought I looked almost everywhere and still couldn't find where the option was :confused:

:banana:

[iBiz]

I never even knew they offered the different options, They never told me aobut it. I guess I'll go in and see which option gives me back more money :)

[Miguel]

Thanks everyone! :D

I decided not to go with Paysystems (for obvious reasons). I have an account with 2Checkout for almost a year; I guess I'll just hang on over there until things get unbearable.

Blessings to one and all! :banana:

[Aussie Bob]

Originally posted by iBiz
I never even knew they offered the different options, They never told me aobut it. I guess I'll go in and see which option gives me back more money :)
You'll need to submit a ticket and asked to be changed to the other discount rate.

[alpha]

Originally posted by Aussie Bob
You'll need to submit a ticket and asked to be changed to the other discount rate.

alrite - thanks :)

[alpha]

ok...

You may choose the fee structure which best fits your business model. We recommend a Type A 3.95% and $1.00 per transaction fee if your per sale amount is lower and a Type B rate of 5.5% and a $0.45 per transaction fee if your per sale amount is higher.

That quote above is from Revecom's website... and I don't understand why they recommend a higher % fee (Type B) if your sale is higher... because:

For High Sale Amount (ie. $300 - development work):
Type A (3.95% + $1.00): Fee - $12.85
*Type B (5.5% + $0.45): Fee - $16.95

For Low Sale Amount (ie. $15 - hosting):
*Type A (3.95% + $1.00): Fee - $2.425
Type B (5.5% + $0.45): Fee - $1.275

* denotes recommendation by paysystems
and bold denotes lower total transaction fee to pay

unless I'm missing something here - they are 'recommending' whatever is beneficial for THEM and not for the merchants?

That's weird.

[Miguel]

Yeah, I saw that statement on the bottom of their page too and I was scratching my head. Do they think we don't know how to use a calculator or something?? ;)

[sprintserve]

Yes. Don't follow their recommendations. It's wrong. It recommends based on what's better for them.

I did a spreadsheet that's like a breakeven analysis and the amount where Type A will be cheaper than Type B comes about after around $50 or so.

So you should look at your nature of the business and see if most of the transactions you clear are below or above $50. For example if you are a shared host, then you should go for Type B. If you are a dedicated server seller, chances are Type A is cheaper cos of the lower percentage.

[suppleSupport]

I signed up for the Type-A plan at Paysystems a few days ago. They gave me a 4.45% discount rate instead of the 3.95% listed on their site. Has this happened to anyone else?

[Chicken]

Have you emailed them about this?

[suppleSupport]

Yes, no response yet (2 days & waiting)

[suppleSupport]

Ok, got an answer:

The rates advertised on our site are base rates, and we make adjustments
according to our merchants level of risk.

I'm a risk! I feel so special! :D ;)

The guy on live chat said something about the type of things I sell and how much they cost but I guess the underwriting department ^^ would know more about why they set the rates they did.

[Chicken]

Geez, I was debating between them and 2Checkout (went with 2Checkout), and didn't know they did that. I suppose it makes sense, but I just didn't realize that the web site had "base rates" as they called it.

[suppleSupport]

Originally posted by Chicken:

Geez, I was debating between them and 2Checkout (went with 2Checkout), and didn't know they did that. I suppose it makes sense, but I just didn't realize that the web site had "base rates" as they called it.

They should've made it clear on their website. I only found out a few hours after I paid the setup fee. The good thing though is that rates can be reviewed if you maintain a good record with them (no chargebacks etc).