FAQ: Frequently Asked
Questions about the Maculator
What is the
Maculator?
The Maculator is a Merchant Account
Cost Comparison Calculator designed
to calculate the monthly processing costs of Merchant Account offers and Third
Party Credit Card Processors programs based on your monthly sales volume and
sales numbers. The Maculator gives you a side-by-side comparison
of rates and costs including the dollar costs and the net percent of processing
costs over sales for any two providers you select.
The Maculator can help you determine the best
alternative processor to enable you to accept credit cards based on the
lowest rates and services offered by the providers. Over 10 processors
like PayPal have different discount rates for sellers based on their amount of
sales. These sales rate levels, also known as tiers, can range from
2 to 15 and can use a number of different criteria to determine the correct
rates. You can enter your current sales numbers or numbers you expect in
the future and the Maculator will calculate the expected monthly costs with the
push of a button. The Maculator saves you time trying to calculate these
costs by yourself. It also saves you time in doing the research to find
some of the alternative resources that may be the best solution for you.
To our knowledge, there are no other resources on the web with as many
Third Party Processors listed in one place.
How
can I best use the filters?
The filters help you select the providers you need for your
business with a minimum of key strokes. Keep in mind that the providers
with the lowest prices often avoid the services and products that are offered
by higher priced providers. Many providers specialize in different types
of products and different levels of accepted risk. You can compare the
costs of using the providers that fit your business profile by
selecting the appropriate filter:
-
All Providers: Use this filter to view all
the providers included in the Maculator database. This includes over a
dozen merchant account providers and over forty 3rd party providers.
Since many providers offer several programs with different rates, this filter
will result in over 80 selections! Use this to compare rates and services
between all providers in the database.
-
3rd Party Providers: Use this filter to
compare rates and features between all 3rd party providers. Over 60
providers are included in this selection due to the multiple programs offered
by some 3rd party providers.
-
Merchant Accounts: This filter will result
in over a dozen merchant account provider programs. Most of the
difference in costs between merchant account providers is due to the types of
products or countries accepted by the providers. This is the default
filter when you first enter the Maculator website.
-
Affiliates Opportunity: Use this filter to
see over 40 providers including merchant accounts and 3rd party providers who
offer compensation to affiliates. By signing up as an affiliate, you can
earn referral fees by providing links to affiliates on your web sites.
-
Digital Products Only: Use this filter if
you sell digital products and only want to compare providers that specialize in
digital products. Over a dozen provider programs, 3rd party only, are
included in this selection.
-
Digital Software: Software developers
should use this filter to view over ten 3rd party providers who specialize in
selling your software and supporting the registration process.
-
Digital Download Support: Use this filter
to select over a dozen 3rd party processors who offer download services for
your digital products. These providers allow developers to
publish products with a minimum of costs and effort.
-
Digital Not Software: This filter
is intended for producers of digital art and web content, other than
software. Using this filter will return around thirty merchant
account and 3rd party providers.
-
Digital Not Software or High Risk: For
artists and producers of digital art that is not high risk or adult, this
filter is for you. Using this filter will return about half-dozen
3rd party providers, or more.
-
Not Digital 3rd Party: Use this filter to
compare only those 3rd party providers who do not specialize in digital
products. This filter will return about 4 dozen 3rd party
provider offers.
-
Directory Marketing: Use this filter to
compare over 20 merchant account and 3rd party providers who offer
directory listings for merchants on the provider's website. These
providers will help you market your products as well as process your
transactions.
-
High Risk Content: For vendors of adult,
pharmacy, gaming and other high risk content, this filter is for you.
Using this filter will allow you to compare the rates of over 40 merchant
account and 3rd party providers who support high risk content.
-
Multi-Countries: Over 50 merchant account
and 3rd party providers provide processing services to merchants in many
countries outside the United States of America. If your business is
located outside the United States, this filter will help you compare rates for
appropriate providers.
-
Multi-Currencies: Using this filter will
help you select over 40 merchant account and 3rd party providers who provide
support for multiple currencies. If you market your services
internationally, this filter will help you find providers to streamline your
shopping cart system.
-
Multi-Languages: Over a dozen merchant
account and 3rd party providers offer multiple languange screens and shopping
carts to facilitate international trade. Use this filter to compare
prices for the ultimate international trade resources.
-
US Merchants Accepted: Use this filter to
select over 70 merchant account and 3rd party providers who accept merchants
based in the United States of America.
-
Free Setup Fee: Use this filter to select
over 50 merchant account and 3rd party providers who offer their services with
no setup fee.
-
Free Annual Fee: This filter will select
over 70 merchant account and 3rd party providers who do not charge an annual
fee.
-
Free Monthly Fee: Using this filter will
result in over 80 merchant account and 3rd party providers who do not charge a
monthly fee.
-
Free Setup, Annual, Monthly Fee: You will
find over thirty 3rd party processors, using this filter, who do not charge
either setup, annual or monthly fees. Use this filter to avoid charges
for low or zero processing periods.
-
Discount Rate < 3%: Using this filter
will result in about 30 merchant account and 3rd party providers with the
lowest discount rates.
-
Discount Rate < 5%: This filter will
return over 3 dozen merchant account and 3rd party providers with discount
rates below 5%.
-
Discount Rate < 7%: This filter will
return over 4 dozen merchant account and 3rd party providers with discount
rates below 7%.
-
Discount Rate < 9%: This filter will
return over 5 dozen merchant account and 3rd party providers with discount
rates below 9%.
-
Discount Rate < 11%: This filter will
return over 7 dozen merchant account and 3rd party providers with discount
rates below 11%.
Saving your calculated data is an option that allows you
to see a grid of saved data containing all the comparisons you made and
saved. This makes it easier to compare calculated costs for
many different providers in one view. You will probably come back to the
Maculator several times over the next few weeks or months. By saving your
calculated data with a unique name, you can make your own collection of
information that you can view and analyze whenever you return. To see
your previously saved data, all you need to do is enter a new calculation with
the same name, press the Maculate button and then press
the Save in Database button. You can then press the
View Saved Data and see your data in the grid. When
viewing the grid, you can press the Detail \ View column on any item to
see the item-by-item calcuation for each entry. You can also click on the
Preview Test Data link on the Index page to see the saved data for
the Test items.
In the ViewRates.aspx form, by entering your User
Key Name in the search field you can select the data that you saved from
the database. Here, you can also select other views
such as all comparisons for a given merchant account provider or third party
processor by entering the name of the provider. This selection will
include comparisons made and saved by all users. Or the
selection can be filtered for a Business Name, User Key Name or Business Type
that you enter in the appropriate fields.
Yes. None of the data is private. No login or
password is required. Use any fictional name you wish to protect your
true identity if confidentiality is an issue.
The Maculator is designed to include as many fee items
and rates as possible to provide an accurate and comparable cost calculation
for all types of formulas used by Third Party Processors and Merchant Account
providers. Some of the processors use a rate tier based on the sales item
price. In this case, the Maculator uses the Average Ticket to select the
appropriate tier. Others use a price level and monthly sales volume
combined for a complex structure of multiple tiers. The Maculator
calculates the Average Ticket and selects the appropriate rates by sales volume
in this case using customized program logic.
How can I
see a detailed view of the calculated cost for each comparison?
The best way to see the details of each calculated cost item
is to Save the data after pressing the Maculate
button and View the saved data details by clicking the View
link in the Detail column of the grid. This view shows
how each item was calculated including the discount amount, transaction fee,
batch header fee, monthly minimum, monthly statement fee, monthly gateway fee,
annual fee and setup / application fee. For an example of the detail view
for a comparison that was saved for
Electronic Transfer Inc and Carservice International click
here.
How many items are
included in Maculator calculations?
The Maculator includes the following items as appropriate for each calculation:
-
Number Sales / Month: Used to calculate
Transaction Fees cost based on the Transaction Fee rate for each provider
-
Dollar Sales / Month: Used to calculate
Discount amount based on Discount Rate for each provider
-
Discount Rate: May vary for different levels
of risk, lowest for 100% retail. Used to calculate Discount amount based
on expected Dollar Sales / Month. For Internet businesses, be sure to get
the Discount Rate that applies to this type of business from your provider.
-
Per Transaction Fee: Charged for each
transaction. Used to calculate Transaction Fee cost based on Number Sales
/ Month
-
Batch Header Fee: Charged for each batch of
transactions submitted for capture. Estimated cost will be based on two
batches a day, 25 days a month for monthly sales numbers above 100. For
lower sales numbers the batch number will be 1/2 the sales number.
-
Minimum Monthly Fee: Charged by provider
only when Discount paid is less than this amount. The full fee will be
charged for a month with no sales or no Discount paid. Based on expected
Dollar Sales / Month and Discount Rate.
-
Monthly Statement Fee: Charged for
administration costs each month.
-
Monthly Gateway Fee: Applies to some
packages where connection services to Visa / MasterCard networks are bundled
with basic Merchant Account costs
-
Annual Fee: Charged once a year by some
providers. Will be divided by 12 for monthly cost.
-
Setup / Application Fee: A one-time fee to
be divided by 24 for monthly cost.
Are chargeback fees
included in Maculator calculations?
No. Chargeback fees are not included in the Maculator calculations due to
the fact that the number of chargebacks expected per month can
vary significantly for different business operations. Returns,
chargebacks and penalties for chargebacks are commonly deducted from the
seller's account for most Merchant Account Providers and Third Party
Processors. If you have a chargeback ratio of 1% or more, you can expect
problems and extra fees or penalties from most providers. There are a few
exceptions which are noted in the Maculator notes.
Are reserve discounts
included in Maculator calculations?
No. Reserve discounts are common in Merchant Accounts and
rare in Third Party Processors. The reserve discount is usually returned
to the merchant after a 6-month holding period and therefore is not a true
permanent cost but rather a cash-flow issue.
How do I get a
complete Fees Disclosure from a Merchant Account Provider or 3rd
Party Processor?
In many states it is a legal requirement for the Merchant Account
Provider to provide a Schedule of Fees to the merchant as a part of the
merchant agreement. You can and should ask each provider for a complete
Fee Disclosure before signing any committment or making an on-line
agreement. Be sure to print and copy any pages on the website that
include fees and agreement details. Since these rates can be changed, you need
to read the fine print regarding notification of fee changes.
Where does the data come
from in the Maculator?
Most of the data is researched directly from the providers'
websites. In a few cases, information was provided by request through
e-mail. Those providers who do not publish their rates on the web and do
not reply to requests by e-mail are not included in the Maculator.
Updates are made as soon as new information is
discovered. This can occur several times a week. See the
Maculator Updates page for a chronicle of all recent updates.
Interested parties who wish to suggest any updates or corrections should
contact b2bexec[AT]mgoldmine.com. Several technical forums also
provide valuable information and suggestions for the Maculator. If you
search for "forum The Maculator" in your favorite search engine, you will
find a number of discussion threads in different forums about merchant
accounts, 3rd party processors and the Maculator.
All those that we have discovered are included
with the exception of a couple that don't publish rates, don't reply to e-mail
requests, or don't have functional forms on their websites.
There are so many Merchant Account providers
on the web that we have to be selective. Some have better rates; others
have attractive features that may be of value to your type of
business.
Some of the Third Party processors and most of the
Merchant Account providers can potentially provide referral fees to the
Maculator. We encourage our visitors to take advantage of the Affiliate
Opportunities offered by these providers for your own extra revenue. In
some cases your customers could also become down-line affiliates. In the
case of iKobo, for example, any of your buyers using your iKobo account
who are new to iKobo could generate an additional cash-back referral fee of 5%
of their future iKobo fees. iKobo extends this offer amazingly to 10
levels of downline merchants! At the 10th level, you earn 50% of the fees
paid by the bottom tier merchant for each transaction. Affiliate
revenues should be only one of the criteria you use to select a Merchant
Account provider or Third Party processor. We hope you will
also appreciate that without referral fees, the costs of the Maculator
operation would be untenable.
Several technical forums provide discussion
threads about certain 3rd party processors and merchant accounts. If you
search for "forum The Maculator" in your favorite search engine, you will
find a number of discussion threads in different forums about merchant
accounts, 3rd party processors and the Maculator. You may
also join these forums (it's free!) and ask questions about specific processors
to members who may have used their services.
There are also a number of forums that focus on complaints about
various 3rd party processors and merchant account providers. Use the
search key word "complaint" followed by the provider's name in your favorite
search engine to locate these discussions. When browsing these forums,
keep in mind that there's no way to verify the veracity of the content of these
complaints and that there may be deceitful intent by various parties either pro
or con the company in question. Nonetheless, we believe that you should
study these complaints and use your own judgement or investigation methods to
evaluate their significance in your choice of a provider. It's also
important to ask specific questions to providers by e-mail who may have failed
to publish information about fees, chargeback fines, reserves, restricted
products, multi-language support, multi-country support, and so on. Try
to get a copy of the agreement page and print the page or save the page prior
to signing up. Read it very carefully and request more information about
language or sections of the agreement that you may find disfavorable or
confusing.
How do new providers
get added to the Maculator?
Send an e-mail to b2bexec[AT]mgoldmine.com for all
inquiries regarding new providers or needed updates in rates or features.
If you add information in the Maculator about a new provider and save the data
with a unique business name we can also use this information for
reference. See FAQ items above about saving data for more
information. More instructions are also provided in the
Maculator Compare Rates
form.
Several providers alreadly listed in the Maculator
use the Maculator as a reference from their own websites. This is a
convenient way to show comparisons between their own rates and those of
competitors in the same class. Instead of linking to the main Maculator
Index page, they link to the Compare Rates page with a search string that
automatically loads their own rates in the form. Without the proper link,
the Compare Rates form will bounce the request to the main page or will load a
default listing. The standard format for this type of Direct Provider
Link is composed as follows:
http://www.mgoldmine.com/CompareRates.aspx?ProviderName=Affero&clk=EX1.
This link will automatically load Affero into the Maculator Compare Rates
form. Your company name will replace 'Affero' to load your rates.
This name must be spelled exactly the way it is listed in our database.
It is case sensitive. To check on our spelling, go to the Index page and
click on the Maculate Me! link for your listing. You will see
your name as we spell it in the URL address on your browser. We invite
all listed providers to use the direct provider link as you see fit. If
you wish to use your own frames, that's OK, too, but we would expect you to
credit our Maculator services. You will also benefit by giving us this
credit, because this will show that we are independent of your organization and
that we make every effort to be impartial and accurate in our comparisons.