Yes, George from Heartland contacted me. I am going to send him a couple of statements from Moneris, but I must say that at this point I am reluctant since one aspect of their service makes me a bit concerned. It is the fact that they are a US processor and somehow the charges are converted to US Dollars and billed in US Dollars. When the Canadian Dollar was more or less on par wit the US Dollar this would not have been a big deal, but I wonder how this would work out now when at times I paid close to $1.40 CAD for one Dollar US. It just seems it would add an extra layer of complexity when it comes to accounting for the credit card charges and considering our current volume and how many Paypal transactions we get it seems of questionable value. I would still like to know what would be involved in terms of offering Paypal Express checkout either to all customers or for Moneris customers. Would this be something Moneris would have to do or would it be a customization that has to be done by Nitrosell similarly to what you guys did for setting up debit card/Interac Online payments?
I recently did a rate review with Moneris and because I am a member of the Canadian Federation for Independent Business Moneris is now offering some preferred rates in order to compete more with Chase Payment Tech who is their official partner. In May customers purchased $30,790.43 worth of goods at my store using Visa and Mastercard. Mastercard is always a lot less than Visa, in this case it makes up only just under $9,000 of that total. At the store level customers also use their bank cards (debit cards) a lot, sales in May which were paid by debit card were $27,731.26. I paid a total of $706.50 in fees for the store merchant account for May, this includes a “gateway fee” of $25, the Pinpad rental of $16, an account fee of $2.95, a fee for “fraud tools” of $5 and a $5 fee for consolodated deposits which means there is only one single deposit to my bank each time I close out the register which includes Visa, Mastercard and debit card transactions. Only American Express, if there are any transactions, is deposited separately and this of course saves me bank charges. The fixed charges including taxes are almost $60 and my charge for debit card transactions is only 4 Cents per transaction no matter whether it was a $5 purchase of some accessory or if somebody purchased a $3,000 rifle/scope package. I only paid less than $40 for the over $27,000 in debit card sales for May. This leaves approx $605 for Visa/Mastercard and if I divide that into the sales of $30,790.43 it works out to approx1.965% and I am quite happy with that rate.
It sounds as if Heartland has a completely different payment model, they have a fixed charge per transaction, maybe less fixed costs overall, but there also seems to be a percentage they charge for debit card transactions and since in many months people use their debit card for more volume than Visa this could add up quickly over the 4 Cents per transaction Moneris charges.
For the webstore it appears the rate was slightly higher and I have to call Moneris because it was my impression I wold be charged the same rate as at the store, but for May it worked out to be about 2% for Visa and 2.3% for Mastercard. The fixed charge is $34.45 which includes the $25 gateway fee, $5 for fraud tools and $2.95 account fee and a bit of tax.
Paypal charges me 2.9% + a per transaction fee of 30 Cents (that is in Canadian Dollars), there is no fixed cost per month (no transaction, no fee/cost).
American Express charges a 3.5% fee directly (it is taken off each transaction amount) and Moneris charges an 8 Cent fee for each Amex transaction, I think my website is currently not set up for Amex transactions, something I may have to look into, but often we have only 1 or 2 Amex transactions at the store a month, some month we have none and I have seen up to 6 or 8 occasionally, definitely not too popular a card here.
Overall I am satisfied with Moneris, I have been with tem for a long time and feel I get good customer service and fair rates. It will be interesting to see what George from heartland has to say when he takes a look at my Moneris statement, he seems to think that they have an advantage because he says they also own the gateway and he seems to think that Moneris has to charge me for that and use something like Authorize.net, maybe that is what the $25 a month fixed cost is for.
Please let me know what would be involved in setting up Paypal Express as I assume it must be possible to do so.