But in doing the math, I realize my business is not what it was when I started. And, I have more and more in-person sales at shows and classes than I did in the beginning. Yet, I cannot afford to have two "gateways" or merchant accounts.
I signed up for square and then realized that Paypal HERE is just a few pennies cheaper (and in my world, pennies MATTER!). Plus, I'm familiar with Paypal. The money is there immediately. But still, that 3.5% for my mail orders seems high!
I can pay a cheaper amount by diverting my web customers to paypal directly... 2.9% + .30 transaction fee... which on a $30 sale saves me 3 cents! Hardly worth paying a web-developer for!
But the fact that Costco "seemed" so much cheaper kept bugging me. When that happens there's nothing to do but sit down and do the math!
Costco 1.99% on keyed in transactions + 25 cents per transaction. Costco also has a monthly fee of $20.
Paypal Here 3.5% / keyed transaction + 15 cents per. No monthly fee.
I started with what I wish I made: 4K a month. I guestimated 80 transactions. Using those numbers, Costco would cost 119.60 vs. Paypal Here's 152.00. But... I don't make anywhere near that!
So I put in 1750 and 70 transactions. Here the prices were close: Costco came out to 72.33 vs. Paypal's 71.25
I upped it a bit to 2000 a month and 70 transactions... and Paypal edges ahead to 80.50 vs. Costco's 77.30.
Now I know that somewhere between 1750 and 2K a month, I need to get a cheaper processor. While it's nice to have goals, I haven't seen that kind of dough in five years. Anyone wanna buy a swiper??? ;-)