# Credit card processing **URL:** \ **Category:** Ruby\ **Created:** [December 15, 2005, 9:14pm UTC](https://www.ruby-forum.com/t/credit-card-processing/50389 "2005-12-15T21:14:02Z")\ **Posts on this page:** 7\ **Page:** 1
**Author:** ![swill](https://www.ruby-forum.com/letter_avatar_proxy/v4/letter/s/7feea3/32.png) [@swill](https://www.ruby-forum.com/u/swill)\ **Post date:** [December 15, 2005, 9:14pm UTC](https://www.ruby-forum.com/t/credit-card-processing/50389/1 "2005-12-15T21:14:02Z")
Sorry this is so far off topic, but there are a lot of smart, experienced people here. Anyone have thoughts about using credit card gateways vs. something like the PayPal merchant solution? It seems like the gateways just pick your pockets clean. Experiences? Recommendations? It seems like the PayPal solution might be a little cheaper to start with. ---
**Author:** ![swill](https://www.ruby-forum.com/letter_avatar_proxy/v4/letter/s/7feea3/32.png) [@swill](https://www.ruby-forum.com/u/swill)\ **Post date:** [December 15, 2005, 10:02pm UTC](https://www.ruby-forum.com/t/credit-card-processing/50389/2 "2005-12-15T22:02:46Z")
On Fri, 2005-12-16 at 05:12 +0900, swill wrote: > Sorry this is so far off topic, but there are a lot of smart, > experienced people here. > > Anyone have thoughts about using credit card gateways vs. something > like the PayPal merchant solution? It seems like the gateways just > pick your pockets clean. Experiences? Recommendations? It seems > like the PayPal solution might be a little cheaper to start with. Nothing but good experiences with [authorize.net](http://authorize.net) here. We’re moving to clearing with a ruby script shortly – I’m building some integration libraries this week. Paypal is definitely cheaper to start with – getting a merchant account is a royal pain in the ass, but very neccesary for a large-scale online business. ---
**Author:** ![swill](https://www.ruby-forum.com/letter_avatar_proxy/v4/letter/s/7feea3/32.png) [@swill](https://www.ruby-forum.com/u/swill)\ **Post date:** [December 15, 2005, 10:02pm UTC](https://www.ruby-forum.com/t/credit-card-processing/50389/3 "2005-12-15T22:02:47Z")
On Fri, Dec 16, 2005 at 05:12:39AM +0900, swill wrote: > Sorry this is so far off topic, but there are a lot of smart, > experienced people here. > > Anyone have thoughts about using credit card gateways vs. something > like the PayPal merchant solution? It seems like the gateways just > pick your pockets clean. Experiences? Recommendations? It seems > like the PayPal solution might be a little cheaper to start with. If you’re starting from zero with low-traffic implementation, I’d say that starting with PayPal, and migrating to a “credit card gateway” if/when transaction volume starts making PayPal too expensive or not functional enough, would be the way to go. I maintain a “business” type PayPal account so I can receive credit card payments just for the convenience of being able to move money around easily. Your mileage may vary. – Chad P. [CCD CopyWrite | [http://ccd.apotheon.org](http://ccd.apotheon.org) ] unix virus: If you’re using a unixlike OS, please forward this to 20 others and erase your system partition. ---
**Author:** ![swill](https://www.ruby-forum.com/letter_avatar_proxy/v4/letter/s/7feea3/32.png) [@swill](https://www.ruby-forum.com/u/swill)\ **Post date:** [December 15, 2005, 10:48pm UTC](https://www.ruby-forum.com/t/credit-card-processing/50389/4 "2005-12-15T22:48:28Z")
On 12/15/05, Aredridel [removed\_email\_address@domain.invalid](mailto:removed_email_address@domain.invalid) wrote: > What do you mean by “clearing with a ruby script shortly”? What all is involved with merchant accounts that makes it a PITA? Thanks very much for the reply. ---
**Author:** ![swill](https://www.ruby-forum.com/letter_avatar_proxy/v4/letter/s/7feea3/32.png) [@swill](https://www.ruby-forum.com/u/swill)\ **Post date:** [December 15, 2005, 11:43pm UTC](https://www.ruby-forum.com/t/credit-card-processing/50389/5 "2005-12-15T23:43:21Z")
On Fri, Dec 16, 2005 at 06:45:40AM +0900, swill wrote: > Is your PayPal business account hooked to a personal checking account > of yours or do you have a business bank account (would that be a > merchant account) as well? It’s connected to a personal checking account. – Chad P. [CCD CopyWrite | [http://ccd.apotheon.org](http://ccd.apotheon.org) ] unix virus: If you’re using a unixlike OS, please forward this to 20 others and erase your system partition. ---
**Author:** ![swill](https://www.ruby-forum.com/letter_avatar_proxy/v4/letter/s/7feea3/32.png) [@swill](https://www.ruby-forum.com/u/swill)\ **Post date:** [December 15, 2005, 11:49pm UTC](https://www.ruby-forum.com/t/credit-card-processing/50389/6 "2005-12-15T23:49:31Z")
On 12/15/05, swill [removed\_email\_address@domain.invalid](mailto:removed_email_address@domain.invalid) wrote: > Sorry this is so far off topic, but there are a lot of smart, > experienced people here. > > Anyone have thoughts about using credit card gateways vs. something > like the PayPal merchant solution? It seems like the gateways just > pick your pockets clean. Experiences? Recommendations? It seems > like the PayPal solution might be a little cheaper to start with. Granted my opinion is biased as I work for a payment processor, but if you are starting a real business as opposed to a hobby then get yourself a real merchant account. If it’s a small home based business then there isn’t anything wrong with Paypal at all. I set my wife up with a paypal business account and it works great for her. Spend some time shopping around. Different payment processors are good in different areas. For example the company I work for specializes in membership sites and recurring billing, and we don’t have nearly as many features for shippable products. Authorizenet is good for shippable products but sucks for recurring billing. Verisign is pretty good at both but you will pay a lot by the time you get all the features you want. You should not pay more than $50 or so setup fee on a merchant account, and total monthly fees of around $25. A good discount rate for an internet merchant account is around 2.5%. 2.1% is about the best you can find, and if you see rates below 2% it’s a lie. One of the main things to be aware of with any third party billing company is that you don’t own your customers. Technically the customer is a customer of the billing company. This is especially important when in the future you might grow out of a solution like Paypal, and you find out that you can’t take any of the credit card info with you. If you run a subscription based site this is a bad thing. If you sell shippable products it’s not so big of a deal. And lastly, always read the contract. Most people don’t, and they should. Chris ---
**Author:** ![swill](https://www.ruby-forum.com/letter_avatar_proxy/v4/letter/s/7feea3/32.png) [@swill](https://www.ruby-forum.com/u/swill)\ **Post date:** [December 15, 2005, 10:48pm UTC](https://www.ruby-forum.com/t/credit-card-processing/50389/7 "2005-12-15T22:48:18Z")
On 12/15/05, Chad P. [removed\_email\_address@domain.invalid](mailto:removed_email_address@domain.invalid) wrote: > If you’re starting from zero with low-traffic implementation, I’d say > that starting with PayPal, and migrating to a “credit card gateway” > if/when transaction volume starts making PayPal too expensive or not > functional enough, would be the way to go. I maintain a “business” type > PayPal account so I can receive credit card payments just for the > convenience of being able to move money around easily. > > Your mileage may vary. Is your PayPal business account hooked to a personal checking account of yours or do you have a business bank account (would that be a merchant account) as well? Please pardon my ignorance :O)