Recommend Me a Credit Card Payment Processor

daft009 on 09/04/2019 - 20:40
Last edited 10/04/2019 - 10:05 by 1 other user

So I'm launching a new product and would like some ideas/avenues to try.

Basically customer buys a kit product for $1000 (arbitrary $ figure)
A part of that kit needed to be swapped every 6 months to keep it in in check.

What I would like to do in +6 months:
On the phone, Hey Mr customer, pay us $500 on your CC and we'll ship you a brand new part for you to replace yourself.
My customer receives the new part via AusPost, replaces it and sends the old one back in a self addressed AusPost satchel.
Once we get the old one back in good working condition, we refund him $400 on his original CC.
Therefore he has paid $100 overall.
Rinse/repeat every 6 months and that's just one customer!

To start with obviously there won't be many customers however any ideas whats the best way to handle the potentially large number of charges & refunds.
I asked my current CC payment processor (big 4 bank) about a "holding charge" on the customer's CC and I was told only hotels & rental car companies can do that, which I am not.

If this takes off, automating all this wouldn't be out of the question, but thats waaaay down the track.

• 

  Hybroid on 09/04/2019 - 20:43

  Paypal could be setup to manage this fairly easily with automated invoices sent out & one-click refunds etc.

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    daft009 on 09/04/2019 - 20:56

    was hoping to keep startup costs extremely low just to see if things take off.
    as they take off, improve the systems and the automation

    • 

      Boioioioi on 10/04/2019 - 02:09

      Paypal doesnt really involve any startup costs?

      It has fees when you use it, but no upfront costs for basic business use. I make my own websites for business and have found PayPal is the easiest to integrate as well.

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    knobbs on 09/04/2019 - 21:16

    PayPal just announced more fees to seller for using a refund. Used to be something like 3% + 30c charged to selling when using PayPal to pay. Then on refund get all but 30c back. Now you lose the 3% and 30c

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  F75 on 09/04/2019 - 21:21

  Square can issue refunds different to the total amount charged.

  2.2% fees. no monthly fees.

  let me know if you sign up, i've a referral link that gives you $1000 free processing for 180 days

  • 

    F75 on 09/04/2019 - 21:25

    that said…

    found this in the faq's

    Is there a limit on the number of refunds I can process with Square?

    There isn’t a limit, but we don’t allow refunding as a way to accept security deposits or pre-authorise charges. The ability to collect security deposits and pre-authorise charges aren’t currently available through Square.

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      daft009 on 09/04/2019 - 21:27

      thats my use case right there lol

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  skinner on 09/04/2019 - 21:32

  +3

  Try Stripe. Better rates than those mentioned above (should be 1.75%?) and they seem to have a fair few options for invoices/recurring charges etc, might find something in there to suit your requirements.

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    daft009 on 09/04/2019 - 21:33

    thanks, have emailed them

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  twobit on 09/04/2019 - 22:22

  I have used eWay before and did refunds, but never as a security deposit.. they may have an option to hold a payment.

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  coolsteps on 10/04/2019 - 00:36

  +1

  beware of square for many transactions etc they closed my account and held my funds for 90 days before paying me.

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    F75 on 10/04/2019 - 06:11

    what happened coolsteps?

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      coolsteps on 22/10/2020 - 21:27

      they dont give exact reason but if they suspect fraudulent transactions they have right to close it. i think the first amex i used was family member at same address so that may have trigged the hold or a visa prepaid cards. head ache having to wait to get funds back now cant use that abn. not sure if worth signing up again using wife's abn since square are one of the cheapest in fees?

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  RockyRaccoon on 10/04/2019 - 02:44

  In the case of not giving refunds of the same amount.

  What about the following.

  Customer returns old unit.
  Refund $500
  Create new charge $100

  Or in first place make 2 charges
  $100 and $400

  Latter has advantage that customer understands its a deposit and they understand its only this part that’s refundable.

  • 

    daft009 on 10/04/2019 - 07:27

    thanks, that works too and its more transparent.
    will pose this to the guys I've contacted too to get their opinion

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  ak-km on 10/04/2019 - 08:01

  CBA's Bpoint platform is very good. I use it at work everyday and its very secure.