Evan Moskowitz has formed an Internet training company called Teach-U-Comp to se
ID: 449776 • Letter: E
Question
Evan Moskowitz has formed an Internet training company called Teach-U-Comp to sell computer programming courses online. Each course costs $65, and students receive continuing education units (CEUs) based on the duration of the course and its level of difficulty. Evan expects to sell about 100 courses each month during his first few years in operation. He would like to accept credit and debit cards as payment for the courses. Evan is busy creating the online content and installing the course delivery software, so he hired you to investigate payment processing options for the site. Use your favorite search engine to identify three companies that process credit card payments for Web sites that sell downloadable digital products (such as Evan's courses). Examine the processing services offered and fees charged by these three companies and choose one that you believe would be best for Teach-U-Comp. Write a 300-word report in which you summarize your findings. In the conclusion of your report, clearly state which company you would recommend to Evan and explain why.
Explanation / Answer
Basically, all three online payment service providers (PSPs) offer many of the same general features. For example, the convenience of electronic payments by a variety of payment methods including credit card, debit card, and ACH also known as electronic checks. Typically, a payment service provider connects to multiple acquiring banks, credit cards, and payment networks. Often payment service providers manage these technical connections and relationships with external networks and bank accounts, thereby making merchants less dependent on financial institutions. To obtain pricing information, you must directly request a quote from many of the PSPs, because the pricing information supplied on their websites is limited. I selected the following PSPs based on the prices I could find:
CDGcommerce
www.cdgcommerce.com
Authorize.Net
www.authorize.net
I would recommend GoEmerchant to Evan, because they offer affordable credit card processing solutions. Their product mix includes ecommerce functionality, mail/telephone commerce, high volume offline credit card processing and retail commerce. GoEmerchant has all the ecommerce tools needed to sell successfully online and grow Teach-U-Comp’s business.
Pricing:
http://payment-gateway.goemerchant.com/online.aspx
CDGcommerce
www.cdgcommerce.com
- Transaction fees: 1.95% + $0.30
- $10 monthly support
- $15 cdg360 bundle (optional)
- No setup fee
- No early termination fee
- No monthly minimums
- No annual fees
Authorize.Net
www.authorize.net
- Transaction fee: 2.9% + $0.30
- Setup fee: $49.00
- Monthly Gateway fee: $25.00
- Batch Fee - $0.25
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