# General Business Category > General Business Forum >  E-Commerce Gateways

## eitai2001

Hi.

I am looking at accepting credit cards on my online shop.
I haven't got a merchant account, so I was looking at either mygate.co.za who have a supermerchant account, pricetag.co.za or setcom.co.za ... which one would you guys use.
I see pricetag's maximum is 5.7% but I'm not sure how good they are with graud detection, but they offer negotiable rates once you achieve over 40k a month.
Mygate is 6%, and they have a fraud module, but I'm not sure if they are negotiable.
What are my risks ITO fraud with these providers ... and do you know how much they refund you in case of a charge back?
Also, how long does it take to access the funds from these gateways as I need the funds to purchase and send the products.
Do you guys think that customers will object to paying 3% extra on the fees to use a credit card, otherwise in some cases, I will make a loss.

Regards

Itai

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## Dave A

The only one I can give some sort of an answer on is



> Do you guys think that customers will object to paying 3% extra on the fees to use a credit card, otherwise in some cases, I will make a loss.


It's not the customers you have to worry about. Normally the merchant agreement specifically states you may not charge a different (higher) price because the bill is being paid by credit card.

You would have to change your base price regardless of payment method to solve the "loss" problem.

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## eitai2001

I have seen some sites where they do that ... can't remember which ones though. If I remember correctly, there was an argument (loophole) around that ... I can't remember how it worked though. Something to the effect that you are charging them extra for the convenience of having credit card facilities and not for the fees. But I'm not sure.

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## duncan drennan

Just watch out, for some of them you have to have a merchant account with a bank (I know mygate is like this), so you will also have to pay extra merchant fees to the bank as well (unless they already build this into their pricing).

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## eitai2001

Mygate has something called MyGate Express which is a super merchant account ... 
My biggest questions with them and Pricetag is fraud risk, chargeback risk and amount of time to collect the cash.

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## IanF

Eita
When I got the speedpoint machine I was told that you can't charge more for using a credit card, but you could discount for cash cheque etc.

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## Chatmaster

I used Setcom on one of my sites before. They are pretty good but expensive. Haven't used any of the others. Can I ask you what you are selling? Also is it aimed only at the SA market?

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## Karenwhe

We have merchant account with bank directly. We negotiate with them prices and then use VCS for clearing which is pretty cheap.

Maybe there are better solutions out there but we found at that time this to be the most cost effective while preventing fraudulent transactions.

For us cost was important at that time (and still today) as some of our sites resell electrical hardware and the margins are small.

If there are better solutions today, as I have not re-checked for a while, I would love to know also.

The other option that we found (but not used as yet due to trust management break even point), is to set up an offshore trust, which can cost anywhere from 16K and you can then add many more payment systems including PayPal and costs are ridiculously cheap compared to what is offered right now in SA. The cheap cost of transaction does make up for the management costs of such trust with the right amount of sales. We did not use it as we trade in SA only, but I did see one SA person that is doing this as his product is information and appeals to a very large international market, which makes this worth while for him.

Hope this helps.

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## Chatmaster

I have converted all my sites to use moneybookers.com and one is using Neteller but then, they are all international sites and must be able to take payments from most countries, including South Africa.

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## Karenwhe

We tried moneybookers and had some very unpleasant surprises in terms of process administration and stuff like that which resulted in money going well, lost. We still await money they have to pay us from some 6 months back. Luckily it is not that much, needless to say, we don't want to do anything with them again. 

I hope you have a better experience and they improved their processes.

I have not tried Netteller, can you tell us more about your experience with them from SA (the good and the bad) and for how long you used their service?

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## eitai2001

Hi.

I sell computer hardware on my site to the local market only.
Another big concern of mine is that the money must be available either immediately or within 1 or max 2 days as I need the customers money to buy the stock seeing as I don't keep it in stock.
At the moment I'm not ready to go for a merchant account with a bank as their costs will work out more as my sales are not high enough as yet. I first want to get a super merchant account so that my sales increase a lot and then from there, I will use those figures to propose a forecast to the bank.

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## Chatmaster

Well been using them for nearly 2 years now, can't say that I had any serious problems. I have a fixed product sold at a single price on each of the sites perhaps that is making the difference?

I used Neteller the first time, mmmmmm I think 4 years ago, they even have a little bank card  you can draw your money with from most ATM's, so it is fairly easy and user friendly. They are very reliable and my experience with them was that they are very helpful. I sold my site that we used them on June last year, but I was happy with them. They do a FICA and once that is done you receive your card and documentation within about 3 weeks time.

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## Chatmaster

> Hi.
> 
> I sell computer hardware on my site to the local market only.
> Another big concern of mine is that the money must be available either immediately or within 1 or max 2 days as I need the customers money to buy the stock seeing as I don't keep it in stock.
> At the moment I'm not ready to go for a merchant account with a bank as their costs will work out more as my sales are not high enough as yet. I first want to get a super merchant account so that my sales increase a lot and then from there, I will use those figures to propose a forecast to the bank.


Why do you not just ask for an EFT, open a business account with FNB as a soletrader and you will receive your payments immediately from another FNB or the next day from other banks?

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## Karenwhe

> Hi.
> I sell computer hardware on my site to the local market only.
> Another big concern of mine is that the money must be available either immediately or within 1 or max 2 days as I need the customers money to buy the stock seeing as I don't keep it in stock.


This is exactly what we also do with hardware (just not computer stuff). We say on the site that _"your order will be processed only upon proof of payment"_. Which enables you to use EFT and ask them for proof of payment before you place your order with your supplier and pay them. 

At the back end of the website software we mark "confirmed" when we get proof of payment. With credit card is fast with EFT you need a fax or whatever to check for the customers proof of payment. We use fax to email for convenience (not a real fax).




> At the moment I'm not ready to go for a merchant account with a bank as their costs will work out more as my sales are not high enough as yet....


I agree 100%. But you can negotiate with them cheaper than you think. This is why we went to the bank. We managed to negotiate them so much more down that they became cheaper for us than any other solution. Don't take their advertising for granted. Go in, speak to them, tell them about your business, your margin and what you can afford to stay in business. Lets just say you can get even 75% below their advertising rates.

They are likely to give you much lower rates. And I mean far lower than you can imagine, but will most likely put you on a trial of a few months. Then you need to go in again and ask them to keep your rates the same, if you did not reach their required transaction volumes. 

We did this until we reached their required margins and it worked. But we knew it would take a year so we had to keep going in the bank to keep the rates low every 3 months.

If you don't think you will ever reach their required margin, then this may not be an option at all.

Hope this helps.

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## Karenwhe

> I used Neteller the first time, mmmmmm I think 4 years ago, they even have a little bank card  you can draw your money with from most ATM's, so it is fairly easy and user friendly. They are very reliable and my experience with them was that they are very helpful.


I must definitely check this. Thanks for that.

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## Chatmaster

I see they still have the card and if you compare costs it is not that bad,you can check it out here you will note that SA are one of the few countries on their list that allows for the use of the card.

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## eitai2001

Thanks for the info.
I actually have been using EFT since May ... my problem arises that by not accepting credit cards, I'm losing about 40-50% of customers, or maybe even more ... due to them not wanting to pay EFT or mostly because purchases online are usually impulsive ... if you don't get the money there and then ... there is a good chance you won't make the sale.
May I ask which bank you approached to lower your merchant fees and get the credit card facilities?

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## Karenwhe

We work with ABSA (the red bank  :Big Grin: ). But I do know that others are negotiable too, it just depends who you land on.

Edited to add: It is suggested that you approach the bank you work with the most. They take into account how much business you do with them (also don't forget to remind them that). If I was you I would try there, and if it doesn't work I would move on to another bank.

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## Chatmaster

I use FNB and they are pretty much the best option imo. I do not have a particularly good relationship with ABSA and Nedbank due to my ill experiences with them on service delivery in the past. I also have one business account with Std Bank but I prefer FNB atm. 

I have another question...
Why not make use of Setcom but offer the customer 2 payment methods? One is Creditcard through Setcom and the other is EFT at a discounted rate. In other words increase your pricing or charge a delivery/shipping fee but if you pay via EFT you get a discount and do not have to pay a delivery or shipping fee. So if the customer decides to pay via Credit card you cover your costs?

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## Karenwhe

Last I checked you were not allowed to discount for EFT or vice versa, increase price for Credit Card. Maybe I am wrong, but there used to be some rules in regards to this. I am not sure what is going on now, maybe that has changed, or I was given the wrong the advise at that time.

Yes ABSA and Nedbank were not good with service. Imho still are not, the only reason we use them is because we managed with a huge amount of effort to create some relationships that make life easy.

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## Chatmaster

> Last I checked you were not allowed to discount for EFT or vice versa, increase price for Credit Card. Maybe I am wrong, but there used to be some rules in regards to this. I am not sure what is going on now, maybe that has changed, or I was given the wrong the advise at that time.


Karen to be honest, I have no idea if there is such legislation. It is good you are highlighting it though because in mind, it doesn't make sense. If one payment method is more expensive than the other, surely you can charge a admin, delivery or shipping fee for both, but discount the cheaper one as incentive to the consumer for using it?

I would like to know for a fact though, maybe someone more qualified than me can shed some light on it.

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## eitai2001

I know it is against VISA and Mastercards T&C to charge extra for credit cards, but there is a loophole that you can have a cash discount. The problem is that if I charge extra with a cash discount, my prices advertised on the comparison search engines will be the higher prices and will make me look expensive. I think I will avoid credit cards for a while longer. Also ... I don't want to use someone like Setcom unless I know I can get the full amount within 2 days are so ... because I need the cash to buy stock.

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## Chatmaster

I fully understand your dilema eitai2001. I really hope that a solutions to your issue are found soon. Just a question how badly is the fluctuation in purchase prices for your products? I understood that the prices changes very frequently.

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## eitai2001

Fluctuation is a big problem ... I have to update prices weekly ... which is a pain ... I've created a makro that shows me what has changed since the last pricelist (New, Discontinued, Price Changes) ... but its not flawless as it works according to model numbers ... and if those change, it becomes a pain. But now with the rand dollar ... its gonna be a mission, cause PC pricing is based upon Rand Dollar.

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## daveob

I have been using the services of NetCash ( www.netcash.co.za ) based in Cape Town for about the last 5 years to process our monthly debit order subscriptions. Never a payment problem and their online client admin area works great.

They recently introduced a Credit Card gateway for Visa and Mastercard, with no monthly fees and only 5% ( + R1 ) per transaction.

If you meet their account criteria, it can be a great option. 

We have already have set up an online payment option on our site ( uses PHP ) and would be willing to share the php code if you require it.

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## Chatmaster

Sounds very interesting thanks daveob!

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## SilverNodashi

I can also vouch for Netcash, their products & support is good, and prices are low (lower than Iveri & Setcom). You also don't need a Merchant account, and with CC payments you can get the money within a day or 2, depending on who you bank with. 

I'd suggest, to make provision with the CC costs, setup your price like you want them, and give cash discount on EFT / bank deposits. If you use something like ZenCart as a shopping cart, this can quickly be setup as an automated thing

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## Karenwhe

Hi Chatmaster,

I am investigating the Netteller option now, just have a few more questions:

How do you repatriate the money? (I mean charges from foreign currencies) That would add to Nettellers costs  :Confused:  . (When we do business with the US, we get charged large amounts of money to convert foreign currency to rands and fees.)

How do you transfer your money to your business account without the card thingy. That will also incur charges I assume  :Confused: 

Any more information about Netteller would be helpful.

Thanks,
Karen

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## Chatmaster

I used Neteller for an affiliate account and these questions is way above my head. None of the money went through a business account so I simply used the bank card to draw the funds. Perhaps a good idea to ask these questions to their merchant department.

I did however do a search for Currency exchange but there is no exact answers in terms of costs. They always seemed to be very responsive when we contacted them so give that a go.

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## Karenwhe

Cool stuff. Thanks. I will ask and post here if I get an definitive answers. In case anyone else needs the answers.

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## Dave A

Thanks, Karen.

I've been following this thread with interest. Not that I need the info just now, but you never know what might come in the future.

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## Chatmaster

I think this question is something many South Africans needs to be answered. We certainly need a solution to make eCommerce cost effective in SA. One of the primary reasons so many online business succeed abroad is the fact that they are supposed to offer products and services a little cheaper and at this stage it seems like a challenge to do so because of the expensive banking costs.

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## Karenwhe

Ok, I got back the answers from Neteller.

The short story, it is not cheap. If one has a good deal with local merchant account, I don't see a good reason to use Neteller, not really. I am being honest.

Here is the long story in summary:

_Quote:
1. How can we repatriate funds to our company if using your services?   
{HS}- Once a NETELLER merchant account is created you may choose the bank wire to withdrawal funds back to your company.

Merchant wire fees Ã¢â¬â Less than 7500 International 55.00 US  
                     More than 7500 International 85.00 US_ 

This in itself puts a lid on it. As that is only one side costs, then the bank in SA will add some fees also on certain scales they decide depending on the bank. If you need to withdraw often for cash flow and payments to suppliers the fees are running nice and making money for the house... as you know the house always wins.... 

Next they have withdrawal fees 12.75 USD and it takes 5 to 10 days, which can create a cashflow problem if one needs to pay suppliers with moneys sitting in that account.

Next, they send me a power point presentation for the EU, said they do more or less the same for SA.

In the power point you have another 3.9% in deposits certain cases (which is most of them unless you have a Turkish account or NT UK account = N/A).

The other thing is the limitation on amounts that can be withdrawn from what I understand this is due to the FSA (Financial Services Authority (FSA) an independent non-governmental body, given statutory powers by the Financial Services and Markets Act 2000), which they have to comply with for anti-money laundering purposes.

These depending on the account can be limited to 1,9K, 19K, 48K, and you need real special request if you run over 288K. All US dollars of course.

I won't summarize the whole power point pages (lots of them), but the short story is that there are charges for the wire transfers, withdrawals and deposits that will just cost more than dealing with SA in SA, and it basically costs as much as having a local merchant account if not more in some cases.

When we work with the US we just ask them to wire transfer and it costs us less that what it would with Neteller as they have to pay their own costs and we only pay SA costs. But it is not for e-commerce sites.

Now, I am back at the waiting time to have maybe PayPal in SA or just open an overseas trust one day and get it over and done with  :Confused: .

Hope this helps.

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## Karenwhe

> We certainly need a solution to make eCommerce cost effective in SA.


I think we are far away from that and the only viable solution for South Africans in my humble opinion right now is: MAKE MORE MONEY so that the fees don't count anymore  :Big Grin: .

I spoke to a person at a bank that deals with all this stuff and she put it simply, most (not all) SA merchant accounts don't make more than around +/- 15K per month even when their brick and mortar businesses run in the millions and multi millions. I was shocked. But she also told me that if the transactions go over into the hundreds of thousands per month the fees are very, very, very, low.

So that is what we have to do - make lots of money, simply put.

And I think (still working on it) I know how we (as business people) can reduce the costs with the banks and make the required amounts...... and have what they call, low-low fees  :Big Grin:  .

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## Chatmaster

Something like a merged merchant account where transactions are going through one merchant account for multiple businesses?

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## daveob

"Super Merchant Account" -- probably exactly what the likes of Netcash and PriceTag are doing.

Difference with them is that the money is in an SA account and there are no international wire transfers involved to get your money on an almost immediate basis.

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## Karenwhe

> Something like a merged merchant account where transactions are going through one merchant account for multiple businesses?


Close enough, not businesses, but it needs far beyond that. This as stand alone solution doesn't solve the entire problem by itself. Tried that already  :Big Grin: .

Like I said it is still in thought process and extensive research.

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## SilverNodashi

I should have said this before.... Don't use USA / UK / EU based merchant accounts. There are many South Africa payment gateways that will cost you roughlt R1 + 4%-6% per transaction, and some of them don't even have setup fees. With Netcash, for example, you don't even need a merchant account

You can try Mygate / Paygate / Netcash / VCS / Ivery, to name but a few. 

Check this forum for more indepth info: http://www.webhostingtalk.co.za/forumdisplay.php?f=22

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## RKS Computer Solutions

Can anyone elaborate on pricing for Netcash, why have a corporate website to promote your product and then not give info out on your costs.. When I spoke to MyGate a long time ago, they changed their site within 48 hours to show pricing, why can't other companies show their prices?

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## daveob

from my experiences, Netcash credit card costs are 5% plus R1 per transaction.

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## Chatmaster

Riaan how does RKS do their online transactions? EFT only?

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## RKS Computer Solutions

EFT, cash deposit or cheque, but cheque clearance times need to taken into account.  We used to be able, when payments were cleared by the bank before 9am in the morning, to get shipments to clients in Gauteng that very same day, but alas things not under our control has changed and thus we had to move it to next day delivery in Gauteng.

Rest of the country is still on 2 day delivery, and in extreme case (think small town in the middle of nowhere) it takes 3 days...

Funny enough, when I get stuff shipped to me directly, it's also next day, so the guys are really doing what I need them to do!

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## NETCASH

Hi there
Yes *netcash* offers a range of services which includes debit order, EFT payment and Credit Card services (terminal and gateway), and Credit validation services.

WRT _"Originally Posted by Karenwhe  
Last I checked you were not allowed to discount for EFT or vice versa, increase price for Credit Card. Maybe I am wrong, but there used to be some rules in regards to this. I am not sure what is going on now, maybe that has changed, or I was given the wrong the advise at that time."_

That is correct. Banks do not allow that their merchants charge costs of transactions to the end user. Thus it is illegal and against your merchant agreement to increase pricing if someone pays by i.e. credit card. There are several merchants that do this and if 'caught' stand the chance of losing their merchant account at the banks...

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## Dave A

Welcome to The Forum SA and thanks for clearing that up.

I have a question, though.



> Banks do not allow that their merchants charge costs of transactions to the end user. Thus it is illegal and against your merchant agreement to increase pricing if someone pays by i.e. credit card.


If a merchant gives a *discount* for paying by a certain method, for example for payment by cash, would that be a contravention of the merchant agreement?

Another one I see a fair bit of is a discount for paying by debit order.

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## IanF

> That is correct. Banks do not allow that their merchants charge costs of transactions to the end user. Thus it is illegal and against your merchant agreement to increase pricing if someone pays by i.e. credit card. There are several merchants that do this and if 'caught' stand the chance of losing their merchant account at the banks...


Netcash
Hi Netcash
Are there any rules regarding minimum amounts?

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## Chatmaster

Now this is one person that should have joined a looooong time ago! You have no idea just how welcome you are NETCASH!

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## daveob

Welcome Netcash - My super hero debit order processing and credit card gateway provider !!

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## eitai2001

I wish I could use a Super Merchant ... but its not going to happen. From my research, it takes from 7 - 14 days to get the money that has been paid to you by credit card (Whereas I need it immediately to buy the products and send them). Also, I will be marking up some items such as laptops as low as 4%, so I will be making a loss (I do not want to show the higher price and then discount for cash, because then I will seem expensive). If you have an online computer or electronic business, and you don't have a brick and mortar store ... then I think a super merchant is a bad idea for you. If you are selling non-physical goods, or you keep the goods in stock, then it should be fine.

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## NETCASH

Hi there all !

I am going to try and answer all in one post.

There is no problem with giving discount for i.e. cash payment. The issue comes in where some merchants advertise a price lets say R 10.00 for a pen. Then if you pay by credit card they want to charge you x% extra for paying by Credit Card...
The rules state that what ever price you are advertising - you have to charge that price... Thus you may not charge MORE is someone pays by credit card. 
The flip side of the coin is that some merchants increase all the prices by ie. 3% and offer discount if you are paying by EFT/CASH. Nothing wrong with that. You must just not increase an advertised price if someone pays by credit card to cover your costs. Remember that unless you have 'cash turnover' you might also incur cash deposit fees...

There are no 'rules' WRT minimum amounts - some guys prefer to not allow purchases for smaller amounts (ie. less than R50 must be cash) only to cover their costs WRT the credit card transaction. This (in my personal opinion) is a bit unfair towards the consumer though. The cost per transaction is *usually* a per transaction fee and a percentage fee - sometimes only the one or the other (mostly the % value as commission). All depends on how you have negotiated...

eitai2001  - I agree but all depends on how you negotiate - industry standard is 10 days but depending on volumes and values you can be settled even the next working day...

Thanks to _Chatmaster_ and _daveob_ - hope that we can make some positive contribution here.

Kind regards

Donovan @ NETCASH

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## Dave A

Thanks, Donovon. That certainly cleared up my queries very well.

BTW - Do you guys also handle debit orders?

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## IanF

Donovan
Thanks for explaining to us these things. Just on the minimum purchase I shall try and defend my stand. In my shop we probably do 6 transactions a week. So when someone wants to spend R20 and put it on the card it is not worth the hassle ITO filing and keeping slips for future queries. We have a minimum charge of R35 for credit cards. If the bank says this is not allowed I will change to a minimum sale amount which is waived for cash. We mainly serve companies and not consumers.



> There are no 'rules' WRT minimum amounts - some guys prefer to not allow purchases for smaller amounts (ie. less than R50 must be cash) only to cover their costs WRT the credit card transaction. This (in my personal opinion) is a bit unfair towards the consumer though. The cost per transaction is *usually* a per transaction fee and a percentage fee - sometimes only the one or the other (mostly the % value as commission). All depends on how you have negotiated...

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## SilverNodashi

> Hi there all !
> 
> I am going to try and answer all in one post.
> 
> There is no problem with giving discount for i.e. cash payment. The issue comes in where some merchants advertise a price lets say R 10.00 for a pen. Then if you pay by credit card they want to charge you x% extra for paying by Credit Card...
> Kind regards
> 
> Donovan @ NETCASH



Hi Donovan, and welcome to The Forum SA. 

I have a query for you on this. IF you're not allowed to charge more than what you advertised, what about people who advertise their prices without VAT, and then billing with VAT added?

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## Dave A

Somehow, I don't see that as a payment method problem - more an advertising or tax issue.

Ultimately, if the advertiser doesn't have a notice pointing out that the price is excluding VAT, by default it means it is inclusive of VAT and you can insist they treat it as such.

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## Karenwhe

> I have a query for you on this. IF you're not allowed to charge more than what you advertised, what about people who advertise their prices without VAT, and then billing with VAT added?


I believe that one must by law advertise if it is EXCL or INCL Vat. Of course I can be corrected on this. I think you can show the number with and without VAT, but state clearly and not mislead in any way in the advertising.

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## IanF

You must either advertise with VAT or with both with and without VAT See ASA Ruling 


> I believe that one must by law advertise if it is EXCL or INCL Vat. Of course I can be corrected on this. I think you can show the number with and without VAT, but state clearly and not mislead in any way in the advertising.


 :Wink:

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## NETCASH

Yes DaveA
We do handle debit orders against bank- and credit card accounts as well..
I am not an expert on tax law and VAT - better get an expert in that field to explain the finer detail...
As far as I know : You can advertise a price without VAT as long as you include "excl VAT or PRICE EXCLUDES VAT" etc. Wholesalers usually advertise "ex Vat" pricing. Retailers on the other hand advertise pricing including VAT. It's much of a muchness - as long as you stipulate the terms (incl / excl).

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## Dave A

I've taken a closer look at sections 64 and 65 now.




> 65     Prices advertised or quoted to include tax 
> 
>           Any price advertised or quoted by any vendor in respect of any taxable supply of goods or services shall include tax and the vendor shall in his advertisement or quotation state that the price includes tax, unless the total amount of the tax chargeable under section 7 (1) (a), the price excluding tax and the price inclusive of tax for the supply are advertised or quoted by the vendor: Provided that-
> 
>           (i)      where the price inclusive of tax and the price excluding tax for a supply are advertised or quoted, both prices shall be advertised or quoted with equal prominence and impact;
> 
>           (ii)      price tickets on goods need not state that the prices include tax if this is stated by way of a notice prominently displayed at all entrances to the premises in which the enterprise is carried on and at all points in such premises where payments are effected;
> 
>          (iii)      the Commissioner may in the case of any vendor or class of vendors approve any other method of displaying prices of goods or services by such vendor or class of vendors during a period approved by the Commissioner which commences before and ends after the commencement date or, where the rate of tax is increased or reduced, the date on which the increased or reduced rate of tax takes effect;
> ...


That seems clear enough.

Frankly, I don't see that Section 64 has any relevance to advertising. That is about how prices are disclosed on the tax invoice. And we have to submit a pro-forma tax invoice to SARS when making application for registration as a VAT vendor. Essentially, acceptance of the pro-forma by SARS makes the format you presented legally acceptable.

Perhaps the only note on that point is if you change the format of your tax invoices, it might be an idea to submit an updated sample to SARS for approval - just to CYA.

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## Chatmaster

> Yes DaveA
> We do handle debit orders against bank- and credit card accounts as well.


Can you perhaps explain in more detail how the debit orders work? I am planning a new venture that will include debit orders.

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## NETCASH

> Can you perhaps explain in more detail how the debit orders work? I am planning a new venture that will include debit orders.


I will send you a PM with the details - do not want to 'spam' the forum. Anyone else want info please visit http://www.debitorder.co.za/moredetail

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## Snoopy_inc

I see that noone has mentioned the all going question.... What happens when there is fraud.... granted the monies are insured but what is the procedure with Netcash and how do you handle claims.... take Eitai for instance... he says he cant wait for monies.... what happens when there is fraud?  Does the company pay out? and what kind of waiting period are you looking at?

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## NETCASH

Hi there
All card transactions have a 180 day "charge back" time. This means that any transaction can still be returned with a legal (ie fraud) claim being lodged within 180 days from processing such. Debit orders however have a 40 day "return time".
What this basically means is that if a dispute is lodged within the time frame - the transaction can still be returned - even after a longer period of time; but you have to make the bank/merchant aware of the legal 'dispute' within the time frame.

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## Snoopy_inc

Thanks for the info.

The other half of the question was how long once a claim has been submitted does one receive the monies for the claim?

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## NETCASH

Hi there

This depends on the claim and if it will be settled... Each case has its own merrits.

I really can't say.

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## Snoopy_inc

You see this is my only concern with going with CC transactions.  If i have an amount of 500,000.00 processed and its fraud... i cant twiddle my thumbs waiting for 40 days till it gets returned to me.

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## NETCASH

True Snoopy inc

But that is why you have what is known as 'line amount' / 'item processing' limits which you can setup... Transaction values larger than your limits can be "blocked" for authorisation.
This will limit your risk to a certain extent but the reality still remains... Your money is only as secure as your most reliable client. All Credit Card Processing has a certain amount of risk.

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## SilverNodashi

> You see this is my only concern with going with CC transactions.  If i have an amount of 500,000.00 processed and its fraud... i cant twiddle my thumbs waiting for 40 days till it gets returned to me.


That is a problem you're gonna have regardless of who you choose to be your payment gateway. Fraud is fraud. I'd suggest for that sum of money that you run a credit check on the person before finalizing the deal. If you look at the processes outlined by Master Card, VISA, Diners & American Express, you'll see it's roughly the same as being used by our banks & payment gateways

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## NETCASH

> Hi.
> 
> I am looking at accepting credit cards on my online shop.
> I haven't got a merchant account, so I was looking at either mygate.co.za who have a supermerchant account, pricetag.co.za or setcom.co.za ... which one would you guys use.
> I see pricetag's maximum is 5.7% but I'm not sure how good they are with graud detection, but they offer negotiable rates once you achieve over 40k a month.
> Mygate is 6%, and they have a fraud module, but I'm not sure if they are negotiable.
> What are my risks ITO fraud with these providers ... and do you know how much they refund you in case of a charge back?
> Also, how long does it take to access the funds from these gateways as I need the funds to purchase and send the products.
> Do you guys think that customers will object to paying 3% extra on the fees to use a credit card, otherwise in some cases, I will make a loss.
> ...



have you looked at what Netcash has to offer ?

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