Understanding Credit and Debit Card Charges
Online card payments will always incur considerable costs - unfortunately there is an unavoidable collection of fees from credit card associations (eg. visa), banks, merchant account providers and payment gateways.
Here, we explain online card payments, their associated fees, and outline how teamo can provide you with an online payments interface to handle club memberships, socials and other expenses and give one of your volunteers their life back!
Who is involved?
Introducing online card payments into a business of any size brings great reliability and convenience but it is not cheap. If you are to build an eCommerce system from scratch you firstly have the cost of a website with all the infrastructure to collect and report on payments, then you must set-up a merchant account with your bank who will charge you 1-4% depending on numerous factors from card type to PCI compliance. On top of this, you also need a payment gateway provider who will charge either a monthly flat fee or anything from 5p to 30p per transaction depending on monthly volumes. Click here to learn more about card processing fees.
Avoiding high costs
To combat the high fees that banks are charging, there is a new influx of card processing handlers e.g. Stripe and Paypal. These online payment services are providing solutions that use online accounts vs directly dropping money into your current account.
|European Countries||Non-European Countries|
|PayPal||3.4% + 20p||4.4% + fixed fee (2.9% + $0.30 in US)|
|WorldPay||2.75% + 20p||2.75% + 20p|
|Stripe||1.4% + 20p||2.9% + 20p|
Stripe is easily the cheapest and provides the best available experience for our customers, hence why teamo has partnered with them. Their rates in Europe are 1.4% plus 20p per transaction (2.9% plus 20p for non-European countries). teamo then adds all the convenience of membership handling, communication and reporting. teamo only takes 1% (min 5p) with our basic package which takes the transaction fee to 2.4% plus 20p per transaction, or 0% if you are on a Premium Package. Please get in touch with the Support Team if you are interested in a Premium Package option.
Benefits of teamoPay
Despite the inevitable fees, using a central, easy to use automated system such as teamo brings a number of benefits that hugely outweigh the costs:
- The convenience and automated nature of the system means that you will miss less payments from your members - this will almost certainly recover your transaction costs or better! If teamoPay prevents you losing just one ï¿½10 payment, your fee is covered more than 20 times over.
- Your treasurer will get their life back! No more need for hours spent on various spreadsheets and chasing up on memberships and match fees.
- Your members will benefit from the convenience of one click card payments and/or automated payments. No need to remember cash for match fees or to send in a cheque to cover subs.
This makes teamo the most cost effective platform for a amateur club to facilitate card payments. If you have any questions regarding card charges or would like to receive a quote for a Premium Package, please get in touch with the Support Team.