NYCPHP Meetup

[Cliff Hirsch]

> I guess I'm not clear on who that is, and how to set that up. I know my
> client has a merchant
> account with Soveirgn Bank. My client is a 35 year old business, so I'm sure
> they have
> good rates.
> 
> So we want Authorize.net to transfer the funds to Soveirgn when the CC
> charge is completed.

If Soverign also serves as the payment processor and issues your client a
merchant account #. Most brick and mortar banks will also serve as payment
processors with the usual higher than market rates that brick and mortar
banks usually have. There are lots or payments processors. If you google the
term, you will see a zillion listings. Understand that most if these are
ISOs -- yet another layer of complexity.

An ISO (independent service organization) is just a sales rep for a merchant
bank.

Easiest way is to either get a merchant # through the client's bank or
through the shopping cart provider you will be using. Just get it -- don't
worry about rates unless you have a very low margin biz. The quoted rate is
B.S. anyway. Ideally you want a cost+plus rate, meaning Interchange + the
processors markup (typically 25 cents) + the gateway fee, which is usually
5-10cents per transaction. But for symplicity, just get it and don't worry.