Since payment gateways took form in 1998, e-commerce companies have not had much choice in pricing.
"MyGate's new tariff charges a flat rate for online credit card transactions and does not take a percentage of the rand value of the transaction", says Managing Director Dan Edmiston.
Traditionally, payment gateways charge R1.00 per transaction plus .05% of the value of the transaction. On larger value transactions this can add up to quite a hefty cost. A single transaction with a value of R1000.00 costs the merchant R6.00 on a traditional pricing model compared to R1.30 with MyGate's pricing. This new tariff structure can provide up to 75% savings on traditional payment gateway pricing.
Edmiston believes that, because the merchant is already getting charged a percentage of each transaction from the bank, they should not be penalized further by percentage based billing from a payment gateway.
"We expect to see many ecommerce companies changing payment gateway providers with pricing becoming competitive, especially bearing in mind the simplicity of change-over," said Edmiston.
The MyGate platform integrates into programming languages such as Php, .net, Cold Fusion, OS-Commerce, Ruby, Flash and Zen Cart allowing a seamless migration.
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