GWAAAA Why is this still being discussed? It's not going to happen, please see this thread in which caker replied:
pclissold wrote:
It's not going to happen. See
this thread.
Not only are there resource issues to consider, but pricing issues.
[WARNING: Speculation and ranting ahead]
Processing credit cards over the internet costs more than physically swiping the cards. Keeping cards on file and processing them at a later time costs yet even more. The more risk of fraud the higher the cost.
Now, Linode may be using a 3rd party company that keeps everything on file and does the billing and who has an API so you can go through the Linode Manager to maintain your CC information and that may reduce their costs. I don't know for sure what Linode does. But below is some information for those of you who don't process credit cards and don't know about this to consider:
For every credit card transaction there is a fee for just swiping the card, plus a transaction fee that's a percentage of the total sale. Yes the retailer is paying the credit card processor on top of you paying the retailer sales tax (if you're in a place that charges sales tax).
I wouldn't be surprised if Linode is paying $0.25 (for "swiping" the card) + 3% of every transaction, possibly more depending on which card. Visa and MC typically cost the same. Discover is usually a little more and AMEX is usually the most expensive (by far). Though in my experience AMEX has a lower swipe fee and a higher percentage and depending on your processor, AMEX may be cheaper to process for smaller charges (less than ~$10).
Just using those numbers and their $19.95/mo price for the 360. They're paying $0.44 per every 360 customer per month. That's 2.2% of the total. Lower that price point to $9.95 and they're paying $0.35 per transaction, that's 3.5% of the total.
While that may not sound like a lot to you guys, it adds up big time. If they fall below the $19.95 price point, their profit starts to get eaten into even more than it already is with credit card transaction fees. This is why you see a lot of your tiny ma-n-pa shops require a minimum of $5 purchase to use a credit card, or "cash discounts".
Those places you go where there is a tip line, easily pay double the amount of fees than what the retailer who doesn't have a tip line pays.
I'm very surprised and happy with the level of service at Linode for their price points. It's not going to be beat by anyone out there. Find a cheaper (less expensive) provider and you're going to have much lower-quality of service. Heck, I'd be surprised if most can even provide the level of service Linode does at Linode's price points or even higher. Linode is one class act for sure.
If you want cheaper service, go to a cheaper provider and get what you pay for
Oh and if you're one of those people who use your debit/credit card for a $1.50 transaction at a small ma-n-pa, independent type shop, STOP IT. You're KILLING them. Depending on the product and their margins, you may have just cost them money.
If the shop you're at is a place paying for one of those check verification systems (every major grocery store for example) where they scan your check and debit it from your account almost instantly, it's not a lot different than processing credit/debit cards. Every check your write costs them money. Just use your debit card, the ONLY thing you're accomplishing by using a check is slowing down the people behind you and not doing ANYONE a favor, including you as you can't float the check anymore.
And what's the cost to process cash you ask? ZERO.