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Handbook of Business Procedures

Web Credit Card Cost Worksheet


Fields labeled with star next to them may require information from you, if applicable, from your department. All other fields will be auto-calculated. After completing this form, print it and attach it to your request for a merchant account.

Since much of the information requested must be estimated, departments are not expected to meet the exact business costs and profits entered. The purpose of filling out this form is to help departments learn about the costs associated with starting and maintaining an online business, as well as documentation for Internal Audit and the Controller's Office that such costs have been considered by the department.


Step 1. Calculate average gross sales for 1 month

Enter the average number of web credit card transactions you expect your business to process in one month, as well as the average amount per transaction and the percentage of sales tax to be charged per transaction (if any). Gross sales receipts will be calculated automatically.


Step 2. Select credit cards your department will accept for payment

Fill in the percentage for each kind of credit card. For example, if you are only accepting MasterCard/Visa, type in 100 for MasterCard/Visa and 0 for the other 2 card types.

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Step 3. Calculate universal credit card costs for 1 month

You should not need to enter anything in this section - it should have been calculated for you automatically as you filled out Step 1 and 2. The costs in this section apply to all credit card transactions, not just web credit card transactions.

Step 4. Calculate initial setup/technical cost

This section of the form is for costs associated with setting up the initial business on the web.

Step 5. Calculate monthly online business cost

This section of the form is for costs associated with doing business on the web. (These costs vary based on which vendor you are using to process credit card transactions - you need to find the exact prices that your vendor charges to get a good estimate of the cost of accepting online payments.

You will need to enter most of the information in this section (except for the total transaction fee, which will be calculated automatically).


Step 6. Total cost and benefit for accepting online payments

You should not need to enter anything in this section. It is calculated automatically for you.

 

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   Updated 2010 March 22
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