Payza is charging high fees on the personal payments? Unbelievable!
We don’t know what donation means in nowadays for all of you but we are rest assured that for Payza it means “I’m charging high fees”. We just got a report from a user that received from us a small single payment flagged as donation and all of a sudden the user was charged with a very high fee of 3.90 % + $0.59 USD for receiving our funds. Out of the $1.10 received $0.47. This is a $0.63 fee for a small payment flagged as donation. This concerns the Personal pro account holders because the personal starter account holders are not charged for receiving funds.
Looking at the fees’ chart, the regular charge for receiving funds is 2.50 % + $0.25 USD. Scroll down and you will find out a note written with smaller letters:
Note: Higher fees apply to some industries: 3.90 % + $0.59 USD for receiving funds.
What does this mean? Payza (formerly alertpay) treats some industries differently, flagging them as regulated industries and applying on them higher fees. From Payza’s ToS (Glossary sub-section):
This applies to business types that carry extra risk resulting in a higher possibility of chargebacks. Also applies to an account status in which a User’s access to the Services are limited.
Here’s the list of the regulated industries according to Payza’s ToS:
Concentrate on this part:
Please note, some industries may be subject to higher fees than regular and other “Regulated” industries. The fees are applied at the discretion of Payza. Please contact Customer Support for more information.
Firstly, at those who are listed there, clarify if your site is required to pay higher fees or not. GPT industry is falling on this rule and has to pay higher fees.
Secondly, if we follow blindly the payza’s terms we conclude that a single individual is considered as a high risk industry. No, as it appears payza is charging high fees for types of payment that it shouldn’t do (donation).
We have already sent a support ticket and waiting their official response. We are suggesting to double check their ToS before you start doing business using this payment processor.
May 31, 2012 – Update: After 9 days of waiting, Payza hasn’t responded in our support ticket.
June 10, 2012 – Update: After 18 days of waiting, Payza responded with quotes from their FAQ. Not a clear explanation is provided. We responded back and waiting again.