CyberSource Corp.'s online payments subsidiary, BidPay.com Inc., has reduced its rates for processing online transactions.
The Highlands Ranch, Colo., unit said Thursday that it now charges 2.19% of the transaction price, plus a base fee of 25 cents, for domestic transactions, down from 2.5% and a 50-cent base fee. For international orders, it now charges 2.9% plus a 25-cent base fee, down from 2.9% and a 50-cent base fee.
"The auction market … is dominated by higher-cost payment options that dramatically cut into seller margins," David Hansen, BidPay's president, said in a press release. "Lowering processing fees for our customers helps them grow their businesses and expand their margins."
The fee cuts come after the introduction of online payment services by Amazon.com Inc. and Google Inc. that rival those of PayPal Inc.
PayPal charges 2.9% of the transaction price, plus 30 cents, for transactions up to $3,000. Amazon charges the same for card payments of $10 to $3,000, and it charges 2%, plus 5 cents, for automated clearing house transactions of any size. PayPal's rates and Amazon's card rates get lower at higher transaction amounts.
Google's service is free until yearend, and users of its AdWords online advertising service can get some free transaction processing next year. Outside of those incentives, it lists its 2008 rate as 2%, plus 20 cents per transaction, and only allows card payments.
