RE: FN-FORUM: Building a site and taking a "fee per transaction"

date posted 20th February 2007 19:01

Hi,
They've managed to move most of their existing cash/cheque clients over
to credit/debit card payments now which makes life easier for everybody.
It would only be a % of these payments that our process processed so any
remaining cash/cheques wouldn't apply. They're pretty open about their
accounts (I'd need to see their accounts and before anything takes
place) and we'd then have a handle on exactly how many transactions per
week they're talking about.

I'll own all the code but obviously they have the right to use it whilst
they're paying. The risks that I see are the costs to implement vs the
payback which I'll be able to check. I'm happy so long as I've got some
payment for the work and that I've got the monthly fees covered. I guess
a 50% "loss" would be the minimum. And I'm intent on covering myself
with directors guarantees etc.

The functionality will form part of our e-commerce suite so it really
just extends the functionality.

Cheers
Andy



-----Original Message-----
From: [EMAIL REMOVED] [EMAIL REMOVED] On Behalf Of Colin
Rainsforth
Sent: 20 February 2007 11:14
To: Andy Macnaughton-Jones
Subject: RE: FN-FORUM: Building a site and taking a "fee per
transaction"


Hi Andy,

At 23:58 +0000 19/2/07, Andy Macnaughton-Jones wrote:
>Hi,
> We've already got the e-commerce engine ourseleves working quite
>happily. If they *just* wanted to take online payments then there'd be
>no real issue. However, they do regular credit card payments for
regular
>(weekly) orders which they then deliver. Presnetly these are done by
the
>accounts bloke sitting at a terminal and entering the details - we can
>build them a system that'll do that all automatically, generate the
>manifest sheets etc., etc. which is what they want.
>
>I know the volume of existing orders already and our solution already
>has a full order management solution - hence the bespoke nature of this
>part of it.
>
>So whether we take payment for one-off orders that are standard
>"e-commerce" or take our cut of the regular "standing order" type of
>transaction doesn't really matter.

Ok. So you will get a % of any credit or debit card orders (but not=20
cash or cheque)?

And the current credit and debit card revenue would be sufficient for=20
you to make back your money in the short term?

>They don't currently do very much to market it online, but for their
>main keywords they're on the first page of google. Offline they have
>regular adverts in the local papers etc.

This sounds like a reasonable bet on the face of it assuming that the=20
current level of revenue has been steady or growing over the last 6=20
months/year and the company isn't about to go under.

What do *you* think the risks might be?

Assuming you will own the code, do you think you could market the=20
system to other companies too?

ColinR
--=20
---------------------------------
Colin Rainsforth, BA (hons)
New Media Consultancy and Design
Web | Print | CDROM

Telephone/Fax: 01300 321 347
UK Local Rate: 0845 838 6790
http://www.rainsforth.com/
email: [EMAIL REMOVED]

--=20
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