Read this before you sign-up: https://www.12epay.com/buybuttons/NewRegistrationStep2.aspx

If you review the terms and agreements of BuyButtonz, you’ll find a few clauses which are detrimental to SMEs / sole-proprietors. This is especially so for companies who are in need of immediate cashflow from products sold.

4.1: When CHAINFUSION completes the Payment Processor Gateway Services step, payment via acceptable financial instruments (GIRO) with GIRO charges deducted, to the Merchant from sales for the first thirty (30) days during the current month in their stores will be made after fifteen (15) business days of next month. Confirmation of payment amount is via eMail, and payment will be delay if confirmation is not received within seven (7) business days of next month. All Customer Purchase Order value is NETT of any transaction fees due to CHAINFUSION with GST, and Logistical charges for services rendered as set forth in 5.3 (Transaction Fees).

What does it mean?
I pay you now, you won’t see the money till the 15th of next month. And you have to confirm the acceptance of the money via email - otherwise the money’s gone.

4.2: There will be a retention period of 6 months and the minimum security deposit is calculated at 10% of the previous 6 months sales undertaken through BuyButtonz payment services.

What does it mean?
I pay you $100, they keep a MINIMUM of $10 for 6 months. So you only see $90. If your profit margin is less than $10 for the item, then you’re screwed. You have to sell the item at a loss for 6 months - then you can get back the money - assuming you are still around in 6 months to claim it back.

5.2: Merchant shall pay CHAINFUSION a “Merchant Discount Rate (MDR)” for each product ordered by the Customer at the rates of 3.85% plus S$0.50 of the ordered sales price for credit card and S$2.00 for Internet Banking. This fee is applicable for all transacted amount and will apply even when the amount is subsequently reversed, due to the request of the merchants. Methods of payment will be from direct deduction from proceeds of sales from Merchant’s Store. This fee is subject to GST as well as changes and any changes will take effect 30 days after written notice to the Merchant.

What does it mean?
On top of having your money locked up for 6 months, you paying a transaction fee of a fixed amount of $0.50 + 3.85% (ie. for a $100 item, you have to pay them $3.85 + $0.50 = $4.35). In total, you will only get back about $85 (minus the $10 security deposit). Even then, you only get to see your $85 on the 15th of the next month.

HONESTLY!

I don’t blame ChainFusion for these rules - but i am pissed cos they don’t make these costs transparent. It all sounds a bit like a deliberate tactic to get unsuspecting bloggers to sign-up to their deal. How many of us actually read the terms and condition before signing up?

This is really the kind of e-payment environment we live in here in Singapore. Those rules above are really set up by eNets to ensure credible merchants use their service. Albeit, the rules for eNets itself is a whole lot more stringent - eNets will keep 33% as a security deposit.

I admire what Chain Fusion is doing - lowering the cost of e-Payment. However, i suspect many merchants won’t like the idea of having their funds locked up like that for an extended period of time - especially so when you don’t tell them about it up front about the hidden costs.

Michael