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Ecommerce Forum

    
paypal / credit card / moneybookers
is it important?
FridayNight




msg:3784028
 11:40 am on Nov 11, 2008 (gmt 0)

i plan to accept money on the website. what do you think would be best to support?

actually i have two questions:

1) i guess i have to add paypal for sure but is moneybookers (or something else) important too? if paypal accounts for 95% then i wouldnt bother with anything else.

2) how important is to offer credit card payments? do you think most people will pay from paypal account and i dont have to accept credit cards?

i would really like to start with paypal only and not spend too much time implementing other systems.

what do you think?

 

thorsten iceland




msg:3784258
 5:41 pm on Nov 11, 2008 (gmt 0)

FridayNight,

Many people start with PayPal because they are familiar with its brand, and for many the fees seem okay. Further, it can be difficult to get a merchant account for a new business without a processing history.

However, you should add direct credit card acceptance as well. Bear in mind the following (at the time of writing):

Paypal - 153 million accounts.
MoneyBookers - 5.8 million accounts.
Credit cards issued (USA) - > 1.5 billion cards.

Customers don't like registering for anything, particularly not PayPal. If you are selling products with a large potential sales demographic direct credit card acceptance is a must*.

In general, if you have a site that does not allow direct credit card acceptance, you are losing 30%-40% in sales compared with offering PayPal or MoneyBookers alone.

Whilst it's true that adding PayPal or MoneyBookers to a site that already accepts credit cards directly can increase your sales, it is also true that for mainstream products with a broad potential sales demographic you are definitely losing a lot of sales if you accept PayPal and MoneyBookers only.

You may find these threads useful also:
[webmasterworld.com...]
[webmasterworld.com...]

*PayPal recently started allowing Website Payment Standard merchants to accept orders from customers who are not registered with a PayPal account. However, what PayPal do not tell you is that the risk of fraud is entirely on your shoulders as a merchant.

(At least with Verified PayPal accounts there is a certain speed bump against fraud as customers have verified that they at least have access to the credit card statement or bank statement.)

That is not true of this new method. You have liability for fraud and also chargeback fines which PayPal passes on, and no way to control that risk by way of an authorization form, etc. as it is not your merchant account, but PayPal's, that is being used.

One reason that PayPal's fees are so low in comparison to other methods is simply that they have a high level of automation. It is very difficult to get hold of a human if you have problems, your account is frozen or limited, or if you need to try and challenge a chargeback dispute.

webcenter




msg:3785888
 8:32 pm on Nov 13, 2008 (gmt 0)

You use also Checkout by Amazon , Amazon Simple Pay & Amazon Flexible Payments Service.

FridayNight




msg:3790011
 10:47 pm on Nov 19, 2008 (gmt 0)

i am still deciding how to move on. i have checked many web services that offer cc charging but i dont know which one to pick!

i need to get below %6 per transaction and as i can see everyone (except paypal) will charge me from 7-10%.

ccbill
2checkout
moneybookers

who could you reccommend?

i need something what is EASY TO IMPLEMENT and that they can be trusted. low % is a plus! help...

Corey Bryant




msg:3790795
 8:53 pm on Nov 20, 2008 (gmt 0)

What country are you in? This is vital to know in responding to this type of question.

dpd1




msg:3795667
 11:27 pm on Nov 27, 2008 (gmt 0)

The main problem with PayPal is people's perception of it... I've used it exclusively for sales for over 8 years and haven't had a single thing go wrong out of thousands of transactions. As mentioned, they now accept cards pretty much the same way as anybody else. You don't have to be a member to make a payment. Yet, for some reason, some people just refuse to understand this. I'm not sure why. I have it written all over the site that this is the case, and also tell people when I setup individual payments for custom orders... yet some people still have a problem understanding. It's like they have a mental block or something. People will put in their information on a normal shopping site no problem. But ask them to put the same exact information into PayPal, and they act like it's somehow different. If anything it's safer, because the person receiving the payment doesn't see any card info. I'm reluctant to add another payment method, because frankly, I feel like it's a waste of time and money when we already have one that works fine. For the few people that refuse to understand, it's not worth changing everything just for them.

Just one of those weird things with customers I guess.

MWpro




msg:3795752
 3:44 am on Nov 28, 2008 (gmt 0)

*PayPal recently started allowing Website Payment Standard merchants to accept orders from customers who are not registered with a PayPal account. However, what PayPal do not tell you is that the risk of fraud is entirely on your shoulders as a merchant.

I disagree. PayPal provides protection for those whose billing address is confirmed--that is, their billing address is identical to their shipping address. This is true regardless of whether they have a PayPal account.

dpd1, to solve this problem, I have a "PayPal Info" section right before they are sent to PayPal. It informs them of how safe PayPal is, and also that they don't need to have a paypal account to continue. I took a picture of the initial PayPal checkout page and in photoshop I circled the "Continue" link that they have to click if they don't have a paypal account. I only offer Paypal and Google Checkout and I have had no issues to date.

[edited by: MWpro at 4:33 am (utc) on Nov. 28, 2008]

piatkow




msg:3795880
 9:41 am on Nov 28, 2008 (gmt 0)

The OP still hasn't given us a location. For a UK site with a low rate of on-line payments I use Nochex as it is marginally cheaper than PP, scrapped mandatory sign up long before PP did and offers chargeback protection.

dpd1




msg:3796344
 12:54 am on Nov 29, 2008 (gmt 0)

Thanks MW... I actually have text explaining what the deal is right above the payment button for each item. You'd think that would be enough, but I guess not. Your screen shot showing the button is a good idea though.

thorsten iceland




msg:3816039
 4:47 am on Dec 30, 2008 (gmt 0)

MWpro wrote:
I disagree. PayPal provides protection for those whose billing address is confirmed--that is, their billing address is identical to their shipping address. This is true regardless of whether they have a PayPal account.

With respect, PayPal's protection for sellers is extremely limited.

The only thing that comes close to what you seem to imply is 'Expanded Seller Protection' but that is only for eBay PowerSellers (and then only the UK, US, Canada and Hong Kong to begin with). It is not for general sellers outside eBay.

The following is the reality for general online sellers, taken from PayPal's own Chargeback FAQ*:
"Q: If a seller amicably resolves a PayPal dispute or wins a claim, is the seller covered against chargebacks?

A: Yes, if you amicably resolve a dispute through the Resolution Center, Paypal will protect you 100% against any future claim, chargeback or bank reversal the buyer may file for that transaction.

To be covered, however, the seller must honor agreements made with the buyer during the dispute resolution process. And, if the chargeback comes in before the dispute or claim is resolved, the seller will not be covered.
...
Q: Does PayPal dispute every chargeback with the buyer's credit card company?

A: PayPal reserves the right not to dispute a chargeback even if the seller has provided some evidence, particularly if PayPal believes the dispute is not likely to be successful.

PayPal's business model is based on a low cost, highly automated model. They care about throughput, not your individual transaction. If they believe they will lose the chargeback re-representment they just won't bother to challenge the chargeback.

PayPal has a certain amount of power to ostracize people who chargeback against them, but mainstream customers won't be too concerned about that because they will just stop using PayPal, and buy from any of the other competing sites to that online seller that accept credit cards directly.

*https://www.paypal.com/us/cgi-bin/webscr?cmd=xpt/cps/securitycenter/sell/ChargebackFAQ-outside

devsie




msg:3819481
 2:41 pm on Jan 5, 2009 (gmt 0)

"Yet, for some reason, some people just refuse to understand this. I'm not sure why. I have it written all over the site that this is the case, and also tell people when I setup individual payments for custom orders"
This is because people are stupid and do not read/listen. :)

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