homepage Welcome to WebmasterWorld Guest from 54.234.0.85
register, free tools, login, search, pro membership, help, library, announcements, recent posts, open posts,
Pubcon Platinum Sponsor 2014
Home / Forums Index / WebmasterWorld / Ecommerce
Forum Library, Charter, Moderators: buckworks

Ecommerce Forum

    
making the jump -- leaving PayPal
MWpro

10+ Year Member



 
Msg#: 3971571 posted 11:51 pm on Aug 13, 2009 (gmt 0)

Ok so I am hoping for a basic outline of what abandoning PayPal as our primary form of payment would mean. The reasons for this are to cut down on processing fees as well as to keep everything on the same page and give our website a more professional feel.

This is what I know (or my assumptions) so far:
1) I would have to sign up for credit card processing at my business's bank. After getting an order through my website I would have to manually charge the credit card through some kind of interface my bank offers?

2) I would have to create an online order form for my website and hook it up to my simple custom-made shopping cart. I would need to get an SSL Certificate. When customers submit the order form, their information could be emailed to me or stored in a database (I'm on a shared server, is this an issue?) so that I could manually access it and charge the credit card.

3) For shipping, I could keep using PayPal's Multi-Order Shipping function and just import the orders, or alternatively I could sign up for stamps.com or a similar service.

Please correct me if anything is wrong. Also, is there anything I am missing? Thanks.

 

jbinbpt

WebmasterWorld Senior Member 10+ Year Member



 
Msg#: 3971571 posted 12:54 am on Aug 14, 2009 (gmt 0)

We are incorporating PayPal into our system for the same reasons. We have been processing cards on the side and are getting killed on the fees. Our testing with Paypal, so far, is resulting in lower charges.

As far as PayPal looking unprofessional, I am surprised how many are actually using it. Since it's a niche market, it's not increasing sales, but customers like it.

Jax_Music

5+ Year Member



 
Msg#: 3971571 posted 2:48 am on Aug 14, 2009 (gmt 0)

Hi. Many shopping carts and payment processors work over the web without you having to access and manually process it. You also do not have to have your own SSL, you can operate under your hosting companies SSL. Although you are talking about leaving Paypal, Paypal does offer professional merchant option that will allow you to process credit cards too. Google Checkout is another option. Best, Jack

webtress

10+ Year Member



 
Msg#: 3971571 posted 6:04 am on Aug 14, 2009 (gmt 0)

There would still be fees involved, which could include per transaction, monthly fees, cancellation fees. Do check the fine print.

1) I would have to sign up for credit card processing at my business's bank. After getting an order through my website I would have to manually charge the credit card through some kind of interface my bank offers?

What about the encryption of the card numbers and sensitive customer information being stored in your database - you might want to do a search on PCI compliance before jumping into that boat.


2) I would have to create an online order form for my website and hook it up to my simple custom-made shopping cart. I would need to get an SSL Certificate. When customers submit the order form, their information could be emailed to me or stored in a database (I'm on a shared server, is this an issue?) so that I could manually access it and charge the credit card.

MrHard



 
Msg#: 3971571 posted 6:58 am on Aug 14, 2009 (gmt 0)

Another PayPal thread...

topr8

WebmasterWorld Senior Member topr8 us a WebmasterWorld Top Contributor of All Time 10+ Year Member



 
Msg#: 3971571 posted 7:19 am on Aug 14, 2009 (gmt 0)

the simplest way is this:

get a merchant account (doesn't need to be with your bank)
get a gateway service (your merchant account provider might recommend a gateway)

normally you would save the shopping cart details on your site/database before sending the customer to the gateway to process the card, you receive some sort of automated response from the gateway letting you know if the transaction was a success.

unless you are very high volume you may be disappointed in the savings over paypal, fees you will pay are (possibly/probably):

monthly fee to merchant account company.
per transaction fee to merchant account company.
monthly fee to gateway company.
per transaction fee to gateway company.
set up fee for both.
extra fees for each extra currency you accept - normally a different merchant account per currency.

you could do everything on your own server however if you don't know what pci compliance is then it is probably not for you!

you are unlikely to be able to keep everything on the same page, but different set ups work in different ways.

merchant account will normally be just visa/mastercard, you'll need to set up an account with amex too if you want(but it will work through the same gateway)

there are a couple of companies that provide an all in one service, like for instance SagePay - who i haven't used but i considered when they were protx - you might want to check them and their like out.

MWpro

10+ Year Member



 
Msg#: 3971571 posted 7:39 am on Aug 14, 2009 (gmt 0)

Another PayPal thread...

Not really...

Thanks for all the input so far!

HRoth

WebmasterWorld Senior Member 5+ Year Member



 
Msg#: 3971571 posted 10:41 am on Aug 14, 2009 (gmt 0)

You don't need to go through your husband's bank. You could sign up with some service online and probably get the same discount rate. Just be wary of services that want you to accept a contract for 2-3 years. Usually they want some huge fee if you want to cancel it.

You need three leeches, I mean, entities:
*Payment gateway like authorize.net
*Merchant account to take the payments, although nowadays lots of services will pay into an ordinary business checking account
*Payment processor

You don't need SSL and all that unless you are storing the credit cards on your machine, which you most likely won't be doing. Usually for smalltimers payment processors want the customer to interact directly with the gateway. That means you don't see the card number. But they will also offer the ability to take cards over the phone or through the mail and input the info yourself through a virtual terminal--a web page.

topr8 forgot some of the fees.

*monthly account fee to bank
*AVS verification fee
*transaction fee, which varies depending on the kind of card (cards that offer "freebies" have higher discount rates, and so do international cards, at least, IME)
*batch fee - every time you settle, you get charged. I have my payment gateway to authorize only until I can come through and manually check the transactions to see if I want to run them. THEN I capture, usually every few days. But if your only transaction was a decline that day, it goes through as "captured" and you get charged a batch fee
*monthly fee to payment processor
*monthly fee to gateway
*PCI compliance fee and/or monthly fee if you fail it

When I add up ALL the extra fees, my cost of taking credit cards averages out to be 5% of the transaction.

I take Paypal as well as taking credit cards through the gateway. It's about 20% of my sales. I also offer customers the ability to pay by mail by printing or writing out their cart and mailing in a check or MO. I use Mal's cart, which is pretty good, I think. You pay quarterly and it is very reasonable. You need a bit of html on each page. It takes the customer to a secure server to enter their info, so you don't have to worry about the SSL and all that.

Good luck! When I added the ability to take credit cards, my income quintupled the first year.

Global Options:
 top home search open messages active posts  
 

Home / Forums Index / WebmasterWorld / Ecommerce
rss feed

All trademarks and copyrights held by respective owners. Member comments are owned by the poster.
Home ¦ Free Tools ¦ Terms of Service ¦ Privacy Policy ¦ Report Problem ¦ About ¦ Library ¦ Newsletter
WebmasterWorld is a Developer Shed Community owned by Jim Boykin.
© Webmaster World 1996-2014 all rights reserved