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Taking Money on the Net
"If Maximising Sales means: Maximising Payment Methods. Who would you List?
Salesmaster II




msg:620958
 2:52 pm on Feb 6, 2002 (gmt 0)

I Have recently been involved with a discussion on the benefits of "Pay-Pal" -Http://www.webmasterworld.com/forum22/127.htm

A major Pitfall it has, is that your customers must sign up before they buy, taking two days or more.

When questioned by crazy horse why I still had their button, I replied because they apparantly have a couple of million people already signed up who could buy, therefore I didnt want to lower my odds turning away potential customers.

Because of this, it becomes obviouse that Impulse Buying is our number one goal, yet that can only occur if your surfer is already signed up to the same emerchant that you are using to bill him with.

Many people will already have signed up emerchants, yet not neccesarily the one you use. "Bye Bye Impulse Sale".

It therefore also becomes obviouse that to Maximise our Sales, then we must Maximise the number of channels that we use to recieve that money through.

Idealy then, we would have a list of a dozen or so of the more popular pay-methods available next to our products. Allowing our customers to impulse buy with their prefered selection.

With this in mind, who would you include in your list and why?

I will start with the good old favourite..

(1) "Cheques by Post" and the why? - Many older people may be bold enough to attempt surfing, but they are scared of entering credit card numbers in to technology they dont understand or trust. These same people also seem to prefer having a simple order form to print and post.

(2) eCommerce providers:Pay-Pal appear to be one of the cheapest. + = Free -= can take 2 days for customers to signup(Loss of Impulse Sales) yet ++ with millions of people already signed up, some impulse sales would be possible.

(3) "No-Chex" has the same 2 day pitfall, yet obviously has registered clients. (UK market).

 

click watcher




msg:620959
 3:28 pm on Feb 6, 2002 (gmt 0)

well we accept checks in all currencies ... you'd be suprised that it is not just "older" people who want to pay that way.

but if your turnover warrants it why don't you just get a merchant processing account, the cheap way is through any high street uk bank it will cost you #200 to set up (you don't need to bank with them), then get a shared ssl from your host - normally included in a hosting package, and then process the sales manually offline.

this way you can accept all sales directly from any credit card holder without worring about 3rd parties.

if you must then use pay-pal too, as i believe them to be the largest organisation of their type.(we don't advertise it but occasionally i get emailed asking if i accept it - which we do - i have never been asked if i use any other payment scheme other than paypal)

i also give the option for people to telephone or fax their credit card details, and some people like to take this option.

Crazy_Fool




msg:620960
 4:20 pm on Feb 6, 2002 (gmt 0)

but if your turnover warrants it why don't you just get a merchant processing account, the cheap way is through any high street uk bank it will cost you #200 to set up (you don't need to bank with them), then get a shared ssl from your host - normally included in a hosting package, and then process the sales manually offline.

that often costs as much as and sometimes more than worldpay. it also involves having to manually process the payments when worldpay etc process them automatically.

at the point at which using a high street bank merchant account costs less that worldpay etc, you will find that worldpay etc may normally offer better terms to remain more competitive than the high street banks.

Crazy_Fool




msg:620961
 4:29 pm on Feb 6, 2002 (gmt 0)

With this in mind, who would you include in your list and why?

i use worldpay to accept payments in UK Sterling, US$ and the Euro. i could accept other currencies, but i don't. people can pay directly from my website, or they can give me their credit card details be phone, fax, or post.

i also accept cheques and postal orders. a handful of customers have paid me initially by credit card and followed with cheques.

i'm setting up another website within the next few weeks to take donations via worldpay. the site is a worldwide community (bit like this) and people want to pay in various currencies.

as the donations to run the site will be small, i will also be setting up a dialler which people can download and dial for a minute or two to make a very small donation that way. people have said they're willing to use it so why not? maybe they want to con their wives into thinking that the frequent visits to porno sites are really frequent donations to our community??

click watcher




msg:620962
 4:42 pm on Feb 6, 2002 (gmt 0)

worldpay seems fine and i'm not against them, but

i've just looked at their site...
they pay 5 weeks in arrears that can make a big difference to cashflow for a small company,
the annual fee is comparable to a high street bank,
but the rates are higher

WorldPay take a 4.5% Transaction Service Charge (TSC) on credit card transactions and 50p for debit cards

a typical uk high street processor will charge about 1/3 less than this on a low turnover (under 10k/year) business

having said that, they do a lot of work for you, and you can take out the store option for a low monthly fee.

- different systems suit different peoples business models.

Crazy_Fool




msg:620963
 5:40 pm on Feb 6, 2002 (gmt 0)

they [paypal] apparantly have a couple of million people already signed up who could buy, therefore I didnt want to lower my odds turning away potential customers

do paypal customers have to enter their credit card numbers every time they make a purchase ?

Salesmaster II




msg:620964
 5:56 pm on Feb 6, 2002 (gmt 0)

I dont know! No ones used it yet!

Tapolyai




msg:620965
 5:56 pm on Feb 6, 2002 (gmt 0)

>With this in mind, who would you include in your list and why?

* PayPal / PayDirect
* Visa / Mastercard / Amex / Carte Blache / Discover
* Online Check/Cheque
* e-Cash / Cybercash / Other electronic Cash
* ACD (Direct Bank transfer)
* Postal delivered Check/Cheque / Money Order/Bank Draft

I cannot think of any other way of paying online.

Crazy_Fool




msg:620966
 5:57 pm on Feb 6, 2002 (gmt 0)

they pay 5 weeks in arrears that can make a big difference to cashflow for a small company

with any business its vital to get cash coming in to start with, and then to make sure it comes in regularly. once the cash does start coming in regularly you dont really notice the time lag between sale and settlement (28 days).

IMO, any system (worldpay or otherwise) that allows total automation means less work for me and allows me to do other work such as promotion to bring more sales.

mivox




msg:620967
 6:15 pm on Feb 6, 2002 (gmt 0)

do paypal customers have to enter their credit card numbers every time they make a purchase ?

I haven't used a PayPal merchant button or shopping cart yet, but I know when I send a payment directly through paypal I can just select mypayment method from the cards/bank accounts I already have registered...

Once you're signed up it's one of the easiest ways to tranfer funds around that I've ever seen.

Salesmaster II




msg:620968
 10:02 pm on Feb 7, 2002 (gmt 0)

Great Input! thanks.
Especially Tapolyai - could you elaborate on <other electronic cash>

Anybody using any methods or ebanks not listed?

sun818




msg:620969
 10:29 pm on Feb 7, 2002 (gmt 0)

Hello everyone, I have asked a Paypal Damon, a representative from Paypal to visit the forum. He would be best in answering the Paypal questions.

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