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Ecommerce Forum

Paypal ONLY payment processor.
paypal, wholesale, electronics

 11:42 pm on Nov 15, 2005 (gmt 0)

Can a website get away with only having paypal.com as the payment processor? Whether it be credit card, paypal-to-paypal, or echeck?

I have a credit card processor now, but would like to eliminate the costs involved. My thinking is that with enough people on paypal it shouldn't be a problem, and even now, they will process a credit card without the customer having an account. right?

Any thoughts? Is this how anyone else is set up? Do you have a loss of orders at all?




 11:59 pm on Nov 15, 2005 (gmt 0)

>>they (paypal) will process a credit card without the
>>customer having an account. right?

that's what they say, but shoppers still think they need to sign up for an account

if you're serious about business, get a proper merchant account or an internet merchant account

if it's just a hobby or selling 2nd hand stuff on ebay, paypal is fine


 12:02 am on Nov 16, 2005 (gmt 0)

That is what I expected. I am certainly serious about selling so I guess I will keep it the same. Maybe more secure?

Paypal.com is also a payment option and I have 2 claims this month that someone is paying with unauthorized funds. I guess the security thing goes both ways.

Thanks for the input.


 12:03 am on Nov 16, 2005 (gmt 0)

I offer Paypal and "proper" credit card processing on my sites and around 95% of customers don't use paypal.

Whether or not I'd lose those orders if the customer had to use their credit card through Paypal, I can't say, but I'm pretty sure I'd lose some of them.

If you currently have a CC processor, maybe you aren't doing enough sales volume to make it worthwhile keeping them?

From my own personal experience though, I consider Paypal-only sites very amateurish.


 12:13 am on Nov 16, 2005 (gmt 0)

I agree. It's not that I have anything against PayPal or sites that use them, just it's a little amateurish if you have an e-commerce site with just PayPal for payment.

Little observation.. we had one e-commerce store that we were trying out a concept. Well, it really took off and after a while we were doing about 20k a month in sales with PayPal as the only check-out option.

After we got the merchant account setup, our monthly sales almost instantly went up by 35-40%, and it seemed like our chargeback cases went down dramatically (not that we had a lot mind you).

Of course it could have just been a fluke, but honestly I have never really used PayPal since. Now, I say PayPal, but I really mean any third-party merchant account that requires the user to leave your site to process, not trying to pick on PayPal or anything.

I am sure others will concur that there are a lot of abandoned cart/checkouts when you do that redirect to whatever 3rd part processor you are using..


 12:19 am on Nov 16, 2005 (gmt 0)

falsedawn - any losses from dropping paypal should be negligible - most people have credit cards these days

don't forget the "hidden" costs of using paypal:
you think paypal looks amateurish, so do many other people - and there are those that don't want the hassle of registering for an account with paypal - etc etc etc - what happens if one of these shoppers sees the paypal logo on your site and thinks you *only* take paypal? are you already losing sales without even knowing it?


 12:55 am on Nov 16, 2005 (gmt 0)

No, I wasn't suggesting dropping paypal, but contemplating whether or not I'd lose orders from customers who use their credit cards though the merchant account if they were forced to use their credit cards through paypal (as would be the case if I ONLY accepted payments through paypal)


 1:00 am on Nov 16, 2005 (gmt 0)

PayPal is a payment option. PP claims 47 million usrs, but, many customers still have not heard of PP.

Stay with you merchant account.


 12:40 am on Nov 17, 2005 (gmt 0)

Can a website get away with only having paypal.com as the payment processor?

I guess I'll post the only contrarian viewpoint. I earn my living online and the bulk of my income comes from my sites where PayPal is the only payment method - PayPal payment buttons to be more accurate.

Does it make my sites amateurish as some have suggested? That may depend on the sites. I primarily sell to college-educated professionals and I don't recall any potential customers complaining or asking for other payment methods in the past couple of years.

Are potential customers being turned away because I accept PayPal only? I don't know. I have no complaints about my conversion rate. I sell some unique products/services so it's not like they can go find what I sell other places.

Maybe the amateur aspect some people see has to do with shopping carts? As I said, I only use payment buttons. But PayPal now offers features they didn't used to offer that allow you to integrate with your site.

I have no complaint with the PayPal fees, the immediate set-up, no equipment to rent or maintain and I get immediate access to the money plus a rebate on every purchase I make with the debit card. And the money market rate they pay is among the best and sometimes is the best in the country.

...and even now, they will process a credit card without the customer having an account. right?

Yes, the merchant just needs to select the PayPal Account Optional feature.



 5:09 am on Nov 17, 2005 (gmt 0)

My site uses only PayPal for payments. I accept payments from a PayPal account via Express Checkout, and credit card payments via Website Payments Pro.

With Website Payments Pro, the customer is unaware of who the gateway is, in this case, PayPal. They do not need a PayPal account, nor does the word "PayPal" ever appear on their screen. The entire transaction takes place on my site.

I pay a straight 2.2% + 0.30 per transaction, regardless of card brand (Visa, AmEx, etc) or type (corporate purchasing card, international, etc). The monthly fee for Website Payments Pro is $20 for unlimited transactions (waived until 2/1/06). There is not a separate gateway fee or 3D Secure fee, nor any upcharge for mid-qualified or non-qualified transactions.

The funds settle into my PayPal account immediately after capture.

The API is difficult to implement, and requires an understanding of Web Services and X.509 certificates for signing and encryption. Once I correctly implemented the API, the performance has been very good.


 6:06 am on Nov 17, 2005 (gmt 0)

PP claims 47 million usrs, but, many customers still have not heard of PP.

For what it's worth, PayPal's home page now reports 86.6 million users.

If anyone has seen any scientific surveys of regular Internet users polled on how many have/have not heard of PayPal, I'm certainly interested in reading their findings.



 2:57 pm on Nov 17, 2005 (gmt 0)

I am glad that I got this response only because it has been eating away at me. I have come across large e-tailers that use paypal only, as well as, an additional option. Myself, I don't think it looks like the site is one of a beginner or amature, but a site that offers one more, relatively easy, payment option.

Good feedback.


 8:11 pm on Nov 17, 2005 (gmt 0)

Does anyone know if I can use Website Payments Pro with their subscription services to prevent the user knowing it's PayPal or from requiring them to have a PayPal account?

I'm looking for a simple and inexpensive yet scalable way (i.e. automatic and capable of handling thousands of users) to process subscriptions and I don't want to force people to have PayPal accounts. Thanks in advance.


 8:58 pm on Nov 17, 2005 (gmt 0)

You cannot use PayPal Website Payments Pro with their Subscription Service. This may change someday, but that's the way it is right now.

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