Forum Moderators: buckworks
But this is a brief rundown after two years.
1. Transactions: 67,000 PayPal transactions, around 150,000 "other" (98% of which are VISA/MC/AMEX).
2. Chargebacks: 7 Disputes, all of which were resolved easily and none of which resulted in any chargebacks to us. "Others" = about 15 disputes, of which we won about half, for a total loss to us of around $6000. We know that some of those were fraud, but have no way to prove it.
3. Fraud: Zero (!) - not one single fraud order via paypal. Compared to VISA/MC/AMEX which had total sales transactions of about twice what PP had, but had over $160,000 in attempted fraud, and actual losses from fraud of around $14,000.
And just as a side note, we have earned a little over $2200 from the 5% moneymarket that PP pays while the funds are in their "care" - between the time we capture the funds and transfer it to our bank account.
So, despite the bad tales you may have heard, this is what our experience has been.
As of last week we added a 1% discount to all purchases for using PayPal - not so much to encourage PP, but to DISCOURAGE the use of regular CC's...
[edited by: Wlauzon at 8:54 am (utc) on May 31, 2007]
Fraud would seem to be the biggest challenge. What could be done, in your view, to further combat fraud?
i think there could be some kind of expansion of the address verification system and a warning if the address has been changed in the previous month.
i think the credit card companies should actually start prosecuting fraudsters themselves or at least preparing evidence for the authorities to do it.
static ip's are not common enough yet but perhaps credit cards could be associated with known 'safe' ip addresses, eg. register your ip address if you want to use your credit card online.
having said that i think there is a whole lot merchants can do as well.
It is refreshing to hear from someone who has taken the time to provide positive feedback for a change.
-Do you think adding PP increased your overall sales?
-How did average PP order size compare?
-How does your PP merchant discount rate compare with CC rates? (guess favorable if you're pushing PP)
I'm stunned that so many customers elected to use PP. What sort of things do you sell? We never have anyone ask about PP.
Oh, I see in your profile that it's solar energy stuff. Wouldn't think that field would be especially prone to use PP.
[edited by: Brett_Tabke at 2:40 pm (utc) on May 31, 2007]
I have a store that is 100% PayPal and has been since 2004 October, almost three years. We will be adding traditional processing before the end of the year. That should be a good test in regards to how many potential sales we've lost over the past three years by not offering traditional processing methods and only PayPal.
Most of the "normal" PP transactions average overall somewhat smaller than the regular CC ones, but the difference now is much less than when we first started out. It used to be on the order of $50 vs $200, now is it more like $120 vs $200 (those are just rough estimates).
It is hard to say how much taking PP increased our total sales, since there are so many variables, but it appears to be around 15% overall.
[edited by: Wlauzon at 11:30 am (utc) on June 1, 2007]
