How do I collect subscriptions for UK Web based service.

UK web seeks payment system for long term relationship

[Equiano]

I planning to launch a web-based service sometime soon and my revenue model for this service will based on users paying for a time-limited access to the service. Users may purchase the service as a one-off or it may be a recurring purchase.

An individual payment for the service will be quite low about £2 or less and all subscribers are going to be UK based. What options are available to me to collect payments of this nature. The only payment service I currently use is PayPal but I am unsure if using them is the best way forward because of cost and the requirement for users to register before they can use it. I have also had a quick look at NOCHEX but I believe has the same requirement as PayPal ,i.e, registration before use.

Does anyone have any suggestions?

Thanks in advance

[Shak]

worldpay sounds ideal for you. WorldDirect or Future Pay I think.

however if its only £2,00 then after processing charges and possibly VAT, you will not be left with much to spare.

Shak

[Crazy_Fool]

>>WorldDirect or Future Pay I think.

futurepay is an add-on to the standard worlddirect merchant account, and yes, that's the way to go.

and yes, at £2.00 a time, it's hardly worthwhile. probably less hassle and more profitable to give the information away free of charge and carry banners / affiliate links instead.

[tennismaster]

I use both NOCHEX and PAYPAL, but I know what you mean
about purchasers being put off by the hassle of getting
test transactions put into their bank account before
they can use the service. It is hardly instant, if they
do not already have a account.

However, at £2.00 a transaction it is going to take
a while before you re-coup your outlay on any other
merchant service, as the setup costs can be quite high,
not to mention the hassle.

TM

[Equiano]

Thanks for the info guys.

I guess what I am really after is a micropayment service but it looks like there isn't any widely used service around.

My thoughts at the moment are to go for a combination of PayPal and Nochex and back it up with some offline payment method as well. As pointed out the WorldPay charges will eat up a significant margin on each transaction, so i guess I will give that a miss.

[Crazy_Fool]

>>the WorldPay charges will eat up a significant margin on
>>each transaction

ANY online payments system or bank merchant account will eat a significant margin on each transaction (the costs difference between each is mere pennies) - hence my suggestion to give everything away free and make your money from banners or affiliate links.

the real hassles come not from setting up the system, but with meeting legal obligations / requirements and with dealing with customers (ie, those that have paid for something). switching to banners / affiliate links will save you all that hassle and more.

don't forget the other costs involved with switching to paypal etc - lost sales from those that don't have accounts and don't want to or cannot sign up. each sale lost will cost you profits of anything from £1.50 upwards, which is a significantly greater loss than the few pence difference between payment systems. can you afford to throw all that money away? perhaps you'd be kind enough to donate it to a charitable cause instead? The Crazy Fool Beer Fund is always a bit short of cash ....