Forum Moderators: LifeinAsia
For you - no merchant account and no fees unless you actually make a transaction.
G.
If you were to take all the credit card information and someone hacked into your system (very easy to do I understand) you would be responsible.
Also, there are no monthly fees with PayPal. Regular CC processing charges you any where from $25 - $100 month minimums, plus you have to buy the machines and the gateway software if you so choose.
When I was faced with the option of using my own processing or using PayPal, the choice was PayPal.
They handle subscriptions, so I don't have to send multiple bills. They handle all sorts of transactions now, and the price is reasonable.
The only downside is that the money isn't deposited directly into your account. They hold it until you request it to be transferred. But I've done it several times and there has never been a problem.
I highly recommend it.
It is also fairly easy to use and a fair number of people who buy online probably have a Paypal account set up. The one reason I would rather have some other cc processing system is for those who don't have paypal accounts. I don't know the exact percentages on this but I know if I didn't have a Paypal account and went to buy something and the vendor wanted me to sign up for a Paypal account I would probably go elsewhere.
Some other good things about Paypal:
1. People making a purchase don't need a credit card. They can transfer funds straight out of their bank account
2. As a business you don't need to have established credit like many of the cc processing companies want
3. If your customers don't have a Paypal account and they do sign up through your site you can earn an extra $5.
I wouldn't say Paypal would be better than a regular cc processing service but there are some benefits to it. It might be worth trying it out for a month and see if it works for you.
[edited by: DrCool at 6:35 pm (utc) on Aug. 21, 2002]
As I sell software I prefer eSellerate, [esellerate.net...]
They don't hold it. You can actually access an ATM and withdraw cash witin minutes if you have the paypal card.
What is Pay pals biggest draw back?
Dealing with the international situation.
Regarding problems, here's an example. This may be slightly OT but I think would help alex for his answer. I was talking today to one of my friend who was made a payment of 500 $ by someone in the month of April. The product was shipped in a few days. However, the buyer filed a complaint with paypal of non-receipt of goods. My friend sent the goods once again and the dispute was resolved in favour of my friend by paypal. But today 480 $ were deducted by paypal from my friend's account (most probably because of the buyer chargeback to his cc) Paypal has asked him to respond within 24 hours but the problem is that he has sent two products and even lost the money. No idea how to get back the money.
Though I would like to add that otherwise, paypal has been very good for him overall compared to other payment options.
Remember all the paranoia about online transactions? Not to mention that thread not too long ago about IE.
Its recognised as a cornerstone for cash transactions in the same way as Google is for searching IMO. The masses know its used by the masses, so there is an element of trust.
Not that I use it much, but I couldnt name another service off hand.
/added
Don't like the way they skim my withdrawls though! :)
Their entry level program is exactly like PayPal, a pay-for-play type setup, and they move up to monthly/yearly fees depeding on your level of monthly transactions.
I have absolutely no affiliation with them mind you, but I thought this would be the appropriate place to mention it.
Meaning they hold up your transactions and make interest off your money?
Meaning they hold up your transactions and make interest off your money?
no.
They charge a %. But yeah, it does take a while to get processed through into my bank (UK), though I doubt they are gaining interest on it....more likely to be stuck in the system.
