Why should we used a payed payment method?

[Tom_D]

Hello guys, I am new to the forums here so I just thought I'd say a quick hello.

Ok, on to my question.

I am currently new to the business side of things but I have experience in low-level web design and I am currently expanding my knowledge as best as I can.

I recently landed a job with a well established lighting company in my local area. I designed them a website and set them up a PayPal checkout so that customers could purchase their products online.

I understand their is MANY other way of recieving payments online. I was looking into RBS Worldpay for example.

Why would it be a good idea to switch to something like RBS worldpay? Would it simply be to avoid the PayPal fees?

I noticed that RBS was £75 setup fee, £15 per month and also 3.35% per transaction and 15p per transaction.

PayPal on the other hand is between 1.4%-3.4% + 20p on each payment.

I'm sorry if I'm missing something major here, but what would be the point in us switching from PayPal to something like RBS ?

Thanks a lot guys.

Tom

[dunerider]

Credibility -- thats all.

Paypal - although it is getting a better reputation nowaday - always used to be linked to ebay and people who couldnt get a merchant account, whereas a "proper" PSP tends to give more credence to an online business.

[Kathleen Rigg]

Generally the most cost effective payment charges depend on your volume of sales and the deal your bank offers you when you apply for a merchant account. One of my clients found Sagepay to be much more cost effective charge wise than Paypal or Google Checkout.

Best thing to do is to ask your company's bank to quote you and then compare the charges.

[Tom_D]

Credibility -- thats all.

Paypal - although it is getting a better reputation nowaday - always used to be linked to ebay and people who couldnt get a merchant account, whereas a "proper" PSP tends to give more credence to an online business.

Good evening and thanks for your reply.

I understand - I think it's the best idea for us to get some sales through our PayPal/Ebay shop at the moment rather than jumping at an RBS payment method for example.

I believe Ebay could be a good way to establish ourselfes as an online shop.

Kind regards.

[shopintegrator]

Paypal - although it is getting a better reputation nowaday
I agree, it is up in the big league now. I think its 'small time merchants only' status is now relegated to last decade.

All of these large online merchants accept PayPal payments at their checkout:
ebuyer.com
NikeStore.com
New Look
Boots
CD WOW
Heals
Maplin Electronics
Emirates Airlines
Toys R US

[los_design]

If you costings can stand it then once you have a merchant account, the more payment options you offer, the better your chances of selling.

I would integrate Paypal any day of the week...but Worldpay YUK.

We love you Sagepay we do.....:p

[quikshop]

I agree, it is up in the big league now. I think its 'small time merchants only' status is now relegated to last decade.

Avoid PayPal for high volume websites unless you want to spend a significant amount of man hours fighting erroneous chargebacks, payment disputes and fraud.

It will never have the same status as a UK based PSP until it falls into line with UK distance selling regulations.

At the moment PayPal are almost entirely unaccountable to UK authorities when it comes to payment disputes.

[dunerider]

I tend to advocate having Paypal as a 2nd payment method. I still tend to think shops who only take it as small time and i may have a problem if my order has a problem.

Shops who offer paypal in addition to other methods pass the credibility check, i will often use PP in preference to a credit card as i dont need to have my card in my hand. I know my PP user/password.

PP is especially good when shopping using phone!

[quikshop]

I tend to advocate having Paypal as a 2nd payment method.

I agree, as a secondary option it can work well, but again with a proviso of far more diligence towards order details to protect yourself from unscrupulous sorts.

[BusinessIdeas]

I always pay by paypal, if you dont at least offer it as an option you probably wouldnt get my business.

[othellotech]

I'm sorry if I'm missing something major here, but what would be the point in us switching from PayPal to something like RBS ?


Don't *switch*, offer both.

"Business" that only offer PP are (sometimes unfairly) not viewed with the same credibility as those with a merchant account - consumers know that to get a PP account all you really need is an email address, but to get "proper" card taking ability you need a business plan/accounts/real-address/etc