Shopping Cart Question !

Hi Everyone,

I'm looking for payment system for my new site. My developer has told me that Paypal is the quickest and simplest one to organise and develop into the site. That it takes no time at all.

I know nothing about this type of thing, but i have read on here that Paypal can be expensive compared to others.

Is it true that other companies can take months to approve your application and that you need to apply to two different companies for two separate systems?

I'm thinking if Paypal can be slotted straight in and be ready to go straight away that would be a huge bonus, but also that web sales will be relatively slow and it might eat away at any profits.

Sorry for a rather vague and rather simple question,

Thanks
Chris

 

[Ranks]

Paypals fees are fairly high, yes. But it is quick and easy to implement on your site - a potential cost saving. Google checkout is cheaper. Moneybookers is worth a look for UK based sites.
Jay

 

Paypals fees are fairly high, yes. But it is quick and easy to implement on your site - a potential cost saving. Google checkout is cheaper. Moneybookers is worth a look for UK based sites.
Jay

Thank you !

 

[Ali-v-8]

paypals good but it takes money from your profit.
Why not bank transfer?

 

[Discountbannerprinting.co.uk]

Paypal is ok and the best would be paypal payments pro as this means that you can take payments online by paypal and cards (without the need to register).

If you just go for the standard paypal your customers will be able to pay by paypal but will have to register to pay by card which is not very good.

Also once you have paypal payments pro it is just a case of asking for virtual terminal so you can also take payments over the phone.

To use a different system like sagepay you would need a business bank account and a merchant account (Easiest I have found is streamline) this can take 2 - 3 weeks, once you have this you give the number to sage pay and it takes a week for them to sort the gateway out.

If i where you I would start with something simple like paypal payment pro .

 

[CraigieDD]

Hi Everyone,

I'm looking for payment system for my new site. My developer has told me that Paypal is the quickest and simplest one to organise and develop into the site. That it takes no time at all.

I know nothing about this type of thing, but i have read on here that Paypal can be expensive compared to others.

Is it true that other companies can take months to approve your application and that you need to apply to two different companies for two separate systems?

Chris

Yes you can use paypal. It's costs are a little higher but for ease of use it's very popular.

What online merchant solution does your bank provide? Sometimes going via your bank can ensure that the merchant percentages can be negotiated right down.

I remember we were up at 3.5% at one point and now below 1% for transactions just because we make a fuss an a regular basis.

Cheers,

 

[styloa]

What shopping cart do you use? Most decent payment gateways have ready made intergations for the popular shopping carts - so could be a matter of minutes to integrate for your developer.

You are likely to get a much better rate if you get a direct merchant number with your bank. Also cashflow is better - money is credited within a day or two of each transaction. I haven't used PayPal for a while, but seem to remember that there is some time before you can transfer the money out to your company bank account.

If you have some trading history you should be able to get under 2% for credit cards and around 30p per transaction on debit cards.

 

Yes you can use paypal. It's costs are a little higher but for ease of use it's very popular.

What online merchant solution does your bank provide? Sometimes going via your bank can ensure that the merchant percentages can be negotiated right down.

I remember we were up at 3.5% at one point and now below 1% for transactions just because we make a fuss an a regular basis.

Cheers,

I personally Bank with HSBC and my companies bank with Barclays.

I haven't really looked into this yet. Always thought i'd just go with paypal so i could concentrate on getting the site ready !

 

[CraigieDD]

Barclays was who I dealt with. Just keep on at them and wear them down until they give you the best deal they possibly can.

 

[awebapart.com]

Paypal is ok and the best would be paypal payments pro as this means that you can take payments online by paypal and cards (without the need to register).

If you just go for the standard paypal your customers will be able to pay by paypal but will have to register to pay by card which is not very good.

That is not completely correct.

Using Paypal Payments Standard, a website can take payments from users without the user having to register with PayPal, as long as the website owner uses a PayPal business account, which is free to upgrade from a PayPal personal account. PayPal Payments Pro is not needed for this feature.

A buyer who already has a card associated with their PayPal account will probably have to log in to PayPal, but this is added security (in case the card has been stolen), and it makes it easier for the user too (not having to retype card numbers etc).

I know nothing about this type of thing, but i have read on here that Paypal can be expensive compared to others.

Generally, for PayPal Payments Standard, PayPal provide this for free, and make their money via a cut of the transaction. Whereas other solutions like internet merchant accounts from banks will have setup costs and maybe monthly costs but smaller transaction cuts/fees.

So to compare which one is cheaper really depends upon the number and prices of sales you get. The more sales, then PayPal can work out more expensive, the less sales then other solutions can work out more expensive.

Which is why it is sometimes a good idea for small startups to go the PayPal route first, to test the water. As business picks up and the numbers of sales justifies another payment method, then go for that too.

 

That is not completely correct.

Using Paypal Payments Standard, a website can take payments from users without the user having to register with PayPal, as long as the website owner uses a PayPal business account, which is free to upgrade from a PayPal personal account. PayPal Payments Pro is not needed for this feature.

A buyer who already has a card associated with their PayPal account will probably have to log in to PayPal, but this is added security (in case the card has been stolen), and it makes it easier for the user too (not having to retype card numbers etc).


Generally, for PayPal Payments Standard, PayPal provide this for free, and make their money via a cut of the transaction. Whereas other solutions like internet merchant accounts from banks will have setup costs and maybe monthly costs but smaller transaction cuts/fees.

So to compare which one is cheaper really depends upon the number and prices of sales you get. The more sales, then PayPal can work out more expensive, the less sales then other solutions can work out more expensive.

Which is why it is sometimes a good idea for small startups to go the PayPal route first, to test the water. As business picks up and the numbers of sales justifies another payment method, then go for that too.

Thanks - really helpful !

We won't be doing many transactions through the site for a while IMO. Our volume and sales mainly come from off site sales !

 

[kulture]

I completely agree with awebapart. Paypal is a good start up option. That said some customers prefer to see you take credit cards direct as it seems to prove you are more serious as a business. I have often heard people say that their conversion rate improves once they accept credit cards direct.

Before you go down the route of credit cards, you must look into PCI compliance. There is little point going down a route that you find you cannot use due to PCI compliance issues in a couple of years time.

 

[EliteIntegrity]

If turnover is likely to be low PayPal is NOT expensive. You would need to sell many thousands to benefit from a merchant account compared to PayPal.

Even when your business starts to take loads of money, PayPal as a second option is always a good idea because lots of online shoppers like it.

GoogleCheckout will save you a small percentage over PayPal but they keep pertinent details from you and restrict your marketing. Also cart abandonment is slightly higher with GoogleCheckout.

Having told you how wonderful PayPal is I would like to add that they are very uncaring when you have a problem. Always empty your PayPal account regularly!!

Good luck to you!

 

[envnet]

I agree that PayPal is very easy to use and sign up for, however if there are any problems with your payments then dealing with PayPal can be very difficult.

If you're in a rush to start your business I would use PayPal for now and then expand as you go along. As someone else already mentioned PayPal Payments Pro works like a normal merchant account and has lower fees.

If you want a more professional option then you will need to apply for a Merchant Account and Payment Gateway. For example you can use streamline and SagePay. These will be cheaper than PayPal.

If you are using a merchant account then you will need to integrate it into your site which might be more complicated than using PayPal. However this is generally easier if you're using opensource software such as OsCommerce.

Even if you do decide to use a merchant account it's still a good idea to accept PayPal because it's seen as a trusted payment option.

Hope I could help

Andrew

 

[designnudgewill]

Long term you need to look at adding SagePay, PayPal and Google Checkout.

SagePay should be considered your main payment gateway and will save you a lot in the long run. SagePay also allows you to take payments on your website via an inline frame so the user does not have to leave your site, big plus point. SagePay takes around 4 weeks to set-up which considerable longer than PayPal and Google Checkout.

PayPal and Google Checkout are both easy to set-up, but they both take a hefty percentage. However, they are essential as people tend to make impulse purchases if they have a little money left over in their PayPal or Google accounts.

 

[solopreneur]

I use Google Checkout. I have had more people comment that they will not use Paypal, and only the odd 1 per year that does not like Google Checkout. I find it much easier to understand the balances etc with Google- Paypal can be a pain when you look back a few weeks later.

I personally like having nothing to do with credit card numbers- I think that people are more reasured if a microbusiness/small business is using Paypal/Google than risking the site not being as secure as it should be.