is there a better transaction tool than Paypal?

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United States United States
raleigh3
Kudos: 30
Joined: Nov 17, 2005
is there a better transaction tool than Paypal?
18 Nov 2005
I have an ebay storefront, and I am thinking about setting up my website for sales also. For my store I use Paypal, because it was easy to do. On my website I want to set up some kind of payment tool, and am hoping for one that is a little cheap. Anyone out there know of one?
United Kingdom United Kingdom
Eleanor
Kudos: 71
Joined: Mar 31, 2004
Re: is there a better transaction tool than Paypal
28 Nov 2005
Have a look at www.protx.com, if you're in the UK.
Land of Enchantment-New Mexico United States
jwjohnson
Kudos: 458
Joined: Oct 14, 2005
Re: is there a better transaction tool than Paypal
28 Nov 2005
PayPal is really familiar with your buyers. PayPal provides your buyers an easy way to pay you......but!

First let me say, I am currently using only PayPal (plus BidPay) and have yet had any issues with their services, chargebacks, etc. With that said, I am getting more uncomfortable with PayPal being my only source of payment options for my buyers. If you read the boards, it can be scarey. Knowing that many times there are loose canons reacting in the boards but believe there are enough level headed folks who are experiencing real problems.

If you are lucky enough to find a product that is really hot and your sales increase significantly in a short period of time, you run a chance that PayPal will freeze your account. That means money that rightfully belongs to you is not accessible and it also means that buyers who purchased your merchandise can not pay you. You now must prove to PayPal the merchandise was yours and it was yours legally. Once you go through the hoops, then you might be able to get the freeze lifted. The question, I have to ask myself is can I afford an interruption in cash flow for a few days, week(s), months, etc?

It probably time to invest in accepting credit cards through the web, telephone and email. The hold up for so many people is that it is now another monthly cost. From my research, I don't think you can have an merchant account and not be out a minimum of $20-$25 a month. Some can cost even much more. Sometimes the internet payment gateway is free but it cost $10 a month for a statement. You just have to look at all their cost and see how it all adds up.

Another major area to look at is when is your money available to you? Some companies give you your money within 1-2 business days and it is deposited into your checking account. There are some with a annual fixed rate but then your money is held for about 3-4 business days and then you have to manually have it transferred to your checking account..

Another area that I just now started offering but no one has used yet is BidPay. It seems expensive to the buyers but it is an available source. I see that being offered more and more on eBay but wonder if the buyers really use it.

Start by going to your local bank where you have a history and find out if they can help you and the cost of all the fees. They do add up. Good luck!
United States United States
raleigh3
Kudos: 30
Joined: Nov 17, 2005
Re: is there a better transaction tool than Paypal
28 Nov 2005
Thanks JW!
I will look into that option. I might be able to afford that if the benifit outweighs the cost.

"From my research, I don't think you can have an merchant account and not be out a minimum of $20-$25 a month. Some can cost even much more. Sometimes the internet payment gateway is free but it cost $10 a month for a statement. You just have to look at all their cost and see how it all adds up."

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United Kingdom United Kingdom
sellthemoon
Kudos: 270
Joined: Oct 5, 2004
Re: is there a better transaction tool than Paypal
29 Nov 2005
I really don`t like Paypal, but obviously at the moment there is little choice. NOCHEX is great for UK users - www.nochex.co.uk - they guarantee no chargebacks, it costs slightly less than Paypal and -best of all - the buyer does not need a Nochex account to pay you up to £100 (they just go to the Nochex site and pay your email address). Unfortunately, it is UK only and the interface is not brilliant.
We will not take Paypal for larger amounts due to the high chargeback risk. Paypal is heavily bias to the buyer. If you stick to Paypals "rules" re eligibility / confirmed addresses etc you would not be able to accept the payments from a huge number of customers. Any hint of a complaint from a buyer and the money is "frozen" - this is guilty until proven innocent. I have had a US buyer clearly manipulate the system - they asked for their goods to be sent to their summer address and then claimed not to have received the goods. Even though we had confirmation that the goods had been signed for, Paypal refunded the money as we had not sent the goods to the confirmed address. In other words, Paypal corroborated in a scam.
If you look at the terms of their "Seller Protection" policy, it is extremely difficult to qualify. i.e " The posted goods must be trackable online " - Royal Mail Signed For (as used by many lower value sellers)can be traced online but is not trackable in the sense of the word. " any US, UK or Canadian buyer " so thats all of Europe not covered ! I could go on - just go read the terms & conditions.Paypal even charges you for doing its job if you win a chargeback dispute " the seller will be charged the £7.00 GBP chargeback fee if the transaction does not qualify for Seller Protection ". I Paypals` Seller Protection is just smoke and mirrors! They charge alot of money but I`m afraid give very, very little in return.
United Kingdom United Kingdom
bridgerkay
Kudos: 115
Joined: Dec 9, 2005
Re: is there a better transaction tool than Paypal
9 Dec 2005
how about Authorize.net? Looking through the Auctiva community noticeboards there seems to be pretty positive feedback on it . I've just skim read their website so far ....... a lot of info to absorb but someone out there may have an opinion?
Land of Enchantment-New Mexico United States
jwjohnson
Kudos: 458
Joined: Oct 14, 2005
Re: is there a better transaction tool than Paypal
9 Dec 2005
Authorize.net is a major payment gateway. Just about any and all hosting sites commerce plans are compatible with authorize.net. It has a good reputation. It is going to cost you $20-$35 a month just in basic fees without any processing. You can count on it being reliable provided your ISP is reliable.
United States United States
raleigh3
Kudos: 30
Joined: Nov 17, 2005
Re: is there a better transaction tool than Paypal
14 Dec 2005
yeah, that authorize.net looks really professional. thanks for the heads up. I may need a couple of hours to look through it.
United States United States
alphablueskies
Kudos: 15
Joined: Apr 18, 2009
Re: is there a better transaction tool than Paypal?
18 Apr 2009
Paypal is not trustworthy of their own policies. They claim they will protect you from SNAD items (Significantly Not As Described items). My dispute was as exactly as defined by their own definition of SNAD items. Seller admitted to this and ignored the case thereafter. I escalated it to a claim from where Paypal stated that "if seller does not respond in 10 days, buyer shall be credited". Seller DID NOT RESPOND but Paypal closed the claim claiming that "they are unable to decide the claim at my favor at this time. Paypal's Buyer Compaint Policy applies to the shipment of goods but not to dispute about merchandise quality" - Contradictory, very contradictory about their own policies. The "merchandise quality" they are referring to is the SNAD item which again, was admitted by the seller and yet paypal dismissed the FACT.
I honestly am APPALLED by this as this is the 2nd time they actually did this. They even mentioned "chargeback" through paypal but when I did it with my credit card company, paypal refused to continue with th case. Good thing my credit card company credited me on the 1st case. I shall do the same with this 2nd case.
PAYPAL=POOR BUSINESS ETHICS...tsk tsk tsk... they oughtta go down! One of these days, someone will make them pay because these practices never go unnoticed.

[Last edited: 18 Apr 2009]

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