Making A Website That Accepts PayPal
Hello
I last left off after briefly explaining fees associated with merchant accounts and accepting credit cards on your website. I gave a brief explanation so please make sure that you ask as many questions as you can so that you don't have any unexpected charges after locking into a contract with a credit card processor.
In this post I'm going to explain the most popular payment provider out there, Pay Pal, and the pros & cons of accepting credit cards via Pay Pal. For those who aren't familiar with PayPal.com, PayPal lets you send or receive money from anyone with an email address. They are sort of the middleman to ensure secure transactions for both the buyer and the seller. PayPal makes their money by charging a minimal fee on completed transactions. The fee is generally paid by the seller.
I'm sure you've heard and probably used them but Pay Pal is probably the most trusted provider of merchant services on the internet. Most shopping carts out there are integrated with Pay Pal because of the popularity of the payment processor. They offer a few different options but if you don't have any intention of setting up a true credit card processor right now they are without a doubt the way to go.
Be sure to sign up for their Business or Premier plan because this will allow you to accept credit cards without your customer having to have a Pay Pal account.
PROS:
- No Setup Fees - It's free to send money, and PayPal is affordable for businesses of all sizes.
- No Monthly Fees - You pay only when you sell items.
- It's Private - PayPal does not reveal your financial information to sellers.
- It's Fast - Payments are made immediately and you generally can withdraw the funds immediately. Visit PayPal.com for withdrawal options.
- Trusted Name - Industry-leading fraud prevention keeps you safe and secure. (Assists with conversions)
CONS:
- Processing Fees - A Bit Higher Than A True Merchant Provider. (Visit PayPal.com For Exact Fees)
- Professional Image - Since all you really need is an email address to setup a PayPal account some people would prefer to go through a merchant that has had to be approved to accept credit cards via a true application process.
- Chargebacks - If someone disputes a charge with PayPal it's very difficult to get them to side with you and will often times refund the customer plus a $10 processing fee on top of it. I know this first hand and I went well out of my way to prove that my customer received their order.
- Support - Although it's gotten much better, it's been difficult to receive a timely response. As I mentioned though, it's gotten much better.
Here are some other basics related to Pay Pal. They offer some great ways to get your money fast, going so far as offering a Pay Pal debit card so that you can start using your funds the same day. You will need to go through some verification steps to be an 'verified' PayPal merchant which is a must because it proves to your customers that you've gone through the steps to prove you are who you say you are. This is going to help when it comes to conversions.
Also, if you plan on selling on eBay you'll definitely want to accept Pay Pal because they won't accept any other payment providers such as Google Checkout. Pretty much anyone that uses eBay will use Pay Pal as their payment method. This is obviously my opinion but it's an opinion drawn from experience.
In closing, even if you accept credit cards through a true merchant provider you'll want to also give the option of Pay Pal. Many people don't have a credit card and this gives them a reason & the capability of still purchasing through your website.
I hope this helps.
Best regards,
David Lalumendre
www.WebsiteSpot.com