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  1. #1
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    Going from a TRUE MERCHANT ACCOUNT to PAYPAL?

    I just looked here https://www.paypal.com/cgi-bin/websc...t-fees-outside

    And their rates are cheaper than my true merchant acct, sad. I'm with http://www.innovativemerchant.com/HTML/StartHTML2.htm and my rate is .35 per transaction and 2.4% discount.

    I use ECOMMERCETEMPLATES for my cart and it seems PayPal hooks up well with them, would it be worth the switch and go strictly paypal?

    I do enough per month to qualify for paypals best rates

    2.2% + $0.30 USD

  2. #2
    SitePoint Wizard maartenvr's Avatar
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    I don't see a problem with it. Your visitors won't notice the difference. If it saves you money, why not?
    Maarten

  3. #3
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    I'm not sure if I would do something like that, a merchant account will always look more professional.

    Why don't you try to get a better rate merchant account? You can easily get one with a lower rate than 2.2% for visa and mastercard and 15 cents per transaction.

    You can also give both options to your buyers, paypal and credit card.
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  4. #4
    SitePoint Wizard maartenvr's Avatar
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    Quote Originally Posted by WBpro
    I'm not sure if I would do something like that, a merchant account will always look more professional.
    What do you mean?! This is a Merchant account and it won't show any less proffesionalism to visitors. They won't even know it goes through Paypal
    Maarten

  5. #5
    He's No Good To Me Dead silver trophybronze trophy stymiee's Avatar
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    Quote Originally Posted by maartenvr
    What do you mean?! This is a Merchant account and it won't show any less proffesionalism to visitors. They won't even know it goes through Paypal
    Agreed.
    Quote Originally Posted by WBpro
    I'm not sure if I would do something like that, a merchant account will always look more professional.

    Why don't you try to get a better rate merchant account? You can easily get one with a lower rate than 2.2% for visa and mastercard and 15 cents per transaction.
    Getting a merchant with a rate lower then 2.2% is not terribly difficult to do (but certainly isn't common) but a transaction fee of only 15 cents is impossible for almost any style of business, even retail. That's below interchange 99% of the time and no processor/MSP/sales agent is going to actively lose money on each and every transaction a business runs. If someone is offering 15 cents per click they're certainly making it up somewhere else.

  6. #6
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    Quote Originally Posted by stymiee
    Agreed.

    Getting a merchant with a rate lower then 2.2% is not terribly difficult to do (but certainly isn't common) but a transaction fee of only 15 cents is impossible for almost any style of business, even retail. That's below interchange 99% of the time and no processor/MSP/sales agent is going to actively lose money on each and every transaction a business runs. If someone is offering 15 cents per click they're certainly making it up somewhere else.

    So Stymie, what do you think? With Paypal being able to be integrated right into your site and it looking just as professional as a true merchant acct is there any harm in this?

  7. #7
    Non-Member demosfen's Avatar
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    Unless paypal does their freeze account thing, no difference

  8. #8
    He's No Good To Me Dead silver trophybronze trophy stymiee's Avatar
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    Quote Originally Posted by RB4580
    So Stymie, what do you think? With Paypal being able to be integrated right into your site and it looking just as professional as a true merchant acct is there any harm in this?
    Paypal Pro is a very viable processing solution. For many businesses it is the best choice. I'd use it if the costs were lower then a true merchant account (and for not-too-few businesses it is).

  9. #9
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    Quote Originally Posted by stymiee
    Paypal Pro is a very viable processing solution. For many businesses it is the best choice. I'd use it if the costs were lower then a true merchant account (and for not-too-few businesses it is).

    2.2% + $0.30 USD is bad?

  10. #10
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    Well after googling paypal payments pro sucks it was disturbing, I think I'll stick with the flexibility of my true merchant account.

    The worst thing I found out is I can't keep my very own customers information, such as address, etc. What If I want to do a direct mail campain? Send emails when new products come out? That's just horrible on Paypals part. They just lost my business.

  11. #11
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    Quote Originally Posted by stymiee
    Agreed.

    Getting a merchant with a rate lower then 2.2% is not terribly difficult to do (but certainly isn't common) but a transaction fee of only 15 cents is impossible for almost any style of business, even retail. That's below interchange 99% of the time and no processor/MSP/sales agent is going to actively lose money on each and every transaction a business runs. If someone is offering 15 cents per click they're certainly making it up somewhere else.
    We have set up a few accouts with a charge of 15cents per transaction, however depends of the volume they process per month.
    because
    your opinion / your vote / your future... counts
    Looking for Beta Testers Now!
    www.RateCandidates.com

  12. #12
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    Talking

    Quote Originally Posted by WBpro
    We have set up a few accouts with a charge of 15cents per transaction, however depends of the volume they process per month.

    How much volume do they do?

  13. #13
    SitePoint Addict paypalrb's Avatar
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    Quote Originally Posted by RB4580
    The worst thing I found out is I can't keep my very own customers information, such as address, etc. What If I want to do a direct mail campain? Send emails when new products come out?
    I think there may be some misunderstanding of the rules around Express Checkout. I'm going to see if I can get definitive answers about the use of buyer information collected through Express Checkout and for Direct Payment checkouts as well. Are there any specific questions you want answered in addition to these?

    - Can I send a direct mail campaign to the shipping address provided by a PayPal customer?
    - Can I send marketing emails to the email addresses provided by PayPal customers?
    - How can I use the information I collect from customers who use my Direct Payment checkout?


    (Out of curiosity, would you be willing to display some form of marketing opt-in within your checkout process if that is one of the requirements for using the customers' information for marketing purposes?)

  14. #14
    He's No Good To Me Dead silver trophybronze trophy stymiee's Avatar
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    Quote Originally Posted by RB4580
    2.2% + $0.30 USD is bad?
    Bad? No. I'd say it's about average.

  15. #15
    He's No Good To Me Dead silver trophybronze trophy stymiee's Avatar
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    Quote Originally Posted by RB4580
    Well after googling paypal payments pro sucks it was disturbing, I think I'll stick with the flexibility of my true merchant account.
    Any company that is Paypal's size is going to have a <businessname>sucks.com website made about it. The truth is, if you are doing what you're supposed to be doing, Paypal can be an excellent choice. They are rock solid and reliable. I've never been to the paypalsucks website but I'm willing to bet the vast majority of the horror stories posted their were because the user put themselves in a position to be burned as opposed to Paypal going out of their way to screw them. Paypal is in a tenuous position as a third party processor. Visa and MasterCard do not like them and Paypal doesn't need any unnecessary trouble to ruin what they've got going on.

  16. #16
    SitePoint Addict fut's Avatar
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    Sounds like a good idea to use PayPal Pro.
    ATTENTION: Affiliates in the Health Niche
    $297 Product rigorously tested to at least 2% Conversion Rate
    PM for details.

  17. #17
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    Quote Originally Posted by RB4580
    How much volume do they do?
    Around $50,000 /month, we got the following for them

    2.05% discount rate
    15c/transaction

    For people processing less than that we get 2.2% discount rate and 19.5 cents per transaction. For everybody the merchant fee is $5 and authorize.net $7.5 (basically we don't make any money out of the gateway and merchant account statement fee)

    --- For Puerto Rico, we are able to set up everybody for 2.0% discount rate but the authorize.net goes for $15/month ---
    because
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  18. #18
    Intoxicated with the madness petertdavis's Avatar
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    One other thing to consider is the level of service you recieve from your old bank compared to what Paypal would offer.
    Peter T Davis

    I buy forums - PM me if you're selling.

  19. #19
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    Quote Originally Posted by petertdavis
    One other thing to consider is the level of service you recieve from your old bank compared to what Paypal would offer.
    Yes I agree that is a key point, sometimes after you are set up is impossible to reach the provider, everybody knows paypal and how their service is, which i think is pretty good, what I'm not sure is the level of flexibility they give.

    We set up a lot of ecommerce stores and really always recommend to get a professional merchant account because you decide what data to keep, what data to pass to the gateway, ofcourse we always recommend that you don't keep the credit card number unless is absolutely necesssary.
    because
    your opinion / your vote / your future... counts
    Looking for Beta Testers Now!
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  20. #20
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    Using Paypal should be a secondary option IMO. Their reporting is terrible and you have no control over the fraud scrubbing. Why would you want that just to save a few pennies?

  21. #21
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    Quote Originally Posted by stymiee
    Getting a merchant with a rate lower then 2.2% is not terribly difficult to do (but certainly isn't common) but a transaction fee of only 15 cents is impossible for almost any style of business, even retail. That's below interchange 99% of the time and no processor/MSP/sales agent is going to actively lose money on each and every transaction a business runs. If someone is offering 15 cents per click they're certainly making it up somewhere else.
    On one of my accounts I have a 2.09% discount rate with a $.15 transaction rate / $.05 AVS rate so I do not think they are making it up anywhere else. The other charges are the same as my other merchant account. Granted the volume is quite large I guess, averaging about $200K a month on that one account.

    Sometimes it is the cost of doing business to have that account.

    To the original poster - you might be saving a few cents here and there but if you are happy with your processor, stay with them. Sometimes it is too much of a pain to learn something new.

  22. #22
    He's No Good To Me Dead silver trophybronze trophy stymiee's Avatar
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    Quote Originally Posted by thetopguy
    On one of my accounts I have a 2.09% discount rate with a $.15 transaction rate / $.05 AVS rate so I do not think they are making it up anywhere else. The other charges are the same as my other merchant account. Granted the volume is quite large I guess, averaging about $200K a month on that one account.

    Sometimes it is the cost of doing business to have that account.

    To the original poster - you might be saving a few cents here and there but if you are happy with your processor, stay with them. Sometimes it is too much of a pain to learn something new.
    15 + 5 = 20. Calling it different names doesn't change the cost.

    And very large volume merchants will always have exceptional rates. Now tell the members of SitePoint that you offer a 20 transaction fee...but only if you process $200,000 a month in Visa and MasterCard. Then tell them what their rate really will be. See how they like it.

  23. #23
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    Well I actually get $.15 because the other charges are recurring and AVS does is not done.

    I did not think that $200,000 was that exceptional. It is one of our lower producing websites actually. We do have one about $10,000 a month and that one is at 2.19% with the $.25 / $.05 but I understand why and I would think most people do since everyone is in business to make money

  24. #24
    SitePoint Member mortgages12's Avatar
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    I beg to differ

    Quote Originally Posted by stymiee
    They are rock solid and reliable.
    I've had a paypal account for years, doing a lot of ebaying both buying and selling. Absolutely loved Paypal and couldn't live without them. Then one day recently I get the frozen account email.

    I don't care about how they have to protect themselves and their customers, who wants to hear that crap, I was so pissed, frozen, after being a customer for 5+ years.

    If you're considering opening a merchant account with them, think long and hard.

    Everything could be going smoothly one day and then bam all of a sudden you become one of the many who have had their account frozen and become pissed beyond belief.

  25. #25
    He's No Good To Me Dead silver trophybronze trophy stymiee's Avatar
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    Quote Originally Posted by mortgages12
    I've had a paypal account for years, doing a lot of ebaying both buying and selling. Absolutely loved Paypal and couldn't live without them. Then one day recently I get the frozen account email.

    I don't care about how they have to protect themselves and their customers, who wants to hear that crap, I was so pissed, frozen, after being a customer for 5+ years.

    If you're considering opening a merchant account with them, think long and hard.

    Everything could be going smoothly one day and then bam all of a sudden you become one of the many who have had their account frozen and become pissed beyond belief.
    If you were on the hook for the millions of dollars they float every day you'd be cautious as well. Most merchants have absolutely no clue how much risk a processor takes on with every transaction. The exposure these companies endure each and every day is mind boggling. If a processor holds funds in your account you can bet it's for a good reason: to save their butts.


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