Author Topic: PayPal vs Visa/credit cards (Read 1042 times)

DouginUtah · « **on:** February 03, 2012, 05:18:30 pm »

I wrote to a company complaining that they don't accept PayPal. I got this reply:

Quote

Hello Harold,

Thank you for writing us. Unfortunately we are not set up for PayPal. It all comes down to a cost factor, it is more expensive for us as a company to process payments through PayPal, then through the credit card companies.

I am sorry I do not have a more positive answer for you on this.

My question is--Is there anyone here who accepts both PayPal and Credit Cards who could give me an idea of how much a $9.95 payment costs when using PayPal vs using a credit card? Back when I used to accept credit cards I think I was charged about 2%. But I have no idea what PayPal charges.

Jeff · « **Reply #1 on:** February 03, 2012, 05:24:19 pm »

2.9% + $0.30 per transaction with a Paypal business account, which are free. If you want to use their realtime processing, you also have a monthly fee of around $30 a month

I have a paypal mastercard debit card that I can use anywhere they take mastercard.

You can get better rates from paypal if reach a certain level of business.

https://cms.paypal.com/us/cgi-bin/?cmd=_render-content&content_ID=marketing_us/fees

tcsmpsi · « **Reply #2 on:** February 03, 2012, 05:40:31 pm »

I believe when the fellow answered you, he gave you his best with, "I'm sorry I do not have a more positive answer for you on this." This would tend to show that this person is not totally aware of the charges with both. The actual processing fee of each transaction is relatively small compared to the other fees associated with standard credit card processing.
The actual per transaction fee for credit cards is contingent on many factors in which that rate can fluctuate quite a lot.

I like Pay Pal and never had any problem with them.

With a storefront, however, as things are I have to have credit card processing which is a never-ending problem. They have to be watched constantly, and the processing fees (not per transaction %) are always rising, for this thing, or that thing, or another.

Al_Smith · « **Reply #3 on:** February 03, 2012, 05:40:52 pm »

I only reluctantly started a pay pal account after it became the only accepted method of payment on flea bay .

Then only after I had the assurance from the bank that I was not liable for fraudulant transactions .Even then those those wise guys from pay pal wanted my bank account numbers .I politely informed them that would be the day the sun rose in the western sky .Good grief this so called "E" business stuff is getting out of hand . Al the dinosaur .

Clam77 · « **Reply #4 on:** February 03, 2012, 05:45:16 pm »

Agreed Al!! It does have it's places.. but not many.

Radar67 · « **Reply #5 on:** February 03, 2012, 05:50:16 pm »

This is a CC processing comparison of what a company has to pay for CC vs online type payment methods. It was created by a leather worker trying to find the least expensive way to accept CCs. When you add the yearly fees into the mix, Pay Pal is much cheaper than the major bank cards.

The pdf file did not load right. Banks charge roughly .31 + 2.1% on a card swipe. You have to figure the set up fees, card machine fee, and the monthly fees as well. So it is cheaper to use PP.

swampbuggy · « **Reply #6 on:** February 03, 2012, 06:07:38 pm »

I am a pay pal fan for a couple of reasons.
1. If I do business with 100 people only pay pal has my credit/bank information.
2. I have set pay pal up requiring a test message with a login number be sent to my phone before ANY transaction can be done through my account. That ensures a double level of protection for me.
3. I can use it to send money to my kids at no cost if I need to. Or better yet.. they send money to me!
4. I have never had an issue with PP they were not already aware of and protecting me.

Just my opinion..Swamp

DouginUtah · « **Reply #7 on:** February 03, 2012, 09:38:37 pm »

Quote from: Al_Smith on February 03, 2012, 05:40:52 pm

Even then those those wise guys from pay pal wanted my bank account numbers .I politely informed them that would be the day the sun rose in the western sky .Good grief this so called "E" business stuff is getting out of hand . Al the dinosaur .

Al, do you not realize that every time you write a check to a stranger you are giving your bank account numbers to that stranger? They are more trustworthy than PayPal? Look at the bottom of your checks.

Jeff · « **Reply #8 on:** February 03, 2012, 10:05:31 pm »

I think its amazing that someone would have a fear of using paypal, that is in the business of protecting your money so it can make money, but thinks nothing of handing an unknown waitress an actual card to take up and pay for dinner and a make a quick copy of the card.

We had been using our bank debit card for years without a problem until this past spring, when Tammy went down state with Stacy. Tammy got gas and stayed a night in a motel. The next day the bank called and said someone was trying to use it to pay a different hotel bill the same night. We have never had an issue using it for online payments.

Reddog · « **Reply #9 on:** February 03, 2012, 10:59:16 pm »

Well I came to the conclusion last year that I trust the waitress more and closed my PP account.
After asking detailed questions on why they (PP) needed my bank numbers and Chase didn't. They would not answer.
I have my ideas why from some past issues with PP, they would try a debit draw before credit on charges. That way they would not get charged from your CC and could make more money. And this was confirmed by my Credit Union.

So maybe for a business PP is fine for your customers, not so much.

Manorwood · « **Reply #10 on:** February 03, 2012, 11:25:03 pm »

I had an issue with my PP account whereby 2 fraudulant charges appeared. As I do not use the account much, I found them on my CC statement. Neither charge was for much, but how they managed to get a payment in the first place was never explained. I shut down my account. They will never get my bank account numbers... check out www.paypalsucks.com

The first charge was reversed almost instantly. The second charge took a lot longer to get reversed, so long, as a matter of fact that the CC company had already paid it out if PP had not resolved it my way.

I have since got a cash CC, and will load it up as needed, and use that for a PP acount if needed..

Ron Wenrich · « **Reply #11 on:** February 04, 2012, 05:37:04 am »

I rarely use a credit card. For the local stuff, I use cash or check. For things on line, I use Paypal. I like that its paid for and no bill coming in. Never had an issue. I've had more problems with fraudulent charges on credit cards than on Paypal.

Norm · « **Reply #12 on:** February 04, 2012, 07:01:31 am »

As a merchant who's used them to clear CC's and accepted their payments I can tell you from personal experience they are the worst company I've ever dealt with for merchant sevices. Wait until you have your 1st problem with them and you'll learn quickly why.

Of all the clearing houses Amex is the best but you pay for that pleasure.

gunman63 · « **Reply #13 on:** February 04, 2012, 08:31:48 am »

I use paypal big time, i sell a lot on ebay, one nice thing it opens a world market, if your willing to use it, I love PP, over the course of a year, it costs about 3%, roughly the same as anyother card, u can get the money transfered to your bank account, no fee, that is the reason they need your bank account info. takes roughly 2-3 work days, or u can have ebay send u a check, 3-5 days depending on the mail, or u can use the funds thru a paypal CC and get 1 1/2% back. U do not only have to use PP , only have to list it, U can still accept cash, check, MO. I just figure its a cost of doing business, just like power, taxes and the rest.

lumberjack48 · « **Reply #14 on:** February 04, 2012, 08:11:43 pm »

I've used paypal for 2 ys. Love it so far. I got it so if i use it and the funds are short, the money comes out of my other account.

Busy Beaver Lumber · « **Reply #15 on:** February 06, 2012, 08:51:17 pm »

If you have an iPhone, iPad or Android you may want to check into a device called SQUARE. The device plugs into any of these device and is sent to you free by SQUARE. When not in use, you simply unplug it.

It allows you to process credit card transactions for 2.75%. The neat thing about it is that it is completely portable and allows you to process a credit card transaction virtually anywhere by just swiping the customers card and entering the amount.

tcsmpsi · « **Reply #16 on:** February 07, 2012, 06:17:30 am »

Any processing fees, fed fees/taxes, etc. attached to the Square process?

swampbuggy · « **Reply #17 on:** February 07, 2012, 08:36:54 am »

Go to squareup.com. looks pretty straight forward if your looking for a way to take CC's.

Radar67 · « **Reply #18 on:** February 07, 2012, 10:30:34 am »

I have the Square up Device and it works well. As long as you have an internet connection, you can swipe a card, or enter the number in manually. The customer can sign your screen and have a receipt sent to their email address or cell phone. 2.75% if you swipe the card, .15 plus 3.5% if you manually enter the card.

Ironwood · « **Reply #19 on:** February 08, 2012, 05:48:04 am »

Busy,
THAT is COOL. but think about someone getting your wallet (or the waitress at the diner), wouldnt take long to get some money transfered.

Hmmmmmm lots to be on top of.

Ironwood

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Author Topic: PayPal vs Visa/credit cards (Read 1042 times)