PayPal vs Visa/credit cards

[DouginUtah]

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

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]

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]

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]

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]

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

[Radar67]

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]

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]

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]

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]

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]

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]

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]

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]

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]

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]

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]

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

[swampbuggy]

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

[Radar67]

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]

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

[terrifictimbersllc]

Saw Square Up card readers in Best Buy last night for $10, with a rebate card for same amount if you registered.  Clerk was fairly knowledgeable said there might be a hold on your funds up to 30 days if there were more than $1000 of charges within a month, need to read the fine print.  With the new 1099-K reporting that these card companies must do wouldn't want things to get messed up on that end either.
p.s. found the legal agreement, the $1000 thing is  for "card not  present sales" where charges are made where the card is not swiped.   Also the usual language that one cannot charge extra for taking a credit card.... here are the terms....doesn't say you can't give a cash/check discount though.....
https://squareup.com/legal/ua   Sounds like an easy entry into CC sales but still inviting a partner to whom you have to give 2.75% of your sales and obey their rules.

[Al_Smith]

For clarification I have no fear of Pay Pal I just will not give out my personal info regarding bank account numbers to every Tom Dick and Harry over the internet .

As far as check numbers ,sure they could hack them and also spend some time in the penitentury if they get caught .

How in the world are you ever going to punish some hacker in some third world country that does is over the internet ?

I'm such a dinosaur I won't do E-business except flea bay .Fact just the other day I went to order parts from Tulsa small engine and sure enough no telephone number just E-trade .Well sorry about their luck because Baileys and MFG supply got that small 150 dollar order .

So what or how people conduct business is really none of my business .I know how I do it and until there is no other option is how I shall continue to do it .The business options over the internet are vast and varied .If they want my paltry little orders they're going to have to do it my way or else their compitition gets my money .

[Radar67]

Do not fall for buying the Square Up card reader, you can get it free from Square Up. All you have to do is ask for it.

[jamescharls123]

As far I know most of the companies accept both PayPal and credit card. One more thing both services takes different rates of service charges that depends on the type of account you have.

[Cedarman]

Let's see.  If I make a sale of $1000.00 and profit is 20%, that is $200.00
If the customer pays by cc, then 3.5% of $1000 goes to the bank.  Hmmm.  $35.00  Hmmm  So 17.5% of my profit goes to the bank.  I just don't think I want to pay a 17.5% premium for the pleasure of taking my customers order.
They either send a check or money order or the next customer is elated that I can fill their order a little quicker.

[tcsmpsi]

I don't want to, either.  Yet, the retail business (e.g. with direct competition in close proximity) is much more dependent on the card processing.  Though, in this shop, debit cards have taken the lead, credit still makes the higher end purchases.  Merchant processing is a notable expense.  Regularly, I analyze the 'what ifs' of it.  Lately, about the time I consider tossing it all out the door, a couple of substantial sales will come along an pull us out of the red for a moment or two, and the notion will fade a spell.