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John Debrincat
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1911naomi, post: 210530 wrote:
Hi, I just wanted to see if I’m missing anything. I am starting a small online store and am looking into payment option for shopping cart.
I have found found Paypal and Eway have similar cost on fees (transaction costs and %) and no start up costs, cancellation costs, etc
So to me there seems to be no risk of having 2 payment options….. i am new to this, I’m starting a small retail store (website) … am i missing something, why would everyone now have 2 payment options?????

Both PayPal and eWAY are very good payment service providers but they are very different.

PayPal will require that you setup a premium or business account and provide a credit card and a bank account (pretty much any type of bank account). Once you setup the PayPal account they will verify it by depositing small amounts in to the bank account. When you receive payment they will appear in your PayPal account and you will need to manually transfer funds from the PayPal account to your bank account.

Your customers can pay by using their PayPal account or if they are not registered with PayPal they can pay you by credit card.

You can enable PayPal Express Checkout if it is supported by the shopping cart software you use. It can bypass the address step in the checkout process. But be wary as it may not work with the shipping method if it needs the address information to calculate the shipping cost.

PayPal is a hosted solution meaning that payment is collected on the PayPal site and your customer is transferred there to enter the details then back to your site after payment. This doesn’t always work so you might get a payment and not a completed order.

Pros:

  • Millions of registered users
  • Very safe for both merchant and consumer
  • Simple to use
  • Allows payments is multiple currencies (pretty much any) – higher percentage and transaction fee
  • Simple to use and manage

Cons:

  • Some people don’t like PayPal
  • Easy for consumers to stop payments – onus generally on the merchant in a conflict
  • Can hold your funds in a dispute
  • Can block your account in a dispute
  • Can be difficult to directly contact

eWAY is a payment gateway that connects to an Online Merchant Bank account. They offer plans that come with merchant services meaning they get you the online merchant bank account. eWAY will accept payment by credit card that is cleared and automatically goes to your bank account generally in around 24 hours.

eWAY offer a hosted payment page (i.e. at eWAY) and also have an inline payment option i.e the payment information is entered on a page on your website. The latter option requires a SSL certificate. However an SSL certificate is really good practice in general.

Contrary to popular belief both still need to be PCI DSS compliant but PayPal is less onerous than eWAY might be.

Pros

  • Money goes to the bank directly – 24 hours
  • Australian company
  • Safe – they have some anti-fraud capabilities
  • Fees are slightly less than PayPal
  • Easy to contact and good customer support
  • Simple to use and manage

Cons

  • Not as well known as PayPal
  • Anti-fraud not as good as PayPal
  • No Express Checkout
  • Only Australian dollars (there are some other limited currencies but costs are higher)

Many online stores will have both as an option and as ShellysBookKeeping mentioned offer manual methods like Invoice and Bank transfer. What ever you use needs to be supported by the software (shopping cart) that you use.