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  • #977824
    Jason2
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    I am planing to start two ecommerce sites,

    well now I am upto about the price, But just wondering about which online payment system I should use, a third party or a bank? I am at the start point, and it will be a small business,

    Can I use one gateway to both sites?

    and then,

    if a customer did a $10 transaction by his credit card, how much money actually I will receive into my account.. lets forget about annual fees of the gateway,.,

    #1101936
    MatthewKeath
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    Jason2, post: 113895 wrote:
    I am planing to start two ecommerce sites,

    well now I am upto about the price, But just wondering about which online payment system I should use, a third party or a bank? I am at the start point, and it will be a small business,

    Can I use one gateway to both sites?

    and then,

    if a customer did a $10 transaction by his credit card, how much money actually I will receive into my account.. lets forget about annual fees of the gateway,.,How about Paypal? It’s easy to set up and very trusted by the general public. There is two options, one having all transactions go to Paypal, the other having the choice of credit card on your site or going to Paypal.

    Regarding the costs, I think that would depend on the Gateway. Most banks have there own, with different rates and fees.

    Whatever Gateway you choose, you will first need to check that it is able to be used with your eCommerce system.

    Whatever the fees are, you will need to ensure they are covered in the costs of your products.

    Good luck :)

    #1102012
    MatthewKeath
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    Jason2, post: 113895 wrote:
    I am planing to start two ecommerce sites,

    well now I am upto about the price, But just wondering about which online payment system I should use, a third party or a bank? I am at the start point, and it will be a small business,

    Can I use one gateway to both sites?

    and then,

    if a customer did a $10 transaction by his credit card, how much money actually I will receive into my account.. lets forget about annual fees of the gateway,.,How about Paypal? It’s easy to set up and very trusted by the general public. There is two options, one having all transactions go to Paypal, the other having the choice of credit card on your site or going to Paypal.

    Regarding the costs, I think that would depend on the Gateway. Most banks have there own, with different rates and fees.

    Whatever Gateway you choose, you will first need to check that it is able to be used with your eCommerce system.

    Whatever the fees are, you will need to ensure they are covered in the costs of your products.

    Good luck :)

    #1102014
    marketingweb
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    • Total posts: 625
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    Further to what the other Matt said, I agree to go with Paypal when starting out.

    Having set up both paypal based and merchant account based systems with banks before, I have a bit of a love hate relationship with Paypal. I want to hate them because, well, it’s Paypal, but despite that it looks a little low end, they provide a service that none of the banks can match.

    Basically what they allow is anyway operating a business to accept payments. Total cost to setup is $0 (other than costs from your developer), and then you are looking at $0.30 per transaction + 2.4% of transaction value – rates go down once you start doing $5000 per month.

    So for a $10 transaction, you would end up with $10 less $0.54 = $9.46 which isn’t that bad.

    As for dealing directly with the bank, to go truly direct you will be asked to fulfil some crazy complicated requirements re your security and setup of your site. The middle ground is to use http://www.eway.com.au – which still requires you to deal with your bank, but they handle the transaction between your site and the bank’s system. But still far more complicated and expensive to set up than paypal.

    Options like this can be considered once you get a big going, unless it’s a big budget, heavily backed big business type launch of course!

    Matt

    #1101938
    marketingweb
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    • Total posts: 625
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    Further to what the other Matt said, I agree to go with Paypal when starting out.

    Having set up both paypal based and merchant account based systems with banks before, I have a bit of a love hate relationship with Paypal. I want to hate them because, well, it’s Paypal, but despite that it looks a little low end, they provide a service that none of the banks can match.

    Basically what they allow is anyway operating a business to accept payments. Total cost to setup is $0 (other than costs from your developer), and then you are looking at $0.30 per transaction + 2.4% of transaction value – rates go down once you start doing $5000 per month.

    So for a $10 transaction, you would end up with $10 less $0.54 = $9.46 which isn’t that bad.

    As for dealing directly with the bank, to go truly direct you will be asked to fulfil some crazy complicated requirements re your security and setup of your site. The middle ground is to use http://www.eway.com.au – which still requires you to deal with your bank, but they handle the transaction between your site and the bank’s system. But still far more complicated and expensive to set up than paypal.

    Options like this can be considered once you get a big going, unless it’s a big budget, heavily backed big business type launch of course!

    Matt

    #1102016
    Stockings99
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    I agree with the other posts here, if you are just starting out, PayPal is your friend. I have been using their service for a long time and have it integrated with my ordering system so that stock levels are taken care of automatically, whilst I am able to import sales history into my accounting system. Many online shoppers trust PayPal thanks to eBay.

    When you grow your business, you will reach a point where it will be more cost effecitve to have a merchant facility. I have posted this article about this topic which you may find helpful: http://www.amazines.com/article_detail.cfm/4435777?articleid=4435777

    #1101940
    Stockings99
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    • Total posts: 31
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    I agree with the other posts here, if you are just starting out, PayPal is your friend. I have been using their service for a long time and have it integrated with my ordering system so that stock levels are taken care of automatically, whilst I am able to import sales history into my accounting system. Many online shoppers trust PayPal thanks to eBay.

    When you grow your business, you will reach a point where it will be more cost effecitve to have a merchant facility. I have posted this article about this topic which you may find helpful: http://www.amazines.com/article_detail.cfm/4435777?articleid=4435777

    #1101942
    Jason2
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    Thanks

    But don’t you guys think, that visitors may feel that site/ business is small when using paypal, some visitors may not trust small companies, they may always try to go for a big one, some times they do not care about the price,, any way what i thought to use paypal, who knows that my business will success or not, however my fear is same

    #1102018
    Jason2
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    Thanks

    But don’t you guys think, that visitors may feel that site/ business is small when using paypal, some visitors may not trust small companies, they may always try to go for a big one, some times they do not care about the price,, any way what i thought to use paypal, who knows that my business will success or not, however my fear is same

    #1101943
    marketingweb
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    Hi Jason,

    You do raise a valid point – there are some consumers who don’t like using paypal only – however I personally think this is decreasing in Australia, especially since a lot of bigger businesses are using it now.

    As I mentioned in my previous post, it all depends on how you are setting your business up. If like most of us you are on a somewhat limited budget, then the money you invest in your payment solution could at the start be better spent for example on marketing your business.

    Or in other words – if you have the choice of spending an extra say $3000 on payment system setup to avoid paypal or $3000 extra on marketing, i’d pick the marketing every time. If your marketing is effective then you will win more customers than you would lose by people being concerned by paypal.

    If on the other hand you are staring something big with venture capital or some other money behind you and the total project was say a $100,000 project designed to make you a household name and really take on an entire industry to dominate it, sure, go for the best payment solution possible, as it’s a small percentage of your capital.

    I guess what most here are trying to say is that it’s not that paypal is better, it’s that it’s simpler and better value for smaller businesses when starting out.

    Matt

    #1102020
    marketingweb
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    Hi Jason,

    You do raise a valid point – there are some consumers who don’t like using paypal only – however I personally think this is decreasing in Australia, especially since a lot of bigger businesses are using it now.

    As I mentioned in my previous post, it all depends on how you are setting your business up. If like most of us you are on a somewhat limited budget, then the money you invest in your payment solution could at the start be better spent for example on marketing your business.

    Or in other words – if you have the choice of spending an extra say $3000 on payment system setup to avoid paypal or $3000 extra on marketing, i’d pick the marketing every time. If your marketing is effective then you will win more customers than you would lose by people being concerned by paypal.

    If on the other hand you are staring something big with venture capital or some other money behind you and the total project was say a $100,000 project designed to make you a household name and really take on an entire industry to dominate it, sure, go for the best payment solution possible, as it’s a small percentage of your capital.

    I guess what most here are trying to say is that it’s not that paypal is better, it’s that it’s simpler and better value for smaller businesses when starting out.

    Matt

    #1101946
    Jenish Pandya
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    • Total posts: 104
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    Hi Jason,

    There is no relation of business being small and using paypal or being big and using a merchant account.

    Paypal works and most online shoppers have heard of it and have a paypal account. Even if they don’t have an account they can still pay you.

    A merchant account is only good if you doing big volumes of transactions.
    Much has been already been said by marketing web, stockings and matthew so i wont drag it along.

    The other benefit is, when using merchant accounts some carts need a special application/add on to integrate into the payment system (cost you more for setup).

    Cheers
    Jenish

    #1102022
    Jenish Pandya
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    • Total posts: 104
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    Hi Jason,

    There is no relation of business being small and using paypal or being big and using a merchant account.

    Paypal works and most online shoppers have heard of it and have a paypal account. Even if they don’t have an account they can still pay you.

    A merchant account is only good if you doing big volumes of transactions.
    Much has been already been said by marketing web, stockings and matthew so i wont drag it along.

    The other benefit is, when using merchant accounts some carts need a special application/add on to integrate into the payment system (cost you more for setup).

    Cheers
    Jenish

    #1101947
    AngelaGirl
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    One thing to consider when choosing your payment system is that some people prefer to pay by bank transfer instead of card or PayPal transaction.

    This came as a complete surprise to me.. although it’s a bonus as there are less fees involved.

    #1102024
    AngelaGirl
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    One thing to consider when choosing your payment system is that some people prefer to pay by bank transfer instead of card or PayPal transaction.

    This came as a complete surprise to me.. although it’s a bonus as there are less fees involved.

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