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March 20, 2015 at 10:27 am #991221Up::0
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?????March 20, 2015 at 9:01 pm #1180516Up::0You can setup as many payment gateways as you want. One Advantage of Eway vs paypal is ability to setup recurring payments. Advantage of paypal is the client does not need to setup any details. You need to think about your clients and make it easy for them to pay you. Most people have direct deposit and at least one other option for payments.
You should also consider if the payment gateway integrates with your accounting software for ease of matching payments to invoices.
ShellyMarch 20, 2015 at 9:57 pm #1180517Up::01911naomi, 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.
March 29, 2015 at 3:10 pm #1180518Up::01911naomi, post: 210530 wrote:So to me there seems to be no risk of having 2 payment optionsDo you mean offering payment via Credit Card and Paypal account? I certainly recommend offering PayPal in addition to Credit Cards as my experience has shown me that many people prefer to pay with PayPal – I guess it’s easier than memorising your credit card numbers or running around the house looking for your wallet.
April 18, 2015 at 7:38 am #1180519Up::0PayPal is best for my view, I have already a online business and take a payment through PayPal..
April 23, 2015 at 2:49 am #1180521April 24, 2015 at 3:33 am #1180522Up::0I use Stripe integrated with my website to take Credit Card payments. I also implemented it for a client who sells gemstones and she saw a massive increase in sales just due to being able to take credit cards directly. A lot of people hate PayPal!
Stripes costs:
1.75% + 30¢
Domestic cards2.9% + 30¢
International + AmExNo refund costs – If you refund a transaction, Stripe will return the entire fee.
No hidden or monthly fees – Stripe has no setup fees, no monthly fees, no card storage fees.PayPals Costs:
3.4% + 0.49May 2, 2015 at 12:30 am #1180523Up::0Not having PayPal is a MAJOR mistake in my view. Last night I walked away from a $120 online purchase because they did not offer PayPal. I was all cosy in bed and had no intention of getting up and finding my wallet (or inputting about 10 lines of personal information to support my purchase).
Online shopping is hugely impulse driven. You want shoppers clicking “buy” before they’ve had time to sober up/wake up/discuss it with their spouse!
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