I currently accept all major credit cards. My transaction rate for those cards, is on average, 2.1% (discount rate, per transaction processing fee, and all other fees ).
I’m contemplating also offering PayPal to give people another payment option, but the PayPal fees are 2.9%, plus $.30 a transaction.
The product I sell is typically given as a milestone birthday or anniversary gift, and it’s purchased mainly by people in their 20’s and up - in other words people that would typically already have credit cards.
So ideally, I’d get some sales I ordinarily wouldn’t have by offering PayPal, but the risk is that people that would have purchased the product anyway at the lower transaction rate of 2.1% will buy it with PayPal at the 2.9%, plus $.30 rate.
I have a feeling that because of the colors of the PayPal button, and “the safer, easier way to pay” verbiage (which I can’t change) a lot of people will select it. I turned on the PayPal feature in my shopping cart, and you see can a screenshot of the PayPal button in the lower-right corner here.
I do get occasional people that call asking if my shopping cart is secure (it is), but I don’t know how many people don’t purchase because I don’t offer PayPal.
So if this were you, what would you do. Would you offer PayPal knowing that you’ll end up paying higher fees but you might gain a customer here or there, or do you think that the PayPal option won’t affect sales all that much so I shouldn’t offer it?
If I have to put down the laptop, walk away, find my credit card and enter the numbers to buy something online… well half the time I won’t leave the sofa to find my purse, so it goes unbought. I’m a LOT more likely to buy when Ijust have to enter a paypal password.
No, god no, no way in hell. I don’t trust paypal and avoid using them any way possible. Try adding “Google Checkout”, it’s a good way to get the safe, verified transaction badges.
I love PayPal. It’s saved me a ton of money. There’s lots of online stores that only accept PayPal, and since I won’t do PayPal unless I really, really have to, I simply don’t buy anything that’s not essential with PayPal.
I have an index card with my credit card number and code and expiration written on it, which I keep in my desk drawer. Now, I’m pretty much the only one who uses this computer, and the only other human in the household is my husband, so I don’t have to worry about security. At least until the cats develop thumbs and learn that they can order online…they still can’t open the door!
Yes. I’ve lost my card (at home somewhere or other) but delayed reporting it because there were quite a few things I needed to buy and could do so via paypal.
It’s a bonus for me - sometimes I have money in my PayPal account that I suppose I could withdraw to the bank and then spend, but if I get the chance to spend it directly, that’s a win.
Definitely. I know I’ve bought things I otherwise wouldn’t because of the “pay with PayPal” button on the merchant page. PayPal is so easy, and like an earlier poster I’m often too lazy to go look for my wallet/credit card when the buying mood strikes. PayPal really facilitates things for impulse buyers like me.
Thanks for the replies so far. I should have probably made this a poll. So it seems like (assuming the people replying to this thread were potential customers):
I would have potentially lost a sale to gaffa if I didn’t offer PayPal.
I may have lost a sale to SciFiSam if he stumbled across my store at the time he had lost his credit cards.
I may have lost a sale to hermette and Hanna, depending on their motivation level to get their credit card.
Rex Goliath prefers NOT to pay with PayPal.
For everyone else, PayPal is more convenient, but if you could pay by credit card instead, you would do that. Did I get that right?
The reason I’m asking is that I pay on average $1.05 for a credit card transaction processed through my merchant processor vs. $1.75 with PayPal. If I could get one extra customer for every 50 by offering PayPal as an additional payment option it would be worth it.
From this extremely limited (self-selected) sample, so far it seems like I should offer it even though my overhead costs would increase…
I’ve had a number of unpleasant experiences with PayPal, and basically consider a PayPal-only checkout the mark of an unprofessional website that can’t do real credit card transactions. But if you’re talking other forms of payment, too, I doubt I’d be influenced by having the PayPal option available either way.
No. I don’t use Paypal. I hate Paypal. Its not that hard to get up and find my wallet if I want to buy something online.
The Paypal button in your screen shot obscures the Checkout button, and at first, I thought I would ONLY be able to use Paypal. If that was the case, I would leave your site. You should make the Checkout button larger and more visable (color! drop shadow? font!) then the Paypal button.
I prefer not using Paypal but if it’s offered in addition to credit card payments there is no negative connotation for the retailer.
Also I find myself oddly embarrased by the fact that there are two numbers I have memorized - my SIN and my credit card number. I do most of my shopping online and apparently just a little too much of it.
