This is true even if you have your own Merchant Account. Though, if you have your own merchant account, your rep is probably more accessible. While people like to blast PayPal, they all to often forget that merchant accounts are controlled by banks who can be even more uncaring.
Banks are regulated. PayPal isn't. Presumably that's worth something.
Only so much, and depending on the region you are in. Not all banking regulations are the same. Think outside the US.
There's a way for PayPal to deposit money into your bank account every night at midnight. I forget how I stumbled upon this, but we use it at Carbonmade now.
The problem with that logic is they can also withdraw from it. Use their debit card (or snail mail check) to withdraw, close your bank account tied to PayPal if possible, they will overdraft you someday and cause you as much hassle as closing the account now.
Turn off overdrafting on your bank account. Transfer the money out of that account as soon as paypal sends it in.
I used to recommend PayPal Website Payments Pro until they screwed me recently. I assumed the people that were abused by PayPal were few and far between until it also happened to me. Now I tell everyone to get a real merchant account. It's just not worth gambling with your ability to process transactions.
Do get back to us in about 6 months to let us know how your merchant account is performing in regard to chargebacks. In my experience, we never win with our merchant bank, yet almost always win with PayPal.
What sort of business are you in that you're fighting with your customers over chargebacks? Couldn't you interpret this as something being horribly broken with the way you handle refunds?
If you're selling software, there's no reason you should ever have a chargeback happen against you. Just make sure your policy is to refund anybody for any reason at any time. I remember reading a JoelOnSoftware article where he talked about running 4 years straight with zero chargebacks using a policy like that.
Do get back to us in about 6 months to let us know how your merchant account is performing in regard to chargebacks. In my experience, we never win with our merchant bank, yet almost always win with PayPal.
What sort of business are you in that you're fighting with your customers over chargebacks? Couldn't you interpret this as something being horribly broken with the way you handle refunds? If you're selling software, there's no reason you should ever have a chargeback happen against you. Just make sure your policy is to refund anybody for any reason at any time. I remember reading a JoelOnSoftware article where he tal…
It's all about where the customer enters the process. If they are using the software and say, "Hey I think this sucks" then they will likely go to your site and request a refund. If, however, they look at their credit card statement and think, "I didn't like that program, I meant to cancel it" or "Hey I don't remember buying anything from ABC Software" (because the name of your product is "Really Cool Thing Pro") then they are likely to find it easier to dispute the charge.
Amazon Payments is often overlooked as a fine alternative to Paypal, for those who have had issues with Paypal's... inethical business practices. Moxie Marlinspike uses it to accept donations for example.
As do Kickstarter. They're the only reason I'm aware of Amazon Payments's existence.
It seems odd to me that charging business credit cards would cost you more with a merchant than charging normal consumer credit cards. Are businesses really more likely to incur chargebacks or generally be problematic than consumers?
Did anyone notice the relationship changes as you scale both options. The slider almost always shows paypal winning for transactions under $100 except at the $5,000 level and the million level. I'd love to see this in graph form.
If your revenue is $1M per month, you will almost certainly get to negotiate with them in person for a better rate.
I used to recommend PayPal Website Payments Pro until they screwed me recently. I assumed the people that were abused by PayPal were few and far between until it also happened to me. Now I tell everyone to get a real merchant account. It's just not worth gambling with your ability to process transactions.
Do get back to us in about 6 months to let us know how your merchant account is performing in regard to chargebacks. In my experience, we never win with our merchant bank, yet almost always win with PayPal.
That's an interesting point. I'll have to keep an eye on it and see if there's a difference, although our precent of chargebacks is so low, I'm not sure we'll have enough data in 6 months.
Did anyone notice the relationship changes as you scale both options. The slider almost always shows paypal winning for transactions under $100 except at the $5,000 level and the million level. I'd love to see this in graph form.
If your revenue is $1M per month, you will almost certainly get to negotiate with them in person for a better rate.
This website is wrong, do not buy into it. Paypal has a micro-payments model that makes it so that it is SIGNIFICANTLY cheaper to use paypal for transactions under https://www.x.com/community/ppx/xspaces/digital_goods
Charlesju, that is an entirely different service offered by PayPal, that does not make the website wrong! This is comparing to a standard PayPal account, which is by far the bulk of what people use. Furthermore, it's inaccurate that PayPal's digital goods would be cheaper if you're doing That being said, it makes sense for digital goods companies with <$5 transactions.
To the average developer without any prior knowledge to payment processing your chart is incredibly misleading.