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Will I still make sales if I don't have a merchant account?

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  • Will I still make sales if I don't have a merchant account?

    I would like to just use Paypal, Amazon Payments and Google Checkout as options for my customers. My budget is tight and having to get an SSL and payment processor is not an option I can afford right now.

    Do you think I will still make sales going this route? Thanks for any feedback.

  • #2
    There are many sites that do not take credit cards directly but for $30 a month or so you can take credit cards through paypal and use them as your merchant account which looks better in my opinion. SSL can be had for less than $49 a year or you can get away with the free SSL that 3D offers until you build the business up.

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    • #3
      Dear Giftlady,

      I agree with tmilone103, you can save money on the SSL-where you can use the shared SSL with 3dcart. If you most certainly can try just using Paypal, GoogleCheckout, and Amazon and after some time you can see if you have many "abandon" carts. Some people that have a tight budget choose to just have the merchant account and drop Paypal, GoogleCheckout and Amazon altogether. We have merchant accounts that start at $19.99 a month and the funds are deposited directly into your own checking account.
      you have further questions or would like to talk to one of our highly knowledgeable merchant account specialists to see what would be in your best interest simply call 1-800-838-9699.

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      • #4
        Dear Giftlady,

        I agree with tmilone103, you can save money on the SSL-where you can use the shared SSL with 3dcart instead of purchasing your very own. You most certainly can try just using Paypal, GoogleCheckout, and Amazon and after some time you can see if you have many "abandon" carts. Some people that have a tight budget choose to just have the merchant account and drop Paypal, GoogleCheckout and Amazon altogether. We have merchant accounts that start at $19.99 a month and the funds are deposited directly into your own checking account.
        If you have further questions or would like to talk to one of our highly knowledgeable merchant account specialists to see what would be in your best interest simply call 1-800-838-9699.

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        • #5
          FWIW, I sell mid 6 figures through my 2 3d websites and use the shared SSL. I am in somewhat of niche markets though.

          DaveW

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          • #6
            Thank you for all of the helpful responses. I will look into the options you suggested.

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            • #7
              you may want to consider getting an inexpensive merchant account for several reasons: build up a credit history, knock away at the "probabtionary" period many accounts require (before they remove account limits) and to start to develope a business profile. (DnB charges for this but you can establish your own for free over time)
              Setting up net 30 business credits accounts is also a very sound way to building credit history. You will need this as the business grows and to grow the business, so, it's kinda catch 22. :)
              Last edited by Mark; 02-24-2012, 01:04 PM.

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              • #8
                Do a merchant account and Google checkout. Paypal is nothing but an overbearing extension of eBay. They pretty much do whatever they want, ram it down your throat and expect you to swallow all their bs.
                David
                David's Gifts and Things

                Wholesale Gifts, Home Decorating, Jewelry and More

                Quality, Selection, Value Always

                The more you buy the more you save!

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                • #9
                  Paypal is nothing but an overbearing extension of eBay. They pretty much do whatever they want, ram it down your throat and expect you to swallow all their bs.
                  Do you have "tech" on specific episodes/problems that you have had with them?

                  Unsubstantiated accusations based on the ihatepaypal.com website don't do anyone here any good. I have had some nightmares with regular merchant accounts too, PP doesn't have the monopoly on doing odd things.

                  To the original poster, assuming you mean PP standard, I would be a bit nervous about only having those three options. Despite what PP standard says, they are not a replacement for a regular merchant account because the customer can't pay with a card that is attached to their personal PP account without logging on to that account. That is about 10 steps more than someone wants to do unless they planned on paying with PP from the get go.

                  Google doesn't have that problem, but you still are asking customers to log on to another account, which would make me nervous.

                  PP Pro, which costs $30/month, acts like a regular merchant account for the customer, so it might be a better option.

                  But then you are also getting into regular merchant account territory for costs as well.

                  Good luck. You might just have to try things and see. I don't think PP Pro has a contract (not sure) so maybe you could try it with and without and see if it helps sales.

                  DaveW

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                  • #10
                    Do I have specifics with dealing with PayPal, Yes.
                    Am I going to run a list here, No.

                    I don't just hate them for the fun of it. I don't follow the group thinking and never have in much of anything. PayPal was actually worth something before eBay came along and applied their mentality to the business. eBay doesn't give a damn who they screw and for what reason. They screwed their sellers, bought PayPal and did the same to their sellers and PayPal users and then went after their ProStores users.

                    As for using them on a web site, in my experience with them and listening to potential customers who abandoned carts, PayPal is viewed as a half effort at best.

                    I've ran websites with both PayPal and a true merchant account. Sales were mediocre at best using PayPal. Changing to a true merchant account increased sales by 4 times within 2 weeks. PayPal suffers from the "I hate eBay" sentiment and is still viewed by many as just a way to bounce money between friends or for other less than up front reasons.

                    Google checkout, for whatever reason, maybe just because of the Google name, has a more favorable view. As far as sales go, in my world it accounts for about 10% of order payments. Nothing to brag about but it allows me to accept American Express cards without having to pay their fees and their fees are no worse than PayPal. No messing with my money for whatever reason. I know exactly when the money will hit my bank.
                    David
                    David's Gifts and Things

                    Wholesale Gifts, Home Decorating, Jewelry and More

                    Quality, Selection, Value Always

                    The more you buy the more you save!

                    Comment


                    • #11
                      Originally posted by InsnWizard View Post
                      Do I have specifics with dealing with PayPal, Yes.
                      Am I going to run a list here, No.

                      I don't just hate them for the fun of it. I don't follow the group thinking and never have in much of anything. PayPal was actually worth something before eBay came along and applied their mentality to the business. eBay doesn't give a damn who they screw and for what reason. They screwed their sellers, bought PayPal and did the same to their sellers and PayPal users and then went after their ProStores users.

                      As for using them on a web site, in my experience with them and listening to potential customers who abandoned carts, PayPal is viewed as a half effort at best.

                      I've ran websites with both PayPal and a true merchant account. Sales were mediocre at best using PayPal. Changing to a true merchant account increased sales by 4 times within 2 weeks. PayPal suffers from the "I hate eBay" sentiment and is still viewed by many as just a way to bounce money between friends or for other less than up front reasons.

                      Google checkout, for whatever reason, maybe just because of the Google name, has a more favorable view. As far as sales go, in my world it accounts for about 10% of order payments. Nothing to brag about but it allows me to accept American Express cards without having to pay their fees and their fees are no worse than PayPal. No messing with my money for whatever reason. I know exactly when the money will hit my bank.
                      I am not trying to argue, but you are spreading misinformation about PayPal, which effects others merchants ability to make good decisions.

                      I think we might agree about PayPal basic, which would seem to be what the OP asked about. There is a lot of sentiment against eBay/PP and if people know that you are using it and you don't have other choices, they will bolt.

                      Alternately, depending on what kinds of items you sell, you may get some sales by offering PP as an option. In my business, some people buy and sell things in their PP account through eBay or other avenues. They then use their PP account to as their mad money or a way to spend money without the wife knowing. Not good for the marriage, but OK for the merchant.

                      TO state again, I would not think that offering PP basic as your main, or only merchant processing, would be a good idea. I won't pay a merchant who does it this way, BTW.

                      I also agree that Google is not a bad choice, but I would be concerned about a method that caused so many extra steps to checkout. But you gain the Google name for security, etc.

                      I don't think it was an option that the OP was considering, but PayPal Pro is quite different than PP basic and those differences are very important to know about so a merchant can make a good decision.

                      1) There is a $30/month fee for PP Pro. The only good news about that is that is the only fee and it never changes.
                      2) PP Pro is completely transparent to the customer.* It processes just like any other merchant account.
                      3) Just like the PP standard account, the money hits your PP account right now, but minus the transaction fee. We pay the majority of our vendors with credit cards and we use the PP debit card, which comes out of the PP balance and earns 1% cash back with no limit. For us, this works well.

                      There is also the option to have automatic withdrawl every day based on batch just like a regular account, but it would take thier standard 2-4 days, which may be slow compared to other merchant accounts.

                      *I have run across a few cards that will not run through PP Pro. Apparently, if you have a dispute with PP and it ends badly (in PP's view) and they suspend the account, the card tied to that account gets put on the black list and won't process through PP Pro. This is a pain, but it happened to me 4 times last year, out of high 6 figure sales, so it is rare. We keep a spare merchant account to work around it, which is a good idea anyway for a company my size.

                      Once again, I don't discount your opinion or that you have apparently had bad experience with PP Standard. But, when I was looking at switching to PP, I had a horrible time finding any concrete information, everyone was, quite frankly, like you with the "PayPal sucks, eBay Sucks!!!!1111111111111" rhetoric. There was no hard data, and it seemed like the posters didn't even know the difference between the types of PP offered.

                      I am not saying PP is perfect, or even good for a lot of people, but like any business product, there are upsides and downsides and the facts rule the day!

                      DaveW

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                      • #12
                        Originally posted by InsnWizard View Post
                        Do a merchant account and Google checkout. Paypal is nothing but an overbearing extension of eBay. They pretty much do whatever they want, ram it down your throat and expect you to swallow all their bs.
                        That sums up my experience with them precisely! I just signed up for a "real" merchant account and plan to get rid of Paypal Website Pro as soon as I can get the new gateway set up. I will no longer accept Paypal as a payment option. If anyone wants specifics, there certainly is a ton of it out there. I came across a lot of it when I was doing my research on merchant accounts. Learning about the experiences other people have had with a company/product, good or bad, can be very useful. It looks like I will also be saving a lot of money on fees by switching to Merchant Warehouse.

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                        • #13
                          Yes, what problems have YOU had? Not read about on some website, but actual problems YOU had?

                          I am not a PP shill, and and not trying to be argumentative at all, I genuinely want to know what issues to look out for. We have processed almost 7 figures with PP since switching and have not had a problem, but I am always waiting for the other shoe to drop.

                          DaveW

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                          • #14
                            We use Paypal and a merchant account. Paypal is less than half of the total, but still a significant amount. We've processed a large number with them as well and have never had a problem. We've toyed with removing it, but we have a large number of customers that prefer it.

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                            • #15
                              While this is a bit of a late reply, here's our 2 cents worth:

                              Yes there are a lot of Paypal bashers out there. However, it is also the most widely used payment service on the planet. To not accept Paypal will cost you business (some people will not use anything else).

                              If you don't already have a CC processor, then using PP Payments Pro is a pretty quick and easy method for adding that much needed payment method on a private website (in other words, not an eBay, Amazon, Etsy, etc. store).

                              Google Checkout and CBA Amazon are also good options to add but both of them have their issues as well (read some of the Google Checkout horror stories if you have the time).

                              The bottom line is this: there is absolutely no one perfect solution out there. Every one of them has their own pluses and minuses. The bottom line should be whatever makes life easy for your customers and you're always going to be better off offering them options since everyone has their own opinions, perspectives and experiences.
                              Keith

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