Paypal or Credit Card w/SSL

[fum]

So I'm working out details of an online shopping cart. I can set it up with both Paypal or Credit Card processing ( it's similar in fees/cost to do either, only a little more initial cost to aquire the SSL Cert and setup merchant account), but would prefer to use Paypal for bank transfers only, as there are not fees associated.

thought I'd ask. Generally, which do you prefer for online commerce?

 

[TheRealWaldo]

I use both, but primarily Paypal, as in the long run, it's must cheaper, and it provides some buyer/seller protection that running a merchant account does not.

W.

 

[Ethan]

Tell that to these people: www.paypalsucks.com

 

[TheRealWaldo]

As with any company that has billions of clients, there's gonna be a few unhappy people. I've had a business account since '01, and have had no issues (other than one jackass that attempted fraud on me, but paypal shut him down)

W.

 

[NewYorkDave]

I don't have Paypal anymore, and I don't think I'm going to use it again, so naturally my preference is for CC/SSL.

 

[TheRealWaldo]

A note: You do not need a paypal account to use paypals services (nor does anyone paying through them). They accept credit cards without having to sign up or hold an account.

W.

 

[Ethan]

True. But then they bombard you with tons of emails telling you to register. Also you can't get money (in the event you're "refunded" through paypal) unless you register for the account which includes providing your checking account information.

 

[TheRealWaldo]

I dunno where you went, but last time I tested their CC system, they didn't ask for my email address. I gotta test it alot for apps I develop.

Refunds are of course always an issue when dealing with a credit card. As with a regular CC billing system, are the responsibility of the company receiving the money (unless they disclaim offering them, etc.). Generally 'chargebacks' are not done because they incur other fees from the card issuer, usually $40+, so an alternate method is always advisable. Most companies would offer a cheque, or store credit as a refund to avoid getting hit with chargebacks, and avoid the customer getting hit with fees as well. Paypals system is just an 'alternative' for that refund, they cannot force you to use it, only the company you purchased from can do the refund bit, and if they're ethical, would provide alternatives if you did not wish to sign up with paypal.

W.

 

[gyraf]

if they're ethical

IIRC, PayPal is currently being investigated by danish banking authorities for violating numerous written and non-written rules about ethics and transparancy..

Jakob E.

 

[Ethan]

I think you might be mixed up with the terminology. A 'chargeback' as defined by the merchant account issuer is when a customer disputes a charge with his card issuing bank, and demands that they 'chargeback' the amount that was charged from the merchant. This is very bad for the merchant (as well as the cardholder), and does incurr fees. A simple refund credit back to the card is not a chargeback.

 

[tubejay]

I prefer not to reward a company that doesn't keep the interests of its customers in mind. Paypal has done VERY little to prevent fraud on its service. They also do almost nothing to help victims of fraud. In contrast, if someone rips you off via credit card, the credit card company instantly refunds your money (at least citicards does) and RARELY if ever, after its investigation decides to make you cover the loss. With paypal, you almost always get stuck with the loss, especially if you paid with your credit card or paypal balance.

There's a lot more paypal could do to prevent fraud and increase security, but they just won't because it might hurt their bottom line for a year or so while they come up with a solution to the problem.

 

[TheRealWaldo]

That's why I put the term in quotes, so it wouldn't be confused with the standard term. Refunds do incur charges for me through a standard merchant account (not through paypal), and they incur charges on my card if the refund is posted through them. I've never had an experience where a refund through a credit card didn't cost me money.

W.

 

[peterc]

Paypal does not work in all countries, for instance mine! I'm lucky enough to have a British girlfriend, so the account is in her name.

However we are having a battle getting the money out of the account as our efforts to verify have been in vain. So I've got $1200 in my Paypal account & cant get it out!

Doing a telegraphic transfer (wire transfer) from here is expensive ($30 - $40 in costs) so a credit card is a far easier option for me.

Peter

 

[TheRealWaldo]

Hehe, I do occasionally allow people to send money orders, and on the very rare occasion, personal cheques... I think it's only fair to allow that, since I try and avoid using credit card where-ever possible!

W.

 

[fum]

I'm a big fan of postal money order for avoiding personal checks, etc. as good as cash in any post office, and gets around the whole holding off to ship until the check clears nutshell.

And I see that people are pretty evenly divided on this. The poll is split 50/50 at present =)

ju

 

[Scenaria]

im a big fan of bank wires.. (ofcourse this only really works if the buyer trusts you) my bank only charges $10 processing fee... much cheaper than using paypal.. and no secure crap.... IMHO CC secure sites tend to attract hackers and illegit CC numbers that have been stolen.