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Recommendations for Website Payment Systems?
An anonymous reader asks: "I run a smallish website that provides stock quotes, charts, etc for a very under-reported stock market. (I won't link here due to the Slashdot Death Ray effect, and because this is a real question, not an advertisement). Over the recent weeks, many of my site members have been asking if they could make a small contribution to help off-set costs, which I am considering. 'Tip Jars' seem tacky and I know many people aren't comfortable with Paypal. So, should I roll my own, or are there any highly recommended ways of doing this that I am missing? Any suggestions?"
Paypal is awesome. I use it on www.frostedcookies.com to collect payments. No one has to register with paypal to send money - they can just enter their CC or checking account information and be done.
D'oh, my bad, I meant to say that paypal has large fees for the seller, not the buyer.
Actually, you're absolutely right, the goal should be to make it easier on the donor, otherwise they'll just shrug and walk away...
[o]_O
You might be interested in http://www.bitpass.com/ for micropayments. Sounds good in principle but I've not yet implemented any of it on my site...
The people I've seen complaining about Paypal are merchants who get bit by disputed transactions for services rendered. You won't have any dispute issues, so Paypal is great. From the customers POV, Paypal allows them to use a credit card in a very-secure website (time-tested) without giving the small-website-owner anything but money and an email address. Paypal doesn't require them to create accounts anymore either. Look to the other comments for tasteful display suggestions.
Everyone is entitled to his own opinions, but not his own facts.
And the other alternative is to display pay-per-click text ads to offset some of your costs.
I've seen some non-US charities use WorldPay, might be worth a look...
This company is one that I have used for years. Read about the micro payment solutions Email $5.00 or $25.00, total transaction cost including the recipiant's cash out fee is $1.00. When an envelope and a stamp and a cheque can cost more, why would you use anything but?
Yep. I started by accepting only PayPal on my site, and then started accepting credit cards as well. The credit card stuff is a huge hassle.
...Well, that definitely sucks, but guess what? That's a risk that you take as a merchant whenever credit cards are involved. People will commit credit card fraud. You will have charges reversed. PayPal or not.
You can now accept credit card payments over PayPal as well, if you're a verified member and you have PayPal linked to a bank account. It's worked really well for my (very small) business... PayPal charges fees on each transaction, obviously, but it's a turnkey solution... none of the hassles described by the above poster, who had to deal with separate credit card merchants.
There are some downsides to PayPal, but those are well-documented all over the 'net. But most of the PayPal "horror stories" I've seen don't sound any worse than typical hassles you'd get with any credit card processor.
The typical PayPal "horror story" seems to go like this. "This guy PayPal'd me N dollars! Then PayPal reversed the payment because there was evidence of credit card fraud. Now I don't have my #)*&#)%%^ N dollars! WTF, (*&%*$% PAYPAL!"
My advice: if you do go with PayPal, take extra care to let your customers know they can pay with PayPal via credit card even if they don't have a PayPal account. The perception is that you have to sign up to pay with PayPal, and it's not true any more.
I've only been using them for a month, though. So take this very tentative endorsement with a grain of salt. But it was easy to implement and so far, so good. (And I *have* implemented e-commerce solutions from scratch before using other products like PayFlowPro, at previous jobs. Just FYI.)
OtakuBooty.com: Smart, funny, sexy nerds.
Hi,
I went through the same problem last month for the website of my company (see sig). PayPal may be OK for "donations" but it is not good enough for e-commerce websites. PayPal is down or broken in some way about 100% of the time. Also, many people (including me) don't want to pay with PayPal because of all the problems you can read on PayPalSucks.
So I offer CC payments through eSellerate. I handle my own shopping cart and the user picks the payment means when he checks out. eSellerate is good for me because the commission is 10% flat, without a fixed fee. Most similar services charge something like "5% or $2, whichever is higher". My product cost $6.99, so $2 is a lot of money.
Also, you can really customize the checkout process on eSellerate so that the customer can't tell the difference between your site and the eSellerate checkout site. You can't do that with PayPal.
As a conclusion, please do not offer PayPal only. PayPal is not a reliable company and lot's of people avoid them.
Nobox: Only simple products.
You can use it as a tip jar or as an online subscription gateway. I've had good luck with them for Telltale.
Alex.
Paypal is not a bank. Micropayments are a joke. Authorize.net or Verisign's PayFlow Pro and a merchant account.
No. You're 100% wrong. Regular credit card processing companies will freeze your account. I've seen it happen first hand.
One company that my company makes e-commerce, inventory management and meat point of sale software for had over $50,000 in already processed charges for a week withheld without warning. The reason given (after the fact) was that too much of the company's business was coming from the Internet, and the CC processor was "nervous" (the exact word used.) This wasn't a sudden influx, in fact it wasn't more than a few percent different from the previous four weeks or so at the time. No unusual / atypical number of chargebacks was being encountered, nothing out of the ordinary was going on at all, other than the business was slowly and steadily becoming more successful for various reasons.
So what happened? The money was held for six months before they grudgingly gave it over, admitting there was no problem. By that time, they were no longer processing this place's charges, but that didn't make them move any faster.
A new credit card processor was found, one of the local banks covered the week's gap in income with a 90-day note based on the company's history with the bank, and the day was saved - no thanks to the cc processor. The business still had to come up with 50 grand out of the blue to pay off the note to the local bank, but they were healthy and they pulled it off.
Consider, if this particular business wasn't a pretty darned good operation, that might have killed them. As it was, there was much wailing and gnashing of teeth, as you well might imagine -- no one needs a week's cash flow knocked into limbo without warning.
The CC processors can do it, they will do it, they have done it.
When you sign up with a credit card processor, you need to read the terms, line by line and with careful attention paid as to how any particular situation described or alluded to will affect your business if the processor exercises the option described. Then you need to plan what you will do in each of those situations. If you're not prepared, you'll have to take your pleasure in complaining to your friends and family, because that's all the recourse you have.
The cold, hard fact of the matter is that credit card processing and sourcing companies hold all the cards, no pun intended.
They agressively advertise to consumers that they (the consumer) will never be liable for fraudulent use of their card. Which is true. Then they turn around, every time, and dump the fiscal damage on the merchant.
That's right. If you sell something via CC, even if you validate the address and ship to that address, you can still have a chargeback, you are in no way protected. You get lines like "my boyfriend used my card without my permission" and you're flat out of your merchandise, the funds are taken directly from your account, and that's the end of it. The cops in some remote city or podunk town won't lift a finger to do anything about it, and for 99% of the merchandise involved, the merchant can't afford to pursue it.
Who isn't hurt by this? (1) The consumer, (2) the thief (who may be the consumer!) (3) the credit card company and (4) the credit card processor. The merchant takes the hit, each and every time. You can't opt out or you can't process cards, which probably means you and everyone who works for you need to get a McJob.
So don't underestimate what a "normal" cc company can do to you. Paypal is no better or worse. Behave yourself, co-operate with any investigation and don't hesitate to refund when asked, and you will probably not have to deal with a frozen or closed account. Try not to grit your teeth when you have to pay for a blatent rip-off; it's part of the landscape, and these companies have rigged it so you cannot fix the problem. Complain in any major way, and you could have all your
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