posted on March 10, 2002 01:24:00 AM new
http://www.forbes.com/2002/03/08/0308paypal_2.html
Note: This article is 2 pages. Look for the second page, too.
Interesting points:
"Given the extensive nature of offline payments and the legacy technology, PayPal and eBay have implemented their online systems to undercut existing merchant rates. They are considerably less than most small merchant offline rates, but a shock to non-merchant consumers and casual online auctioneers. "
I hear people complain how Paypal is ripping them off. But, brick and mortar stores have always paid these fees.
"In fact, it's already happening. C2it, a two-year-old online payment system offered by Citibank, has grown to 350,000 users from 200,000 in November. That was when the company slashed all fees associated with domestic payments--whether funded with cash or credit. C2it was actually rebuffed in an attempt to purchase PayPal outright."
Whoa! C2it offered to buy Paypal? That would have been interesting!
"A small technology company out of Toronto, called CertaPay, has signed on four out of Canada's five major banks, with Royal Bank of Canada currently the only holdout, to implement e-mail payments"
May be the wave of the future. This would get rid of the middle-man. "I'll have my bank deposit the money into your bank, via the computer."
"Consider that in 2001 PayPal facilitated more than $3.5 billion in payments, generating more than $100 million in revenue, 70% of which comes from online auctions; 70% is also the percentage of eBay auctions that accept PayPal. That compares to 29.5% that accept eBay payments, eBay's PayPal clone, formerly called BillPoint."
posted on March 10, 2002 10:29:58 AM newThey are considerably less than most small merchant offline rates, but a shock to non-merchant consumers and casual online auctioneers.
Wonder where this info comes from. Paypal charges over 1% more than my merchant account provider, and a higher per-transaction fee as well....
posted on March 10, 2002 10:41:14 AM new
When I had my stores, my merchant rate over a decade started at 3.5% and eventually was negotiated down to 2.1%. That was only accomplished by playing one processor against another, and having a superb record with few chargebacks.
But no matter how I tried I could not get the daily (20 cents) and monthly statement fees ($6) removed. Also it took two days for the money to appear in my checking account. And it was extra for them to process Discover or American Express, and the Amex fees are considerably higher than Paypal charges (so far).
Then add in the 1% rebate on the debit card and I think I have a heck of a deal, one which I could not get in the brick and morter world.
Oh yes, ever try to get a regular card processor to knowingly allow you to do on line or mail order charges? Without being able to swipe the actual card, the rate goes up.
So comparing apples to apples, for online sales nothing beats Paypal for reasonable cost. What an in=person retail rate is bears little resemblance to what we do on ebay.
posted on March 10, 2002 12:32:41 PM new
When I looked into a crecit card merchant account there were all kinds of costs that Paypal doesn't have. One of teh big costs was leasing or buying the software for the account.
posted on March 10, 2002 03:34:00 PM newOh yes, ever try to get a regular card processor to knowingly allow you to do on line or mail order charges? Without being able to swipe the actual card, the rate goes up.
My merchant account has both online (their secure server) and B/M card service. For this, I am paying 2.35% plus .20/transaction. This INCLUDES online as well as B/M CC transactions.
Paypal charges much more than this for these services.
posted on March 11, 2002 03:39:50 AM new
revvassago,
per transaction may be cheaper depending on volume, but there are normally (although all merchant account don't require them all) other costs that are involved with the merchant account as you know, which should be included in the which is cheaper -
set-up/application fee
possible purchase of software/hardware
monthly fees
statement fees
etc.
Some sellers come out cheaper using paypal, some sellers come out cheaper using a merchant account.
posted on March 11, 2002 06:44:34 AM new
yahoo shops using banc one paymentech are seeing up to 13 days to have their sales proceeds deposited in their bank account.
think about that-cyberfraud is to blame.
yahoo shops are being hit with mucho fraud
