posted on April 20, 2002 10:58:53 AM new
Below is a buyer to me question and my responce. What as a seller is your take on this?
Buyer says;
I have bid on some 500 lots on Ebay in the last 2 months or so. And now I have a question that maybe you can square me away on.
The question is this: Why do most most persons who use Ebay seem to prefer "Paypal" as a method of payment?
Put another way: If Paypal does nothing more than simply "instruct" Mastercard to make payment to you (or others), then why not just charge the payment to Mastercard directly, thus avoiding the "fee" (or charges) that Paypal imposes for it's services. Why layer a 2nd financial institution on the 1st (and primary) payee?
For example, my Mastercard # is 5200 xxx xxxx xxxx, expires 08/04. Do you even have the power to bill this card for my 4 lots? And if not, why not?
If you can give me some grabs on this, I'd be delighted.
Hello
Yes, even though you sound like a merchant account salesman I will answer your question. For the one to five people a year who are like you I should get and pay for a merchants account, worry about bad credit cards, stolen credit cards, where a credit card is good and where not to accept one from (Country), chargebacks, Merchant account "errors" and the like? Some sellers don't even take Pay Pal or Bill Point as they cost us 3-5% but "only" when used. We offer them as an convience to buyers. I take Postal Money Orders, Cash, Personnel checks,Wire transfer on large buys, Bill Point, Pal Pal, Bill Pay, USA Postage at 80% face and Foreign money on large buys with bank conversion funds included. If a buyer cannot figure how to transfer wealth with those options then likely the buyer has a problem.
Sellers always list method of payment accepted. Don't expect them to do something else. If you buy as much as indicated then eBay sellers must be doing something right. Get a Pay Pal or Bill Point account (Which once set up costs you nothing as a buyer) and be done with it.
posted on April 20, 2002 11:43:20 AM new
Your answer should simply be:
1. Paypal makes it much easier & cheaper for *anyone* to accept credit card payments, and the majority of eBay buyers prefer to pay by Paypal.
2. A merchant account, which enables sellers to accept credit cards directly is expensive, and may not be worth it for most casual or even full time sellers.
3. Paypal was there almost at the begining of online auctions (eBay for that matter), so most eBay buyers and sellers "grew" up with it.
posted on April 20, 2002 11:51:22 AM new
My "responce" to you is that I think you may have misinterpreted your buyer's knowledge of merchant accounts. It sounds (to me) like the person doesn't know that merchants have to pay fees to set up and maintain CC capability, and is wondering why eBay sellers use PayPal, which DOES charge a fee. The buyer may have read the story about M/C not doing 3rd party transactions, and just made a simple inquiry.
You seem to have made the assumption that the buyer was trying to get out of setting up a PayPal or BillPoint account, but that was nowhere in the buyer's message to you. He/she was simply asking why SELLERS had to go through PayPal in order to charge his card, not that HE objected to PayPal. If your buyer was simply asking for information and not an incongnito merchant salesman, my opinion is that your response would be taken as rude and condescending.
JMHO.
Without eBay, I might have a real life...
[edited to say that springmoon's answers are excellent.]
[ edited by mcbrunnhilde on Apr 20, 2002 11:56 AM ]
[ edited by mcbrunnhilde on Apr 20, 2002 11:58 AM ]
posted on April 20, 2002 08:43:46 PM new2. A merchant account, which enables sellers to accept credit cards directly is expensive, and may not be worth it for most casual or even full time sellers.
This is totally false. Not only is my merchant account not expensive, but it is AS CHEAP, and in some cases, CHEAPER than PayPal. And I don't have to worry about Mastercard shutting ME down.
More than likely, PayPal is just so widely known. Anyone who thinks that the risks are any less when you accept PayPal as opposed to a regular merchant account doesn't understand how PayPal works. In most cases, you are safer with a regular merchant account, because a merchant provider such as Chase or Wells Fargo will not freeze your account if you have a chargeback, which PayPal has done so many times.
posted on April 20, 2002 09:09:27 PM new
>>"Paypal was there almost at the begining of online auctions (eBay for that matter), so most eBay buyers and sellers "grew" up with it."<<
I was an Ebay memeber long before PayPal came along. It was the first online Payment service that I know of though.
[ edited by outoftheblue on Apr 20, 2002 09:11 PM ]
posted on April 21, 2002 10:49:01 AM new
I would have responded like this.
Greetings,
Thank you for your interest in my auction items.
I personally DO have a merchant account and am fully able to process cards. My merchant account fees are relatively equal to that of paypal.
Ebay has 60+ MILLION members many of them are casual sellers who want to clean their closet, sell their childrens outgrown clothes and toys, prune their CD collection or bookshelf and other short term or temporary selling reasons. There are as many reasons for selling on Ebay as there are categories. Those types of sellers are not a "Business" they are simply individuals wanting to sell off some personal items. They have no need for nor should they be required to get and maintain a "Business" merchant account.
You may also want to reconsider who you email your credit card number to. The sad truth to the internet is that there is a level of fraud most of it relating to credit card abuse. Without a verifiable legitimate business and a proven reputation of proper conduct and use of personal information including your card number you may be at risk.
