Product Launch Soon: I dont think I will go with paypal...

[LincolnKK]

Hey guys I need your help,

I launch my product in 12 days.

I already have a email list of interested prospects (2,500) and I have websites who will help me to promote the product at launch time.

Long story short... I will have a few thousand that will hit my account in a short period of time.

(this is my first launch...) I was supposed to use paypal as a payment processor but I've heard so many horrible stories about frozen accounts today... that now I need to change my payment processor.

I need your help guys.
If the launch is a success, does paypal can handle 10kUSD and less in a week?
Other payment processor that can handle the load?

Lkk

[Lou Diamond]

Hello,
all you have to do is give PayPal a call and tell them you are
selling a new product and are expecting a influx of sales.
Just be careful if they ask you for a description of the product.
They hate MLM schemes and the like.

[rondo]

You could always call Paypal and tell them you are expecting high volume, or you could go with CB, 2CO or get your own merchant account.


Andrew

[AverageGuy]

if you do not use paypal, probably, you will have more trouble,

good luck

david

[LincolnKK]

Originally Posted by Lou Diamond

Hello,
all you have to do is give PayPal a call and tell them you are
selling a new product and are expecting a influx of sales.
Just be careful if they ask you for a description of the product.
They hate MLM schemes and the like.

This is absolutely not a MLM scheme.
Just a regular info product on DVD.

You could always call Paypal and tell them you are expecting high volume, or you could go with CB, 2CO or get your own merchant account.

Do you know people who called PayPal before to tell them to expect high volume?
I sent an email 1 hour ago, I will call them too.

if you do not use paypal, probably, you will have more trouble

Do you think that paypal is maybe the way to go?

[mpruben]

I would avoid Paypal for any volume. They are fine for $10 here or there but your business could be destroyed on a whim from them. Get a proper merchant account or go with 2CO.

[LincolnKK]

Originally Posted by mpruben

I would avoid Paypal for any volume. They are fine for $10 here or there but your business could be destroyed on a whim from them. Get a proper merchant account or go with 2CO.

2CO can handle that?

[LincolnKK]

Originally Posted by Marcus Shaun

Open communication is the best there is. Inform paypal about your predicament and I am sure they will sort things out for you. I am using paypal for years now as well as moneybookers.

I think I will have to call them. Just receive a pre-formated reply to my email...

The agent didn't even entered his name... Great!

Thank you for contacting PayPal, my name is [insert agent name] and I am
happy to assist you today.

[kevinpotts]

Give PayPal a buzz let them know about the likely increase in sales. They really are not as bad as everybody makes out.

Kevin

[LincolnKK]

Originally Posted by kevinpotts

Give PayPal a buzz let them know about the likely increase in sales. They really are not as bad as everybody makes out.

Kevin

I never sold anything with them before. I have history as a buyer with them but none as a seller. This is my first business venture... Do you think it can be a problem for me?

I'm fully verified and I have a business account.

[n00b]

Here is something to think about: PayPal will never go into your bank account. The absolute worst that can happen is they freeze your money that is in PayPal. With merchant accounts they can and will go into your bank account and take back any amount of money they want, especially if you are doing a lot of volume.

I'm not a PayPal fan, but they are really no worse, and even better than most merchant accounts. I just make sure to keep the account cleaned out. Where a lot of people get in trouble is they leave their money in PayPal and use the PayPal debit card to access it.

[jhongren]

Hi Lkk,

There are horrible stories but there are also ways to work around it.

By not using Paypal also means you are missing out many
potential customers who only use Paypal.

John

Originally Posted by LincolnKK

Hey guys I need your help,

I launch my product in 12 days.

I already have a email list of interested prospects (2,500) and I have websites who will help me to promote the product at launch time.

Long story short... I will have a few thousand that will hit my account in a short period of time.

(this is my first launch...) I was supposed to use paypal as a payment processor but I've heard so many horrible stories about frozen accounts today... that now I need to change my payment processor.

I need your help guys.
If the launch is a success, does paypal can handle 10kUSD and less in a week?
Other payment processor that can handle the load?

Lkk

[mpruben]

If you use 2CO, they accept Paypal.

[LincolnKK]

Originally Posted by n00b

Here is something to think about: PayPal will never go into your bank account. The absolute worst that can happen is they freeze your money that is in PayPal. With merchant accounts they can and will go into your bank account and take back any amount of money they want, especially if you are doing a lot of volume.

I'm not a PayPal fan, but they are really no worse, and even better than most merchant accounts. I just make sure to keep the account cleaned out. Where a lot of people get in trouble is they leave their money in PayPal and use the PayPal debit card to access it.

Ok, It would s*ck big times to have my funds frozen but I trust paypal more than any other merchant account at this moment...

So a 10k launch isn't a big deal if I call them?

[LincolnKK]

Originally Posted by jhongren

Hi Lkk,

There are horrible stories but there are also ways to work around it.

By not using Paypal also means you are missing out many
potential customers who only use Paypal.

John

You are right there.
I lot of people already asked me if I was accepting PayPal.

[cmaclean]

Personally I would avoid 2CO. PayPal may be okay if you notify them beforehand. I would probably stick with Clickbank or get your own merchant account.

[dave147]

I'd say use clickbank

[LincolnKK]

Originally Posted by dave147

I'd say use clickbank

It's a physical product. Can we use CB to sell physical products?

[Sean Ski]

With clickbank you don't have to set anything up and it doesn't matter if you have thousands of sales rushing through... Plus if you really do get a ton of sales and can prove your offer converts then you have the ability to tap into the huge affiliate army that comes with clickbank.

[Traffic-Bug]

Why not get your own merchant account from people like authorize.net. amsvisa.com, epoch.com.

[dave147]

Originally Posted by dave147

I'd say use clickbank

Originally Posted by LincolnKK

It's a physical product. Can we use CB to sell physical products?

we are talking about payment processors

[tecHead]

OK, I have to chime in here; and yes I am a PayPal fan, but not based on the word fanatic.. but rather from a business stand point.

Why? Because I do have direct experience with a pretty huge launch/business and it was PayPal who actually saved my butt from a merchant account. The merchant account processing bank decided to go into my accounts, (yes, I had more than one set up), and snatch all my money; (total of $30K); and proceeded to hold it hostage for 90 days. Their justification was that my "business model has proven to be higher risk than our risk management department originally approved. After further review, we will be holding your funds (which will be charged holding interest fees) until it is determined that no refunds are requested."

Now, I was informed of this after a check bounced; meaning, they didn't even care to tell me.

I immediately opened my PayPal account and switched to processing my payments through them. I didn't have time to call them, I just had to find a solution fast. Of course, the volume continued to be high which raised red flags with PayPal... now, let me stop here and stress that PayPal; (just like any other "business"); is in... well, business. Anyway, they called ME and walked through my business model with me. They understood, verified my identity and I've been with them ever since, (this was back in 2000).

I have done a lot of verification on this; 95.9% of the so-called "horror stories" I've read about, (and this includes those on paypalsucks.com), have stemmed from the complainer violating one of PayPal's TOS stipulations. The nature of PayPal's business model requires them to be as strict as they are; they process payments for "anybody" on the Internet, (opening an account for free to "collect" money = anybody). This opens the doors to countless fraudsters, identity thieves and the like. If they did not have these stipulations in place, their system would turn out to be just like another payment processor; (whose business model is even BETTER than PayPal's); called e-gold. (we won't discuss them)

What most who share these "horror stories" fail to include in their accounts of what happened is what they did wrong. There are rules in business. This is why there are agencies like the FCC, FTC, SEC and publications like Consumer's Guide and Kelly Blue Book and services like Car Fax.

All that being understood and taken into account, YES... calling PayPal to inform them of a large amount of volume IS the thing to do. YES, they will make a notation on your account so that the risk managers know what's going on should you raise any red flags which trigger their eyes. You MIGHT get a phone call IF you've provided a number you can actually be reached at IF your business model raises concerns, READ THE TOS (its pretty clear what you can and can NOT do with your PayPal account). No ambiguity there.

IF you were unfortunate enough to get your account frozen; (YES, I've experienced this with a Client of mine, as well); the only thing they ask you for is to give them verification documents of your identity; (each case will be different). As soon as you supply these documents; (and yes, they even accept scanned and emailed verification in some cases); your account will be unfrozen and your monies released to you.

And on one final note... PayPal will always be your cheapest and most convenient option. Clickbank charges 7.5%+, merchant accounts charge based on volume PLUS gateway, lease and other fees, 2CO holds a rolling reserve... and more importantly, none of the alternatives give you "immediate" access to your funds, (not even merchant accounts). PayPal is 2.9% across the board AND you have "immediate" access to funds via their business debit card; (which gives you cashback bonuses); AND you can make money on your balance through their money market service.

Most people who speak negatively about PayPal don't know everything PayPal does for businesses. Think about why ALL the big merchants, (Target, K-Mart, TigerDirect, Toys-r-us and the list goes on), are now accepting them.

IF PayPal was SO screwed up, would they attract such established businesses? IF they were so screwed up to ONLY the little guy; would eBay be as big as they are?

Be careful what you believe out here, my friend. Misinformation can literally kill your business.

Hope this helps...
PLP,
tecHead

[Justin Mandel]

Step up to the plate and get your own personal PP rep. Then inform your rep at every turn what your action(s) will be and you should be GOLDEN, problem free.

Your PP rep can even lower your percentage based on how much volume you are seeking to do for the month which will cause your to earn MORE $$$

I have had my own rep for about 18 months and even tried to call him as recently as last night

Best of Luck!

[BIG Mike]

Originally Posted by mpruben

I would avoid Paypal for any volume. They are fine for $10 here or there but your business could be destroyed on a whim from them. Get a proper merchant account or go with 2CO.

Compared to PayPal, 2CO is a lot worse in my opinion....but since I primarily use payPal for a very large volume of sales, I have to disagree with you completely. That's not to suggest having a merchant account isn't a good thing either.

A simple example of doing volume through PayPal is just look at the WSO forum - Allen obviously does a huge volume there and doesn't seem to have any problems.

[LincolnKK]

Ok guys,

I just called Paypal 2 minutes ago and they were pretty cool with all that.
She was very professional, she added a note to my account about the launch and everything so that my account will not be flagged when the large amount of transactions will hit my Paypal. She reassured me that my account will be 100% functional and there will not have any problem.

[mikeyman120]

Originally Posted by LincolnKK

It's a physical product. Can we use CB to sell physical products?

Only if you also offer a digital version for instant download. If your product can not be digitalized then you can't use clickbank. If it is digital I would use them first.

Mike

[Sylvia Meier]

Call them. I called for my launch, got a rep the whole works, was told my "clearance amount" which is the point that if I am reaching I need to call them back, and it is a pretty high amount, but we are talking for a $300 product.

I myself have had my account forever and even though I have had my account frozen, which was a pain in the ass, it was on a very high risk item, and they just needed to confirm where I had gotten the item, buyer had received it etc, and then my account was unfrozen. They can be scary, but give them a heads up and you should be fine.

Sylvia

[TheMagicShow]

Does anyone have the number for paypal?

Thanks.

[Sylvia Meier]

Mel,

Log into your account, and go to contact us, it will give you the number as well as a PIN you need when you call them to confirm your account.

Sylvia

[LincolnKK]

Thanks Sylvia,

I've called them. They were pretty cool with all that. She added a note to my account with the launch date and the volume expected.

She said that the system will probably flag my account but the security guy will see the note and I'll not have any problem with frozen account.

[LincolnKK]

Originally Posted by euan.agnew

i dont like paypal i think they charge to much

I don't think they charge that much!

2.9%+0.3

and

3.9%+0.3 worldwide.

[matts5150]

Paypal right now is one of the best/cheapest options out there for tangible products. We launched Jan 1 of this year and have very few issues with them. However there are pro's and con's you need to be aware of.

PRO's
1. The more volume you do the cheaper it is like most. It starts at 2.9% to 1.9% if you do over $100,000 a month
2. You have IMMEDIATE access to your funds when you make a sale using their debit card up to $5,000 per day. This is HUGE plus you get 1% cash back on the first $50,000 per month. You're not going to find lower than that anywhere.
3. No setup fees like all the other ones and none of this prescreen, qualify stuff. I had horrible credit and couldn't get qualified by authorize.net or any of the other ones so I really didn't have a choice but to go with paypal but glad I did.
4. Once we started doing alot of volume a month paypal called and asked alot questions, after I explained the buiness and refund policy, we sell a tangible product, they were fine.

CONS's
1. Their website is very slow when trying to find transactions and their sort options are not what they should be.
2. Customer service is, well horrible.
3. If using their debit card be aware you can only use it 30 times per day, the 31st time will be denied and they will not up the limit.
4. You can only pull out up to $400 cash per day per card with a 2 card limit.
5. They peridically lock your card for fraud protection if they see alot of transactions, so always have the 2nd card handy ; )
6. Make absolutely certain you try to take care of the customer because if they do a charge back you probably lose, they will charge you what they call a settlement fee which is bascially the amount that was charged back and tell you, you won however you really didn't. Luckily I've only had 2 chargebacks, 1 legit, we should had refunded the order but it slipped thru, the other one was completely bogus. I even provided paypal their ip and tracking # showing it was delivered via fedex.

Let me know if you have any questions. I'd be happy to answer any.
Regards,
Mike

[LincolnKK]

Wow Matt, that's what I call an AMAZING first post!

[SageSound]

If you're looking for reasons NOT to use any given payment processor, they ALL have their drawbacks. Personally, I've found PayPal to be the LEAST problematic and MOST FAIR.

Standard merchant accounts are about the WORST b/c they can literally freeze your bank accounts, as mentioned earlier. I've known several businesses who've had to file bankuptcy b/c in the midst of a very expensive run of infomercials, the charge volume on their merchant accounts exceeded their "average volumes" and their merchant processors froze their bank accounts. Of course, they keep allowing people to make payments, but they don't allow you to pay your fulfillment houses to ship products. So the thing the merchant processors are afraid of -- that you're going to steal the money and not ship anything -- are manifested BECAUSE you CANNOT ship anything!

Another thing to consider is that if you use something like Rapid Action Profits to process your sales, your affiliates get paid immediately and directly. So if your PP acct gets frozen for some reason, you don't get stuck unable to pay your affiliates.

-David

[matts5150]

Thanks,
That being said though it's a good idea to have a backup processor, paypal as well as I'm sure the other ones go down from time to time. I've got it setup in my admin of the site so when they do go down it's a simple as clicking on a radio button to switch over.

[LincolnKK]

Originally Posted by matts5150

Thanks,
That being said though it's a good idea to have a backup processor, paypal as well as I'm sure the other ones go down from time to time. I've got it setup in my admin of the site so when they do go down it's a simple as clicking on a radio button to switch over.

Yep, that's exactly what I'll do tomorrow.

[Tsnyder]

Originally Posted by mpruben

I would avoid Paypal for any volume. They are fine for $10 here or there but your business could be destroyed on a whim from them. Get a proper merchant account or go with 2CO.

Nonsense...

I've sold a ton of products through Pay Pal (multiple 6 figures) and
have never had even a sniff of a problem.

The lowest priced product I've ever sold through Pay Pal was $150.

The highest priced was $473.

As stated above, I always call Pay Pal at least a week in advance
of the launch date to let them know what's going on. I give them
detailed information about the product as well as the URL to the
sales page.

I've never had a problem... I doubt I ever will... I've been using them since 1995.

Tsnyder

[LincolnKK]

Originally Posted by Tsnyder

Nonsense...

I've sold a ton of products through Pay Pal (multiple 6 figures) and
have never had even a sniff of a problem.

The lowest priced product I've ever sold through Pay Pal was $150.

The highest priced was $473.

As stated above, I always call Pay Pal at least a week in advance
of the launch date to let them know what's going on. I give them
detailed information about the product as well as the URL to the
sales page.

I've never had a problem... I doubt I ever will... I've been using them since 1995.

Tsnyder

Thanks a lot for this post.
I'll definitively go with PayPal for the launch.
I'll find a 'B' plan just in case something goes wrong.

[Matthew W. Rhodes]

My brother and I have been dealing with Paypal for several years as well...we've never had a problem (and we've had several high-end product launches, including $1,000+).

With that said, if possible, offer both a "normal" credit card processor and Paypal. They compliment each other and you'll make more sales when you do.

Matt

[LincolnKK]

Thanks for posting.

Matthew, Tsnyder, tecHead, kevinpotts and others, this is exactly what I was looking for after creating this thread.

I was looking for experienced guys who did good volume launches using paypal.
Now I can be confident that Paypal will not screw me or anything.