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Paypal and eCommerce - which account?

by smodha
15 replies
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Hey Warriors,

One of my clients sells physical products online. They want to switch all transactions to Paypal only so does it matter which type of account they choose?

Thanks,

Sanj.
#account #ecommerce #paypal
  • Profile picture of the author Matt Cotten
    Hi Sanj,

    They would definitely want to use a business account. PayPal offers three solutions: PayPal Payments Standard, Advanced and Pro. PayPal Payments Standard is $5 monthly but checkout is done through the PayPal website. PayPal Payments Advanced is $5 monthly and allows checkout on your website with a compatible shopping cart. PayPal Payments Pro is $30 monthly and provides full control of checkout pages and includes a virtual terminal for offline transactions. All three account types have a 2.9% + $0.30 transaction fee with discounts available on monthly volume over $3,000.

    For ecommerce websites that have decent volume I would normally recommend having a traditional merchant account with a payment gateway like Authorize.Net. You would normally get a better rate. However, you would still want to offer PayPal as an option as it is a preferred payment method with some customers.

    Here is the link for PayPal Payment Solutions.
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    • Profile picture of the author GB Solutions
      I cant speak for the rates of Authorize.net (and they must be pretty good because of its popularity) but I have always used PayPal for the sheer fact of its widely accepted reliability, brand recognition, and customer service. My initial internet merchant was charging me 3% + $00.30 a transaction. If you can do over 10,000 a month, PayPal drops their fees down to 2.2% +$00.30 a transaction. Not bad in my opinion. Plus they are extremely reliable and helpful if you should ever have any issues.
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      • Profile picture of the author dave_hermansen
        As Matt Cotten has indicated, you should encourage them to get PayPal Payment Pro or AT LEAST PayPal Advanced so they can accept credit cards on site. We see a huge increase in conversion rate when we add on-site credit card processing as opposed to just offering PayPal Standard. Start off by upgrading the PayPal account to a business account and then have them apply for PayPal Payment Pro or PayPal Advanced.
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        • Profile picture of the author barefut
          Originally Posted by dave_hermansen View Post

          As Matt Cotten has indicated, you should encourage them to get PayPal Payment Pro or AT LEAST PayPal Advanced so they can accept credit cards on site. We see a huge increase in conversion rate when we add on-site credit card processing as opposed to just offering PayPal Standard. Start off by upgrading the PayPal account to a business account and then have them apply for PayPal Payment Pro or PayPal Advanced.

          Dave,

          When you say on-site credit card processing, that means the user is not redirected to a Gateway (like a bank) page but stays on the site?
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          • Profile picture of the author Robert Domino
            Originally Posted by barefut View Post

            Dave,

            When you say on-site credit card processing, that means the user is not redirected to a Gateway (like a bank) page but stays on the site?
            Yes.

            With Paypal standards, you have to use the buy-with-paypal buttons and when the user clicks, it sends them to a Paypal page where they have to either sign in using their account or create a new one.

            I think you can imagine how awkward that is.

            It's perfectly fine for a part time thing and for starters, but it doesn't look serious for a major company.

            Advanced and Pro let the customers buy straight on your website without going to a separate Paypal page. It all happens behind the scenes.
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          • Profile picture of the author dave_hermansen
            Originally Posted by barefut View Post

            Dave,

            When you say on-site credit card processing, that means the user is not redirected to a Gateway (like a bank) page but stays on the site?
            Yes, as Robert Domino said, I am referring to merchant services that allow you to accept credit card payments on your website without the customer leaving your site. This looks far more professional and greatly increases your conversion rate.

            Back in the day your only option was a traditional merchant account like iPayment, but nowadays there are solutions like PayPal Advanced that basically iframe the checkout fields INTO your checkout process.

            We recommend that all stores accept PayPal Standard regardless, but if you want to maximize your conversion rate you should also process credit card payments directly on your website.

            I hope this helps!
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  • Profile picture of the author shyanz
    ooo.. great advice there. Gonna check authorize.net out though i'm used to paypal
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  • Profile picture of the author Kayster13
    I prefer the Premium account with Paypal. They are the best solution and very easy to use.
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  • Profile picture of the author vishwa
    Yes! Business Account With PayPal is Ideal for E commerce Business. Fees are much low compare to other Payment or Credit Card Processing sites.
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    • Profile picture of the author swiftronics
      You want to have the function-ability to process both Credit Cards | PayPal, all without leaving your site. First off, forget Authorize.net as it's just a gateway that operates with affiliate processors like Tech Data and iPayments., to name a few horrible processors.

      How to obtain both Credit Cards | PayPal in-store, through my cart.
      1. Go to your bank first, forget online credit card retail processor's who are registered thrid-party ISO/MSP of some "bank" selling you super high rates, (middle guys). Your bank may have a better solution and can sell you better rates and get you setup. I even know merchant reps that give you great annual deals, when buying you accounts preferably at their local branch.
      2. Let's say you went to Citizens Bank (US) or TD Bank (US), both great banks. And they had you setup with a good processor 'RBS'.. You get setup with a merchant account via your bank and probably an already have an Operating account (Business Account) or multiple for some mid-size businesses. You have now better chances of tracking your merchant account and operating account all-in-one.
      3. PayPal PayFlow Link services is a Checkout gateway like 'Authorized.net', that works with a set up fee of $30. Now that you have a Merchant Account and you processor (also picked by your bank). I suggest you pay $30 and link your processor with PayPal to have complete power over your sales via PayPal and your processor through PayFlow Merchant services.
      4. Now that you have PayPal setup which is accepted in almost all Carts in the World. Find yourself a good gateway or sometimes even your processor may recommend a good company to work with that is well noticeable and has great customer service. I have heard some great things about these services; e-complish.com, worldpay being both processor and gateway, worldpay.us. Do not confuse a credit card processor and a gateway service.
      5. Once you're setup and ready to start I believe that you can accept both virtual payments and eCommerce online cards, depending on which service you chose for your business. If you decided to just go with PayPal PayFlow Link Gateway service and just accept PayPal with the function and freedom to sort through you sales via your merchant account, great. If you decided as I recommend to have PayPal | Credit Cards as both options in one checkout, thats great also. Moreover, I tell you why, you will probably have more sales, by showing you are organized and intelligent when taking credit cards online.
      6. Finally, I suggest and this is said, that is required to have SSL security and most customers don't know about this, but is the merchant's responsibility. All processing merchants are required and it's a PCI compliance, to have secure encryption during buyer's checkout. I know plenty of cheap certificate like that offer SSL Certificate encryption like Digicert.com, SSL certificates with extended validation from Thawte the global SSL certificate authority - Thawte.. Google it. Also note: most shopping carts have third party shell security already installed with Shopping Cart like Volusion.com. Look for that as well.
      Hope this info helps, for the newbies, it doesn't hurt to research and make your own decisions.
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  • Profile picture of the author smodha
    Thanks for the great advice!

    My client decided to sign up for the PayPal Advanced Payments account which integrates well with WooCommerce & Quickbooks.

    Sanj.
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  • Profile picture of the author Ryan David
    I second the recommendation for Paypal Pro, but to make your life easy you want to pick a shopping cart that integrates with Paypal Pro (most should at this point). You need them to stay on your site so you can measure conversion rates and cart abandonment. Paypal Pro also has a sliding rate scale depending on the volume you do. I'm currently at 2% plus 30 cent transaction fees.

    Personally, I know people have their problems with Paypal but they have been great to work with. Never had any issues at all. When I worked with merchant accounts, I was getting hassled constantly by their risk management department. They seem to get extra freaked out when you have a high-volume day and were requiring me to send proof of delivery on about 20 packages. Then at one point, they just held $10K of my money with no notice. I questioned them on it and they just released the funds.
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    • Profile picture of the author overtonis
      remember int'l paypal fees are 3.9% + .30 per transaction.
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  • Profile picture of the author MarketBuddy
    I use authoriz.net with merchant center by quick books as a processor on 2.25% but PayPal is also an option. Normally on ecommerce sites I offer multiple payment options to ensure my customers get the best shopping experience which equates to a higher sales volume
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  • Profile picture of the author Smith18
    Well, its a company since they are selling products, so basically companies choose business account, it offers few other options for companies like multiple payment sending options. So business is most accurate for a business company.
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