Will using Authorize.net instead of PayPal hurt sales of my services?

10 replies
Hi everyone!

Just when I thought I had it all figured out I'm having doubts again. I've read through MANY postings on here, in the news and throughout the internet about the recent wave of accounts PayPal has decided to shut down for one shady reason or another and because of that I have decided not to deal with PayPal at all. I can't risk having my account frozen and my balance held when I depend on that money to pay my bills. I also looked into their documents regarding seller and buyer protections and NEITHER party is covered for intangible good (which I plan on selling website building services).

From what I understand from what the PayPal Rep. said if a buyer opens a dispute and the seller says it was for an intangible good 99.9% of the time the buyer's dispute is closed in favor of the seller.

I don't want to work under those conditions and to be honest PayPal scares the CR@P out of me with the liberties they take with other people's money.

Being that I want to be a well established company I have decided to use authorize.net with a merchant account. Will I have a problem selling here on WF because I am not accepting payment through PayPal but through CC only?

I have looked into 2CO and may also integrate them at some point but will I make no sales because of the no PayPal option?

I don't want to waste my money posting my services if buyer's will turn up their noses.
#authorizenet #hurt #paypal #sales #services
  • Profile picture of the author Warrior X
    Dude, space out your posts or no one's going to read them.

    The answer is yes, not accepting paypal will be a problem if you want to sell here. As you mentioned, if you don't want to deal directly with them, you can use 2CO and still accept pp payments.

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  • Profile picture of the author Randall Magwood
    2CO doesn't accept internet marketing products - if that's what you're trying to sell. People are accustomed with Paypal, so switching to "Authorize" may decrease your sales - but not by a long shot. You should consider using Clickbank to host your product. That way you can use their system to process an order, or use their integrated Paypal option.
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    • Profile picture of the author Kay King
      I want to be a well established company
      You won't get there if you make business decisions based on anonymous complaints posted online. A complaint usually gives only one side of the story and may leave out salient facts.

      The many thousands of people who have been using Paypal without problems for years...don't post complaints about it.

      As a seller, you can choose your own payment processor but in some areas failure to provide the paypal option may limit sales to some extent. Paypal doesn't have to be your only option - but it is an option that should be evaluated rather than feared.
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  • Profile picture of the author Takuya Hikichi
    You will have to test this yourself. Depending on your order process, you might end up making more money without Paypal.

    Here's why.

    If all you do is single transaction and no backend, Paypal might do well, but your upsell chain, delivery, billing and the need of your automation might require a platform outside of Paypal and that could make more money for you in the long run.
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    • Profile picture of the author Centurian
      You can do fine with Authorize.net or any gateway with a merchant account. You can still offer PayPunks as mentioned.

      Some people are addicted to PayPal. They've had a good experienced and haven't been bit...yet. Hey, if it works, use it. But maybe we're dancing with the devil.

      The main benefit of course is velocity, quick push-button payments, and the "payment protection." It's just that they protect buyers with your money.

      We're working on a similar alternative payment system, but in the meantime you can get a great payment pipeline built just for your business.

      Nevertheless, no matter what you decide, banking your business on PayPal alone is suicide.
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  • Profile picture of the author knish
    Why does the title of this post mention Authorize.net? As far as the title question, I would assume it depends on how many people know about this particular payment system.
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    • Profile picture of the author Centurian
      Originally Posted by knish View Post

      Why does the title of this post mention Authorize.net? As far as the title question, I would assume it depends on how many people know about this particular payment system.
      Authorize.net is just a well-known brand for a payment gateway. There are dozens of gateways that offer the same or more and new integrated gateways being developed daily.

      The gateway is simply the secure link between your payment page or shopping cart and your merchant account.

      The merchant account is your pre-approved merchant bank "credit line" that enables you to receive payments directly to your bank account instead of being escrowed like PayPal, 2CO, or Clickbank.

      If you want to educate yourself more, I have a series of ten short videos you can get for free at the link below.
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  • Profile picture of the author Andrew Mak
    I have been using paypal for many years, so far no problem.
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  • Profile picture of the author alexgold87
    You can offer other payments methods as benefits, but if you don't offer PayPal - originally you will kill your sales.
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