If You're Sick of PayPal...

by rimam1
45 replies
Here's a new shopping cart I've been using recently.

It completely bypasses PayPal. They charge 5% plus $0.25 per transaction, but you don't have to worry about PayPal freezing your account.

It's called Gumroad.com They have a few really good examples of sites using them live.

It's got an amazing user interface that I've never seen before. I'm sure it will only help conversions.

Not sure if it's right for everyone, but if you're not using Clickbank and are looking for alternatives to PayPal, check out Gumroad.com

Raza
#paypal #sick
  • Profile picture of the author srpudlo
    Glad to hear this is working for you! I've never heard of this company, don't you think potential customers would be "leery" of using it? Personally I would stick to something like Paypal only because I know the name....maybe I'm wrong...how do others feel?
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    • Originally Posted by srpudlo View Post

      Glad to hear this is working for you! I've never heard of this company, don't you think potential customers would be "leery" of using it? Personally I would stick to something like Paypal only because I know the name....maybe I'm wrong...how do others feel?
      I agree with you. Many folks who do not recognize a payment processor that is asking them to put in their credit card information etc will be leery. Even though the name Gumroad seems to be spreading amongst marketers, it will take some time for it to become a household name.
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    • Profile picture of the author Alex Mensah
      Originally Posted by srpudlo View Post

      Glad to hear this is working for you! I've never heard of this company, don't you think potential customers would be "leery" of using it? Personally I would stick to something like Paypal only because I know the name....maybe I'm wrong...how do others feel?
      Yes Paypal having the brand name already established does add credibility to the transactions so most people will feel safer using paypal.
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  • Profile picture of the author Rod Cortez
    Originally Posted by rimam1 View Post

    Here's a new shopping cart I've been using recently.

    It completely bypasses PayPal. They charge 5% plus $0.25 per transaction, but you don't have to worry about PayPal freezing your account.

    It's called Gumroad.com They have a few really good examples of sites using them live.

    It's got an amazing user interface that I've never seen before. I'm sure it will only help conversions.

    Not sure if it's right for everyone, but if you're not using Clickbank and are looking for alternatives to PayPal, check out Gumroad.com

    Raza
    Interesting....how long have you been using them?

    I see that they state they are based in San Francisco, CA and are backed by Kleiner Perkins, Accel Partners, Max Levchin, and Ron Conway, and others.

    Their website appears to be unfinished, which is why I'm asking.

    RoD
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    • Profile picture of the author rimam1
      I've been using them for about a month and am really impressed with their design interface.

      The CEO was an early employee of Pinterest, so it's not surprising they got a lot of venture money. For that reason, they also focus on such high quality user interface design.

      I actually heard about them from this Smashing Magazine post: Selling Digital Goods Online | Smashing Magazine Notice how they completely bypass PayPal.

      I know a few warriors have had nightmare experiences with PayPal freezing their accounts. Gumroad isn't as popular as PayPal, but they're a really good alternative with solid backers.

      Again, not sure if it's right for everyone, but if you're looking for a really slick, frictionless shopping cart, this is it.

      Raza
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      • Profile picture of the author Istvan Horvath
        Originally Posted by rimam1 View Post

        Notice how they completely bypass PayPal.
        Well, kind of...

        If the vendor is not in the USA, then Gumroad will send/transfer the payments through Paypal. They have ACH only for US-vendors (since February).
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        • Profile picture of the author mrgoe
          Originally Posted by Istvan Horvath View Post

          Well, kind of...

          If the vendor is not in the USA, then Gumroad will send/transfer the payments through Paypal. They have ACH only for US-vendors (since February).
          Does that mean that you need a paypal account for it or not ?
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  • Profile picture of the author prsmas
    Thanks for the heads up Raza its never a bad ideal to have more then one payment processor. That way if PayPal gets stupid on one of your sites you can change the payment processor rather then kill the site.
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    • Profile picture of the author Istvan Horvath
      Originally Posted by prsmas View Post

      Thanks for the heads up Raza its never a bad ideal to have more then one payment processor. That way if PayPal gets stupid on one of your sites you can change the payment processor rather then kill the site.
      It won't help you, since you are in Canada. You can sell through them but the only way they can send your money to you is via Paypal... :rolleyes:
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      • Originally Posted by Istvan Horvath View Post

        It won't help you, since you are in Canada. You can sell through them but the only way they can send your money to you is via Paypal... :rolleyes:
        That's 3 in Canada in one thread. What are the odds.
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    • Originally Posted by prsmas View Post

      Thanks for the heads up Raza its never a bad ideal to have more then one payment processor. That way if PayPal gets stupid on one of your sites you can change the payment processor rather then kill the site.
      This is generally good advice. Depending on how much volume you're using per month with your company it never hurts to diversify with multiple processors. That way if you're ever cut off, you're not sitting dead in the water and can easily restructure to keep your income flowing.

      5% is in fact a tad high, but then again Gumroad isn't a traditional payment processor. Online businesses are typically considered 'higher risk' industries so they'll definitely charge you for the convenience and ease of working with them.
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    • Profile picture of the author aakon7
      Originally Posted by iAmNameLess View Post

      5% is pretty high...
      Take a look at your monthly statement, just cause you were quoted 2.whatever % doesn't mean you are actually paying it. 5% is actually very reasonable but one would question why they haven't developed a decent website and are using a childish name. One would assume that if this were a serious legit company they would act like it, that is the concern I would have when choosing to use them.
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  • Profile picture of the author FitMarketer
    Yes I'm sick of Paypal but unfortunatly many people still rely on it

    I want to use a processor that accepts Paypal as an option too.

    I am currently looking into 2CheckOut and Plimus
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    • Profile picture of the author Alexa Smith
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      Originally Posted by FitMarketer View Post

      Yes I'm sick of Paypal but unfortunatly many people still rely on it
      I want to use a processor that accepts Paypal as an option too.
      I am currently looking into 2CheckOut and Plimus
      I think Plimus (now called BlueSnap) is probably not right for you, because when the customer pays them by PayPal, they send you that money by PayPal, too. But check this for yourself, in case it's changed.

      2Checkout might be good for you. Also Fastspring and ClickBank. They can all take payments from the customers by PayPal (helpful, obviously, for many people who would otherwise lose some potential customers) without you needing to use PayPal yourself, to collect the funds.
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      • Profile picture of the author affmemo
        Originally Posted by Alexa Smith View Post

        I think Plimus (now called BlueSnap) is probably not right for you, because when the customer pays them by PayPal, they send you that money by PayPal, too. But check this for yourself, in case it's changed.

        2Checkout might be good for you. Also Fastspring and ClickBank. They can all take payments from the customers by PayPal (helpful, obviously, for many people who would otherwise lose some potential customers) without you needing to use PayPal yourself, to collect the funds.

        Hey, Alexa.

        I was wondering if you can help me with finding any other Fastspring users on here. I can really use some feedback from anyone with experience with the company. Thanks: )
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  • Profile picture of the author ashloren
    I'm always on the lookout for Paypal alternatives, as I have had less than pleasant experiences with them in the past to say the least. I had checked out GumRoad a while back, but for some reason it wasn't a good fit. I also think anyone who needs a different payment processor should definitely check out Dwolla too. They send money right to your bank account, no credit cards involved at all and they only charge a quarter per transaction, regardless of amount.
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  • Profile picture of the author Lauryn
    I'm all for Gum Road; in fact, after having trouble with a product I initially wanted to market through ClickBank, I'm polishing it for GumRoad also.
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  • Profile picture of the author seobro
    Hey, gum road - thank you. Certainly pay pal is a FRIGHT mare. Hope that gum road is a great user experience. People complain about ebay / pay pal all the time now. Namely, we need another major service. I do not care for google or amazon. Both are tilted toward major big name companies. Jumping in is gummy. They might seem more expensive. However, pay pal often freezes your money. And then they do not pay. Mostly, it is because they are full of paranoia. Like you have a big sales spike and they shut you down to find out what is going on.
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  • Profile picture of the author Jeff Burritt
    Banned
    Stripe is another option.

    You have more control, but if you're not techie, you'll need some help.
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  • Profile picture of the author TheLinkMaster
    Gumroad and dwolla..anything that is credible..with well-known execs backing the organization is a good thing to explore, I believe. What's wrong with stripe?
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  • Profile picture of the author Eutaw
    How is Dwolla?
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  • Profile picture of the author Joan Altz
    I saw this thread and went in immediately and set up my account and a product. Took about 30 minutes. Setting up the product took less than 5 minutes, but I had everything ready for that.

    It apparently works like DealGuardian as far as payments go using PayPal. Gumroad pays out every other Friday and they'll host the product (up to 4GB per product, so no problem there), but what I like is if you already have the product uploaded somewhere, they'll simply let you provide the link to it and deliver the link to the customer after they purchase.

    Setting the product up was a breeze, but unlike DealGuardian, it doesn't provide a sales page and seems to be more geared to making sales through sharing the link, whether on FB, Twitter or your own site.

    Since they accept deposits from over 190 countries, it's a good alternative to offer buyers who don't have a PayPal account.

    They also provide a way to create an overlay checkout, so the buyer never has to leave your site during the entire transaction. You can supply a standard purchase button on your site as well that WILL go to Gumroad.

    I also like that when a buyer is viewing your product, they can see your profile and bio at the bottom. You can write anything you want for the bio.

    Definitely a thumbs up for now!
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    • Profile picture of the author sweetbribes
      Originally Posted by Joan Altz View Post

      I saw this thread and went in immediately and set up my account and a product. Took about 30 minutes. Setting up the product took less than 5 minutes, but I had everything ready for that.

      It apparently works like DealGuardian as far as payments go using PayPal. Gumroad pays out every other Friday and they'll host the product (up to 4GB per product, so no problem there), but what I like is if you already have the product uploaded somewhere, they'll simply let you provide the link to it and deliver the link to the customer after they purchase.

      Setting the product up was a breeze, but unlike DealGuardian, it doesn't provide a sales page and seems to be more geared to making sales through sharing the link, whether on FB, Twitter or your own site.

      Since they accept deposits from over 190 countries, it's a good alternative to offer buyers who don't have a PayPal account.

      They also provide a way to create an overlay checkout, so the buyer never has to leave your site during the entire transaction. You can supply a standard purchase button on your site as well that WILL go to Gumroad.

      I also like that when a buyer is viewing your product, they can see your profile and bio at the bottom. You can write anything you want for the bio.

      Definitely a thumbs up for now!
      Thank you for this useful feedback. It's much appreciated. I hope your product/service does well using Gumroad. I congratulate you also on your take-action response - always like to see that happen.

      Sadie
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  • Profile picture of the author Kenster
    From a vendor end, take a look at Mike's deal guardian as well if it's a special offer. Won't have to worry about pp freezing your account
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    • Profile picture of the author Joan Altz
      Originally Posted by Kenster View Post

      From a vendor end, take a look at Mike's deal guardian as well if it's a special offer. Won't have to worry about pp freezing your account
      Yes, that's the BIG plus of DealGuardian. They'll also do bank transfers or send a check no matter where you live, plus they have other payment options in the works.
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  • Profile picture of the author RapidImpact
    I appreciate the suggestion but.... SWEET ZOMBIE JESUS!!!

    "only" 5%??

    Paypal is 2.9% (and less depend on your sales volume). For 5% those guys better be driving traffic to my sales page on a daily basis.
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    • Profile picture of the author Joan Altz
      Originally Posted by jambon View Post

      I appreciate the suggestion but.... SWEET ZOMBIE JESUS!!!

      "only" 5%??

      Paypal is 2.9% (and less depend on your sales volume). For 5% those guys better be driving traffic to my sales page on a daily basis.
      Yes, but consider this: A lot of vendors, including myself, use JVZoo. What does JVZoo take? 5%. Then you are hit with both a .30 and 3.9% (in my case) PayPal fee. Of course, the benefit with JVZoo over something like Gumroad is the JVZoo Marketplace, which does drive traffic to sales pages, and that traffic (again, in my case) does convert.

      But when you consider using it as an additional payment option - I mean, nobody is likely to pick Gumroad over a JVZoo button where they can pay with PP unless they don't have PP - then it only increases your overall revenue from those visitors with no PP account, even with the high fee.
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      • Profile picture of the author Kenster
        Originally Posted by Joan Altz View Post

        Yes, but consider this: A lot of vendors, including myself, use JVZoo. What does JVZoo take? 5%. Then you are hit with both a .30 and 3.9% (in my case) PayPal fee. Of course, the benefit with JVZoo over something like Gumroad is the JVZoo Marketplace, which does drive traffic to sales pages, and that traffic (again, in my case) does convert.

        But when you consider using it as an additional payment option - I mean, nobody is likely to pick Gumroad over a JVZoo button where they can pay with PP unless they don't have PP - then it only increases your overall revenue from those visitors with no PP account, even with the high fee.

        I tell my students...if you are doing an affiliate based launch...focus more on getting affiliates and less on the affiliate platform fees. One more medium affiliate will more than cover any additional fees by going with one network over another.

        Just my opinion
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  • Profile picture of the author cebu4u
    except if you are in Canada, then you have to paid in Paypal
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  • Profile picture of the author IMsam
    This is a great thread. I have been searching for a paypal alternative and this thread has given me more than enough alternatives. Thanks guys for your contribution.
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  • Profile picture of the author FitMarketer
    Another option is 2Checkout. I have been using them for a few weeks now and I think they are great!

    I have been paid on time every week and their fees are low 2.9% plus you can take paypal payments without having an account or worrying about Paypals BS

    I highly recommend them
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  • Profile picture of the author Alex Blades
    Fortunate for me, I have not had any problems with Paypal, but don't think I would feel comfortable with sharing bank or credit card information with some unknown company.

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  • Profile picture of the author Paul Clark
    I am looking at alternatives to PayPal also, Has anyone tried WePay?

    WePay Demo - YouTube
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    • Profile picture of the author Kenster
      Originally Posted by Paul Clark View Post

      I am looking at alternatives to PayPal also, Has anyone tried WePay?

      WePay Demo - YouTube

      Haven't used WePay...

      One thing to point out is that people use Paypal not because they are a good cart, but because they are a good payment system/processor that many buyers in many niches prefer.

      Many IM niches for example...people prefer to pay out of their paypal account than with a credit card (in certain markets)...so it's not a matter of accepting paypal as a payment option more than using them just as a cart

      if that makes sense
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    • Profile picture of the author rondo
      Originally Posted by Paul Clark View Post

      I am looking at alternatives to PayPal also, Has anyone tried WePay?

      WePay Demo - YouTube
      In the UK? It's for USA sellers only I believe.


      Andrew
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  • Profile picture of the author harperdy
    Thanks Raza! I will go check that out!
    Dylan
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  • Profile picture of the author ThreeHammers
    I just checked the page and it seemed geared only towards people who process very small amount. 5% is ENORMOUS ! Maybe it's good for those who start and learn but keep in mind that a payment of $2K will cost you $100 to process !
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  • Profile picture of the author WillR
    I use Paypal...

    AND...

    I don't ever worry about them freezing my account.

    When was the last time you saw a thread about someone legitimately having their Paypal account frozen?
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  • Profile picture of the author owais211
    Banned
    I find it user friendly with its user interface design. But for payment processor it's a matter of credibility rather than the Interface design, most people feel safer using Paypal because of their
    Established brand. But it's a good alternative for people who don't
    Have a PayPal account.
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  • Profile picture of the author Joan Altz
    I know this has become an old thread, but the additional features to Gumroad look pretty good. Seems some known celebrity musicians are using it for the new pre-order feature. Not sure how well it will work out for Internet Marketers. I've used it sparingly and only for people who have no PayPal account.

    Here is the TechCrunch article about Gumroad

    And they also have things setup to sell your streaming video content if you have it.

    TechCrunch article about that.
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  • Profile picture of the author Dave37
    Originally Posted by rimam1 View Post

    Here's a new shopping cart I've been using recently.

    It completely bypasses PayPal. They charge 5% plus $0.25 per transaction, but you don't have to worry about PayPal freezing your account.

    It's called Gumroad.com They have a few really good examples of sites using them live.

    It's got an amazing user interface that I've never seen before. I'm sure it will only help conversions.

    Not sure if it's right for everyone, but if you're not using Clickbank and are looking for alternatives to PayPal, check out Gumroad.com

    Raza
    I don't really understand how it's an alternative. It looks more something like e-Junkie, but then again e-Junkie use PayPal.
    An alternative to PayPal I can think of is Payza or Alertpay
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    • Profile picture of the author Joan Altz
      Originally Posted by Dave37 View Post

      I don't really understand how it's an alternative. It looks more something like e-Junkie, but then again e-Junkie use PayPal.
      An alternative to PayPal I can think of is Payza or Alertpay
      It's an alternative if you live in the USA or Japan because you can withdraw your earnings by direct deposit.
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