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Majority holiday companies are charging to process credit cards from 1% to 3%, to process credit cards is no different to debit cards. If PayPal is trying to rip off sellers, the fees can be passed to consumer, exactly the same as in any other bussiness (as they already do and include in small print, the total amount include 3% transaction processing fee)
Stripe just announced support for Bancontact, iDEAL, GIROpay, SOFORT etc. This are the main debit cards in Belgium, The Netherlands, Germany etc. And the stripe fee is "only" 1.4% + 0.25€. Which is way better than the paypal fees.
Any idea if iDeal already works with the official WHMCS Stripe module?
Interesting stuff, it's always worth checking t see if changing your account type to PayPal micro payments is worth it if a good portion of your payments are under 10usd
Without wanting to restart this debate, I would offer iDeal (I think GoCardless might be supported across the EU now?) for NL based customers.
All I am saying is that 4.4% is in a different reality to what we pay and businesses here ought to consider a conventional merchant account (and perhaps specialist options for countries they want to target where normal cards are hard to come by). Margins are already very low for hosting and giving 4.4% to PayPal is a waste.
Just logged in to PayPal to pay someone (their choice not mine) and suddenly I can pay with an unverified bank account and it's the default?! I deliberately didn't verify my bank account since if PayPal want to charge the seller an outrageous fee, I might as well pick up some points on my amex. Also I notice my payment methods are conveniently sorted according to what PayPal get charged to accept them - unverified bank account at the top and supposedly default amex at the bottom LOL.
Right. If you're okay with investing the effort into supporting all the more obscure local payment methods (one way or another), then dropping PayPal is a viable option.
Just had a look at GoCardless though, and they seem to do SEPA Direct Debit for NL - this isn't really trusted by the average Dutch consumer, when dealing with foreign companies. It's not likely that this would retain a Dutch customerbase.
I wouldn't do it for every country but I would figure out which countries I wanted to target and ensure they have something that they are comfortable using. iDeal in NL, Alipay in CN and WorldPay for the rest, for example.
Has anyone worked out the % that Paypal takes then, for a transaction into USD from another country? Guessing it's around 8-9%.
Yes, it will become more expensive from march but as compared to it stripe.com is good because it will take charge 2.9% per card process.
I don't think most merchants love PayPal. It's customers who love using PayPal, and we are forced to accept PayPal to "prevent loss of customers"...
BTW, AFAIK there is a module to add PayPal fees to customers' invoice and I've seen some providers using this...
I doubt if you put all gateways' processing fees (incl. PayPal) to your customers' invoice is against their policy.
Is there any consumer protections/benefit from using this? Could I potentially chargeback if I get ripped off?
Yes. In the UK for example you just call your bank and this has to give you back the funds same day. https://www.directdebit.co.uk/DirectDebitExplained/Pages/DirectDebitGuarantee.aspx
from the website:
@Clouvider How is this interpreted in practice? PayPal "mediates" these kinds of disputes.
Bank is not a court of law. If the payment was authorised - it stays. If it was not - you have other methods of recovering it.
Well imo this pretty much justifies a general % price increase, following leasewebs model.
... so there's no consumer protections.
I use PayPal and credit cards (as opposed to Bitcoin) because I know I can file a dispute, if need be, and get my money back without any hassle of a complicated legal system.
The cost of processing the payment is factored in the price of service, so sure, by all means, but that will be a hidden cost passed to you.
The protection you have is that if you decide to cancel and host keeps billing you, you can, not only, stop further payments from going out but also reclaim the ones that were not supposed to be taken.
Neither bank or PayPal is a judge to decide contractual matters. Additionally, with intangible item PayPal will likely side with the provider anyway.
PayPal, Visa and MasterCard require, in their merchant agreements, that the price be the same for all payment methods. (There are some exceptions for government agencies and maybe in some countries.)
So it is not cheaper for me to pay with PayPal than with Bitcoin or direct debit, but I do get more benefits as a consumer.
In the aggregate, yes, costs of doing business will get passed to consumers.
Are you an author on codecanyon... Username sounds familiar.
Bank refunds your money instantly if you ask them to. Bank sends a BACS receiving message to GoCardless. GoCardless either refund the bank (customer keeps their money, 99% of the time) or doesn't and the customer's my money is taken again.
It is GoCardless's policy to refund banks in this case but it doesn't strictly have to.
GoCardless is not that cheap, though it is a lot better than PayPal. Problem for merchants is they have to wait 3 days to find out if payment is honoured.
there is no choice to continue use it. Unless someone can influence everyone not to use paypal. haha
damn, but i dont know other option.
Ebay also getting expensive for sellers from Feb, all countries outside US and EU, such a CIS must pay 18% tax + seller fees monthly. That about 25-30% from sales + PayPal fees..
Scampal back at it again
The question is really why anyone/everyone uses PayPal in the first place. I think it's mainly to handle credit card processing (especially in low volumes), which could just as easily be done via a Bitcoin vendor. It all comes down to what the fees are for the "round trip" of a transaction like that, and how willing the buyer is to do business online with zero protection.
Folks just looking for take seller balls in hand if something going wrong for them. There no much other stable companies provides chargebacks for completed purchases.
Yes. I think it's largely laziness. You assume banks are complicated and expensive so you look for an online solution.
This, plus the fact that when you (as a consumer) get fucked, you usually get your money back. As someone who sells things on eBay from time to time- I absolutely detest them.
Uh, last I checked, banks are complicated and expensive for low-volume vendors. I mean, if I'm just looking to put up a donation button or accept a rare $5 shareware payment (say one a week), what are banks offering at a lower cost than PayPal?