Using PayPal as a gateway for accepting online payments has
just become much more attractive.
PayPal, owned by eBay, has always been considered one of the
best, most secure choices of payment for auctions, whether by
check or credit card. But one of the biggest drawbacks to it has
been the restriction that the buyer also had to have a PayPal
account in order make that payment.
Not anymore! PayPal has optimized the checkout experience for
buyers by launching an exciting new improvement to Website Payments.
With PayPal's improved Website Payments checkout, purchasing online
by many types of payment can be easily made... Once a customer
has decided to make a purchase, they are walked through four easy
steps:
1.Shipping information - Customers enter name and shipping address.
2.Billing information - Customers enter credit card information,
email address and phone number. They also have the option to send
a message to you. 3.Review of payment information - Customers
review what theyêve entered to make sure itês correct. From this
point, they can either edit the information or complete checkout.
4.Save customer information with PayPal (optional) - To shop more
quickly and easily in the future, customers can save their personal
information theyêve already entered with PayPal All they need
to do is choose a confidential password and create answers to
a few security questions.
To toggle off this new feature, the PayPal account holder can
simply log in, go to their Profile subtab, click on Website Payment
Preferences in the Selling Preferences column, and check or uncheck
the yes/no box under PayPal Account Optional.
Currently the account-signup-optional feature is available to
US sellers and their customers, for Buy Now, Donation, and Shopping
Cart transactions. Currently it does not apply to eBay transactions,
Subscriptions, or Send Money / Request Money transaction -- however
these are being considered to be added in the near future as well.
According to sources at PayPal, they are also looking into extending
this availability to non-US merchants in the near future. However,
there is no confirmed release date.
---
NOTE: Information provided to the seller is the same as before,
based on the user's billing & shipping addresses. Depending on
the seller's choice of payment settings, they can choose whether
to ship to addresses different from that on the credit card or
not.
---
The "PayPal Account Optional" feature can be toggled on or off
from a PayPal account holder's profile setting, under the "Selling
Preferences" / "Website Payment Preferences" area at the bottom
of the page, below the "Auto Return" setting.
For small business out there looking for an online credit card
acceptance solution, this must certainly put Paypal at the top
of a very short list. With a Standard rate of 2.9% and $0.30 per
transactiuon, its not the least expensive per transaction fee
out there. But with no monthly statement fees, no upfront gateway
fees, no monthly minimum $$ requirements, it presents a very attractive
way to get into the online arena at minimal cost. That coupled
with the relatively easy acceptance criteria for establishing
an account, easy to manage reporting and transfer options as well
as the various options offered for building an ecommerce shopping
cart, this appears to fire a solid shot across the bow of established
merchant account vendors such as WorldPay, Linkpoint (CSI), and
2Checkout.
One final item that almost slipped our attention...but makes
PayPal an extremely attractive option to even the most experienced
online merchant. Chargebacks are limited to 30 days rather than
the typical 6 months found with other processors. And that could
be a powerful enticement on its own!
Author: Web SiteHost Directory.Com Date: 2/16/2003 Email: mkt@websitehostdirectory.com
The WebSiteHostDirectory.Com is a resource for webmasters and
consumers looking to find a website hosting company or a quality
expiring domain name
Return to Merchant Account Tutorial Articles
Index
