So I've been doing this whole webhosting business for about a year now, and I've only been using paypal. I've monitored closely, and noticed that half of my visitors that make it to the checkout, bail out at the "payment type option" screen. While I'm sure some of these are just "goofing around" or "testing out the cart", I'm going to go out on a limb and assume that most of these are due to me only accepting paypal.

My question to all of you experienced hosts is this... If at any point you ONLY used paypal, and you now take paypal and cc, how did this change your business? I've read some people saying on here "If I had it to do over again, I'd have taken credit cards from the start", and it's exactly those statements that make me ask exactly how well accepting credit cards changed your business.

For some background info, if anyone needs it... I am a very small host (~$30,000 a year in sales), and gain roughly 0-2 clients per day as it is with just using paypal. Average sale is about $5.00 since most of my clients pay monthly.

For the record, I am not requesting "who to use" as I have narrowed it down to cdgcommerce (authorize.net). I'm just looking for some opinions on how much delight/hassle accepting credit cards has been for everyone. I basically just need that "final push" to calm my nerves. :blush: I know it's been asked, but searching for things on wht is like searching for a needle in a haystack these days. :)

I'm looking forward to any and all responses.

Lorne Lawson,
MOD EDIT: Please see signature rules.

P.S. Sorry I haven't been on the boards lately, business has been keeping me busy. ;)

Well.... I guess nobody has an opinion. =)

no, but I am interested in the topic.

paypal only, to paypal + CC.

I don't know what account management software you are using on the backend, but since are already using PayPal sucessfully why don't you try PayPal Pro.

The only down side to this would be if there is problem with your account you will not be able to take new orders. where as if you had a second account with a different provided that would not be a problem.

Have you looked at Payquake, the only reason I mention them is because I used them for my store and had no problem. They use the Authorize.net gateway.

Why do you choose CDGcommerce? are they good?

I've used authorize.net for an old job that I worked for where I was the webmaster, and I loved them. I was just wondering in the webhosting business, from hosts that have made this jump, how much better is paypal+cc than just paypal?

well...the more options you give your customers to pay for your services the better....maybe what you really want to know is...how much trouble it wiil be for you to deal with both paypal and a merchant account-gateway..rather than just paypal.

I would like to know that too. I'm still mainly curious of the increase in sales though. :)

well let us know the results.....and in what degree your level of sales change....good luck with that ....

Bohica,

You don't mention your target audience. Are your customers from a particular country? What about age group?

Younger customers often have a PayPal account because all they need is a checking account to get started. Problem, some say, is that PP isn't available in all countries.

Depending if you are selling mainly to either US or another country be sure to verify how payment is made. For example if you are US and someone in Singapore buys your product are they buying in US dollars or Sinagpore currency, then later it is converted to US exchange?

You already are aware of chargebacks, so what are the fees for the service.

Is your product sold on an affiliate basis? Have you looked at ClickBank?

Although I haven't used authorize.net myself, friends tell me that they are good.

Your question is impossible to answer, because it is specific to your business and the type of customers you attract, your target market, etc...

We use cdgcommerce for our credit card processing and LOVE them. Very good company, and excellent service/support. They are worth it. (yes, you can find a cheaper solution, but cdg is well worth the "extra" few pennies...)

If you are doing $30k / year in business then you are probably going to see an increase in sales if you accept cc AND paypal. Why not try it out for a few months and see? CDG has no cancellation fees, so it can't hurt to try. :)

PayPal markets themselves "keeping your financial information private from sellers make us a safe way to pay online."

https://www.paypal.com/cgi-bin/webscr?cmd=_pbp-info-outside

How is that good for your business to partner with someone that tells your customers that you are not trustworthy?

A good indicator of whether you will see a significant increase in sales is whether you have been receiving requests for direct CC payments. People (maybe 1 in 10 or 1 in 100 if you are pessimistic) who wants CC payments will contact you if they need it.

We used to use only PayPal but many prospects requested direct CC either because they are in a country not supported by PayPal or they simply prefer direct CC. We added 2CO and it solved the problem. We did not monitor the increase in sales though (as it was during the early stage of our business), but from the looks of it our clients loved the additional choice. Many of our clients who live in a country supported by PayPal still choose 2CO for payments.

Like others have said, you have to do it to know the answer :)

Hmm, just a question...

Don't Paypal can be used as a credit card processor itself?

If we made this clear at the checkout page, will it still be a problem?

Hmm, just a question...

Don't Paypal can be used as a credit card processor itself?

If we made this clear at the checkout page, will it still be a problem?
1. Some countries are not supported by PayPal. Check this page (https://www.paypal.com/cgi-bin/webscr?cmd=_display-approved-signup-countries-outside), it does not list every country in the world.

2. When making one-time payment, people without a PayPal account can still pay. However, when subscribing to a PayPal subscription, clients must use a PayPal account (or sign up if one is new). Some people dislike the fact that they have to sign up another account with a "3rd party" (PayPal).

3. Some people think PayPal is cheap, but personally I would use PayPal over CC any day especially when shopping online due to the added security.

You are 100% protected from fraud using your credit card online direct without PayPal. Funny how people fall for PayPal rhetoric...

From the numbers I know, moving to CCs increases your business in dozens of %

You are 100% protected from fraud using your credit card online direct without PayPal. Funny how people fall for PayPal rhetoric...

Yes are right, when fraud happens, you can always file a complaint/dispute with your bank and they waive the amount. However, that is a corrective measure and not a preventive one. The process can also be troublesome sometimes.

If you only share your CC information with a single party (PayPal), there is virtually no risk of fraud unless your PayPal account is stolen or PayPal is compromised.

Another reason I like PayPal (as a buyer) is because I am in total control of each transaction (the payment amount and I can cancel a subscription at anytime). There will be no issue with overcharging because buyers have to authorize each transaction. I once had an overcharge issue with DedicatedNow and it took me a long time to explain to them. Had I used PayPal, I wouldn't be overcharged.

Anyway, that is just my preference. You could disagree.

Yes are right, when fraud happens, you can always file a complaint/dispute with your bank and they waive the amount. However, that is a corrective measure and not a preventive one. The process can also be troublesome sometimes.

I never had a problem with it. You make your statement as if someone that accepts PayPal couldn't possibly be a fraud and that you do not have to file a dispute with PayPal in case of fraud. :rolleyes:

If you only share your CC information with a single party (PayPal), there is virtually no risk of fraud unless your PayPal account is stolen or PayPal is compromised.

PayPal accounts are compromised all the time. Why do you think they are the #1 phishing target? They don't even know how to provide secure logins that prevent phishing like banks do. ;)

Another reason I like PayPal (as a buyer) is because I am in total control of each transaction (the payment amount and I can cancel a subscription at anytime). There will be no issue with overcharging because buyers have to authorize each transaction. I once had an overcharge issue with DedicatedNow and it took me a long time to explain to them. Had I used PayPal, I wouldn't be overcharged.

It is almost impossible to find where to cancel subscriptions on PayPals site... not to mention just about everything is difficult to find. I can get quicker answers calling my credit card company. I have benn overcharged on my AMEX, called them and got the difference removed immediately. No problems.

Anyway, that is just my preference. You could disagree.

Yep, I disagree. :D

Seeing that the number of active PayPal accounts is only about 3% of the number of credit cards in circulation doesn't make me want to run and embrace them anytime soon.

I have been back and forth about this aswell.
We get a reasonable amount of traffic but I would expect more signups from it.

PayPal is not very easy for the buyer.
If they start out making month to month payments they may or may not be able to switch to subscriptions depending on your billing program or how savy they are.
Giving them the option to just fill out a cc form once and know it's going to get taken care of every month is way easier for you and them.

Also a busines that takes credit cards earns more buyer confidence.

It's got to help. Let us know the results.

I made a long post that included:
Is there anything else about your order process/cart that could be making them balk (bad wording or something that might not read the way you intended?)
Be sure it's not all PayPal's fault before assuming that's why they bail out, could just be a bad layout on your order page or maybe they don't like something in your TOS (if your cart is like most and requires them to accept the TOS before processing)

Then I noticed your domain. Take away the word "options" off Payment Types, Just change the cart to show only PayPal.

Main thing that threw me was all the verbage about "subscriptions" in your TOS. I'd suggest taking that out or major re-wording.
At a glance (the was a customer would read) it seems like there is a good chance I'll keep getting charged even if I cancel unless I do a bunch of complex stuff that's hard to understand.

I bet that is costing you as many customers as anything if they read the TOS...I never got past that point and I was turned-off & confused.

Try that first & see what happens then if you want to fork over all that money to the CC people (2-3 times as much as PayPal) send me a PM and I'll give you some tips.

PS:You are 100% protected from fraud using your credit card online direct without PayPal. Funny how people fall for PayPal rhetoric... Worldwide, Citibank was #2 in "phishing" attempts last month right behind PayPal.
He's the seller, not the buyer. That doesn't apply. Doesn't apply for the buyer either, on-line CC's unless it's a specialty "protected" card there is little buyer protection if they have all your info (phone, address, e-mail, etc.).

Doesn't apply for the buyer either, on-line CC's unless it's a specialty "protected" card there is little buyer protection if they have all your info (phone, address, e-mail, etc.).

Regardless of the info they have, if it is fraudulent charge on your credit card, you are not responsible for the charge with no special protection.

I had someone charge my Chase Visa that I had not used for over 5 years. The transaction had enough information that it was a Verified by Visa charge. Guess what? I got my money back regardless of the Verified by Visa claim and it only took 2 phone calls.

I also had 2 fraudulent charges on an AMEX from the number being stolen from Denny's... no problem getting the money back.

I have disputed many purchases on regular VISA, MASTERCARD and AMEX and had no problem winning the dispute... all with no PayPal.

And you are :topic: since you keep talking from a customer getting defrauded point of view rather than a host (who in hosting is more likely to be the victim of CC fraud than the perpetrator)

The OP was asking about accepting credit cards resulting in increased sales completions. However I think he may have another problem with his TOS that's causing a "quit" problem besides just the fact it's PayPal.
You seem to be one of those people who feel compelled to say something negative about PayPal anytime they are mentioned (happens on all forums) when fraud/phishing or whatever had nothing to do with his question. Before I shortened my post I originally acknowledged a tiny % of people are leery of PayPal, but he wanted to know about increasing his sales.
In my "other life" I am a marketing/sales consultant/trainer (you can pay to see me talk in Vegas the 30th if you want ;) ) so I try to look at things from a consumers point of view 1st (before jumping to other actions) and I was just pointing out that he might first want to get the excess stuff about PayPal subscriptions out of the first part of his TOS and see if that increased sales conversions before going to all the hassle of credit cards. It would be far more simple for him to send anyone who "canceled" a form e-mail explaining if they were using PP "subscriptions" to remember to remove his company than to have all that wording, which to an uneducated consumer kind-of sounds like "if you cancel service with us; PayPal may keep sending us your money and if they do it's not our fault and we won't give it back" .

It's not about fraud or phishing or if PayPal is good or bad, he wanted experiences on increasing sales and in my experience taking credit cards does not make a substantial difference in sales volume even though more people choose cards when given both options, But cards are far more hassle and expensive than PayPal for the host (and he appears to be going for kind-of the "budget" market, so that could affect his bottom line)
I never said he shouldn't take cards, just offered a suggestion on another obvious reason why people may be getting to his checkout page and then bailing out. A lot depends on his target customer, for some people taking credit cards would be far more likely to increase sales volume than others.

(Also to the OP: remember a % of people don't complete orders for whatever unrelated reason... spill their coffee, baby cries, pot boils over, favorite TV show comes on...and one was me checking your order page which I couldn't get to without using a phony domain name and appearing to be ready to place an order :rolleyes:... oh and if you do add CC's my vote would be for CDG )

And you are :topic: since you keep talking from a customer getting defrauded point of view rather than a host (who in hosting is more likely to be the victim of CC fraud than the perpetrator)

I guess it wasn't you that said this?

Doesn't apply for the buyer either, on-line CC's unless it's a specialty "protected" card there is little buyer protection if they have all your info (phone, address, e-mail, etc.).

Funny how you can ask an off topic question and that is ok, but when it is replied too... it is an off topic disaster. Any of my posts about customers were in response to off topic statements that are in favor of PayPal from the customers side, but yet you are only attacking me for being off topic. LOL :D

P.S. PayPal sucks

Are we talking about client or host-side fraudulent cc transactions?

The topic is about customers perspective about PayPal and if it is good or bad or your business... nothing here is off topic concerning this. :)

I must say that I have learned that quite a few customers see Paypal's signing in process as a hassle - especially international ones, of course.