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View Full Version : Using Paypal as the only payment method


Xylitol
09-15-2007, 05:41 AM
Hi,

What do you think of using paypal as the only payment method. I don't mean that the customers could pay only with the paypal-credits, but also run the credit card payments trough paypal(they have really made it simple).

In a long run, will it become expensive/is the recursive payments easy to run with it/what problems do you see with this method?

emailhosting
09-15-2007, 08:27 AM
Paypal is great; however, I would consider more professional options. People still tend to view Paypal as an eBay tool.

Wullie
09-15-2007, 08:42 AM
People still tend to view Paypal as an eBay tool.

That isn't necessarily a bad thing. Paypal have over 153 million users, eBay have over 233 million users. The Paypal figures are registered users as well, so that won't include all the people who use them simply for making payments without registering. There are many people who will only deal with Paypal for buying things, including hosting.

Using Paypal only will no doubt lose you a small number of customers, but in reverse not offering it will also lose you customers. From personal experience, you will not lose as many potential customers by offering only Paypal as many people will lead you to believe.

If you want to convert as many people as possible, offer Paypal as an option rather than the only source, but it is very possible to run a successful business accepting only Paypal.

Xylitol
09-15-2007, 09:36 AM
Paypal would definately be the best choice for us when we try to penetrate the international markets. At the moment we are only running on a local, homecountry based, markets so we don't need any credit card "hassle".

HostThree
09-15-2007, 10:20 AM
You should checkout Google Checkout, it's free... gives your customers more options.

JohnJ
09-15-2007, 11:03 AM
PayPal is probably the most preferred way of online payments, which includes hosting. If you have a business account with PayPal, you can accept both PayPal and credit cards.

Xylitol
09-15-2007, 11:16 AM
If I have understood it correctly, the people who use credit card to pay the billd do not need to register at paypal, is this correct?

Wullie
09-15-2007, 11:24 AM
If I have understood it correctly, the people who use credit card to pay the billd do not need to register at paypal, is this correct?

They do if you are accepting subscription payments from them, but for payments where they need to login each time to pay, they don't.

BluewaveHosted
09-15-2007, 01:18 PM
PayPal offers you a full solution. But like said: I would advise you choose a Credit card option and have PayPal as option 2. Most hosts do so.

24x7group
09-15-2007, 02:00 PM
If I were you I would also think of other payment methods. We also have Paypal and have quite some clients who like to pay with them, but more payment options is always better :)

varihost
09-16-2007, 03:57 PM
We use paypal and no-one has ever had a problem with it. If you can provide an alternative CC option, that is not a bad thing, unless you introduce it in such a way that the user/customer is confused by the 'options'.

I would suggest also offering other methods of payment and provding information on how they can pay, such as by cheque or bank transfer. Also maybe paying annually.

subzer0
09-16-2007, 04:06 PM
You should checkout Google Checkout, it's free... gives your customers more options.

Yeah, but what billing systems have modules for google checkout? I know WHM Autopilot does not, and I don't think CLient Exec does either.

What do you guys think is a good payment company to use besides Paypal which works well with some of the common hosdting biling systems out there? I was thinking about 2CO, but I am not sure.

JohnJ
09-16-2007, 04:29 PM
I have used PayPal for credit card processing and it works fine. Having two possible processors would make things more complicated, which is a turn off to customers.

subzer0
09-16-2007, 04:57 PM
Actually, it would be more convenient for customers. Having 2 or more processors makes things more complicated for us:)

ArcticRaiders
09-17-2007, 10:10 PM
I really like the idea of using paypal for the payments. Though you could always allow money orders too.