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  1. #1

    Merchant Account vs Paypal

    I don't much care for paypal and have been looking for a new solution for a long time but a full merchant account seems a little bit to big of a step up to me but im wandering, what are the benefits of going with your own merchant account and how much more will it cost you vs paypal?

  2. #2
    Join Date
    Mar 2004
    Location
    England
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    819
    2checkout?

    cg
    NetHosted - UK based hosting solutions.

  3. #3
    CDG Commerce is extremely easy to get set up. They have their own gateway and all it takes is some forms and you're ready to go. It is hands down better to use than any 3rd party processor such as 2CO or Paysystems.

    I think they have a WHT special with no set up fees as well. It's so inexpensive to get going using it I have no idea why people would still choose a 3rd party processor...

  4. #4
    Join Date
    Aug 2003
    Location
    Twin Cities Area
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    ugh NO 2checkout! too restrictive and way expensive!

    paypal still beats them hands down AND you have a much faster turn around on your money!
    if you haven't considered chapter 7 bankruptcy, maybe you should.
    eliminate your debt, keep the property you want, most people qualify.
    contrary to popular belief - no attorney is necessary!

  5. #5
    CDG Commerce
    Rates and Fees
    Per Transaction: 2.25% + .30
    Monthly Statement: $10
    Monthly Gateway: $15

    I wouldn't compare this to 2co or paypal for the smaller company that is just starting out or not doing that much business this is not a feasible plan. By time you add a merchant acount there's not much left for profit.

    But I will put them on my list for those companies that I know are doing over a $1000 a month in sales.

    What kind of restrictions do the have I don't see much info on the web site.
    A new Beginning for WebMasters
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    TotalWeb International Net Consulting
    Internet Consulting, Hosting and Business Solutions

  6. #6
    Join Date
    Aug 2003
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    Twin Cities Area
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    you forgot to mention all the other fees and the contract and equipment involved

    i authored this website (no longer mine)

    http://leaseconn.com

    tells of the evils of merchant accounts

    btw, the new owner altered my design! ack!
    if you haven't considered chapter 7 bankruptcy, maybe you should.
    eliminate your debt, keep the property you want, most people qualify.
    contrary to popular belief - no attorney is necessary!

  7. #7
    Join Date
    Mar 2004
    Location
    England
    Posts
    819
    Originally posted by LaurenStephens
    ugh NO 2checkout! too restrictive and way expensive!

    paypal still beats them hands down AND you have a much faster turn around on your money!
    hehe I have paypal as my main method of payment, but have ordered 2checkout because it seems quite a few people are put off by paypal (it seems to have a bad reputation for some, I think it's ebay related) so I'm trying to please more customers!

    Andrew
    NetHosted - UK based hosting solutions.

  8. #8
    Originally posted by JamesCC
    CDG Commerce
    Rates and Fees
    Per Transaction: 2.25% + .30
    Monthly Statement: $10
    Monthly Gateway: $15

    I wouldn't compare this to 2co or paypal for the smaller company that is just starting out or not doing that much business this is not a feasible plan. By time you add a merchant acount there's not much left for profit.

    But I will put them on my list for those companies that I know are doing over a $1000 a month in sales.

    What kind of restrictions do the have I don't see much info on the web site.
    You need to compare the monthly fees to the much higher per transaction fees, start up costs and percentages charged by 2CO and others...

    2CO for example;
    $49 Setup Fee
    $0.45 per Sale
    5.5% of Sale Amount

    The per transaction fee is .15 higher
    The per transaction percentage cost is 3.25% higher (more than double)
    There is no set up fee for CDG commerce

    There are dozens of advantages but here are two good ones. Your Hosting company name is on the invoice instead of 2CO. Your payments are batched in 3 days as opposed to twice a month which would clearly help a new company with cash flow.

    Even a new company is better off starting with CDG than 2CO.

  9. #9
    Join Date
    Jul 2003
    Location
    Castle Pines, CO
    Posts
    7,189
    You might also consider www.mypaysystems.com, but if Paypal is working for you, don't change.

  10. #10
    No offense Corey but Paysystems is worse than 2Checkout, at least that's what I think from my personal experiences with both of them....

  11. #11
    Join Date
    Jul 2003
    Location
    Castle Pines, CO
    Posts
    7,189
    No offense. Everyone has their own personal opinions, etc. But I since no one had mentioned the, they deserved to be mentioned at least.

    I am sure you have seen the horror stores with 2Co, Paypal etc. When someone has a bad experience with one company, they tend to try to tell everyone. But hardly anyone will give anyone a compliment anymore these days.

  12. #12
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    Mar 2004
    Location
    Pennsylvania, U.S.A.
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  13. #13
    Join Date
    Jul 2003
    Location
    Castle Pines, CO
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    7,189
    Depends on what plan that you are on with Paypal. I know that I have paid some members of Paypal with a credit card in the past.

  14. #14
    Join Date
    Apr 2002
    Location
    Southern Maryland
    Posts
    246
    Actually, gghosting, Pay Systems, 2checkout, etc. aren't merchant accounts, they are 3rd party processors, which is why they charge a fee. Pay Pal is a 3rd party processor too and they do charge a fee.

    We use Pay Systems for 99% of our clients and Pay Pal for the 1%. Not any problems with either of them, well at least major problems.

    We hopefully will get a merchant account sometime this year.
    Sara

    Sara Nelson Photography Preserving your moments since 1973.

  15. #15
    I also use paysystems and seemed ok to me

  16. #16
    Join Date
    Aug 2003
    Location
    Chesapeake, VA
    Posts
    3,379
    First, thanks for the kind words TVI.

    Also, just a pair of quick clarifications on this, in response to a few comments made on this thread.

    you forgot to mention all the other fees and the contract and equipment involved
    Just to clarify - there isn't any "equipment" or "leases" that apply to any of the merchant account programs that are commonly discussed here on the WHT forums. (not from our company or anyone else here that I'm aware of)

    While leasing and equipment sales have been and continue to be a common source of profit in the bankcard industry for retail "bricks and mortar" accounts, most reputable ISO's and agents these days provide online merchants with the more appropriate solutions - typically a payment gateway or occasionally a PC software package.

    In addition, not all merchant accounts have setup costs associated with them. There are true merchant account options available that do not require a setup charge and also do NOT have termination/cancellation fees and monthly minimum requirements.
    CDGcommerce.com - Trusted Merchant Account Solutions since 1998
    Many thousands of successful, growing businesses benefit from our expertise every day. You can, too!
    We help merchants to eliminate gateway costs, reduce & mitigate fraud and achieve streamlined PCI compliance.
    Learn more today at http://www.cdgcommerce.com - we look forward to helping your business grow!

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