I am partner with this venture where in we are planning to roll out books on our site. We have finished all the aspects of the site but on the payment front we have lot of ambiguity.
We first did a pilot with COD but many refused to accpet orders when we delivered them. Now we are in the process to integrate PayPal but not a 3rd Party Payment Gateway like 2CO.
Would I be losing business if I don't integrate a Payment Gateway where customers can do direct transactions with their credit cards. Will all the people coming on my site prefer only PayPal as a payment option. I am a bit confused with this decision.
I have no payment processing at the moment so I may not be the man to ask. But I would say as its a new venture go with Paypal to test out the water, as it is cheap and easy for you to get started. If things are sucessfull then look at upgrading and allowing customers to use cards on your site without the need for Paypal etc. At that point you would possibly want to leave paypal as a second option as some customers like it.
I believe Paypal lets you accept credit card payments from users with no account. While not a fan of paypal only, I'd rather start out like that than go with 2co. Once you are serious, get a real merchant account.
In starting a new business it does seem that Paypal works well in establishing online payments and also in getting a feel for how much volume you will be processing each month.
As your business grows it might be a good option for you to research opening a true merchant account as well. You can have the best of both worlds and not feel as though you may be losing sales just because you are only offering Paypal as a payment option.
Depending on your location, a merchant account might not be warranted at $1,000 a month in volume. If you are in the U.S. or Canada, this is usually true. But in other parts of the world - you might even need to be doing at least $10,000 a month before an acquiring bank will even speak with you.
This seems great I can test the waters and reach a sizeable amount.
Maybe keep a goal by which if I reach a sizeable turnover of $1,000 switch to a Merchant Account We do have high aspirations to reach this scale soon on Paypal. A planed and goal oriented approach will certainly help but it seems I will surely need a merchant account at some point of time. Thanks for all your help.
I dont know what volume you are expecting, but you can also go with a company like ProPay (www.propay.com) for credit card processing. Its a manual process and they have monthly limits, but at least you will not have a monthly fee.