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  1. #1
    Join Date
    Mar 2005
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    North Carolina, USA
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    Running a web hosting business WITHOUT PayPal.. is it suicide?

    Hello,

    I am interested in getting into the web hosting market. I have tons of experience with Linux, cPanel, and the aspects of running a web hosting business. However, my bank and PayPal have decided to have a disagreement, which makes me not be able/want to use PayPal at all. I really like jensleypay.com (like PayPal, but with better service and MUCH better support).. However, is it web hosting business suicide to just use this company as a payment processor? Will most of my market users be lost in not offering PayPal as a payment processor?

    Thanks,

    webbist

  2. #2
    Join Date
    Nov 2003
    Location
    Florence, KY
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    604
    I guess it depends on what market you're going after. I have a couple who pay by paypal but I'd say 90% of my clients pay by check.

    Justin

  3. #3
    No, not suicide at all. Some customers still dont know what it is or how to set it up.

    If you can get a merchant account or 3rd party account like ProPay and also will accept checks and/or money orders, you have provided enough options.

    LH
    If the web closed at midnight, what would YOU do?

  4. #4
    Join Date
    Sep 2004
    Location
    New Zealand
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    206
    I think the biggest concern you should have is making sure whatever company processes your customers payments is widely known and trusted. PayPal and WorldPay are good examples. Most people will be put off buying from a host that uses a small company they have never heard of.
    Last edited by maccrazy; 06-11-2005 at 04:24 AM.
    TJR Networks - Quality web hosting for everyday people...

  5. #5
    Join Date
    Dec 2004
    Location
    New Jersey
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    86
    If you acquire your customers based on your web site only and not through a retail establishment or a consulting business only then you need paypal in my opinion. I find that I want paypal customers because the fraud base is like 99 less and the customers are much more techie. I have 138 accounts or so and i rarely get a support call because of the techie level of my customers.

    I definetly suggest paypal if you acquire users using your website as a primary customer acquisition tool. use a different bank or something just for paypal.
    Fast Affordable Web Hosting
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  6. #6
    Join Date
    Jun 2003
    Location
    UK
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    I think it does also depend on what level of customers you are aiming at. If you are looking at say a $3.99/mo account then it can be good to accept Paypal as people are will to trust that much to it. Also some people do like Paypal as it means they don't have to keep giving out their credit card number to lots of companies.

    On the other end people who pay $300+ for a dedicated server normally prefer credit card. However you can definitly survive without it

    rus
    Russ Foster - Industry Curmudgeon

  7. #7
    Join Date
    Jan 2002
    Posts
    1,033
    Stats-wise, our customer-base is about 60% PayPal / 40% credit card. PayPal has been awesome for us and we have not had any issues.

  8. #8
    Join Date
    Mar 2005
    Location
    North Carolina, USA
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    So if I didn't want to use PayPal, the best option would be to get a credit card processor so I can process credit cards directly from my site?

  9. #9
    Join Date
    Dec 2004
    Location
    New Jersey
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    86
    well you absolutely needs to accept credit card if you want to be serious about being a hosting company.

    I recommend starting out using authorize.net and modernbill.

    Marc
    Fast Affordable Web Hosting
    www.vizhost.com
    Contact on AIM: DIALSOFT

  10. #10
    Join Date
    Jan 2002
    Posts
    1,033
    Originally posted by webbist101
    So if I didn't want to use PayPal, the best option would be to get a credit card processor so I can process credit cards directly from my site?
    The best option is a mix from my experience (and many others): PayPal AND a real merchant account (so you can process credit cards directly).

  11. #11
    Join Date
    Jan 2004
    Posts
    7,033
    Best way to go is...

    1) Accept Cash
    2) Accept Checks
    3) Accept Credit Cards

    That really just covers everything over all. To be honest you really do not need paypal, but it would be handy to some customers if you did have it. As for credit cards you can just get a mechant account and that will solve that issue.

  12. #12
    Join Date
    Jan 2002
    Posts
    1,033
    Originally posted by Torith
    Best way to go is...

    1) Accept Cash
    2) Accept Checks
    3) Accept Credit Cards

    That really just covers everything over all. To be honest you really do not need paypal, but it would be handy to some customers if you did have it. As for credit cards you can just get a mechant account and that will solve that issue.
    I accept mail-in payments (check, etc) and only ~.3% of my customers use it.

  13. #13
    Join Date
    Jan 2004
    Posts
    7,033
    Originally posted by Josh Stein
    I accept mail-in payments (check, etc) and only ~.3% of my customers use it.
    Well reasons to accept checks, and cash is just another way people can pay. Since not everyone has a Credit Card or Debit Card it helps people who want a website though have only certain ways they can pay .

  14. #14
    Join Date
    Oct 2003
    Location
    West Yorkshire, UK
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    2,813
    webbist,

    It all depends on the business model and target audience of the company. If the company is targetting Web developers, or generally people with a lot of 'online' experience and knowledge, then yes, quite possibly it would downgrade the business, but if the target audience are the small companies down in the local town, then not having Paypal, probably won't make much of a difference.
    - Jamie Harrop

  15. #15
    Join Date
    Nov 2001
    Location
    Chicago
    Posts
    1,134
    Dropping paypal is probably one of the better decisions you could make. Get a merchant
    account, enjoy the control, speed and savings over a third party processor.

    Our order form only accepts credit cards.
    ---
    Dan Ushman
    Co-founder & CMO
    SingleHop, Inc.

  16. #16
    Join Date
    Mar 2004
    Location
    Singapore
    Posts
    6,984
    If this is the case, I would be dead already, we hardly take Paypal, only 0.01% of our transactions go through Paypal. The rest are standard cheques and cash.

  17. #17
    Join Date
    Aug 2004
    Location
    Toronto
    Posts
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    Just depends on your target. Many of our customers prefer to deal through PayPal for the simple reason they don't like a ton of people having their credit card information. It makes sence to me, I've used PP before for that same reason.

    What's the issue between your bank and PP? Is you bank refusing to process deposits from PP?
    :: Kevin
    :: Dotniagara Professional Web Hosting Since 2006.

  18. #18
    Join Date
    Feb 2001
    Location
    West Michigan, USA
    Posts
    9,675
    Originally posted by midphase-Dan
    Dropping paypal is probably one of the better decisions you could make.
    Why is that? We've always accepted both cc and Paypal and our Paypal customers have been consistently around 25 - 30%. We're talking $xx,xxx (5 figures) in income from Paypal payments a month with very little trouble over the past 6 years. Paypal fraud orders are almost non-existent and they take less fess than most merchant accounts (Premier Business acct).

    I'd be interested to hear your experience, Dan.

    --Tina
    ||| 99.999% Uptime SLA!!!
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    www.AEIandYou.com - - (WP Friendly - Premium Reseller Hosting and Cheap Dedicated Servers)

  19. #19
    Join Date
    Sep 2004
    Location
    Fairborn, ohio
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    It basically boils down to this math. Say you have 100 visitors that are wanting to buy from your site. The way they are hoping to pay breaks down to the following (just an example):

    45 Want to use their credit card NOT using paypal because paypal is their enemy.
    30 want to use a credit card, but only in paypal, because they think giving their cc number is risky.
    25 want to send cash or check because they're old catholics that believe credit is a sin.

    So here is your scenario... If you accept ONLY cc, you get 45 signups. If you accept only paypal, you get 30. If you accept only checks, you get 25. If you accept all 3, you get 100.

    So basically, it's always better to have more options. Will you fail for sure if you don't use paypal? I doubt it, but it could bring you some extra customers for sure. Just my experience with things.
    Imeanwebhosting.com - Shared cpanel hosting, 99.9% uptime.
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  20. #20
    Originally posted by AH-Tina


    I'd be interested to hear your experience, Dan.

    --Tina
    So would I Dan.









    Sorry, we've been debating paypal, and I'm all for accepting it!

    Zak
    CEO of SingleHop

  21. #21
    Join Date
    Sep 2004
    Location
    Somewhere I belong
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    I am thinking to open a Singapore Currency bank account at Singapore and use debit card and integrate them with my PayPal account.

    But PayPal doesn't support Singapore Dollars. So I am quite confuse. I know I can accept USD into my PayPal account. But what will happen when I transfer USD into my bank? Will my bank or PayPal converts it into Singapore Dollars with current exchange rates?

    I am very confusing nowwwwwwwwwwwwwwwwwwwwwww

  22. #22
    Join Date
    Apr 2005
    Location
    San Francisco, CA
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    PayPal give us extra 5%-10% of sales - NOT more then that. For your security is BETTER to don't accept PayPal at all - some customers using your service for 3-5 months without complaints and later request chargeback from PayPal and you most likely LOOSE - paypal protect buyers, not salers. Even if you win PayPal dispute - buyers call their bank and make up "story" about "Services" in not as advertised and PayPal will process chargeback anyway.

    My suggestion for everybody - if you can get your own merchant account - DONT' accept payments thru middleman like PayPal/2CO/Others - they so affraid to represent (protect) merchant side.

  23. #23
    Join Date
    May 2004
    Posts
    130
    Just a note though, it looks like JensleyPAY only accepts customers from like 10 countries or something. One of the countries is the US but if you're expecting international business, you'll probably need alternative payment methods.

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