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  1. #1
    Join Date
    Oct 2004
    Location
    Singapore
    Posts
    149

    Paypal VS Merchant Gateway/Account

    Hi,

    I just need to clarify some issues. What is the different between Paypal and Merchant Account?

    Correct me if I am wrong, doesn't Paypal do the CC transaction without even having a Paypal account?

    How come PayPal business solution is free while the merchant account is chargeable?

    Lastly, can I be recommended with a merchant account for me to use for my business in Singapore other than Worldpay. I want something like 2CO.

  2. #2
    Join Date
    Jan 2003
    Location
    Orlando FL
    Posts
    1,342
    here are some differences

    Transaction Process

    Paypal: Your customer will have to pay on Paypal's web site and not your own site.

    Merchant Account: The payment is done completly on your web site under your name. No need for redirections that may caused the customer to leave.

    Charge

    Paypal: The charge will appear on your customers statement as paypal and not your business name.

    Merchant Account: the charge will appear with your companies name.

    Cost

    Paypal: Paypal does charge, not a monthly but per transaction, a discount rate close to 3%

    Merchant Account: Since you are in Singapore i'm not sure about the monthly cost and discount rate.

    Gateway

    Paypal: No need for gateway

    Merchant Account: in most cases you will have to pay for the gateway separate.

    SSL Certificate

    Paypal: No need for SSL Cert since the payment is done on the secure site of Paypal.

    Merchant Account: Is required for you to purchase an SSL Cert and renew every year.

    About your last question, I have never open an account for Singapore, I can't recommend.
    Jorge Campos | WBpro
    Web Building Professionals
    www.wbpro.com

  3. #3
    Actually, PayPal does have a merchant account program without redirected to PayPal - you must you web services.

    Go to PayPal -> Merchant Tools -> PayPal Website Payments Pro (midway down)

    It will display your company name on the credit card charge.

  4. #4
    Join Date
    Oct 2004
    Location
    Singapore
    Posts
    149
    So that it means if I have a merchant account and I am using Modernbill or ClientExec for my billing. MY customer can pay directly from my site?

  5. #5
    Quote Originally Posted by miltongoh
    So that it means if I have a merchant account and I am using Modernbill or ClientExec for my billing. MY customer can pay directly from my site?
    Yep, you need a merchant account and gateway to have people pay directly from your site. You (usually) sign up for them together.
    Dan Grossman - dan @ awio.com
    My Blog | Affiliate Program for Web Hosts

  6. #6
    I'd go with a merchant account. It's much better for you and your customers.

  7. #7
    I think Paypal is the best in this case because if you are looking to allow customer hosting plans you can give them a subscription link and Paypal does the rest

  8. #8
    Quote Originally Posted by priceww
    I think Paypal is the best in this case because if you are looking to allow customer hosting plans you can give them a subscription link and Paypal does the rest
    A real recurring billing system would "do the rest" better. With a PayPal subscription link the only way your billing system knows someone is cancelling is when they don't pay their bill because they cancelled the subscription. It doesn't handle changing hosting plans, or upgrades without you having to get the person to cancel one subscription and begin another (often not at the exact 30 day interval they were due to be billed), etc.

    PayPal is not the optimal solution to recurring billing.
    Dan Grossman - dan @ awio.com
    My Blog | Affiliate Program for Web Hosts

  9. #9
    Join Date
    Sep 2005
    Posts
    597

    Post

    I use StormPay which is great. I have been using it for a while now.

  10. #10
    Join Date
    Dec 2002
    Location
    chennai , tamil nadu , IN
    Posts
    1,423
    Yes with paypal pro website payments your customer does not have to leave your website to complete the payment.

    Specifically it is their direct payment api

    https://www.paypal.com/cgi-bin/websc...cc_hub-outside
    Chris, Developer/Programmer,
    Php laravel developers,
    Ruby on Rails developers,
    www.chrisranjana.com

  11. #11
    I noticed no one answered this but do you have to have a paypal account to pay with your creadit card? I'm talking of the website with the regular paypal here not paypal pro. Thanks.

  12. #12
    Quote Originally Posted by ts2111
    I noticed no one answered this but do you have to have a paypal account to pay with your creadit card? I'm talking of the website with the regular paypal here not paypal pro. Thanks.
    Not if the seller is in the US and the buyer is in a PayPal-supported country. In that case, the buyer can pay by credit card at PayPal's site without creating an account.
    Dan Grossman - dan @ awio.com
    My Blog | Affiliate Program for Web Hosts

  13. #13
    Join Date
    Apr 2002
    Location
    Las Vegas
    Posts
    797
    how would this work with modernbill?

  14. #14
    I have had very bad experiences with paypal.

  15. #15
    Join Date
    Jan 2005
    Posts
    432
    You have to use express checkout with PayPal payment pro wich forbids you to collect any information about your customers. So you are letting PayPal collect the info on your customers that choose to use this checkout method and you can't. How lame.

    PayPal
    Last edited by Festus2005; 12-03-2005 at 07:17 AM.

  16. #16
    Join Date
    Feb 2004
    Location
    Scotland, UK
    Posts
    178
    Quote Originally Posted by Dan Grossman
    Not if the seller is in the US and the buyer is in a PayPal-supported country. In that case, the buyer can pay by credit card at PayPal's site without creating an account.
    Sellers in the UK (and other countries) with a standard (not Pro) PayPal account can also have customers pay direct via PayPal without them having a PayPal account (using PayPAl's Account Optional setting).

  17. #17
    Join Date
    Jan 2005
    Location
    San Jose, CA
    Posts
    255
    Quote Originally Posted by Festus2005
    You have to use express checkout with PayPal payment pro wich forbids you to collect any information about your customers. So you are letting PayPal collect the info on your customers that choose to use this checkout method and you can't.
    The Express Checkout requirements say that you have to give your customers the option to go to PayPal before you collect any of their information, but that doesn't mean you wouldn't have access to (some of) that information. PayPal will pass you back the customer's name and shipping information. I believe you would also have the option to collect information from them after they have pressed the "Continue" button in Express Checkout to return to your site (and before they have finished their payment) - if you have seen something in the manual that indicates otherwise, let me know.

    The information you can't collect from the Express Checkout customers is their billing information, such as credit card number or billing address. However, if you need to get a phone number or want to offer a mailing list opt-in, I think you can do that on your site after the customer has returned from the PayPal site.

  18. #18
    As for the Paypal, they ofter limite your account.

  19. #19
    Quote Originally Posted by james007
    As for the Paypal, they ofter limite your account.
    I doubt without reason.
    Dan Grossman - dan @ awio.com
    My Blog | Affiliate Program for Web Hosts

  20. #20
    Join Date
    Jan 2005
    Posts
    432
    Quote Originally Posted by paypalrb
    The Express Checkout requirements say that you have to give your customers the option to go to PayPal before you collect any of their information, but that doesn't mean you wouldn't have access to (some of) that information. PayPal will pass you back the customer's name and shipping information. I believe you would also have the option to collect information from them after they have pressed the "Continue" button in Express Checkout to return to your site (and before they have finished their payment) - if you have seen something in the manual that indicates otherwise, let me know.

    The information you can't collect from the Express Checkout customers is their billing information, such as credit card number or billing address. However, if you need to get a phone number or want to offer a mailing list opt-in, I think you can do that on your site after the customer has returned from the PayPal site.

    All of that sounds like a solution, but it is a huge inconvienance.

    I do not want to depend on PayPal for the information.

    Why would the customer want to register an account after they already paid?

    PayPal has this all arse-backward. They will never get my business because of this.

  21. #21
    Join Date
    Apr 2004
    Location
    Toronto, Canada
    Posts
    464
    Quote Originally Posted by ts2111
    I noticed no one answered this but do you have to have a paypal account to pay with your creadit card? I'm talking of the website with the regular paypal here not paypal pro. Thanks.
    Your customer would have to register for a PP account only if you are selling a subscription. If you are using the buy-it-now feature or a one time only payment, you can choose to not require customers to have a PP account.

  22. #22

  23. #23
    Join Date
    Nov 2005
    Posts
    47
    If you want to make your site look a bit professional and want every transaction to be done on your site, it's better to have your own payment gateway. I got to say, paypal is very convenient for every sort of payment. But I don't quite like their services.
    http://www.ImBae.net - Million Dollar Site For Online Entrepreneurs
    http://www.iGoLink.com - Buy Your Link and Advertise Today

  24. #24
    Join Date
    Jan 2005
    Posts
    432
    You are right.

    I get sick of hearing people say that people *trust* paypal more because they are a big name and it is better to use them than a merchant account. Total hogwash!

    Why would you want people not to think you are a legitamit, trustworthy business and you can accept payment right from your own website?

    If you use PayPal, you are letting them stick their nose into your business activitiy and who knows what they do with the info? Hey if you find a nitch are real successful and use PayPal, don't be surprised if you see the stuff popping up on ebay or a new competitor shows up on the scene. Who knows if they didn't find out how lucritive your business was from PayPal? Think about it.

  25. #25
    Quote Originally Posted by Festus2005
    You are right.

    I get sick of hearing people say that people *trust* paypal more because they are a big name and it is better to use them than a merchant account. Total hogwash!

    Why would you want people not to think you are a legitamit, trustworthy business and you can accept payment right from your own website?

    If you use PayPal, you are letting them stick their nose into your business activitiy and who knows what they do with the info? Hey if you find a nitch are real successful and use PayPal, don't be surprised if you see the stuff popping up on ebay or a new competitor shows up on the scene. Who knows if they didn't find out how lucritive your business was from PayPal? Think about it.
    How would they find this out from PayPal? If you're going by the seller reputation (number of verified buyers for that seller) -- you can limit that display yourself. And it gives no hints as to what those sales were -- which site, which product, etc.
    Dan Grossman - dan @ awio.com
    My Blog | Affiliate Program for Web Hosts

  26. #26
    Join Date
    Jul 2005
    Posts
    69
    I stopped using PayPal.Use epassporte.It better (gor me at least)

  27. #27
    Join Date
    Jan 2005
    Posts
    432
    Quote Originally Posted by Dan Grossman
    How would they find this out from PayPal? If you're going by the seller reputation (number of verified buyers for that seller) -- you can limit that display yourself. And it gives no hints as to what those sales were -- which site, which product, etc.

    If you are a business, PayPal knows who you are and knows what you sell. That means they can use the information themselves or their creepy employees can use it to determine where good markets are.

  28. #28
    Quote Originally Posted by Festus2005
    If you are a business, PayPal knows who you are and knows what you sell. That means they can use the information themselves or their creepy employees can use it to determine where good markets are.
    Well if that's your conspiracy theory, so could any merchant account provider.
    Dan Grossman - dan @ awio.com
    My Blog | Affiliate Program for Web Hosts

  29. #29
    Join Date
    Jan 2005
    Posts
    432
    Quote Originally Posted by Dan Grossman
    Well if that's your conspiracy theory, so could any merchant account provider.
    Show me a large well known merchant account provider that has the controversy over internal security and quality of employees like PayPal does.

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