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  1. #1
    Join Date
    Nov 2003
    Location
    California
    Posts
    10

    PayPal Subscriptions

    Hi there,

    I hope everyone is having a great week so far. I have a bit of a paypal question, so I thought I would visit my favorite forum to discuss it.

    I created a paypal account last week, and specified a credit card. As part of the verification process (and before I could use it), PayPal made a 1.95 charge to the card. Along with the charge, they included a 4 digit number, which appeared on the statement about 5 days later. I simply entered the 4 digit number, and the card was good to use. This is all fine.

    I plan on using Paypal as a payment option for my hosting/design site. I will probably be using AWBS, along with paypal to handle web hosting subscriptions. My question is this:

    1) If I have a customer sign-up, and they are creating their PayPal account for the first time, I'm assuming they will have to go through the same verification process I did to use my card.

    Does this mean that they will NOT be able to setup their subscription until they get the verification number off of their statement several days later? What happens to the transaction--do they run into a brick wall, and the transaction just is not completed?

    I'm real curious about this, as I don't want to inconvenience my customers. Many of them are new to the web and may not have exisiting PayPal accounts and I'd love to have an idea of what the payment experience will be like for them.

    Thanks so much.
    briguy
    SFCoast.com
    Radio the way it should be!

  2. #2
    No, you had to do all that to get verified. Im almost positive that they just have to enter their credit card info. They wont be "verified" untill they do what you had to do. But you can still accept their payments.

  3. #3
    Join Date
    Feb 2006
    Location
    Swellyville
    Posts
    2,340
    Exactly...the process you went through was all for verfication needs. However, if the customer that is ordering the plan wishes to use a credit card, then I believe they must be verified...not too sure on that though.
    <<< Please see Forum Guidelines for signature setup. >>>

  4. #4
    Join Date
    Aug 2005
    Location
    Seattle, WA
    Posts
    1,167
    Wrong-a-rific.

    You needn't verify/confirm your account to pay with a credit card; you just aren't entitled to the same protection/benefits.

    Your customers can create a PayPal account and start their subscription all in the course of a few minutes; without ever having to verify anything.

  5. #5
    Join Date
    Feb 2006
    Location
    Swellyville
    Posts
    2,340
    Learn something new everyday.
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  6. #6
    Join Date
    Feb 2006
    Location
    Los Angeles
    Posts
    284

  7. #7
    Join Date
    Feb 2006
    Location
    Los Angeles
    Posts
    284

  8. #8
    Join Date
    Jun 2004
    Posts
    1,958
    Customers can't enroll on subscriptions unless they are a verified member..
    It's Scott!

  9. #9
    Join Date
    Feb 2006
    Posts
    466
    Quote Originally Posted by camers
    Customers can't enroll on subscriptions unless they are a verified member..
    Yes they can.

  10. #10
    Join Date
    Jun 2004
    Posts
    1,958
    Quote Originally Posted by glace
    Yes they can.
    Not unless they have changed something recently..
    It's Scott!

  11. #11
    Join Date
    Feb 2006
    Posts
    466
    I`ve had unverified customers subscribe to my service since 2004.

  12. #12
    Join Date
    Aug 2005
    Location
    Seattle, WA
    Posts
    1,167
    Yep - most of our subscription based customers (paying monthly not via invoices, but automatically, through paypal) sign up for the PayPal account less then 5 minutes before ordering.

  13. #13
    Join Date
    Nov 2003
    Location
    California
    Posts
    10
    Hi there,

    Actually, I just tested a subscription sign-up as a customer who is new to PayPal and does not already have a Paypal account.

    At a certain point in the payment process, Paypal prompts the customer to authorize a $1.95 payment so Payapl can authorize the card for "expanded use", and find a 4 digit verification code that appears next to the charge on the customer's statement.

    Along with the prompt, here is the message customers are presented with:

    "Before you may complete this payment, you must complete your enrollment in the Expanded Use Program. You may then return to the merchant's site to initiate this payment again."

    After the prompt, the instructions are given on how to find the 4 digit code, how to verify it, etc.

    Mind you, I am a U.S. merchant, and the credit card I was using to set-up the new Paypal account is a U.S. based card.

    This really bums me out, as how many customers are going to wait 3 days for the charge to appear, find the 4 digit number, login to PayPal, verify the 4 digits, THEN go back to my site to sign-up again?

    Time to hire a coder to modify my payment system so I can use a merchant acocunt that doesn;t cause my customers to jump through hoops!

    Cheers,
    briguy
    SFCoast.com
    Radio the way it should be!

  14. #14
    Join Date
    Feb 2006
    Posts
    466
    It`s definitely not that way. If they do not enter the 4 digit code the payment will still be sent immediately but the account will not be verified. They can still set up a subscription and pay immediately but the account is not verified which means they can not send/receive more than X Dollars per month.

    More than 3000 customers are paying me via Paypal and the vast majority of them are still not verified.

  15. #15
    Join Date
    Aug 2005
    Location
    Seattle, WA
    Posts
    1,167
    Quote Originally Posted by glace
    It`s definitely not that way. If they do not enter the 4 digit code the payment will still be sent immediately but the account will not be verified. They can still set up a subscription and pay immediately but the account is not verified which means they can not send/receive more than X Dollars per month.

    More than 3000 customers are paying me via Paypal and the vast majority of them are still not verified.
    Dead on. Perhaps the other has some sort of sanctions placed on his account due to previous history of fraudulent orders or something to that extent?

  16. #16
    Join Date
    Nov 2003
    Location
    California
    Posts
    10
    Hi,

    I don't doubt that subscriptions might be working that way for you, but I'm telling you--I tried this with 2 different credit cards, signing up as a new paypal customer, and that is what happened--I didn't make up the message PayPal presented, or the fact that I couldn't complete the transaction until I not only authorized the charge, but waited 3 days to get the verification code.

    By the way, the cards I've used are perfectly good cards, never involved in any fraudulant transactions.

    Not exactly sure why this is happening, but it is.

    Cheers,
    brian
    SFCoast.com
    Radio the way it should be!

  17. #17
    Join Date
    Feb 2006
    Posts
    466
    Quote Originally Posted by taylorwilsdon
    Dead on. Perhaps the other has some sort of sanctions placed on his account due to previous history of fraudulent orders or something to that extent?
    Yes, must be something like that eventhough I received quite a lot of fraudulent orders and a few complaints and it never was a problem. Maybe the sellers account is not verified or the seller is in a country that is not fully supported by Paypal...not like the US or the largest European countries. Also I did not only have to verify my Paypal account but in addition to that I also had to send them a copy of my ID and a confirmation of the town where I am living that I am a resident there. This is needed if the amount of money you received exceeds a certain amount... 7.000 Dollar or something. I don`t know but my account is verified in every possible way and maybe that has something to do with it. I am getting new customers each day and they always can pay me immediately even if they are not verified.
    Or maybe the sellers account is not a business or premium account. If you have a fully verified Business or Premium account and you are living in a country like the US, UK, France, Spain, Germany, Canada, Australia etc. there shouldn`t be a problem with subscriptions.

  18. #18
    Join Date
    Nov 2003
    Location
    California
    Posts
    10
    Hi,

    My account is verified, and is US-Based. But I did find out what the deal is (thanks, google!)

    It looks like if you delete a card from a, existing PayPal account, then use it to open a new PayPal account, the PayPal system has you complete the expanded-use scenario. So it actually doesn't affect all that many transactions, which is why some of you have hundreds of customers, all with no experience of having to go through these "hoops".

    Thanks for all the replies--I learn so much by being a part of this community!

    Cheers,
    brian
    SFCoast.com
    Radio the way it should be!

  19. #19
    Join Date
    May 2005
    Location
    Washington State
    Posts
    6

    Non US transactions ALL are a problem?

    Quote Originally Posted by PhireFast
    I/we use PayPal subscriptions, but be careful and make sure to block all non-US payments on your prefs.
    Just curious, does that mean Canada too, I"m close to Canada is why I'm asking that.

  20. #20
    Join Date
    Feb 2006
    Posts
    466
    Blocking all non US subscription will cost you more than it will help. Out of my customers only around 70% are from the US which means I would make 30% less money if I wouldn't accept customers from outside the US. Think of countries like Canada, Australia, Great Britain, Singapore, New Zealand. I got customers from Mexico or Costa Rica who are good honest regular paying customers.

  21. #21
    Join Date
    Jan 2005
    Location
    San Jose, CA
    Posts
    255
    Quote Originally Posted by GuyRCook
    Just curious, does that mean Canada too, I"m close to Canada is why I'm asking that.
    Yes, if you block "non-US" payments in your PayPal account Profile, you would be blocking payments from Canada as well.

    If you don't want to block all non-US payments, but are concerned about receiving fraudulent transactions, remember that you do always have the option of refunding a suspicious transaction. The Refund link will appear on the Transaction Details page for the payment for 60 days, and if you refund the payment your fees are refunded by PayPal (so it does not cost you anything to accept and then refund the payment). Just be sure that, if you choose not to fulfill an order, you immediately send a Refund to avoid the possibility of chargebacks or Buyer Complaints.
    Sell more worldwide! PayPal Website Payments Pro and Virtual Terminal now support 6 currencies and 174 countries

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