The more methods you accept, the broader your customer base can be. Some people like to pay by paypal, but others like to use a credit card directly. If you don't want to get a merchant account, then get a place like 2checkout so you can easily accept credit cards.
Other options are services like egold, google checkout, etc....
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we have added maxmind and signed up with 2checkout and will add cheque payment/westen unioun what others are needed what certifications we need to apply for boosting confience of customers which ssl certificate should we go for
I'd personally say it's something like this, from what I've seen when I survey people (these are just my opinions, and won't hold true for you if your niche varies from mine, which it probably does).
~60% are ok with paypal AND direct credit card transactions. They will do either no matter where they buy something from. So long as you offer paypal OR cc, these folks are happy.
~20% want cc, and won't do paypal (they feel weird leaving your site to pay and/or think they HAVE to signup to paypal to send you a payment).
~15% demand paypal, cc is not an option. Paypal makes these people feel warm and cozy at night.
~5% other (check, money order, etc)
I'd take these numbers with a grain of salt, they're more my opinion than anything. I personally fall in the majority in my example, and will pay cc or paypal, whichever I'm asked to, whenever I go to buy something online. I'm not too picky. With that being said though, you want to cover as MANY bases as you can, especially if you're dumping a lot of money into advertising. Nothing hurts worse than knowing that $2000 ad campaign you just ran, only brought in 1/2 of the clients it should have simply because customers couldn't pay with cc, and x% of your potential customers ran away at checkout. The fewer times a customer has to say in their head "well, that other host gave me this option, and this host didn't", the better you'll be.
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One important thing is that customers pay for the hosting service periodically, each month, each 3rd month, 6th month, year. So the system that would charge customers automatically would save you and your customers time. I do not think that paying by wire transfer month by month would be convenient for customers, however that is sure their choice.
Thus you could use payment gateway that could automatically charge your customers' credit cards without any actions from your and your customers' side. Have you though about that?
Just some thoughts about payment process for hosting services :-)
Without a doubt, I would offer all major credit cards and PayPal. Checks after a certain dollar amount, wire transfer after a certain dollar amount, and maybe money bookers if your trying to be friendly to the whole world. Payment methods depend on your target market.
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I currently do Paypal, Google Checkout and Check. Since most of my hosting clients started as web design clients, many use checks. I have a couple that always Paypal, and a couple that always use Google. Later on, I may add straight CC processing, because I think it gives a little better impression than the obvious 3rd party solutions, but for now this is working out fine for me.