Is the cost of a payment gateway a hindrance to start-ups?
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I'd say so, personally I'd opt for PayPal initially if I was setting up a new ecommerce website for myself, get things up and running comfortaby without extra monthly fees and when sales are more regular then look at other options if needed. Although if you have an established website or a bricks and mortar store then adding an ecommerce service and incurring monthly fees might not be as much of a turn off.
I think a lot of people are put off and I do think the costs are a lot higher than they need to be. I see a lot of people opting for merchant terminals (online and off-line telephone machines) instead of using a gateway. I also think the bank merchant fees are very high given that the merchant seems to take most of the risk.
They need to change the charges in my opinion. They should implement different levels of these charges dependent on the amount of sales or preferably number of transactions, etc. At a minimum, they should at least try to entice more people to use their services and bring more businesses to market, specifically at the early stages.
frankp
New Member
I know of a couple of people who asked me to look into sorting out online shops for them and balked at the costs.
Is Google Checkout every going to be available to us I wonder? What are the reports of it like from those who can use it?
Paypal really need to sort out the first page people are exposed to when someone tries to buy something through them. There are three versions of the page (I assume they're testing them) but none of them are ideal.
Paypal is great for people who have already used and figured out Paypal - being confronted with Paypal's page for the first time when trying to buy something from a site can be a fairly confusing experience.
Is Google Checkout every going to be available to us I wonder? What are the reports of it like from those who can use it?
Paypal really need to sort out the first page people are exposed to when someone tries to buy something through them. There are three versions of the page (I assume they're testing them) but none of them are ideal.
Paypal is great for people who have already used and figured out Paypal - being confronted with Paypal's page for the first time when trying to buy something from a site can be a fairly confusing experience.
I love the look of shock and blank stares that say "Isn't the internet meant to be cheaper?"
I'm very dissappointed with the way that PayPal haven't become easier to use. It just doesn't look great. I suppose there's a lot more that can be done with their API but their testing toolkit is a nightmare, esp. compared to Realex and others.
Has anyone else proposed using terminals, like Elavon, Your Global Source for Innovative Payment Solutions ?
frankp
New Member
It really is bizarre that they haven't improved some basic usability issues, not enough competition maybe. Besides, from my experience I would only use them when expecting small trickles of money over long periods of time. Anything else and you're cash is likely to become unavailable as it's suspicious activity to actually be making money on the internet, and god help you trying to communicate with them!
As for our question, can't say I have.
I haven't seen a lot of issues there, except with an Israeli client who couldn't get one (and who ended up skipping the country, go figure).
What issues have you seen and why?
Banks don't understand non-tangibles
omahonydonnelly
New Member
A lot of my clients would be smaller and so just use PayPal as there is no set up or annual fee. Everyone seems happy enough with it as the Irish are getting more used to seeing and using PayPal.
I have a few that use World Pay and are happy enough. They chose it because it has an offline terminal feature so they could use at trade shows, markets, etc.
Not one has gone for getting a merchant account - all the paper work and fees. I've heard that it's gotten better, but I haven't had any clients that want to go with it.
I have a few that use World Pay and are happy enough. They chose it because it has an offline terminal feature so they could use at trade shows, markets, etc.
Not one has gone for getting a merchant account - all the paper work and fees. I've heard that it's gotten better, but I haven't had any clients that want to go with it.
oliflorence
New Member
The cost can be considerable for an existing business, never mind a starting one, particualry with some having a minimum transactions per months etc. Paypal is great in the sens that it si free to set up and there is no minimum charges but doesn't necessarely look the best on a site, quiet limited in the way you can customise.
I have not looked in a long time, but back a few years ago you could get a proper CC payment system on your site for a flat cost of $25 per month or something, if you were a US business that is, where here it was....set up fee + monthly charges + percentage per transaction etc... = 4 or 5 times more expansive.
I have not looked in a long time, but back a few years ago you could get a proper CC payment system on your site for a flat cost of $25 per month or something, if you were a US business that is, where here it was....set up fee + monthly charges + percentage per transaction etc... = 4 or 5 times more expansive.
Can someone give me a ballpark estimate of these costs please..?
I'm currently using paypal for the online shop of my bricks-and-mortar biz, but I was planning on going down the Merchant Account route in the next 2-3 months in order to start accepting Laser Cards online.
It sounds like I need to do a bit of cost/benefit here.
oliflorence
New Member
Not sure if it is still the case, I had done costing a few years ago and found that Realex was more expensive than Worldpay for up to €30k of payment by CC per year.
At the time, if I remember well, Worldpay had a set up cost of £170, an annual cost of £100, 4% on all transactions, a remittance fee of about £10 per month, plus they were keeping the money for some weeks. This was based on a customer with AIB for realex and including the charges from the bank itself.
Bare in mind that this was a few years ago, the sterling was much stronger and charges might have changed. I guess contacting your bank would be the first step.
Also to consider, Realex is in Dublin if you need support....
At the time, if I remember well, Worldpay had a set up cost of £170, an annual cost of £100, 4% on all transactions, a remittance fee of about £10 per month, plus they were keeping the money for some weeks. This was based on a customer with AIB for realex and including the charges from the bank itself.
Bare in mind that this was a few years ago, the sterling was much stronger and charges might have changed. I guess contacting your bank would be the first step.
Also to consider, Realex is in Dublin if you need support....
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I have encountered a large number of clients who opt for PayPal instead of an internet merchant account (IMA) and a payment gateway. This is always based on cost or at least the perceived cost. With an IMA and a payment gateway there are monthly minimums that have to paid be so if the client has a slow month they still have to make these payments, with paypal they only pay when they make a sale so this tends to be a big selling point for them. The arrival of Protx/Sagepay in Ireland may bring about some change in this area are due to their pricing structures.
I have encountered a large number of clients who opt for PayPal instead of an internet merchant account (IMA) and a payment gateway. This is always based on cost or at least the perceived cost. With an IMA and a payment gateway there are monthly minimums that have to paid be so if the client has a slow month they still have to make these payments, with paypal they only pay when they make a sale so this tends to be a big selling point for them. The arrival of Protx/Sagepay in Ireland may bring about some change in this area are due to their pricing structures.
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