Paypal is costing me a fortune

[wavedancing]

As my website just got out of the Google sandbox, I have an increase of sales. However, when I check my stats this month, I have 35 out of 45 carts abandoned this month. One of the customer actually called me telling me he don't like Paypal. He turned to somewhere else after seeing the Paypal interface.

Anyone has a similar experience here? I need a credit card processor without leaving the website. What's your suggestion?

[brian.mark]

We use PayFlowPro from Verisign. The other option that comes up a lot is Authorize.net. It'll really depend on which bank you get set up with for your merchant account. Some prefer one over the other.

Look for a CNP (card not present) processor that can set you up as MOTO (Mail Order / Telephone Order) so your rates stay consistent, then ask what gateway they work with. The merchant account will make the decision for you.

Brian.

[StevenAllen]

I saw something a few months ago while looking at the Monster Commerce Forum (see link below). A member there had all the members send in the various rates for the different merchant processors. I was not unhappy that our EmerchantsGroup merchant procesing program did very well, but more importantly I thought it was cool for her to do the work for the benefit of other forum members:

The evaluation form is time stamped - Feb 1 2005, 01:48 PM

http://forums.monstersmallbusiness.c...showtopic=8839

If you have other questions, please let me know.

[ADAM Web Design]

First of all, what we need to remember (and quite often don't) is that PayPal was never originally intended for online shopping. The only reason eBay turned PayPal into a payment processor/merchant account issuer is because people figured out that they could use PayPal for this purpose anyway.

Having said all of that, I've also noticed the same or higher levels of cart abandonment with PayPal. I've seen it as high as 99% (Spanish site).

What you can use will depend on what country you're from, since a lot of the providers are US-only (big problem if you're a Canadian like me).

Having said that, I'm familiar with Authorize.net's Canadian equivalent, Internet Secure. They're a good company to deal with, and they are a step up on PayPal, but work in a similar manner (i.e. customer leaves your site to process payment, then returns once the payment is approved.)

Also, make sure that your cart pages aren't accessible by search engine spiders. Some carts report higher than usual abandonment because the robots.txt file is missing and because there are no "noindex, nofollow" tags associated with the pages.

[jestep]

Our company sells authnet as well as verisign so I have experience with both. From my experience, I would recommend Authnet to you. It can be integrated into your existing site fairly easily and using the AIM method, your visitor never leaves your website. This is the best option for tracking. It is also quite a bit cheaper than verisign.

You would be looking at about $10.00 - $15.00 / month for the authnet, in addition to any merchant account fees that you would have. You would need to setup a traditional internet merchant account to use authnet.

[StevenAllen]

Yes, it really does depend if you are a US resident as noted above. I would also agree that Authorizenet is the way to go. EmerchantsGroup members asked me to set-up a relationship with them and with over 100K users they seem to be the IBM of their world.

[Corey Bryant]

Verisign's Payflow is better than Authorize.net if you are looking for name brands. Getting a merchant account is usually better if you are located in the United States.

Verisign's Payflow and Authorizenet.com will only support US merchant account processors (MAPs). There are some processors that will open a merchant account for you in the US if you have at least a US bank account and address / phone number.

A lot of customers might think they need an account with Paypal to use Paypal. Which they do not depending on your location as well as your type of account with them. Paypal has also upgraded some of their other services, including PayPal Website Payments Pro

LinkPoint is used by a lot of the larger aquirers: Wells, Chase, First Data, Sun, Cardservice. It is one of the few gateways that does not charge for transactions.

You also might take a look at 2CO if you volume is not warranted for a merchant account. Your customers will be directed over to their secure website, but 2CO never required a membership

[rjp2k]

i use linkpoint API, and you can integrate into your site, so you never leave your site. the rates are pretty competitive as well, and they are used by lots of big companies. http://www.cardservicesales.com/prod...lkptselect.htm

rjp2k
www.shopadf.com

[DJ-Sound]

Also one to check out is http://www.plugnpay.com/

[ADAM Web Design]

Also, you may want to check out www.paymentech.com . If you're interested in them, contact me. One of the sales guys is in my fantasy baseball league.

(No I don't make anything off the referral. He just did me a favour once and I'd like to return it.)

[StevenAllen]

Adam,

Paymetech is the poorest merchant processor on the planet. How can you in all good conscience recommend them?

[ADAM Web Design]

I didn't per se. I've never actually used them. Like I said, I just happen to know one of the guys that works there and he's helped me out with some issues. So I'm throwing it out as an option. Give people the choice and all that, right?

I never once said I had any dealings with them. I don't. I'm Canadian, and they don't really have a foothold here.

But now I'm curious: why would you say that? I'm not asking rhetorically...I really don't know.

[ADAM Web Design]

Okay, just found out another guy in my same fantasy baseball league (and another guy who has helped me out quite a bit) works for another payment processor:

www.edrprocessing.com

Again, I don't know the company, but I do know the individual that works there fairly well and he's a decent guy who has answered questions for me when I've had them. It sounds simple and trivial, but so few people nowadays can do it that anyone who can is going to get extra credit where I can give it to them (like my man speed from WPW, dude knows his stuff!) So that's all I really have to go on.

[StevenAllen]

Paymetech has POOR customer service and is expensive. Need I say more?

[Corey Bryant]

Actually Paymentech has been in the top 5 for the past few years in ISOs. Yahoo partners with them - so they must be doing something right.

[StevenAllen]

Yahoo partners with them because they receive a revenue share. They consequentially receive much of Yahoo's business, thus, they do a lot of business. Does either of these two previously noted facts make them a good company for merchants - NO!!!!

[Corey Bryant]

Well I am sure Yahoo did research before agreeing to a partnership. Just because some people have had problems with a company does not mean everyone has problems.

The larger the company gets, it is bound to have more problems. You will not be able to please everyone all the time. More people like to complain about a product / service than give thanks. They tend to forget the past 45 days that electricity was at their hour, the dial tone was there when they picked up the phone, or the money was received in the bank the day after the batch settled. People tend to remember the 46th day when something happened - it is unfortunate and we all do it though.

Paymentech is a stable & secure company for now - which is something that even a lot of processors cannot state in this day and age.

[StevenAllen]

Corey,

I have spoken to at least 500 former Paymetech clients and your entitiled to your opinion, but I will politely disagree. They have poor service and are very merchant unfriendly.

[Corey Bryant]

Well even if they only had 50,000 merchants - which is a small amount considering they were in the top 5 in 2004 for processing volume, that would only mean 1% unsatisfied customers.

That could be a low amount or a high amount depending on the way you look at it. 1% seems pretty good considering their type of business.

[StevenAllen]

I have yet to find a satisfied Paymentech client. That is a more telling statistic.

[brian.mark]

Originally Posted by StevenAllen

I have yet to find a satisfied Paymentech client. That is a more telling statistic.

How likely in your line is it for someone that is happy with their current provider to talk to you? I'd say you would only get people that are upset or dissatisfied with their current provider that would contact you.

A happy customer tells one person.

An angry customer tells 10 people.

It doesn't take too many of the second group to make the first group seem tiny.

Brian.

[StevenAllen]

I speak to merchant all the time that are happy with their current processor. Speak to enough merchants and you know who are providing merchant friendly programs and who are not. This is the point!

[Corey Bryant]

Well that is the same with me - I speak to clients who are unhappy with their processor and they are looking for another one. That is why most people are looking for another processor usually.

So of course you would be speaking to merchants as well all the time that are unhappy - it is just a fact of life. People are always wanting to see if it is actually greener on the other side of the fence.

[StevenAllen]

I speak to merchants on a variety of subjects as the founder of EmerchantGroup, not just merchant processing. Most of my current discussions focus on UPS shipping discounts. I like to think I have my finger on the pulse of a lot of issues that concern internet merchants. Thus, my only contact with merchants is not just focused on one issue and conversations cover many topics.

[ADAM Web Design]

Wow, did I ever open up a can of worms. I feel bad now.

wavedancing, I apologize. If I would have known there would have been such disparity among the opinion of the service, I don't think I ever would have said anything.

[StevenAllen]

A diversity of opinions is healthy in a forum. It allows the reader to draw his or her owns conclusions.

[brian.mark]

Originally Posted by StevenAllen

I speak to merchants on a variety of subjects as the founder of EmerchantGroup, not just merchant processing. Most of my current discussions focus on UPS shipping discounts. I like to think I have my finger on the pulse of a lot of issues that concern internet merchants. Thus, my only contact with merchants is not just focused on one issue and conversations cover many topics.

Cool. Looking at the site, I would have expected you to hear mostly from people who hate their processor. Nice to know what else you do. I wasn't meaning any disrespect, I was just wanting clarification on who you have discussions with.

As for UPS discounts... That's something we need to work on. They don't like giving discounts on residential delivery.

Brian.

[StevenAllen]

Brian,

I am getting MUCH closer with UPS and I am VERY motivated as it would SAVE me a TON of $$$$.

[brian.mark]

Originally Posted by StevenAllen

Brian,

I am getting MUCH closer with UPS and I am VERY motivated as it would SAVE me a TON of $$$$.

We moved about 65% of our shipments to Priority Mail. That's saved our customers quite a bit of money, not to mention the free imprinted boxes are nice.

Brian.