Paypal vs direct Visa/Masters

[bei_ge_wang]

Guys, any idea why do the e-commerce folks use Paypal instead of Visa/Masters directly?

Paypal is such an outdated platform.. Why do those e-shops still want customers to pay Visa/Masters through Paypal?

Kindly advise/enlighten please..

 

[naro]

Guys, any idea why do the e-commerce folks use Paypal instead of Visa/Masters directly?

Paypal is such an outdated platform.. Why do those e-shops still want customers to pay Visa/Masters through Paypal?

Kindly advise/enlighten please..

Paypal APIs easily available.

 

[djchris]

I'm actually on the opposite side. I'm trying to figure out when will people remove the outdated VISA and Masters and use Paypal to store currency.

 

[Mr.Canberra]

Guys, any idea why do the e-commerce folks use Paypal instead of Visa/Masters directly?

Paypal is such an outdated platform.. Why do those e-shops still want customers to pay Visa/Masters through Paypal?

I'm actually on the opposite side. I'm trying to figure out when will people remove the outdated VISA and Masters and use Paypal to store currency.

Paypal payment gateway cost is lower than banks.

Storing money into your Paypal account is pointless unless it is interest bearing.

 

[peterchan75]

Paypal provides issue resolution.

 

[neolaw]

Let's say I set up an online store. Say, neolaw's Store for XYZ.

If I use visa/master platform, that means you enter your particulars to me. I, as a merchant, forward to visa/master.

The problem is nobody trusts me ... thus not supplying their card details ... no sales for me.

If I use paypal, that means you enter your particulars to paypal.

Many people trusts paypal ... thus sales for me.

 

[bei_ge_wang]

Paypal payment gateway cost is lower than banks.

banks = visa/masters?

why so? paypal similarly uses visa/masters, so with paypal as the middleman shouldn't it be the same (if not, higher due to the middleman)??

 

[bei_ge_wang]

Let's say I set up an online store. Say, neolaw's Store for XYZ.

If I use visa/master platform, that means you enter your particulars to me. I, as a merchant, forward to visa/master.

The problem is nobody trusts me ... thus not supplying their card details ... no sales for me.

If I use paypal, that means you enter your particulars to paypal.

Many people trusts paypal ... thus sales for me.

so from what you mean in the sentence i underlined, people don't trust 'visa/masters direct' method is because they will need to key-in their card details directly into the website..

versus..

keying into paypal website?

is that what you're trying to say? ps, juz trying to be fully clear on this..

 

[eyeburn]

Paypal don't need OTP
Others need OTP

OTP affects conversion rate from (add to cart-> checkout)

 

[djchris]

Paypal payment gateway cost is lower than banks.

Storing money into your Paypal account is pointless unless it is interest bearing.

I'm referring to using paypal as a digital wallet. Not a savings account.

Paypal even has a debit card that can be used to make payments.

 

[xeonboy]

so from what you mean in the sentence i underlined, people don't trust 'visa/masters direct' method is because they will need to key-in their card details directly into the website..

versus..

keying into paypal website?

is that what you're trying to say? ps, juz trying to be fully clear on this..

yup, exactly what neolaw says.

especially if your business is new, i would be wary of keying my debit card details directly into your site. everytime i see the PayPal logo n know the transaction goes thru them, i feel assured. although paypal charges a small fee, im ok.

another reason is: it's troublesome to take out the card during purchase n key in the numbers one by one. with paypal, i just enter my user name n pw n im set.

 

[peterchan75]

banks = visa/masters?

why so? paypal similarly uses visa/masters, so with paypal as the middleman shouldn't it be the same (if not, higher due to the middleman)??

Paypal provides buyer and seller protection. As long as the issue is legit, you get your money back. All done through paypal website. Can't really comment on credit card as I never use payment issue resolution before.

 

[Shiny Things]

Guys, any idea why do the e-commerce folks use Paypal instead of Visa/Masters directly?

Paypal is such an outdated platform.. Why do those e-shops still want customers to pay Visa/Masters through Paypal?

Kindly advise/enlighten please..

I don't have a firm answer here - this is just a guess - but it might be that it's easier to get set up with a Paypal merchant account than it is to get set up with a full Visa/MC merchant account; and writing code to interface with Paypal or Braintree or whatever is going to be easier than writing a full credit-card-handling stack.

Also, I think Paypal takes a smaller processing fee than a full credit card gateway. But still, it can't be that hard to get set up with Worldpay or some other payment processor so you can accept credit cards... heck, these days even Paypal provides credit card payment.

 

[bigpelican]

Advantage of Paypal over credit card payment gateway

- Lower cost compare to credit card payment gateway.

- Easier to implement for certain case. Can be as simple as copy and paste the buy button. Most ecommerce or online script already integrated with paypal api. When implementing, it can be as simple as just key in your merchant paypal email in the settings.

- More options for consumers. Accept paypal and also credit cards, not just credit cards only. Although you also accept credit card payment via paypal, you dont have to pay the credit card merchant fee or transaction fee. You only pay the paypal transaction fee.

- Easy to accept payment from overseas if you got some customize order. It is costly to accept payment from overseas through any other method.

- Most importantly, credit card information is stored at paypal (trusted 3rd party), consumers will feel safer than directly enter the credit card info at a random ecommerce site. You dont know which ecommerce site might be a phishing site to capture your credit card info.

The only disadvantage is the conversion rate of USD/SGD will be sucky.
So it will be best to use the paypal balance to pay for your online expenses, such as hosting fee and domain fee.

 

[bei_ge_wang]

Paypal provides buyer and seller protection. As long as the issue is legit, you get your money back. All done through paypal website. Can't really comment on credit card as I never use payment issue resolution before.

isn't the buyer/seller resolution done on the e-commerce provider side?

eg, ebay/qoo10 doing the resolution?

 

[djchris]

Ebay and qoo10 doesn't hold the money. They can mitigate till the cow comes home but as long as the money is not frozen and can be withdrawn, seller can just tell the buyer to piss off.

That's probably why ebay bought paypal, to have more control over the entire transaction process.

 

[peterchan75]

isn't the buyer/seller resolution done on the e-commerce provider side?
eg, ebay/qoo10 doing the resolution?

This was precisely what I did. The ecommerce site kept telling me that they were getting the supplier to replace the faulty product. Please be patient. In the meantime, my 45 days limit for resolution is fast running out. So, I proceeded to raise a resolution ticket with paypal and I got my money back.

 

[bei_ge_wang]

This was precisely what I did. The ecommerce site kept telling me that they were getting the supplier to replace the faulty product. Please be patient. In the meantime, my 45 days limit for resolution is fast running out. So, I proceeded to raise a resolution ticket with paypal and I got my money back.

i see, so in other words there can be the scenario whereby qoo10 (for eg) rules in favour of the seller.. but the buyer raises this issue to paypal, who ruled in favour of the buyer.. eventually money will still go to the buyer?

so in this case, where there is dispute between buyer and seller, just go paypal settle can already? since raising it with qoo10 doesn't matter..

 

[peterchan75]

i see, so in other words there can be the scenario whereby qoo10 (for eg) rules in favour of the seller.. but the buyer raises this issue to paypal, who ruled in favour of the buyer.. eventually money will still go to the buyer?

so in this case, where there is dispute between buyer and seller, just go paypal settle can already? since raising it with qoo10 doesn't matter..

Believe you me, an extra safety net comes handy !

 

[littleprincey]

Guys, any idea why do the e-commerce folks use Paypal instead of Visa/Masters directly?

Paypal is such an outdated platform.. Why do those e-shops still want customers to pay Visa/Masters through Paypal?

Kindly advise/enlighten please..

1) You can get your money within 1 week
2) If you accept Visa/Master directly using the bank, the bank will need you to hold a reserve percentage for charge dispute. They usually process the payment fortnightly so you only get back the money after 2 weeks (?!)
3) Paypal easier to track payment than the bank platform and easier for customers to check money as well using transaction number or email account.

2.4% + $0.50 SGD to me is quite an acceptable rate. I process more than $150,000 monthly


Believe it or not Paypal 's system uptime is much better than the bank. It total sucks. I have an eNets + credit card account with Nets. It goes down rather often compared to Paypal.