The online payment method which is most common on websites has to be Paypal. It’s easy to set up and has a trustworthy brand. But if you stick with Paypal as the only source of online payment method, you’re leaving a lot of money on the table.
Paypal has its disadvantages.
1. It is very convenient for the buyer to get a refund for their product or service.
2. Paypal does not agree on some make money online sites which they assume are get-rich quick schemes. They advise you to take their order button down.
3. Paypal has been known to freeze your account if it suspects fraud (you’ll have this problem if you’re doing a big launch).
4. Believe it or not, some people still don’t know what is Paypal. They get confused when they see a the PayPal logo.
5. This is the big one. Paypal charges expensive fees per transaction.
For example, in Hong Kong, the transaction fee is 3.4 % of the transaction.
I’m not saying you should ban paypal as your online payment method. It definitely has it’s advantages. Some people have a balance totaling up in their paypal account and are more willing to pay for services using Paypal.
They also find it very convenient as they don’t need to type in their credit card every time they make a purchase online.
Make two online payment methods available on your website. I would choose powerpayamerica.com which charges around 2.24% per transcationÂ plus $0.23, if you choose authorize.net as your payment gateway (which is around $19.95 per month).
If you are doing sales every day then the fees do add up. Plus you also get to capture buyers who don’t like paying via paypal.
So if you’ve good sales and you only have paypal as the online payment method, check out http://www.powerpayamerica.com You’ll be surprised with the increase in sales and profit margin.