do most people pay with pay pal?

happymind · #1 (**permalink**) 09-27-2009, 09:36 AM

i read even if you get paid via paypal and the payer paya via credit card you can get charged 2.9 %

so do most people use pay pal ?

i assumed it was all free for example buy sell adds?
tx

James · #2 (**permalink**) 09-27-2009, 12:58 PM

There are charges associated with Paypal and as a merchant you will expect fees using most any charging system I think (although I am not an expert in that area).

The reason people use Paypal, as I do myself to a limited extent, is that unless you have a stellar reputation known by the buyer (like Amazon, say) buyers are skittish about giving you their personal financial information. You pay a small fee so they will buy, knowing that Paypal will not give you their Visa or MC info.

sequencehosting · #3 (**permalink**) 09-27-2009, 01:26 PM

Quote:

Originally Posted by James

There are charges associated with Paypal and as a merchant you will expect fees using most any charging system I think (although I am not an expert in that area).

The reason people use Paypal, as I do myself to a limited extent, is that unless you have a stellar reputation known by the buyer (like Amazon, say) buyers are skittish about giving you their personal financial information. You pay a small fee so they will buy, knowing that Paypal will not give you their Visa or MC info.

James is right PayPal do have a fee/sale but it is free to set up the account. It's a small price to pay considering PayPal is very popular, safe and easy to use.

cyberprofit · #4 (**permalink**) 10-01-2009, 03:23 PM

I have used both Google Checkout and paypal...they are very similar. However, a lot of people have had problems with paypal locking up their money in the past. All it takes with them is a few customer complaints and your account can be frozen. With paypal...always honor customer request for refunds and generally you will be safe.

Jonathan · #5 (**permalink**) 10-01-2009, 03:28 PM

PayPal is a good option for a small business. If you start processing many credit cards, then you should look into getting your own merchant account.

Rammuny · #6 (**permalink**) 10-01-2009, 07:12 PM

Paypal is the most commonly used payment checkout system used by sites. I even use it and I've had no problems with it yet.

TechieGuy · #7 (**permalink**) 10-09-2009, 06:22 AM

I use Paypal for my blog and for making purchases online. If I can, I like to use Paypal when making purchases because it is quicker, easier, and I don't have to disclose any financial information to a third party (outside Paypal).

If you will be offering something on your web site, I suggest you offer Paypal as one of your payment methods.

Bunny2000 · #8 (**permalink**) 10-09-2009, 06:25 AM

I use paypal, safe and easy to use. They have great guides etc which help setting it up easy.

jay144 · #9 (**permalink**) 10-09-2009, 01:11 PM

Yeah paypal is the way to go. I had a couple instances where I needed my money back and I paid with paypal the receipt disclosed all the information. I got my money back right away. It's very safe.

James · #10 (**permalink**) 10-09-2009, 04:08 PM

While I like Paypal and use it, there is one limitation on the buying side. They want you to "verify" your account by tying it to a bank account. OK. But I found when I had payments for purchases to come from my bank account, purchases are delayed.

For example, I purchased a download program I wanted to use right away. However, I soon received a notice from Paypal that using a bank account payment meant that the seller was advised by Paypal not to release the product until the purchase cleared the bank (typically three days)! Better to keep purchases you make charged against a credit card. (Of course this would not work for Dave Ramsey people; but they are a patient crowd anyway. Maybe a debit card.)

TechieGuy · #11 (**permalink**) 10-09-2009, 06:55 PM

I have verified my PayPal account, but still send my PayPal payments to my credit card. By default it would come from my chequing account, but I manually change to my credit card.

Although, I don't remember having the problem you experienced, James, when I did use my chequing account. I wonder if it depends on the financial institution.

James · #12 (**permalink**) 10-09-2009, 10:34 PM

The financial institution is not involved. Paypal says that they "recommend" to sellers not to deliver product until their check clears. It is then up to the seller to do it or not depending on whether they think it important, an advantage, or something they can figure out how to do.

Only recently have I received notices from PayPal after making a purchase. I suspect that this means they have been giving this advice to sellers and have been contacted by buyers often enough about not being able to get their products that PayPal decided sellers were not notifying buyers of the reason for a delay so they would in order to avoid their hassel.

Bill the Builder · #13 (**permalink**) 10-10-2009, 07:10 PM

Because I work from a business management perception. I set up a LLC for building sites. The cost is almost nothing and the protection and reduced liability are huge.

The drawback is that a newbie company has no credit. With PayPal, you can get a secured credit card against an account. It is still a credit card not a debit card. So, all my site purchases and expenses can now run through the credit card and PayPal.

WHY? Because there is no commingling of personal funds and I have enough expenses (yet) to deduct and not pay taxes on the fees I collect.

If you want to be successful with your business, you need to run it like a business.

weblover50 · #14 (**permalink**) 10-11-2009, 09:20 AM

paypal is most secure, that is why many use it thoough they charge some percent as fee.

jazzman · #15 (**permalink**) 10-19-2009, 01:55 AM

Quote:

Originally Posted by Bill the Builder

Because I work from a business management perception. I set up a LLC for building sites. The cost is almost nothing and the protection and reduced liability are huge.

The drawback is that a newbie company has no credit. With PayPal, you can get a secured credit card against an account. It is still a credit card not a debit card. So, all my site purchases and expenses can now run through the credit card and PayPal.

WHY? Because there is no commingling of personal funds and I have enough expenses (yet) to deduct and not pay taxes on the fees I collect.

If you want to be successful with your business, you need to run it like a business.

This is excellent advise, though I am not sure how many of the e-business owners, for instance, that post on this forum actually have setup some type of business entity to run their e-business from/thru ...

Lisa may want to set up a section that discusses ways for owners to protect themselves/their e-business by using different types of entities, i.e. LLC's, S-Corp's, Corporations, etc. ...

Though this type of structuring may not always be needed and/or necessary, nevertheless, I think this is something that should be discussed as some of the e-businesses become more and more profitable ... After all it helps with taxes and protection and reduced liability, as Bill the Builder stated.

Sal

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