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Hey all,

 

I'm looking for some opinions from experienced ecommerce people.

 

I've recently looked into setting up a merchant account with a Canadian company called Moneris. They offer secure transaction processing for all major credit card companies. They want to charge $250.00 set-up, $150.00 admin x2 (once for each Canadian and US account), $45.00 / month x2 service charge (one for each Canadian and US account), and another $5.00 / month service fee for my Canadian account and $10.00 / month service fee for my US account.

 

In addition to all those fees, they charge transaction fees also!

 

So my question is (as I can't figure out why anyone would pay like that when PayPal's there), why use them instead of PayPal?

 

SoMeOnE HeLp Me PleaSe!! ;)

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Well, there are a few different reasons.

 

First, I think you can find a payment processor that doesn't have an obscene setup fee. The merchnat account and authorize.net gateway that I use didn't not have any type of setup fee, and cost me less than $100 for everythign, and 48 hours to get started.

 

Second, after being in business for awhile, and if you have a reasonable number of customers, you'll find that people will start complaining aobut having to leave your site, and go to paypal to make a payment. This is a major inconvenience for alot of customers. It adds additional clicks to an already overly lengthy checkout process.

 

The best option is actually to offer paypal in conjunction to a processer where you can collect the information on your site. This gives people who like to pay with paypal the ability to, and people that don't want to pay with paypal an alternative.

 

We started offering a choice at checkout nearly 2 years ago. Since that time, the people that use the regular CC module outnumber the people that use paypal nearly 20 to 1.

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NOTE: As of Oct 2006, I'm not as active in this forum as I used to be, but I still work with osC quite a bit.

If you have a question about any of my posts here, your best bet is to contact me though either Email or PM in my profile, and I'll be happy to help.

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I think it depends a lot on what you are selling and who you are marketing to. I sell games (when my site isn't down) and most buyers won't have PayPal accounts. Younger people seem to have PayPal accounts, but most older people don't - unless they're into eBay. In my case, it's usually older people buying games for themselves or as gifts. We accept credit cards and I want to accept PayPal, but my partner is one of those older people, so I'll wait to spring that on him until sales are a little stronger.

 

From meagre experience, I can tell you that the prices Moneris wants to charge you are crazy. First, there are only a few modules already set up for osCommerce so unless you're good at writing contributions, I'd suggest going with one of the options listed in the payment module. Second, I have found Authorize.net to be the most reasonably priced. Install is $99US, monthly fee is $10US, monthly minimum is $25US and a standard going rate is .21%/transaction (on $5000 in sales, that's only $105 back to them) and .20US/transaction. I'm not sure how they work in Canada.

 

Basically, accepting credit cards broadens your range. Their fees do seem high, but in my case, credit cards are the preferred payment option.

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There are about 100 places that will give you free authorize.net gateway setup now when you open a merchant account with them.

 

To clarify, the rates are usually 2.25% + .25 per transaction.

-------------------------------------------------------------------------------------------------------------------------

NOTE: As of Oct 2006, I'm not as active in this forum as I used to be, but I still work with osC quite a bit.

If you have a question about any of my posts here, your best bet is to contact me though either Email or PM in my profile, and I'll be happy to help.

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one thing you need to do is read the whole paypal agreement when you setup an account. they can wipe you out in a heartbeat if someone says they didnt get the product and freeze your money and it is up to you to prove you shipped the right product and the customer received it.

go do a search on paypal warnings, etc and you can find more details.

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I have to admit, though, using a paypal account as a consumer is terrific. I pay for everything I can with paypal. It keeps me from having to give out my CC details all over the web.

-------------------------------------------------------------------------------------------------------------------------

NOTE: As of Oct 2006, I'm not as active in this forum as I used to be, but I still work with osC quite a bit.

If you have a question about any of my posts here, your best bet is to contact me though either Email or PM in my profile, and I'll be happy to help.

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I thought about this too. I have yet to sit down and go through the options available... The normal CC module, how does it work? Does it just send the CC info to you and then you process it using a terminal or an online setup or ?

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I thought about this too. I have yet to sit down and go through the options available... The normal CC module, how does it work? Does it just send the CC info to you and then you process it using a terminal or an online setup or ?

 

Correct. I believe this is very popular with those that use WorldPay. With WorldPay, I believe you process all of your transactions mnually through a 'virtual terminal'. WorlPay is another good payment solution.

-------------------------------------------------------------------------------------------------------------------------

NOTE: As of Oct 2006, I'm not as active in this forum as I used to be, but I still work with osC quite a bit.

If you have a question about any of my posts here, your best bet is to contact me though either Email or PM in my profile, and I'll be happy to help.

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I have to admit, though, using a paypal account as a consumer is terrific. I pay for everything I can with paypal. It keeps me from having to give out my CC details all over the web.

 

This is also why I use Paypal - it's quick, simple, easy.

 

I think that Stores that don't offer Paypal (even if they have other means to accept payment) are making a mistake - I would prefer to pay a little more for a product just so that I can pay by Paypal.

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Hey Burt, do I have a correct vision of how WorldPay works. You use them, right?

-------------------------------------------------------------------------------------------------------------------------

NOTE: As of Oct 2006, I'm not as active in this forum as I used to be, but I still work with osC quite a bit.

If you have a question about any of my posts here, your best bet is to contact me though either Email or PM in my profile, and I'll be happy to help.

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Hey Burt, do I have a correct vision of how WorldPay works. You use them, right?

 

I do...they are very good, if a little expensive.

 

You are correct, it is possible for the Store Owner to input CC details into a Virtual Terminal (example, if someone is on the phone to you and wants to pay), I can't remember the exact name of what this is called, but it's a "bolt on" to your account that costs extra.

 

The normal Worldpay account works pretty much the same as any other payment provider; buy product, checkout - go to Worldpay site, input card details - get returned to checkout_success, Store owner gets sent AVS details etc, if it looks good, ship the products.

 

As I say, it's a good service, but it's expensive (in my opinion), but then most things in the UK are that much more expensive than (say) the US :(

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Ah, so its a third party provider, such as propay or paysystems.

 

I thought it was a gateway like authorize.net.

 

Propay is around 3.5% + .35. Is that the range of WorldPay?

-------------------------------------------------------------------------------------------------------------------------

NOTE: As of Oct 2006, I'm not as active in this forum as I used to be, but I still work with osC quite a bit.

If you have a question about any of my posts here, your best bet is to contact me though either Email or PM in my profile, and I'll be happy to help.

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It's a proper payment provider underwritten by the Royal Bank of Scotland (who are one of the UK's top banks)...

 

It's around ?100 to set up, then ?200 or so yearly. On top is 4.5% on Credit Cards, and a flat rate of ?0.50 on Debit Cards.

 

I suppose it's not too bad, all things considered. After all a gallon of gas (petrol) here is the equivalent of about $8.00

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I just looked into PayPal for myself this morning and I didn't know they offered business solutions that allowed merchants to accept credit cards. Their rates are competitive, especially without the set up fee and monthly fees. If you want to accept credit cards and you're already with PayPal, it sounds like it'd be an easy upgrade. Wish I'd known about it before I signed a 3 year contract with Authorize.net. ;) However, I think PayPal only deals with Visa & MC, so if you wanted to accept Amex or Discover, you'd still have to have a merchant account.

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And your customers are still directed to PayPal to make payment.

-------------------------------------------------------------------------------------------------------------------------

NOTE: As of Oct 2006, I'm not as active in this forum as I used to be, but I still work with osC quite a bit.

If you have a question about any of my posts here, your best bet is to contact me though either Email or PM in my profile, and I'll be happy to help.

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Do you think it'd be better and/or cheaper to get an actual physical terminal? Especially if you plan on getting a physical store in the future?

 

I was wondering, since this way (or with a virtual terminal) it'd be easier to adjust what the customer pays (ie: if it's a friend and I want to give him a certain price off a particular order, due to bartering or whatever), at least I think...

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