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PayPal to Credit Cards: Looking for some real numbers

 
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Loren

posts: 242

Mar 02, 2008 3:31 PM ET    Quote  Report Abuse
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1.  I hit the ground running and I have only ever used PayPal
for small stuff.  Larger transactions I use a merchant account,
Wire Transfer or Bank Check.
 
2.  Without the ability to accept Credit Cards for large transactions
I would not have a business.
toppdogg

posts: 29

Mar 02, 2008 5:31 PM ET    Quote  Report Abuse
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Hi, Craig,
 
By accepting credit cards, you also give your customers a sense of security (in addition to that they are not spending `real money` at that moment ).  They also know they can dispute the charge and they are not responsible for any fraud.  So you can afford it, by all means, start taking credit cards.  You will see the difference.  Take Visa and MasterCard first to keep the cost low.  Together they have about 70-75% of the CC market.  And more often than not people do not care about what card to use.
 
Jerry
CraigL

posts: 9051

Mar 02, 2008 7:51 PM ET    Quote  Report Abuse
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Jerry, one of the things we`re contemplating as part of accepting standard CCs is that credibility you`re talking about. There`s something about a site that takes all credit cards plus PayPal that just seems more "normal." That, and the impulse purchase.

Edgar,
We have 1 product, composed of 26 letter-flags, any of which can be ordered multiple times in a custom message. The shopping cart will capture a message line, parse it, assign each letter to a variable, report out the number of flags (and the original message), total the cost for the number of flags, then invoice.

Additionally, because we`re parsing the string and capturing one of three variations of flag messages, we`ll also use it as a translator. By that, the customer will click "horizontal, vertical, or valance," as they type their message(s). On entry, the system puts up their message in our flag pics, in the orientation they`ve chosen. Then there`s a "buy this" or "try another message."

On the "buy this," the above calculations and invoice happen. On the "try another," they`re taken back to the message line and type in some other string and do it over again. Finally, upon the "buy this," they get an opportunity to type in a second string, multiple times if they want, then buy that one also...or three banners...etc.
CraigL2008-3-2 19:52:18
DoorMat

posts: 289

Mar 02, 2008 7:59 PM ET    Quote  Report Abuse
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Craig,
 
What is your site or do you keep that a secret?
CraigL

posts: 9051

Mar 02, 2008 8:33 PM ET    Quote  Report Abuse
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It`s primarily Kathy`s site, so she uses it in her signature. I`m trying to develop into a writer, hopefully, so I don`t think of it as "my" site. It`s IB Designs, USA.

Oh...and by the way, our sales are likely never above about $180. So we aren`t a big-ticket item seller.
Nuevolution

posts: 1223

Mar 03, 2008 2:59 AM ET    Quote  Report Abuse
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Jerry, one of the things we`re contemplating as part of accepting standard CCs is that credibility you`re talking about. There`s something about a site that takes all credit cards plus PayPal that just seems more "normal." That, and the impulse purchase.

Edgar,
We have 1 product, composed of 26 letter-flags, any of which can be ordered multiple times in a custom message. The shopping cart will capture a message line, parse it, assign each letter to a variable, report out the number of flags (and the original message), total the cost for the number of flags, then invoice.

Additionally, because we`re parsing the string and capturing one of three variations of flag messages, we`ll also use it as a translator. By that, the customer will click "horizontal, vertical, or valance," as they type their message(s). On entry, the system puts up their message in our flag pics, in the orientation they`ve chosen. Then there`s a "buy this" or "try another message."

On the "buy this," the above calculations and invoice happen. On the "try another," they`re taken back to the message line and type in some other string and do it over again. Finally, upon the "buy this," they get an opportunity to type in a second string, multiple times if they want, then buy that one also...or three banners...etc.


CraigL,
I see what you mean. It is hard to come up with a module or shopping cart that would add each letter individually. But have you guys ever considered making the flags bigger? perhaps to make the customer choose the size or perhaps charge per banner for example from 1 to 6 letters is this much and so forth.
Just a suggestion.
As for the Credit Card processor Issue? I agree with everyone. You need a Credit Card Processor as well as Pay Pal, and here`s what to expect if you decide to go with a real credit card processor.
1. You will need an SSL certificate to secure your transactions.
2. You will need a dedicated IP address to install your certificate
3. Expect to dish out about $19.99 for the payment gateway along with a $25.00 dollar charge if you don`t sell nothing during the month. But if you`re averaging about $180.00 per month then you are good to go.
Have you ever considered 2Checkout? You can try Linkpoint if you wish. I am authorized LinkPoint reseller just goto my web site and click on POS/Gateways and sign up for free... There is no obligation, plus you might even get a good rate! You never know. The good thing about link point is that you can take order over the telephone, catalog, mail orders and over the internet.




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

Edgar Monroy
Web Developer / Owner / Consultant
When starting your own business the need to "know-how" is greater than money!
http://www.nuevolution.net
CraigL

posts: 9051

Mar 03, 2008 1:20 PM ET    Quote  Report Abuse
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We get the idea of spending money for credit card processing. The issue here is what increase in sales we would get, so we can do a cost-benefit analysis. :-) It doesn`t matter, actually, how we go about adding the capability to add CC processing. So to my way of thinking, I figured I`d ask people who started using only PayPal, or only cash, or only wire transfers, and who *later* added in the cards. I`m curious as to what percentage increase in sales the cards brought to the business.
Nuevolution

posts: 1223

Mar 03, 2008 1:39 PM ET    Quote  Report Abuse
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Well if you ask me I increased my sales the minute I opened a pay pal account just because now I was no longer just a California Company. Now I was able to do business with others companies outside of CA. When I added the Credit Card Processor in the beginning it was hard telling the customers that they had to send me their credit card information. But once I told them that I was replacing the CC for pay pal they understood. As a matter a fact it helped me control the customers that weren`t in California.


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

Edgar Monroy
Web Developer / Owner / Consultant
When starting your own business the need to "know-how" is greater than money!
http://www.nuevolution.net
CraigL

posts: 9051

Mar 03, 2008 10:48 PM ET    Quote  Report Abuse
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Now that`s interesting, that it went the other way, with a boost in sales from adding in PayPal! Hmm...well, we`re still thinking on things, as there`s no immediate need for a decision.
RichardR

posts: 22

Mar 23, 2008 10:48 AM ET    Quote  Report Abuse
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I think having both are critical. It offers options and a sense of security. To give you a rough example for our clients, about 45% are paying with credit card and the other 55% are paying with PayPal.

Though we did start out using both, so it`s hard to judge if we would still have received those sales.

Craig, if you are looking for a merchant account I highly recommend CDGCommerce.com - these guys are excellent and offer a free and very functional payment gateway, and it`s only $10/month. They have great support and transaction fee`s as well:

 2.25% + .30 transaction fee`s for Visa/MC and only .30 transaction fee`s for Amex/Discover/JCB

Richardo3/23/2008 11:51 AM
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