Payment Processors For Online Businesses

[Tigglet]

......oh no, that ole chestnut I hear you call..

Ok, so there are lots of different options. We currently use PayPal but have had a few minor issues with them so are looking at alternatives. So many things to consider... set up fees, monthly fees, annual fees, virtual terminal (to be able to take payments over the phone) fees, credit card and debit card fees and significantly how long it takes for your money to be transferred to your own bank account.

For those of you who have delved into the joyous world of internet merchant accounts and payment processors you will have found that it is important to do your research and find the best solution for your business and also one that integrates with your shopping cart software.

We are still on this mission and would welcome a discussion on this topic and feedback on everyone's experiences, good and bad.

This site is quite useful for comparing the different options:

http://www.electronic-payments.co.uk/

[boxby]

I have come to the conclusion that there is no perfect solution. That all you can do is pick one, based on as much evidence as possible and "suck it & see".

Protx had huge probs last year re the integration of the 3d secure. And lo and behold, Worldpay had similar issues this month when they did theirs.

Paypal, is easy, simple and expensive. Some people think it looks unprofessional, but then huge companies use it.

Google is new, and i think people are a wee bit unsure about the long term prices & costing etc.

And there are loads more out there.

I think a question to ask, is what's the downside of it not being perfect. will 95% perfect be enough for me. because I think, that most of the providers provide about 95%.

Anyway, that's what I think!!

[Fill-Your-Pants]

I have taken months to reach my decision. It is largely a case of swings and roundabouts with this issue.

I had concluded to go with Paypal Pro. This was simply because as a start-up I didn't need to the extra expense of merchant account set-up costs in the early days, although I was wary of Paypals high transaction fees. I did however try my luck with my bank, and got them to scrap merchant account set-up fees altogether, resulting in my getting much better rates than Paypal had to offer. I will also be using Protx as my processor, which has no set-up fees either, and a flat rate of £20 per month- the same as Paypal

[Andy Trish]

FYP Protx also give you a virtual terminal, we use it now despite our ecommerce bit not being ready yet and it is great. The service from Protx with everything from setup to going live was fantastic (they nagged me at one point because I was slacking - must have been busy posting here)

[Fuzzy]

Fuzzy still confused

[Fill-Your-Pants]

Fuzzy how about ringing Lloyds and seeing if you can get around the set-up fee? then have Protx as your payment processor? Or Elavon with Alliance and Leicester I believe does good merchant account rates. I am now of the opinion that if you can avoid using Paypal Pro, then do so- as their rates are considerably higher than other merchant account providers

[Fuzzy]

Ok will do, but will also ask about refer a friend scheme - you never know

[frockery]

I have used Paypal since my website launched, but have had disproportionate problems with failed/abandoned transactions as the order volume has increased. That has meant lots of manual processing of orders, cheque payments and phone calls from customers who have had problems (and, I expect, lost sales from customers who have just given up).

Although I usually try and follow up with an email to customers whose online payments have not completed (and often get the sales as a result), I don't always have the time to do it. Even then Paypal can refuse to play ball when an invoice is issued manually (typically when customers live overseas but have a UK bank account, or if someone else in their household has a Paypal account and insists that they do when they don't!)

I have just signed up for Worldpay so that there is an alternative payment method on the site. They have, or had until recently, a special offer for new businesses which effectively halves the normal set up charge and monthly fees. I should be having it integrated it into my site in the next week or so.

From the research I did with some of my regular customers, it seems they would prefer to have alternative payment options. They also reported a higher level of trust in Worldpay than Paypal which still suffers from its ebay association. Direct customer feedback helped me make the final decision (along with cost) but I suppose customer base expectation will vary depending on the type of business.

I know Worldpay had a major problem when upgrading their system last month, but as Sandra says, there are issues with all of them from time to time.

[boxby]

I have used Paypal since my website launched, but have had disproportionate problems with failed/abandoned transactions as the order volume has increased.

Every time a transaction goes wrong with us, it's when the customer gets passed through to paypal. Drives me up the wall!!!!!
Definitely have to agree that if you use paypal you will get a higher number of failed transactions

NB. I get very very few on the Protx side of things.


Kind regards
Sandra

[Tigglet]

Elavon with Alliance and Leicester I believe does good merchant account rates

We enquired about this but registration fee was £175