PayPal vs your own credit card account

[gph]

I'm looking to hear from people who have used PayPal to accept purchases on their web sites, and then switched to their own merchant account - did the switch lead to an increase in the number of successful sales / lower abandon rates?

I have a web site right now that shows 40-50 people wanting to purchase an item [they click on the "Order Now" button], but only about 4-5 a day actually follow through - and it is PayPal only. I will hopefully be switching to my own mechant account in the next couple of weeks, but would love to hear from others regarding typical abandon rates for PayPal versus other means of accepting payment.

Thanks!

gph

 

[mkx]

Use both if you make money.

 

[JMJ]

I've had potential customers in the past email me and ask if I had a payment option other than Paypal because their company wouldn't allow them to use it.

 

[clemzonguy]

People I work with prefer faxing me their credit card information or giving it over the phone. This is a more secure and easier way of transmission. With paypal you have to explain to people what it is, how to use it, and you cannot keep their card "on file" since you never see it. A lot of people will forget their passwords also. Merchant accounts can cost as much as $25-$45/month plus the transaction fees. Paypal is great for those who want to accept credit cards but not pay monthly fees. Paypal also gives users a debit card with 1% cash back for Mastercard purchases.

 

[skylight]

paypal have low transaction fee. it will be good to use merchant account if you can afford as you can receive payment from almost anyone with credit card.

 

[768768]

I too have PayPal only on my site but I'm showing about the opposite of you regarding follow-thrus. Out of 40-50 orders probably only 4 or 5 back out.

I too will be switching to a regular merchant account. PayPal has some policies which I don't agree with. They only offer protection to certain countries; easy charge backs; they do not allow any adult items to be paid for through them (they can and will debit your account $500 for any infraction of this rule); etc., etc.,...

Many merchant account companies also offer echeck services so I can't see any reason to stay with PayPal.

PayPal is cheaper but there are some merchant accounts which are reasonable.

 

[LeeD]

I use Paypal on a couple of sites and it works out well, but i do plan to add standard credit card processing in the near future hoping to increase sales...