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This is why we no longer use Paypal

kyrgyz

Well-known member
#2
When it was founded in 1998, PayPal was among the first companies that allowed people to easily transmit funds to one another over the Internet. It now has 113 million users worldwide,...
PayPal’s Ms. Hutchison said situations where people had to wait to access their funds were rare, affecting about 2 percent of accounts. Very few of those were extreme cases, as when an account is frozen, she said.
When you consider 2% of accounts in context of PayPal's 113 million users, RARE is not the word that comes to my mind.

...even if competitors found a way to make payments simpler, none of them have the global reach of PayPal.
As Nate Dogg sings: "They can come closer than close. Original they never will be. We are bumping from coast to coast. We are just trying make you see. Nobody does it better."

 

Sador

Well-known member
#5
When you consider 2% of accounts in context of PayPal's 113 million users, RARE is not the word that comes to my mind.


As Nate Dogg sings: "They can come closer than close. Original they never will be. We are bumping from coast to coast. We are just trying make you see. Nobody does it better."

Meh. It's technology. If you give it to 1 person, it most likely works 100% of the time. If you give it to a million people, some are bound to experience issues. Sure, 2% is a lot of people, but 113 million people with no problems would also be a very ideal world.
 

Adam Howard

Well-known member
#12
Bingo !!!

Paypal was first. Period.

Everything else their public relations department said in the quote is just that... Public relations. Nothing more than a P.R. Campaign


Google Checkout https://checkout.google.com/sell/
  • Fees are lower (much lower)
  • No waiting for payment
  • No holds on payment
  • No balance holding
  • Accepted in more places world-wide than paypal
  • Send invoices, just like PayPal
  • Have buy now buttons, just like paypal
  • Easy to use for both buyer and seller
 

lasertits

Active member
#15
Let's compare

If I sent you $10

How much would Paypal take ? (What would their cut be?)

59 cents ... Does that sound fair?

Google Checkout https://checkout.google.com/sell/
View attachment 32404

Having used Paypal myself... I know Google Checkout's fees are less. It would have cost you a lot more than 59 cents / 0.59 to accept $10 using PayPal
Paypal's fees for sales and debit/credit cards within the US are the same as Google Checkout's fees for pulling in less than $3k a month. (2.9% + 30 cents), so a $10 payment on Paypal would also be 59 cents in fees. Google's would likely be lower only if you made more than $3k a month in sales. This is just looking at the broad spectrum here, there's certainly intricacies and other conditions that vary the fee for both services.

Paypal

Total amount: $10.00 USD
Amount: $10.00 USD
Tax Amount: $0.00 USD
Ship Amount: $0.00 USD
Fee amount: -$0.59 USD
Net amount: $9.41 USD
Not trying to defend Paypal here, don't get me wrong I've had my fair share of experiences and displeasure with them, but it seems they have matched Google to compete.
 

Adam Howard

Well-known member
#16
Paypal's fees for sales and debit/credit cards within the US are the same as Google Checkout's fees for pulling in less than $3k a month. (2.9% + 30 cents), so a $10 payment on Paypal would also be 59 cents in fees. Google's would likely be lower only if you made more than $3k a month in sales. This is just looking at the broad spectrum here, there's certainly intricacies and other conditions that vary the fee for both services.
Oh, so they've lowered their fees since the last time I used them.

Here is something... Does Paypal still charge you an international fee?

That is to say, if I sent you Euros ... Does paypal still add an extra fee to convert that?

Google Checkout doesn't :D
 

lasertits

Active member
#17
Oh, so they've lowered their fees since the last time I used them.

Here is something... Does Paypal still charge you an international fee?

That is to say, if I sent you Euros ... Does paypal still add an extra fee to convert that?

Google Checkout doesn't :D
Honestly I'm not entirely sure what they add in for international, whether its a currency conversion ordeal and/or just a % + fixed rate for certain conditions. I'll try and pull up one from an non-US customer as I do have those but it says on Paypal's site:
International Sales:
3.9% transaction fee plus a fixed fee based on currency received.
and for debit/credit card transactions:
Outside the US:
Small fee of 0.5% to 2% (depends on destination) when fully funded with bank account or PayPal balance. 3.4% to 3.9% if paying with a credit or debit card.
Having just pulled up a transaction from a customer in the UK, they paid $40, paypal took $1.86 in fees.

2.9% of 40 is 1.16, 1.16 + 0.30 is $1.46, so paypal tacked on 40 cents in addition to their 2.9% + $0.30.

So from that $40 transaction Paypal took 4.65%, unless I'm horrible at math which is a definite possibility. Which, according to their fees, if they took a max of 3.9% then they tacked on their standard $0.30 fixed fee in addition.

If that were a $10 payment under the same conditions the fee would have been 69 cents instead of 59 cents.

Edit: Also if you get a chargeback on google checkout you're only subjected to a $10 fee instead of $20 on Paypal. Google cuts that in half. This won't matter to most as chargebacks usually aren't common, but it sure does irk me whenever I do get one and I have to pay an additional $20, in addition to losing the $ I was originally paid for my product/services, especially when that $20 is often double what their payment was.
 

Adam Howard

Well-known member
#18
So Google Checkout is cheaper on International. :D

There are no added fees on International order ;)

  • Fees are lower (much lower)
  • No International added fees ;)
  • No waiting for payment
  • No holds on payment
  • No balance holding
  • Accepted in more places world-wide than paypal
  • Send invoices, just like PayPal
  • Have buy now buttons, just like paypal
  • Easy to use for both buyer and seller
https://checkout.google.com/sell/
 

lasertits

Active member
#19
Seems to be the case! I'd love to replace Paypal, but whatever I switch to would absolutely have to have a great subscription / recurring billing system. I wouldn't survive without one. That and the all important gateway support for XF of course :p

Anyone know if the whole 'no waiting / no holds' stuff on Google Checkout also applies to eChecks? eChecks via Paypal almost always take 10 days to clear. Isn't this due to the bank and not paypal? If so not sure how google would get around this.
 

Andy.N

Well-known member
#20
Now, do the math on business that receive tens of thousands of dollars per month. After all the fee and the nuisance of payment holding, it is easy to see for some business it makes little sense to use paypal.
If you have an account upgrade and offer instant access to a download, services, private section, etc and Paypal decide that your members are too risky and they want to hold the money, there is nothing you can do about it. It's not the money involved, it's the level of services that you and your members suffer because of a third party services.

I know the majority of people here aren't doing anywhere near this revenue level to see the difference.