Paypal or Plastic?

[MACKAY]

I actually prefere PayPal as I can control where and when the funds are used. I can point PP to my checking account, or to one of my credit cards depending on how I want to fund the payment.

In addition, the vendor never sees my Credit Card Number and other personal information. It is much more of a risk to give your actual CC number and other personal info to a person over the phone where it can get written down and lost/stolen/etc., or where a dishonest employee can get access to the information (not implying that you would do so).

I have used PP for a number of years, and in the early days there were problems such as multiple payments being made due to servers crashing then being rebooted, etc., but things are much more stable now.

The most common complaint I hear is about the fees and spending limits that PP has in their TOS.

Brian

[cavscout]

Why not do both? I know that there are many people refusing to use Pay Pals now, so having another way to get credit cards is good. However just havine a PayPals account doesn't cost anything, and if you access your own balance with by using their debit card, you get cash back.

This would be the plan, but before I sign on to commit to monthly minimums or transaction fees I'm trying to see if it will be worth the extra expense that I don't have now with Paypal.

I actually prefere PayPal as I can control where and when the funds are used. I can point PP to my checking account, or to one of my credit cards depending on how I want to fund the payment.

In addition, the vendor never sees my Credit Card Number and other personal information. It is much more of a risk to give your actual CC number and other personal info to a person over the phone where it can get written down and lost/stolen/etc., or where a dishonest employee can get access to the information (not implying that you would do so).

These were most of my concerns. I didn't want to be responsible for the security of someones card information and felt that customers would be more comforted to know there is a level of insulation between me and them.


For those who are answering Credit Card ONLY, I'm very interested in your concerns. If you wold expound on the issues so I may take them into consideration. Credit Cards are a step that WILL be made eventually, it's the feedback that will determine the time table for that

Thanks folks!

[Abax]

I don't like PayPal but will use it if there is no other alternative and I trust the seller. But even then, I treat the transaction like sending cash, with no chance of resolving a problem if I encounter one. PayPal strikes me as very much like the airlines: They sell you an expensive contract with robust protection for themselves and no avenue for a passenger to recover if the airline defaults. That stinks. I think PayPal has found a (temporary) way to skirt the protection federal law affords buyers in credit card transactions.

I don't like doing business this way, and I have not purchased items for which I only had a marginal desire or need when PayPal was the only way to pay . . . they just weren't worth the risk.

While traveling in Australia recently, I encountered a business practice that has yet to become very common in the United States. Vendors - in my case hoteliers and tour operators - would charge me the fee they paid to process a credit card transaction in addition to the cost of the goods and services. I was traveling and had better things to worry about, so I just blew it off. But back home, I REFUSE to do business with someone charging this separate fee. Merchants that accept credit cards are getting a lot of business precisely because the buyer can pay with a credit card. I don't think it's unreasonable for the buyer to demand the seller pay the credit card fee.

Wait . . . I can hear the howls of protest from merchants now. I am not laying out a logical business case for or against credit card fees and who should pay them. I'm just expressing my buyer's preference. I'd probably rationalize some entirely different opinion as a seller.

So the point of the [sale price + credit card fee] comment is this: If you plan to accept both PayPal and credit cards, roll the average cost of a sale (credit card fees + PayPal fees) into the price you charge. Don't break it out as a separate fee. If you charge a premium for me to use my credit card versus some other method of payment, I'll go elsewhere and probably never come back.

Is this an irrational position on my part? Absolutely. All logical arguments will be ignored . . . this isn't about logic.

Abax

[davedove]

While traveling in Australia recently, I encountered a business practice that has yet to become very common in the United States. Vendors - in my case hoteliers and tour operators - would charge me the fee they paid to process a credit card transaction in addition to the cost of the goods and services. I was traveling and had better things to worry about, so I just blew it off. But back home, I REFUSE to do business with someone charging this separate fee. Merchants that accept credit cards are getting a lot of business precisely because the buyer can pay with a credit card. I don't think it's unreasonable for the buyer to demand the seller pay the credit card fee.

Wait . . . I can hear the howls of protest from merchants now. I am not laying out a logical business case for or against credit card fees and who should pay them. I'm just expressing my buyer's preference. I'd probably rationalize some entirely different opinion as a seller.

So the point of the [sale price + credit card fee] comment is this: If you plan to accept both PayPal and credit cards, roll the average cost of a sale (credit card fees + PayPal fees) into the price you charge. Don't break it out as a separate fee. If you charge a premium for me to use my credit card versus some other method of payment, I'll go elsewhere and probably never come back.

Is this an irrational position on my part? Absolutely. All logical arguments will be ignored . . . this isn't about logic.

Abax

Most places consider this just another business expense. The loss of profit margin due to the fee is more than covered by the increase in total sales from accepting cards. Now, I'm sure for most companies this is factored into their prices, but the consumer doesn't see it. For most people, a cost hidden is a cost ignored. If you spell out the cost of the fee, consumers will protest.

Now, as to the question, I will purchase with either type of payment option. If I have a choice though, I prefer to use my card directly. Paypal just irritates me by constantly trying to get me to directly charge my bank account whenever I say I want to use my credit card. If I wanted to use my bank account, I WOULD HAVE SAID SO!!

[staticsan]

While traveling in Australia recently, I encountered a business practice that has yet to become very common in the United States. Vendors - in my case hoteliers and tour operators - would charge me the fee they paid to process a credit card transaction in addition to the cost of the goods and services....

It's only fairly recent - like in the last few years - that merchants were allowed to do this. For a long time, they weren't. Many still do not, but unsurprisingly, it's been the retailers on the thinnest margins who added it first.

Interestingly, it's having two effects. The first is to subtly encourage cash or EFT transactions (EFT charges are structured differently and merchants currently do not pass them on) rather than credit. The other thing is that it helps relieve the merchant burden of higher rate cards like AmEx and Diners Club. In fact, AmEx has been slowly losing merchants over the years because it's credit fee is higher than Visa or Mastercard. And now consumers directly know why.

Wade.