Lead Adventure Forum
Other Stuff => General Wargames and Hobby Discussion => Topic started by: FramFramson on January 10, 2014, 05:08:42 AM
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Hi folks,
Knowing how thin the margins can be for small-time manufacturers in this hobby, I had a question: If you have an online shop, do you prefer payment via PayPal or credit card?
Most minis sites accept both, and I don't mind paying with one or the other, so I figured I might as well ask. What's the least trouble for you? Which one skims off the least in service charges?
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No idea about the different charges but I've got paypal for mine, but you can use a credit card via paypal to pay.
It's the easiest option for me :)
cheers
James
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I'm (no longer) a merchant, but I have some experience with this:
In general PayPal has higher charges per transaction, but maintaining a credit card merchant account can be more trouble than it's worth if your sales volumes are low (which can often be the case if you are a one man in the garden shed side project type of operation -- pretty common in our field).
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In general PayPal has higher charges per transaction, but maintaining a credit card merchant account can be more trouble than it's worth if your sales volumes are low (which can often be the case if you are a one man in the garden shed side project type of operation -- pretty common in our field).
What he said. Paypal for me. :)
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Generally if a company is offering both and not credit card through paypal, the credit card is cheaper for them. The exception being American Express.
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Most minis sites accept both, and I don't mind paying with one or the other, so I figured I might as well ask. What's the least trouble for you? Which one skims off the least in service charges?
Paypal was a much cheaper option for me when I was running an online store. Less complications as well.
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So the answer seems to be that you don't mind the slightly higher charge by Paypal since that's less hassle to deal with? Hm.
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So the answer seems to be that you don't mind the slightly higher charge by Paypal since that's less hassle to deal with? Hm.
As with most things, it depends :)
If the company is running credit card payments anyway then it's no hassle to run more and making more money is always good. If not then yeah, Paypal requires less effort.
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I only take Paypal through the website. I can take cards directly.
Initially I had a Worldpay account but didn't use it online as it was another thing to setup and Paypal gives me the money immediately rather than after 4 weeks.
I now use IntuitPay for credit cards directly (and chip and pin at shows) and they pay in a week but it is simpler to keep paypal as the payment method.
Very occasionally I get someone asking to pay who won't use paypal...
Mike
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Gosh, I hate PayPal and that keeps me from buying from most online stores. Still interesting to see that I once again manage to be the stupid idiot on the sideline... Then again it saves me a lot of Money, I guess... :D
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As with most things, it depends :)
If the company is running credit card payments anyway then it's no hassle to run more and making more money is always good. If not then yeah, Paypal requires less effort.
I guess the real question there then is what are the rate differences for merchants? How much of a cut does PayPal take over credit cards?
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I guess the real question there then is what are the rate differences for merchants? How much of a cut does PayPal take over credit cards?
Different companies/banks charge different amounts, it also varies depending on the amount of business they do.
The Paypal transaction fees are easily available on their site:
Purchase payments received (monthly) Fee per transaction
£0.00 GBP - £1,500.00 GBP 3.4% + £0.20 GBP
£1,500.01 GBP - £6,000.00 GBP 2.9% + £0.20 GBP
£6,000.01 GBP - £15,000.00 GBP 2.4% + £0.20 GBP
£15,000.01 GBP - £55,000.00 GBP 1.9% + £0.20 GBP
above £55,000.00 GBP* 1.4% + £0.20 GBP
I haven't dealt with card transactions for a while but when I did it was approx 1.8% + 20p per transaction apart from AMEX which was something silly like 2% + £1 per transaction (there's a reason most of the UK doesn't accept it).
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So the answer seems to be that you don't mind the slightly higher charge by Paypal since that's less hassle to deal with? Hm.
My bank would have been a lot more than Paypal and would have required a lot of paperwork.
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So the differential will also really depend on volume. Of course only the bigger sellers will even get to the second tier. It takes quite a few large orders to even hit £1,500.
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So the differential will also really depend on volume.
And your bank or credit card payment processor. Or both >:(
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There's a credit risk attached to credit card processing (charge backs etc) so merchant services providers with the lower rates can be picky about who they'll take on. This is why some of those who serve the micro/small business side of the market have lengthy retention periods for release of funds. So a lower rate might come with a temporary hold on your money whereas a really low rate might be unavailable as the retail enterprise doesn't satisfy the required credit profile. Paypal serves pretty much everyone without holding onto funds and, to some extent, if can do this by pricing the risk into it's fee structure.