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Merchant Accounts - how many have one?


floridagal

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I was wondering, how many of the folks here are running their shops *without* having a genuine merchant account, and does this really work out for you?

 

Of course, I would like to have a merchant account, and hope to get one eventually - it just simply isn't feasible right at the moment - hopefully soon though...

 

Do you think it is possible to run a shop successfully, only taking Paypal and checks/MO's? Or do you consider a merchant account a necessity in order to have any success with your business? I know it would be *better* if I had one, but ...

 

What I mean by 'success' - I'm not looking to make a full-time living off this - that's way off in the realm of 'future dreams' at the moment LOL! I'll be content for now if I can just make some somewhat-steady money on the side to help with financial difficulties we've been having....

 

Thanks in advance for any opinions!! 8)

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You can do it without a merchant account quite successfully especially with Paypal in US$ and, once you are up and running, if you want to quadruple your business overnight, then deal with a payment gateway which is almost as good as having your own merchant account and it is much easier to get accepted (even though it costs a wee bit more).

hth

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Why not get a 2checkout a/c in the meantime. Cheap to set up at $49.00, and the charges are not outrageous at about 5% per transaction.

 

Obviously you can get lower rates and a better service, but expect to pay more to set it up. If you are in the US it's quite a good service. [/url]

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While yes it is possible to use a 3rd party processor, there are several draw backs, and rates is just the start. First, on a customer's credit card bill, it won't have your name, but rather someone elses. Not only does it look unprofessional, but you are more likely to have a charge back, no matter how clear you make it that your name will not appear. Second, having to run to a different website to enter payment information doesn't look at professional either. Third, you are dealing with a middle man, its just one more business/company/entity that you need to deal with/will screw up/may go out of business/may have issues.

 

That being said, many businesses use a 3rd party processor to deal with payment, but large, professional corporations (eBay, Amazon, AOL, etc) wouldn't even think about it.

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While yes it is possible to use a 3rd party processor, there are several draw backs, and rates is just the start.  First, on a customer's credit card bill, it won't have your name, but rather someone elses.  Not only does it look unprofessional, but you are more likely to have a charge back, no matter how clear you make it that your name will not appear.  Second, having to run to a different website to enter payment information doesn't look at professional either.  Third, you are dealing with a middle man, its just one more business/company/entity that you need to deal with/will screw up/may go out of business/may have issues.

 

That being said, many businesses use a 3rd party processor to deal with payment, but large, professional corporations (eBay, Amazon, AOL, etc) wouldn't even think about it.

 

Acctually with paypal is DOES have your name on the bill, and the Rates are VERY competitive

Michael

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and ofcourse ebay would not think about is, they ARE a payment processor, AKA they own PayPal.......

 

as far as the Other Big name, most of them are "master" account thus they get like 1% or lower processing,

 

Even when your a "merchant" your still dealing with thrid parties, AKA Authorize.net, Paysystems, Eprocessing Network etc, and your Merchant account for Mastercard and visa is Held by a Bank, where the Big name your mentioned most of the time dont go through these venors, they are set up directly with the Card Comnpaines, Very hard to do, and you must have a High Volume

Michael

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Acctually with paypal is DOES have your name on the bill, and the Rates are VERY competitive

 

I'm pretty sure it doesn't. Here is a screen shot of my billing online:

 

banking.jpg

 

--HESS has a merchant account, that's why you see is clearly states HESS.

--State Farm ACH's in my pay check, that's why you see State Farm (and no, none of you will know how much I make).

--Exxon has a merchant account.

--The online retailer that I made a puchase from on 1-10 doesn't which is why it says 2CheckOut. If I didn't know that company XYZ user 2CheckOut, I might issue a charge back.

--I made a with drawal with this card and it lists the address.

--I purchased something from El Dorado Sales (easynews).

--I renenwed my anuual lease on my mail box. MBE has a merchant account.

--I purchased something form Amazon. Amazon has a merchant account.

--I purchased something for $20 with PayPal. It took the money from my card and it did not mention who the money went to. My hard copy of my bill does not mention it either. The merchants name will not show up on a persons credit card bill.

--I bought something else form Amazon.

--I got more gas.

--I picked some stuff up form MicroCenter.

--I got paid again.

--I made a withdrawal.

 

In conclusion, no PayPal puts their name on every persons credit card statement. That simple. If you care to scan a copy of your credit card bill to show oterhwise, I will take it all back, but until you do, I (and I think most others) will tend to think that it will show PayPal, not the merchants name.

 

And for the record, www.paypalsucks.com

 

Don't use it unless you absolutely have to. I would never in my entire life use PayPal commercially.

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And for the record, [www.paypalsucks.com]

 

Don't use it unless you absolutely have to.  I would never in my entire life use PayPal commercially.

 

Well Brian I personally hate this [www.*sucks.com] style of website.

It is unprofessional, sometimes useful, but generally unthought out, tantrum built claptrap that belittles the e-commerce world. My advice is go thru the correct channels if you have problems with certain companies.

But dont promote this crap!

 

I found this thread useful until you posted that.

 

Just MHO

 

CC.

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In conclusion, no PayPal puts their name on every persons credit card statement.  That simple.  If you care to scan a copy of your credit card bill to show oterhwise, I will take it all back, but until you do, I (and I think most others) will tend to think that it will show PayPal, not the merchants name.

 

paypal.jpg

 

The blanked out bit is the name of the receiver, who is in fact very active in this forum...

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That being said, many businesses use a 3rd party processor to deal with payment, but large, professional corporations (eBay, Amazon, AOL, etc) wouldn't even think about it.

 

Umm.. Someone is speaking without doing their homework. Amazon, eBay, many local energy and cable companies (big names) DO accept PayPal as a form of payment. More and more are adding paypal as a form of payment, even if they have other alternatives available. And I think it has been pointed out that the PayPal IPN add in to osC passes the customer's information to PayPal so they do not need to reenter it.

 

And in my settings on my business PayPal account I had to set the name that I want to appear on my customers bills. It can be my name, my business name, howdy dowdy or whatever I designate that isn't already taken by another vendor. They did it in response to the Chargeback issue.

 

A large number of affiliate programs are also offering PayPal as a payment option, which is great for people using different currencies.

 

It may not be the best service out there, but it cannot be called "looks unprofessional" any longer.

 

And as far as 2checkout, someone on this forum somewhere was recently complaining about problems with that service as well. I do plan to set up with them shortly, but they are also an *alternative* not a replacement.

 

Debbie

[no external urls in signatures please, kthanks]

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It is good that Paypal allow you to choose what appears on statements. Based on my experience with Worldpay what may happen is that the entry gets truncated. As a sole trader my entries sometimes appear on statements I like:

W/P  Name T/A  Business Name
where 'Name' is my own name and the 'Business Name' of around 20 characters is truncated after about 3 characters.
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Acctually with paypal is DOES have your name on the bill, and the Rates are VERY competitive

 

I'm pretty sure it doesn't. Here is a screen shot of my billing online:

 

 

 

--HESS has a merchant account, that's why you see is clearly states HESS.

--State Farm ACH's in my pay check, that's why you see State Farm (and no, none of you will know how much I make).

--Exxon has a merchant account.

--The online retailer that I made a puchase from on 1-10 doesn't which is why it says 2CheckOut. If I didn't know that company XYZ user 2CheckOut, I might issue a charge back.

--I made a with drawal with this card and it lists the address.

--I purchased something from El Dorado Sales (easynews).

--I renenwed my anuual lease on my mail box. MBE has a merchant account.

--I purchased something form Amazon. Amazon has a merchant account.

--I purchased something for $20 with PayPal. It took the money from my card and it did not mention who the money went to. My hard copy of my bill does not mention it either. The merchants name will not show up on a persons credit card bill.

--I bought something else form Amazon.

--I got more gas.

--I picked some stuff up form MicroCenter.

--I got paid again.

--I made a withdrawal.

 

In conclusion, no PayPal puts their name on every persons credit card statement. That simple. If you care to scan a copy of your credit card bill to show oterhwise, I will take it all back, but until you do, I (and I think most others) will tend to think that it will show PayPal, not the merchants name.

 

And for the record, www.paypalsucks.com

 

Don't use it unless you absolutely have to. I would never in my entire life use PayPal commercially.

 

well i am 100% sure they do

 

this is from my control panel

 

paypal1.gif

 

and from PayPal Webs Site

https://www.paypal.com/cgi-bin/webscr?cmd=_...e=_profile-pref

 

While is Still have "paypal" is does referr to your company also...

 

and as far as PayPal Sucks web site, it is probally set up by Scammers that have been shut down,

Michael

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PayPal did indeed have difficulties (especially credibility issues) in the beginning but they have managed to clean those up (Ebay purchasing them did not hurt that either). They are now largely accepted by consumers and merchants and cannot be ignored as a possible payment option.

 

You should be able to afford a merchant account through ECHO. They have some of the lowest fees that I have ever found and my wife and I (2 separate and distinct businesses and accounts) have never had a problem with them. If you do a search at Web Hosting Talk or Webmaster Forums you will find that many people use ECHO and are happy with them.

 

HTH!

[/url]

"Great spirits have always found violent opposition from mediocre minds. The latter cannot understand it when a man does not thoughtlessly submit to hereditary prejudices but honestly and courageously uses his intelligence." - A. Einstein

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Well Brian I personally hate this [www.*sucks.com] style of website.

It is unprofessional, sometimes useful, but generally unthought out, tantrum built claptrap that belittles the e-commerce world. My advice is go thru the correct channels if you have problems with certain companies.

But dont promote this crap!

 

I found this thread useful until you posted that.

 

Just MHO

 

CC.

 

While I agree that XYZsucks websites aren't the greatest, there must be a reason for them somewhere. Numerous people have had issues with PayPal in the past and I try not to use them if at all possible. I would rather send a money order/check/wire the funds than use PayPal and use it only as a last resort.

 

<<picture here>>

 

The blanked out bit is the name of the receiver, who is in fact very active in this forum...

 

I stand corrected, PayPal does put the merchants name on some people's bills. My apologies.

 

That being said, many businesses use a 3rd party processor to deal with payment, but large, professional corporations (eBay, Amazon, AOL, etc) wouldn't even think about it.

 

Umm.. Someone is speaking without doing their homework. Amazon, eBay, many local energy and cable companies (big names) DO accept PayPal as a form of payment. More and more are adding paypal as a form of payment, even if they have other alternatives available. And I think it has been pointed out that the PayPal IPN add in to osC passes the customer's information to PayPal so they do not need to reenter it.

 

PayPal is not a typical 3rd party processor. PayPal is their own system. If I purchase something from Amazon or eBay (or ConEd/LIPA or Cablevision) and put it on my credit card, it will not say PayPal and it will not say 2checkout.

 

If a merchant wants to accept PayPal as payment (usually so 16 and 17 year olds can buy stuff online) than of course they themselves must use PayPal. But for those looking to accept credit cards only, PayPal isn't an option.

 

First, they are not a bank. Banks have numerous laws and regualtions governing them, the laws are to protect both the banker and the bankee. And they are usually FDIC insured. PayPal is not FDIC insured and is pretty much free to do whatever it wants with your money becuase it is not a bank or other comporable finicial institution (such as a credit union).

 

Lack of a terminal (usually most companies opt for a virtual terminal these days) is another reason why PayPal can't compare to a real merchant account.

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PayPal is not a typical 3rd party processor.  PayPal is their own system.  If I purchase something from Amazon or eBay (or ConEd/LIPA or Cablevision) and put it on my credit card, it will not say PayPal and it will not say 2checkout.

 

Right paypal is not a typical processor, so what

 

and last time I checked ebay does not sell anything, ebay is a auction site where sellers, most of whom use paypal, sell things:roll:

 

If a merchant wants to accept PayPal as payment (usually so 16 and 17 year olds can buy stuff online) than of course they themselves must use PayPal.  But for those looking to accept credit cards only, PayPal isn't an option.

wrong again, i preffer paypal, and I am far from 16, More security IMO, for the purchaser, as your account information is not being passed to some unknown person, that could possible sell, or use your info in a fradulant manner, all that info is retanined by paypal.

First, they are not a bank.  Banks have numerous laws and regualtions governing them, the laws are to protect both the banker and the bankee.  And they are usually FDIC insured.  PayPal is not FDIC insured and is pretty much free to do whatever it wants with your money becuase it is not a bank or other comporable finicial institution (such as a credit union).

People over rate FDIC IMO, but then again people over rate most thing that involver goverment protection from anything

Lack of a terminal (usually most companies opt for a virtual terminal these days) is another reason why PayPal can't compare to a real merchant account.

 

You dont need a Terminal with paypal. you have nothing to use a terminal for,

Personally I like paypal

 

1> I get my money Instanly, not 2-3 days later, when your small like me this make s big differance

 

2> no card numbers to worry with, dates to pass, I dont need a secure server, etc my cost is less

 

there are a large number of advataged to paypal,

Michael

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Thanks for all the opinions, everyone!

 

And I'm sorry -- I did not intend for this to be another thread debating the merits/problems about Paypal itself, per se.... My concern was whether it is really possible to get an online shop going decently without having a 'real' merchant account, whether it be Paypal or *any* other similar payment service I try to use to fill in until I can get a "regular" merchant account...

 

Thanks for the info about 2checkout & ECHO - will have to check further on those -- for some misguided reason, I had thought that 2checkout was just like Paypal... I see I was wrong -- that will give me another "alternative" to use until I'm able to get a merchant account....

 

As some of you pointed out, I realize that having my own merchant account is preferable to using some of these other services - it's just not really possible at the moment, so I'm just trying to 'make do' in the meantime....

 

Thanks again for all the help - & I'm sorry if I caused a fuss over Paypal itself!!

 

8) FloridaGal

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Thanks for all the opinions, everyone!

 

And I'm sorry -- I did not intend for this to be another thread debating the merits/problems about Paypal itself, per se.... My concern was whether it is really possible to get an online shop going decently without having a 'real' merchant account, whether it be Paypal or *any* other similar payment service I try to use to fill in until I can get a "regular" merchant account...

 

Thanks for the info about 2checkout & ECHO - will have to check further on those -- for some misguided reason, I had thought that 2checkout was just like Paypal... I see I was wrong -- that will give me another "alternative" to use until I'm able to get a merchant account....

 

As some of you pointed out, I realize that having my own merchant account is preferable to using some of these other services - it's just not really possible at the moment, so I'm just trying to 'make do' in the meantime....

 

Thanks again for all the help - & I'm sorry if I caused a fuss over Paypal itself!!

 

8) FloridaGal

 

just remeber with 2CO you may have to wait up to 15 DAYS to get your money, and you are charged almost 2X the processing fee of normal merchants and paypal

Michael

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just remeber with 2CO you may have to wait up to 15 DAYS to get your money, and you are charged almost 2X the processing fee of normal merchants and paypal

 

Thanks, Michael! Sigh... yeah, I wasn't too crazy about that delay in getting the money (or the fees)...*personally* (coming from a buyer's side of things) I don't have any -major- problems w/ paypal & use it all the time myself when buying stuff -- but I know some folks are hesitant to have to 'register' with another site - with 2CO, they just enter their payment info, right? THey don't have to 'set up an account' per se like they do with Paypal? I know :? , it's not the best solution, but I'm just grabbing at whatever options are available to me at the moment....and hoping that it will work out OK until I can get a merchant account, that hopefully *one* of the payment choices I can offer will be ok with potential customers...

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We used to use PayPal exclusively. After awhile we got some complaints from customers that said they would have purchased, but they didn't waqnt to HAVE to use paypal.

 

So we added 2heckout in addition to paypal. What we found was astounding. Starting the day we added 2checkout, and offered out customers a choice, our sales DOUBLED. Same amount of hits, same number of customers that signed up. But sales doubled.

 

Since then we have moved on the a merchant account (which I would HIGHLY reccoment if you do more than $1200 is sales per month). We continue to offer paypal for people that already have an account with them. We now find that about 15% of our customers still use paypal.

 

Hope htis helps someone.

-------------------------------------------------------------------------------------------------------------------------

NOTE: As of Oct 2006, I'm not as active in this forum as I used to be, but I still work with osC quite a bit.

If you have a question about any of my posts here, your best bet is to contact me though either Email or PM in my profile, and I'll be happy to help.

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just remeber with 2CO you may have to wait up to 15 DAYS to get your money, and you are charged almost 2X the processing fee of normal merchants and paypal

 

Thanks, Michael! Sigh... yeah, I wasn't too crazy about that delay in getting the money (or the fees)...*personally* (coming from a buyer's side of things) I don't have any -major- problems w/ paypal & use it all the time myself when buying stuff -- but I know some folks are hesitant to have to 'register' with another site - with 2CO, they just enter their payment info, right? THey don't have to 'set up an account' per se like they do with Paypal? I know :? , it's not the best solution, but I'm just grabbing at whatever options are available to me at the moment....and hoping that it will work out OK until I can get a merchant account, that hopefully *one* of the payment choices I can offer will be ok with potential customers...

 

yea this is a problem, but me Personally I would not use 2CO, I would have to raise my prices up, and then it would be hard to sell, as I am in a very Comppetitve Market, with too many "cutthroat" dealers already out there so 2co is not even a option for me, 2.9% from paypal is almost pushing the line.......

 

I was thinking about Getting a Authorize.net and a Merchant account from

 

http://www.e-onlinedata.com/applynow/index.php

 

it is $150 for a Lic for Authorize.net

$15/mo Gateway Fee

$10/mo Statment

 

that is pretty good

Michael

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Thanks so much, Chris! That's encouraging news! So, there is hope of making it, even if I don't have a merchant account right away :P Thanks for sharing your experience w/ 2checkout too -- hopefully, I can get by with these 'alternative services' for a little while, then go on to get a regular merchant account once I actually start having any sales :wink:

 

Michael, thanks for the info about eonlinedata! That sounds *alot* better than many places I've looked at -- will definitely check into it!!

 

Thanks so much, guys, I really appreciate the help!!!! :satisfied:

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  • 2 months later...

I am a 2Checkout user, follow the rules and you'll not have any problems. They have also improved their service a lot lately.

 

You can also have your name appear on the customer's credit card statement up to 8 (?) characters.

 

ie 2CKO*XXXXXXXX

 

I have an abbreviation of my company name in the 8 charachters and it is very clear what's what.

 

My volume is quite high so I get weekly deposits, the money comes in like clockwork.

 

Good luck !

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