There are many myths that surround getting paid online. Here we will look at the most common - Paypal.
Paypal used to only accept payments from fellow Paypal customers, but this is no longer true and has been the case for a while now.
Quite simply you can offer Paypal as the method of processing a debit or credit card so long as the person, or company, receiving the money has a Paypal account. When your customer, the payee, hits your pay now button they leave your site go to Paypal's SECURE website and choose how to pay, either via their Paypal account or by another card type. Their details are entered, money is taken by Paypal, confirmation emails are sent to both payee and vendor and the money credited to the vendor's paypal account where it can be retrieved in the normal way.
But why use Paypal? Why can't I use my own bank?
You can use your own Bank. Contact them and ask to set up an Internet Merchant Account - this is not online banking. Online Banking allows you to log into your bank account view the balance, pay people and transfer money etc, an Internet Merchant Account allows you to receive funds from debit and credit cards online (like a swipe machine only without the machine).
OK, but why Paypal and not my bank?
Its a cost thing! Your bank will want to charge you a fixed monthly fee (typically £20) + a percentage on each amount taken (anything from 2% to 4%). Paypal will only charge you a small percentage and no onthly charge. So do the sums ... here's an example...
|Your bank||Paypal||Your bank||Paypal||Your bank||Paypal|
As you see in this example once your monthly online credit card sales exceed £2,000 then it becomes cheaper to use your own bank. But remember two things:
You need to achieve this level of sales EVERY month to gain
Debit cards don't usually attract percentage fees only a fixed price eg 35pence.
Yeah, but its Paypal - doesn't sound very business like does it?
To be honest , no it doesn't, however most companies offer it and even bigger online retailers offer it as an option. At csb internet we recommend using it to get you started and will help you set it up too. You can be receiving payments within 15 minutes!
So what are Paypal's costs? Find out here
If you're still not sure ask us we'll help you out.