PayPal Review: Should I Use PayPal With My Shopping Cart?
PayPal has been around since 2000, and has become one of the most popular ways to pay for something online outside of a traditional credit card transaction. In fact the success of PayPal was so strong, that in 2002 they were acquired by Ebay for roughly $1.5 billion. Since the acquisition, PayPal has continued to be a major contributor to Ebay, and is on pace in 2010 to become their biggest business unit. Much of this success is due to the fact that almost every single ecommerce store online offers PayPal as a payment option, in fact it is the only payment option on many sites. Another reason why PayPal is so popular is because all trusted ecommerce shopping cart solutions integrate with their payment system. However PayPal can do a bit more for you as an ecommerce merchant, as you can partner with them to accept credit cards as well via their Website Payments Standard or Website Payments Pro plans. Partnering with a brand like PayPal for your credit card processing transactions will provide you a long term partner who is here to stay. On top of this, consumers recognize and respect PayPal, which will put them at ease when making a purchase at your online store.
PayPal Review: Different Ecommerce Solutions From PayPal
PayPal is so popular in the U.S. that they recently partnered with Facebook to become another option for payment within the social networking site. If you get a bit more involved with your online business and want to accept payments via the phone, fax, or snail mail, then you will want to look at the Website Payments Pro plan. This has a $30 monthly fee, whereas the Website Payments Standard does not, but the Pro plan also provides merchants with a virtual terminal for those phone, fax, and email orders. No matter what your payment processing needs, PayPal should have a plan that matches what you are looking for to use on your ecommerce store. There are various merchant services, that can help the brand new ecommerce store, or the established ecommerce store who wants to work direct with PayPal to add that as a payment option.
PayPal Review: PayPal Pros and Cons
For some merchants, PayPal does have a few cons worth noting. First, PayPal does have some key fees associated depending on the package you choose. For instance, beyond the monthly fees noted in the package overview above, PayPal also has a transaction fee associated to any sales made through their service. This fee, which is usually 3% is mainly to cover the costs of credit card companies like Visa and Mastercard, so you will usually find a similar fee with other online credit card processors as well. Another con lies in the fact that your customers will usually be redirected to a PayPal owned page to make a purchase through their service. Luckily, the customer does not need to have a PayPal account to make a purchase, but they will still be directed away from your shopping cart to make their payment. This may sometimes result in shopping cart abandonment, which many merchants are concerned about. PayPal tries to mitigate this risk by allowing you to brand the payment page that your consumers will visit, and they do automatically redirect your customers back to your site upon completion of their purchase. Still, if these factors concern you, you should instead consider using an online credit card processing solution that allows you to take the credit card information directly within your online store. If you do this, make sure your website has a proper SSL solution so that payments are secure. Also make sure your shopping cart is PA-DSS/PCI compliant, which will ensure your customers’ credit card information is safe.
Despite the cons, there are many pros when it comes to using PayPal. Besides the pros mentioned above, partners who go with PayPal for their credit card processing or merchant account needs, will have the security of a large company behind them for the long run. The massive size of the PayPal organization also allows them to offer merchants excellent pricing, which often ends up saving the merchant money. Visit PayPal to review everything PayPal has to offer for merchants and see if they have a product which interests you.
We hope our PayPal review has helped you decide if they are a convenient option for your online business!
Do you have experiences that you’d like to add to our PayPal Review? We’d love to hear them in the comment section below!