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Paypal Express Checkout

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rotokirby View Drop Down
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    Posted: 09-July-2008 at 12:29pm
Does anyone use Paypal Express Checkout?

Advantages? Disadvantages?

We currently use Paypal Website Payment Standard, but Paypal is offering lower fees if we switch to Express Checkout. I'm tempted, but worried about how it will affect our user experience in regards to things such as Order History and Status, etc.

Any advice would be greatly appreciated. Thanks!

Rotofugi Designer Toy Store & Gallery
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Post Options Post Options   Thanks (0) Thanks(0)   Quote katharina Quote  Post ReplyReply Direct Link To This Post Posted: 09-July-2008 at 12:42pm
The way I understand it is that you have a merchant account with a third party.  Paypal will not process it for you, but become the connecting middle man.  So you will end up paying fees to your merchant company and paypal.  This looks more expensive, if you combine both charges. 
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Post Options Post Options   Thanks (0) Thanks(0)   Quote rotokirby Quote  Post ReplyReply Direct Link To This Post Posted: 09-July-2008 at 12:53pm
Hmmm....must look into that. I was thinking it would just be an "alternate" checkout where people could pay with Paypal just as they do on our site now utilizing Website Payment Standard. Currently paying 2.9%...they're offering 1.9% if I switch, but if that would somehow be on top of our regular merchant account fees (this whole thing is starting to make my head spin) then obviously it would be a no go.
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Post Options Post Options   Thanks (0) Thanks(0)   Quote katharina Quote  Post ReplyReply Direct Link To This Post Posted: 09-July-2008 at 1:06pm
We actually use a merchant account and paypal.   We choose not to use the paypal express, because that would be to expensive.  We use the paypal standard and novus (opened up through www.costco.com with extra discount).  We used to use www.cardservices.com, but they are slow with posting your money to your account (4 days).   With nova we have it in 2 days.  We have more people that use our standard credit cart gateway, and we have some that prefer paypal.  I would say 20% use paypal.  International customers use paypal about 95% of the time.  Besides that we offer call in credit card, and mail in check or money order.  Check/Money order is less then 1%, but we do have some that want it and are willing to wait for it to clear.  Call in is perhaps 2%.  Some prefer to speak to a human being and they want to make sure you are real.  I know paypal is a little bit high, but some customers feel safer using it.  Cost of doing business. 
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Post Options Post Options   Thanks (0) Thanks(0)   Quote ProductCart Quote  Post ReplyReply Direct Link To This Post Posted: 09-July-2008 at 1:45pm
PayPal Express is not a middle man. It's an alternative checkout process, just like Google Checkout, although there are many technical differences between the two.

Of course, you may elect to have a different payment gateway active on the store at the same time (e.g. Authorize.net + PayPal Express Checkout). In fact, other payment methods from PayPal itself (Standard, Website Payments Pro, or even PayFlow Pro) can be the alternative payment option to PayPal Express Checkout.

But the cost of a PayPal Express transaction remains the same: whether or not you have other payment gateways active does not affect the cost of using PayPal Express. It does affect the overall cost of doing business, of course, as having multiple payment gateways active may cost you some additional monthly fees. The cost of the individual transaction does not change.

About a year ago I wrote an article on PayPal which remains largely valid, and covers the different offerings that they have. See:
http://www.practicalecommerce.com/articles/469/Analysis-The-New-PayPal/

Overall, consider the following about using PayPal (Express, Standard or Website Payments Pro), Google Checkout, vs. a payment gateway that requires a separate Internet Merchant Account:

- If you have to setup an Internet Merchant Account -> lower transaction cost, higher setup costs, longer setup time
- If you don't have to setup an Internet Merchant Account (PayPal Standard, PayPal Express Checkout, PayPal Website Payments Pro, Google Checkout) -> higher transaction cost, lower setup costs (typically none), lower setup time

I hope this helps navigate through the payment options maze :-)

It is indeed - still - a confusing part of the e-commerce world.

Cheers,

massimo
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Post Options Post Options   Thanks (0) Thanks(0)   Quote katharina Quote  Post ReplyReply Direct Link To This Post Posted: 09-July-2008 at 2:16pm
Paypal Express requires you to have a merchant account.  The checkout goes over them, and they transfer the info to your merchant company.  Doesn't that makes them a "middle man"?  I know they don't act on behalf of the merchant company, but they are in between.  Well it really doesn't matter the point is fees will add up. 

Check out companies like costco and sams club.  They cut deals with merchant companies, which can mean savings for the retailer.  I used to have an account with cardservices and had to pay a high setup fee and a small monthly fee.  Now I have one set up through costco with nova (virtual merchant).  The set up was only 195 and no monthly fees.  The switch worked out quite well for us.   We actually switched to them last year when we needed a wireless terminal we can take to festivals.  The terminal is great and can be activated only when needed.  It can be run on a rechargeable battery pack and does not require a phone line.  Obviously buying a terminal is not that cheap, compared to some virtual thing online.  We did the switch for our online PC cart a short while ago, and I'm quite happy with them.

Still it is quite a game to find a merchant company.  Sometime the rates are low, but the connection stinks.  Banks seem to be high in their rates, but may post faster to your account.  You never know what you get until you try.  Sometimes is helps to google them and see if someone complaints about them.  I wonder if there is a website that rates merchant companies.
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Post Options Post Options   Thanks (0) Thanks(0)   Quote rotokirby Quote  Post ReplyReply Direct Link To This Post Posted: 09-July-2008 at 2:20pm
We already have a merchant account with a competitive rate.

I wasn't aware that switching to Express would somehow tie into our existing merchant account. Paypal Website Payment Standard certainly doesn't do that.


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Post Options Post Options   Thanks (0) Thanks(0)   Quote rotokirby Quote  Post ReplyReply Direct Link To This Post Posted: 09-July-2008 at 2:27pm
Also I'm concerned about customers using Paypal Express to check out without registering...if they don't register I assume that they won't be able to view Order History, etc...which makes customer service that much more time consuming for us and confusing for the customer.

Guess I'm just gonna say "no thanks" to this offer....sounds like I'd be opening a can of worms.

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Post Options Post Options   Thanks (0) Thanks(0)   Quote ProductCart Quote  Post ReplyReply Direct Link To This Post Posted: 09-July-2008 at 2:28pm
We have never heard of that. If you have a PayPal Business Account, you can enable Express Checkout and you certainly don't need to have any other relationship with a payment gateway, nor an Internet Merchant Account with your bank.
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Post Options Post Options   Thanks (0) Thanks(0)   Quote rotokirby Quote  Post ReplyReply Direct Link To This Post Posted: 09-July-2008 at 2:40pm
Thanks for that....any comment on how implementing Express Checkout would affect Order History, etc.?
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