Many of our new clients are hesitant when it comes to using payment gateways, opting for a bank backed system instead. Inevitably however, after a little bit of research, the benefits of the payment gateways like Paypal and Eway become apparent. Below we've looked at a few of the perceptions people have about payment gateways and what you need to know before selecting what's right for you.
Should you choose a bank instead of a dedicated payment gateway (like Paypal)?
This is a common enquiry but oddly enough, there aren't actually many websites that use banking payment gateways. There are several reasons for this, a few include:
- Banking gateways tend to be more expensive to implement and take a larger share of each sale
- Banking gateways aren't consistently supported by e-commerce software
- Banking gateways tend to lack the features of dedicated payment gateways like E-Way and Paypal
- Banking gateways often can't be integrated into your site, meaning you need to leave the website to pay online.
This isn't to say that choosing a bank's payment gateway isn't still right for you but in terms of features and integration, they often come up second to your dedicated payment gateways.
You don't need to have a Paypal Account to pay with Paypal
A common misconception is that you need a Paypal account to pay with Paypal. The truth is, you don't need a Paypal account at all to use Paypal. Creating one will save you from entering in all of your address details every time you purchase something from Ebay but most E-Commerce websites are even clever enough to do this for you too.
Paypal's Pricing is Great for Small Businesses
Depending upon the Paypal product you choose, the price for Paypal can vary. If you're only making a small number of sales and you're using Paypal standard, then Paypal will take 2.4% of the sale plus a 30 cent transaction fee. The more sales you make, the cheaper things get but the best thing to do is to check out Paypal's pricing here.
The great thing about Paypal standard for small businesses is that there are no monthly fees, no need to pay for and annual SSL certificate and the more successful you are, the better rate you receive. This means if things are a bit slow when you first launch your site, you don't have to worry about another monthly fee.
Paypal is the most popular way to pay online
The graph at the top of this page is from Zoho.com (Oct 2010) and is a real life example of what online user have chosen when given the choice between 3 different payment gateways. The results clearly speak for themselves and support Paypal's claim of being the #1 payment gateway online.
Multiple Payment Gateways
Lots of e-commerce websites offer lots of different ways to pay. This could include providing two or three different payment gatway options to your check in addition to several options which don't require a payment system at all e.g. EFT, COD, Phone, Pickup In store, etc.
If you are considering the idea of offering multiple payment options, check with you developer regarding what extra costs might be associated with adding each one and whether or not there could be any conflicts between each gateway.
What about GoogleCheckout and Authorize.net?
Some payment gateways limit their customers to certain regions of the world and in the case of the two listed above, Australian's can't (at the time of writing) use either of these. There are however several other great payment gateways which do accept Australian customers including E-Way, SecurePay and Paypal.
What do you think?
Do you find Paypal easy to use?