Are the high costs of doing business cutting into your profit margin? Even if you''ve developed your e-business efficiently and kept extraneous costs to a minimum, high credit card transaction costs can be counter-productive to your site''s profitability. If you''re a small e-tailer who is having difficulty affording the fees associated with credit card acceptance, you may be one of the people who need PayPal.
PayPal allows you to collect payments from registered users of the site, even offering incentives when you refer others. Since PayPal is becoming quite popular it is almost more standard than an "alternative" payment solution. Many vendors and auction sites already transact through PayPal and it is likely that some of your customers have already registered.
As an e-tailer, you can open a free Premier or Business Account with PayPal and immediately have the ability to accept secure and private payments from anyone with a credit card -- even internationally. This fully supported and insured payment method means you''ll never have to wait for a customer''s check or worry about non-payment for insufficient funds.
Special features make this transaction service even more attractive -- a "WebAccept" auction payment button, a complete online transaction history, automatic daily transfers to a specified checking account, the ability to accept mass payments and money market account access.
The Business Account garners the same privileges as the Premier Account with an added bonus -- the ability to conduct business under your corporate or group name.
Very simply, this is how it works: For buyers to utilize their free PayPal account, they must register a credit card, enabling them to transfer funds to anyone with an email address. The money is deducted from the credit card and transferred to the registered seller''s account.
The seller is notified of the incoming funds and charged either a low per-use fee or a nominal percentage fee, depending on the amount transacted.
If you''re an e-tailer, it makes sense to accept as many payment options as possible, but not if it means operating at a loss. To learn more about PayPal and how the service can benefit your e-business, read these related articles:
PayPal Review
An Open Letter to Visa and MasterCard
VISA and Mastercard Crack Down on Web Merchants
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