Why not use PayPal?

[danielpmc]

As i read through various hosting forums i find that experienced and even newbies rarely suggest PayPal as a payment gateway/proccessor. All different billing solutions are suggested, but rarely PayPal. Since i have an account with them, i never noticed any issue.

So i was wondering, why people in the hosting world do not use or suggest PayPal?

 

[ikalf]

Because paypal is not giving sellers protection on hosting.
Usually person is using your hosting for >180 days then they dispute. And in lot of cases you will lose.

 

[danielpmc]

Because paypal is not giving sellers protection on hosting.
Usually person is using your hosting for >180 days then they dispute. And in lot of cases you will lose.

What do other billing solutions do to provide sellers protection that PayPal doesnt?

I have not used anybody else but PayPal, so your information is valuable to me. Thanks.

 

[praveenk]

You can use google checkout instead of paypal but its transactions rates little higher.

 

[HosterDaddy]

There are few things on Paypal which sellers don't like:
1. Chargeback Period is so long ( around 180 days)
2. Dispute Period (Dispute period takes up to 40 days to get solve.)
3. As Seller, there is very less chance to win the dispute or chargeback( seller can win the case only if they have reputed account on the PayPal history)
4. Sometimes people take service for the whole period and open chargeback/dispute and they win the case because some of the sellers unable to provide the sufficient proofs in the case, which really demotivate the seller's business.

But still, Paypal is very popular payment gateway. There is no such big alternative of PayPal yet. If you have the online business you don't have any option other than to use Paypal.

 

[ikalf]

What do other billing solutions do to provide sellers protection that PayPal doesnt?

I have not used anybody else but PayPal, so your information is valuable to me. Thanks.

In "my time" on the internet I notice:
Skrill
WebMoney
Payza

They protect sellers, but... Not a lot of people use them.
Also check your local banks, my bank offers CC processing, the money goes directly to you account. Also one of the telecom provider does the same.

The problem with paypal is that everybody use them. So maybe its not a good idea to not offer paypal. There are a couple of ways you can protect yourself from chargebacks.

 

[SenseiSteve]

Wow, I'm seeing exactly the opposite with regards to PayPal. I've been using PayPal (and other billing solutions) for years and absolutely prefer PayPal. Why? Because it's what my client's trust, and trust sells.

 

[HostXNow]

Wow, I'm seeing exactly the opposite with regards to PayPal. I've been using PayPal (and other billing solutions) for years and absolutely prefer PayPal. Why? Because it's what my client's trust, and trust sells.

I agree to this. We've always used PayPal. I know PayPal can be fussy with who they accept when it comes to merchant accounts, and a lot of consumers have a bad history with their accounts and prefer providers to offer different payment methods. For these reasons, I was thinking of adding Stripe and WorldPay. Don't want to miss out on Sales after all. Those who had trouble with PayPal probably happened many years ago and learnt since then.

 

[danielpmc]

When i was hosting clients, i always made a point to check in with them occasionally with a personally written email. I genuinely wanted them to have a good experience online with whatever they are doing and get to know them as people versus as a client. So i never experienced a chargeback or demands for a refund. A lot of my clients i knew by email or person to person conversations before i signed them up.

So i am very glad that all of you have shown me a side of payment proccessors that i have no experience with. But i still think i am going to stay with PayPal as i personally trust them with my clients credit card info.

 

[easyhostmedia]

You can use google checkout instead of paypal but its transactions rates little higher.

well that will be hard as Google Checkout was discontinued on November 20, 2013.

 

[HostLeet]

I've used PayPal from day 1 and have been very happy with them, although, I do know some sellers have had issues with them for various reasons. I've even won chargebacks and disputes in the past by providing proof, logs, ect.. We also use 2CO and highly recommend them as well.

 

[HostAG]

Depending on your customers, PayPal is also hell and heaven. Mostly because on really cheap hosting (like shared hosting) a lot of customers come and dispute afterwards and you loose so much time and you rarely win the disputes. Bitcoin and credit cards are the best because in the case of the first, there is no dispute option, and in case of the second, the dispute process is way harder, which discourages many.

 

[bestcast4u]

if we are providing good service then nothing to worry about dispute. I use Paypal and had no issues

 

[LowVMFree]

I dropped Paypal coz they create problem form form me. Received dispute after 5 month of using service so you are kidding me that I will suggest Paypal?

Paypal is bad.

 

[Kate@V&Web]

Because paypal charges an extra 4% fee.

 

[easyhostmedia]

Because paypal charges an extra 4% fee.

so does all other payment providers as you will get charged from 1% to 5% depending on what provider you use

 

[ughosting]

We've started adding the gateway fees to the checkout.

We're going more "cloudy" with some services and people can pay for shorter terms, which are too small to take the hit on the gateway fees.

This way the fee means nothing to us, and the customer can decide which billing cycle length they want to minimise the gateway fee.

 

[archindustries]

Here we accept paypal, credit and bitcoin. A while back we had to halt credit card transactions due to fraud, but we offer that option again. We have never had any issues with PayPal.

 

[Nueavehost]

I have always used Paypal. I don't think I've ever had any problems with Paypal other then using it for Ebay for selling things and people have then charge back or reported it as not them. I've ended up emailing clients after they order to verify it was them that ordered and that they'd like me to proceed. That way i have proof it was them that ordered and they wanted the item .

 

[bigredseo]

We always accepted PayPal and rarely had an issue.

Back in the day, before PayPal became the giant they are, people associated PayPal as a poor mans credit card system. To some, if you accepted it (and only PayPal), you weren't a real business yet.

All that changed many years ago. Now PayPal is actually a Bank and is FDIC insured as a bank.

The only issue we ever had, and we had it twice, was that we had a client file a dispute, and PayPal froze our account until the dispute was settled 7-8 days later.

Normally, not an issue, HOWEVER, we were processing $30k/month via PayPal, and a chargeback from a client who paid $5 froze the entire balance. That's a big issue when you're trying to pay your datacenter etc to keep the machines online.

This happened twice with us. And there wasn't anything extra fishy, or any extra details. It was just a dispute and they froze everything. Still, it didn't stop us from using them. We just made sure to transfer funds every time we hit $5k or so.