posted on September 20, 2000 08:03:44 PM
Well if it costs 1.9% to use PayPal then it only makes good business sense to offer a 1% discount for any customer using a FREE payment service - PayPlace PayDirect etc...
posted on September 20, 2000 08:21:30 PM
On a $20 item you're going to give your buyer a 20 cent discount to sign up with another service? I think they'll need more incentive than that, I know I would.
posted on September 20, 2000 08:33:51 PM
Just to play devils advocate, on the $200.00 item the buyer will have a choice between a pay service with buyer protection vs. a pay service that states "NO CHARGEBACKS". If you want them to use one of the free pay services I suggest you don't offer PayPal. (Myself I'm still offering it)
then again maybe they'll go for the 1%. Just offering a different point of veiw.
posted on September 20, 2000 08:41:35 PM
If I remember correctly, PayPal's original TOS (several self-serving revisions ago) basically had you sign away your chargeback rights. They had to back off of that, and I'm not sure it was because of market pressures. Some rights that are embedded in statutory law can't be made negotiable items in contracts. Otherwise I could use a few slaves to help around the house.
posted on September 20, 2000 10:24:48 PM
Speaking of 1%...Pay Pal just paid me 1% for using their free service to pay a person who has a Premier account! That's right folks, I just paid someone with a Premier Acct $35.00 and received a 1% kickback for doing it.
Let's summarize. As a customer, I get to use a free payment service and get a 1% kickback from Pay Pal as long as the person I am paying is a business with a Premier Account. But the business, who is selling product, thereby drawing me to use an online payment service in the first place, loses 1.9% of that transaction to boot? How about they lower the fee to .9% and not give the free users a kick back?
posted on September 21, 2000 06:52:38 AM
I believe the 1.9% is for the long term and the 1% back is for the short term. Anyway there are a lot of free services. The PayPal fiasco my just be a blessing because it will make a lot of sellers start using other services and then we won't have one big bully and a bunch of little also rans. Hopefully this will elevate the likes of PayPlace PayDirect etc...
[ edited by NoMoreFees on Sep 21, 2000 06:59 AM ]
posted on September 21, 2000 07:19:28 AM
The idea Paypal has is to convince the buyer that Paypal is a great service & to only buy from sellers who accepts Paypal. What will you do if you get customers after customers who will e-mail you & ask you if you do accept Paypal & will only bid if you do. Yeah in the short run you might tell them to screw off & give them you 3 page English essay on how evil Paypal is & that if we all continue to use Paypal, our souls will be forever damned but in the long run whne you don't get bids what's going to happen.
If I were you I would start using other online service like say Billpoint or Yahoo Direct & get your buyers use to the fact that there are other options out there.
