Comments on: Too MANY Payment Options?

By: J Schaef

J Schaef — Mon, 15 Dec 2008 19:47:18 +0000

I too am a firm believer in having multiple payment options for customers based on one of the above responses. Many consumers have a preferred way of paying. That said, having a rounded education as to what the main payment options are would best benefit the merchant. I do, however, think that too many options, especially options that are unfamiliar to the masses might be less ‘gravy’ and more of a hindering tactic to some sales.

Nonetheless, a merchant account is probably, in my opinion, a sound decision. Prior to PayPal, prior to many options available, paying by credit card was solidly ingrained in the minds of those who shop online, or anywhere for that matter.

There are pluses and minuses for any payment gateway that is being used, but having a merchant account through a reputable merchant services company can lead to further business growth. I am personally unaware of PayPal or other reputable payment methods offering business growth opportunities, such as unsecured business loans (based on future credit card sales) or even cash advance services.

Though I would have to say that sending cash or paying for goods and services by way of using an email address/account login, such as a benefit of PayPal, is gaining more and more momentum in a changing Internet-purchase mindset.

My two cents exists in the thought process of credit card payment through a merchant account and/or the use of PayPal. Too many hands in the ‘pie’ might be just as much a distraction as any.

**orry for the confusion with the resources link — I mistyped

By: Cyn

Cyn — Thu, 31 Jul 2008 12:50:28 +0000

I think as long as you have a merchant account for customers to pay with their credit card you’re going to lose very little business. Most people don’t expect to find Paypal or Google Checkout or Amazon Checkout on a website not related some way to that payment method. Sure, it might be convenient for the customer to pay with their Paypal account, but I doubt most folks would NOT buy something they wanted because you didn’t offer Paypal. Now I have had customers NOT buy something because ALL I offered was Paypal. The Merchant Account is what people expect to find, any additional payment methods are just gravy.

Cyn

By: Cathy

Cathy — Thu, 31 Jul 2008 04:51:21 +0000

I dont know if I agree. I find that customers are loyal to “their” payment method. If you cut one payment option out, you might find you could lose 25% of your business. I am going to give Amazon checkout a try but it could be awhile before my shopping cart offers this option.

By: Sun

Sun — Wed, 30 Jul 2008 23:49:51 +0000

I only see benefit in offering additional payment methods. Its about removing the barriers between you and the customer, not adding barriers that reduce the possibility of a sale. If you’re teetering between the next fee discount tier and the current, it might make sense to exclude a specific payment option. I haven’t reached $100,000 a month on Paypal yet, but maybe some day. Until, I don’t mind spreading it out across various payment methods.

By: Charlie

Charlie — Wed, 30 Jul 2008 17:50:01 +0000

That is a point I had not considered. By having an incentive for all payments to be made through one service and ultimately receiving compensation for that through reduced fees you may be better off only using one payment processor.

Food for thought indeed!

Charlie