Credit card processing rates and fees are complicated with lots of fine print. But one thing is for sure. You likely feel that you are paying much more than the “super low” advertised rate from your current provider.
This webinar discusses 7 common mistakes online businesses make when selecting a payment processor, along with tips on how to cut your costs.
Specifically we’ll discuss:
- Why the lowest advertised rate doesn’t mean the lowest cost to you
- How other hidden costs can eat into your profits
- How to choose the right payment processor for you
About the speaker
The webinar will be on air on July, 24th (Thursday), at 10am Pacific time/1pm Eastern time.
Questions and Answers
Q1: My issue with the paypal is the customer go back and ask for refund and paypal give to them.
A1: The better you understand PayPal’s buyer protection policy the better. Click on Legal at the bottom of paypal.com to find PayPal User Agreement. Read through Protection for Buyers. I know it’s frustrating for a buyer to come to PayPal for resolution and the policy is more designed to help against fraudulent type situations more than customer issues with the product or service delivered.
Q2: what are the reasons paypal will freeze the merchants account / funds?
A2: The risk, business model, commerical credit to business, and acceptable use policy are all contributing factors to why PayPal might hold funds. Typically, the information we have about the business is not coinciding with the activity in the account. Also, disputes and chargebacks can also play high role in deciding to hold money.
Q3: I was not able to get a Premium account so had to use Standard account, would it be advantageous to retry?
A3: Yes, wait at least 6 months and try to apply again.
Q4: We were told that PayPal Express would work without X-Payments. Is this true?
A4: PayPal Express Checkout will definitely work without X-Payments as all the credit card information is handled on the secure page provided by PayPal.
Q5: Does our standard PayPal account volume factor into our merchant discount?
A5: Yes – see user agreement on merchant rate.
Q6: Is PayPal Express PCI compliant?
Q6: Yes – PayPal hosts the Express flow on our servers and we do not share any financial information.
Q7: Does Express include Virtual Terminal?
A7: No – Virtual Terminal is an additional service that costs $30.00 or $35.00 CAD in Canada.
Q8: Do I need X-Payments to get virtual terminal?
A8: The Virtual Terminal and X-Payments are not connected in any way. So you can use the former without the latter. In the other words, The Virtual Terminal can be used with any ( or almost any?) PayPal payment method regardless of whether it requires X-Payments or not.
Q9: For online sales, does would there be a reason to use Pro at $35CND instaead of Advanced at $10CDN per month?
A9: PRO – gives you Virtual Terminal. Advanced is all “hosted” by PayPal and PCI compliance is simplified. – contact Consultation number for additional support.
Q10:If I use Paypal Payflo in X-cart pro version, allowing each provider to configure their own merchant account, how does the Paypal fees work?
A10: If each provider has his own merchant account, your merchant account is not required at all. The fees are to be paid by providers. However such a feature is not available by default, it requires a custom modification. Otherwise, all payments are sent to a single merchant account that belongs to an admin. You may also consider integration with “PayPal Mass Pay” and “PayPal Adaptive Payments” – they’re often used to develop the custom mod you’re speaking about, but please find out the rates – I’m not sure about them now.
Q11: Is this correct, if I am using Website payments pro on my existing site now, when I move to X-Cart I need to use X-Payments?
A11: Yes, PayPal Payments Pro (aka Website Payments Pro) involves credit card handling on the merchants side, so the use of an intermediary PA-DSS certified X-Payments software is required in order to maintain PCI-compliance. If you are from the US, you may also consider using PayPal Payments Advanced that lets you keep your customers on your checkout page while entering their credit card information just like PayPal Payments Pro. However it does not require the use of X-Payments because PayPal takes care of all the security itself.
Alexander Mulin Payments Sr. Product Manager at X-Cart, a Seller Labs company
Alex is Payments Sr. Product Manager at X-Cart, a Seller Labs company. His other two passions are ice hockey and history.