After selling a few items on eBay last week I was amazed to notice how much of my earnings went to PayPal fees. Ebay charged me for listing the items, for selling the items, and then Paypal charged me for accepting the money. I immediately started seeking cheaper alternatives to PayPal. A few weeks back I came across this article that bemoans the fact that Paypal adds fees without notice. Paypal began charging fees for “Goods and Services”. It is important to note that this applies only to business transactions, not personal transactions. The way the article was written I thought I must be missing out on some great discounted alternatives. So I went on a hunt to find a cheaper way for small business owners to accept payment for products.
Survey of Money Transaction Fees | Are there Comapnies that beat PayPal Fees?
Digital River – I looked around here for a few moments and quickly realized that it was a system that was too complex for my needs. So complex, in fact, that I could not find their fees.
I immediately stopped looking. Anyone who is not willing to publicly publish their fees is not for me.
In addition, ClickBank charges $1 per transaction. Therefore, on each sale ClickBank effectively keeps 7.5% plus $1. This takes place before affiliate commissions are paid out.
Are there cheaper alternatives to PayPal?
PayPal’s fees are not out of line with the industry standards. In fact, in many ways they are one of the cheaper alternatives. AlertPay is just a touch cheaper to receive funds, but only by $.05 per transaction. If, however, a person pays with credit card you will be paying 5% of the total instead of 2.5% with PayPal. If a person were just tired of PayPal or felt deceived by the fees, the only real alternative in terms of fees and scope would be Google Checkout.
The only free option available for business transaction is Revolution Money Exchange. The biggest disadvantage is that buyers would also need a Revolution Money Exchange account. Not many buyers will sign up for an account just so they can do business with you. If, however, Revolution Money Exchange appeals you can use the link below to sign up.
While we are talking about collecting fees I wanted to recommend E-Junkie. They offer you the choice to use many of the payment options above to sell products on your website. I use them when I sell products (eBooks) on this website. I have found their services cost effective and very efficient. Click on the button below for more details.
What company do you use for collecting payments? Would you recommend it? Am I missing a good alternative?
More Great Articles:
- Send Money or Transfer Money With These Fast Free Ways
- How to Make Sure it is Safe to Use Your Credit Card Online
 |
{ 2 comments… read them below or add one }
Personal Finance Buzz…
Your story was featured in Personal Finance Buzz! Please visit and promote your article….
BTW I love your blog!
Since paypal fees are so high and costumer service is poor I recommend being able to accept credit card payments yourself by opening your own merchant account, you can go to http://www.merchantisland.com it’s fast and easy to apply. I did it and got approved quickly and it was free! I was what they considered to be high risk because of my low credit score. I was amazed at how fast and easy I was able to get started. My business has taken off since I started accepting credit cards. Hope this helps. Good luck!
{ 2 trackbacks }