Not Accepting PayPal and Credit Cards – #2 in a 5-part series.
Trying to run an eBay business without taking PayPal is a prescription for disaster.
Despite the success of PayPal –over 75% of all eBay users have a PayPal account; I still see auctions every day where the seller says in big bold letters: I DON’T TAKE PAYPAL.
Thousands of bidders worry about Internet fraud. Several studies by eBay and Yahoo have positively concluded that accepting PayPal and/or credit cards will increase your sales anywhere from 100% to 300%. This is even more true on web site sales, where accepting credit cards can boost sales over 500%!
Whenever I see an auction that says “Cash, money order or certified check only,” that is a big red flag with me. Contrary to what the media would have you believe, fraud is an extremely tiny percentage of the transactions on eBay, but the vast majority of fradulent transactions were by sellers who do not take PayPal or Credit Cards.
Setting up a merchant credit card account can cost between $195 to $425 in set-up fees and anywhere from 2.5% to 7.5% per transaction.
Fortunately, Paypal offers an elegant solution (www.paypal.com). There are no set-up fees and transaction costs are 2.9% (+30-cents) or less. Here is an important tip: PayPal will accept credit cards from people who don’t have PayPal accounts.
In your auction, place a line of text above the PayPal logo that says: “To pay with a credit card, click on the PayPal logo below.” Do the same in your email to winning bidders. Use a statement such as: “If you would like to pay by credit card, click on the link below to pay securely using Paypal.” Then place your PayPal referral link after your signature.
If you have a web site (most successful auction sellers do), instead of setting up a merchant credit card account, you can now use PayPal’s WebAccept to take credit card orders on your web site. Connect to PayPal’s “Web Tools” link, and type in the product, pricing and shipping info. Then copy/paste the html code onto your web page. You now have a credit card shopping cart for each individual product. PayPal even has a free shopping cart that works with most popular website systems including Yahoo stores.