WorldPay vs. Paypal

studentdave

I need to introduce a way of customers buying online, (e-commerce services),

I've found two which are easy to set up my website, which are paypal and worldpay onto however I am unsure about which one works out cheaper

Can someone calculate which one takes less commission for transactions online, WorldPay or Paypal

nice 1 :rolleyes:

nickmack

It's not as straightforward as that, as you probably know, hence why you haven't worked it out yourself!

It depends on the volumes you're doing, the selling prices, the expected proportion of customers paying by Credit Card.

As a very rough guide:

-PayPal is usually cheaper, but doesn't provide the same levels of protection as WorldPay can.
-WorldPay can be expensive for Credit Card transactions, but cheap for Debit Cards.
-PayPal is probably better for smaller turnovers <£55,000, but above this and you should be able to negociate a better merchant rate with WorldPay.
-Some might consider WorldPay to be a more 'professional' solution than PayPal.


WORLDPAY
One Off Charges
Setup Fee: £250
Currency Setup: £50

Recurring Charges
Annual Fee: £360 (£30/month)

Per Transaction Charges:
Credit Cards: 4.5%
UK Debit Cards: 50p

Other charges:
Remittance in GBP to UK bank accounts: 35p

PAYPAL
Per Transaction Charges:
Fees from 3.4%+£0.20 - 1.9%+£0.20

Phantom_Flan_Flinger

If you go for Paypal, I think you put your buyers in the position where they will have to open an account with them, which might put them off as they might not wish to. Someone feel free to correct me if I'm wrong here.

With WorldPay, they'll just pay for the product and that's it.

tryingtosave_3

I have no idea about costs, and whilst it wouldn't put me off using a site, paypal to me is most associated with ebay etc. and sites likely to be a hobby / sideline. Massive generalisations I'm sure, but just my impressions. If the costs were comparable / not much in it, I'd opt for worldpay just to give your site a little more gravitas ...

As I said though, it wouldn't put me off purchasing something - by the time you're at the "ready to pay" stage, the decision is pretty much made.

I'm not sure you need to set up an account for paypal any more - I'm sure there is a way just to make a one off payment. But if accounts are needed, I agree that it might put people off.

fsck

Paypal can set up merchant services to allow your customers to pay via credit/debit card without first creating an account. See here. You have to jump through the hoops to get yourself set up as a premiere account holder (free, and fairly easy) before you can use this service.

5limJim

fsck wrote:

Paypal can set up merchant services to allow your customers to pay via credit/debit card without first creating an account. See here. You have to jump through the hoops to get yourself set up as a premiere account holder (free, and fairly easy) before you can use this service.

I've just mentioned another alternative on another thread, nochex.com (or maybe its .co.uk) seem to have better transaction rates than paypal, not sure about worldpay though, plus your customers wouldnt need to sign up I think they can run as a merchant for you also... anything to save the pennies I say!

Bob63

Why not give customers a choice and offer both?

Just a word of warning. With Worldpay (and indeed any other card based transaction) it will be you the merchant that is fully liable for any fraudulent transaction. So you can sell something to a customer, get a card authorisation number from the card merchant services company yet still have the whole payment clawed back from you if it turns out that the card was stolen/misused. And clawback can happen up to 3 months later! I don't know what services you are selling, but merchants selling goods that are readily converted into cash e.g. jewellery, CDs, DVDs get hit very heavily by cardholder not present fraud especially since the introduction of chip & pin.

I'm not sure what happens with PayPal payments but I suspect that it might be exactly the same issue.

Mike

nickmack

tryingtosave wrote:

I have no idea about costs, and whilst it wouldn't put me off using a site, paypal to me is most associated with ebay etc. and sites likely to be a hobby / sideline. Massive generalisations I'm sure, but just my impressions. If the costs were comparable / not much in it, I'd opt for worldpay just to give your site a little more gravitas ...

You wouldn't be the only person who thinks that. Since PayPal is now owned by eBay, the association is real. They are however trying to promote it as a valid ePayment merchant system, hence why you don't have to sign up now to make a payment to a PP account.

As I said though, it wouldn't put me off purchasing something - by the time you're at the "ready to pay" stage, the decision is pretty much made.

I'd be careful about this. Which payment method is used is important on the net. You may get taken in by a fancy website, professionally presented. You may really want what they claim to be selling. You're convinced.

You get to the payment page. No WorldPay, no NoChex, no PayPal, but their own 'secure payment system'. You put in your Credit Card details and next week, you have several large transactions taken from your account. This has happened and will happen again!

Phantom_Flan_Flinger

Thanks for clearing up the issue with having to get a Paypal account.

nickmack wrote:

You wouldn't be the only person who thinks that. Since PayPal is now owned by eBay, the association is real.

Which used to annoy me a bit when Ebay charge you once and then effectively charge you again when using Paypal. That's a different issue though.

thegateway

WP might be good option if you can afford their high charges which are expensive I believe. Another good option here I find chronopay, they're stable and reliable processor suitable for the merchant based in European countries.

5limJim

thegateway wrote:

WP might be good option if you can afford their high charges which are expensive I believe. Another good option here I find chronopay, they're stable and reliable processor suitable for the merchant based in European countries.

chronopay are good from a buyers point of view, have just recently used them for a couple of european purchase. Couple of good security features in there as well. Not sure what they're like for a seller though.