As of August, 2009 we are no longer using Paypal as a form of payment. Paypal has insitituted a mandatory "Rolling Reserve" on all merchant accounts. This rolling reserve on average is a deduction of 10% of all your incoming payments which is frozen for 60 days on most merchant accounts.
In the past, we offered PayPal as an alternative form of payment simply as a courtesy, even though they were more expensive to us than our merchant account is. Because of the rolling reserve requirement which would take 10% of your payment to us and freeze it for 60 days we believe this is an unacceptable business practice and is also detrimental to our business which offers our customers low prices to begin with. We can see this type of practice on accounts that have excessive frauds or chargebacks but we have neither and in fact, have never had a chargeback or fraud or customer complaint. They have made this process mandatory on anyone that does merchant processing through them.
You can pay for services with us just as easy and just as securely using our merchant credit card account either online or by phone. We accept all major credit cards and debit cards for payment. Your online payment is secure and is in fact just as or more secure than Paypal. We actually believe it to be more secure since they are a third party processor and when you pay us directly we are directly responsible to insure the security and safety of your purchase.
Are you using Paypal as a method to collect payments from your customers? Or are you interested in having a method to accept credit cards for payment for services or products? Perhaps you would be interested in having your own merchant account that unlike Paypal does not take 10% of all of your incoming payments and hold it in reserve for 60 days. Your own merchant account that is low in cost ($10 a month) has no monthly minimums, deposits your money quickly into your account and requires no contractual commitment. (Most require a 1 or 2 or more year commitment with hefty penalties if you close it early).
If you are interested in having your own merchant account as outlined above, we have partnered with the company we use for our credit card processing to offer our own customers an excellent deal with a free online gateway for credit card processing. For details, visit this link.
Monday, August 10, 2009
