Paypal getting too expensive....

I have been getting quite a few orders of late with Christmas coming round again fast, but I have looked at what we are giving Paypal for these orders, it is quite frightening, and it soon adds up for the little they do for us.
You get charged when a person pays you for buying an item, about 4% then you get charged when they send you the money to your bank 5% and if your not careful you could soon find with the item posted your making a lot less than you think you do.
If you charge too much for your item to try to cover what Paypal take your going to not get orders.
We are looking into forming our own payment systems, and as soon as we can we will offer it to more shops so they are not ripped off like they are being now.
David
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www.Alternative4u.co.uk

Re : Paypal getting too expensive.

Yeah they are really sticking it to us recently with the charges, after reading this I just checked and it is almost 5% as you say.

I get it again on the back end because they have the worlds worst exchange rates if you are changing currencies at all.

They are simple to set up and a recognized reliable payment system, I would love to not get screwed by them, but if I didn't offer them I would be afraid of losing sales.
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My Funny T-Shirt Gallery - Chasing Carrots Blog

Re : Paypal getting too expensive.

Yes as you rightly say there are other groups we could use for taking our payments, but few are known to our patrons as Paypal are.
We are held hostage, but the problem is Pay Pal know it, so costs will keep going up till they kill the firm off.
Then after Pay Pal are gone we will need to use another, but no matter what happens we wont be with W/U
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www.Alternative4u.co.uk

Re : Paypal getting too expensive.

Absolutely right.

A friend of mine has paid nearly a thousand pounds to paypal this year through these charges that really do mount up whether you are taking small or large transactions.

You would think that this means they are running a really successful business, but actually it is just selling a few of a relatively expensive product: paypal take virtually all the margin on the product. Unfortunately because they have a near monopoly they can do what they like, but their charges really are excessive for what they do.

I would imagine the market is ripe for some new player to come in and undercut the charges, but it doesn't seem anyone is willing...