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> But, if you're comparing to Stripe I think it's fair to show the fee differences for straight credit card payments. The only thing that matters is the bottom
by nickjj 5y ago
> But, if you're comparing to Stripe I think it's fair to show the fee differences for straight credit card payments.
The only thing that matters is the bottom line for end customers. They either pay by credit card or PayPal (I know there's Apple Pay and crypto too, but let's ignore those for now).
If the customer uses a credit card they don't care if Stripe or PayPal processes it. They just want to enter in their credit card and be done with it.
Most businesses will be using Stripe's credit card forms for that because it lets you embed the form into their page so the customer doesn't need to leave. Stripe's API is also a billion times better than PayPal's so I can't imagine anyone will realistically want to use PayPal's API directly to embed a credit / debit form (assuming this is even an option).
However when folks want to pay using PayPal, there is only 1 option of using PayPal with their associated email address. There's no escaping this price increase short of dropping all support for PayPal, which is going to be a very big net loss from loss of sales from anyone who doesn't have a credit or debit card.
So yes, this is a direct price increase to continue using PayPal and it's unrelated to Stripe also supporting credit cards.
- tyingq 5y agoYes, I understand how Paypal works. But again, if you're a new online seller, you also want to know what different places charge for a straight credit card payment. Stripe is nice, but people do use different providers. "I can't imagine anyone will realistically want to use PayPal's API directly to embed a credit / debit form (assuming this is even an option)." Yes, it very much is an option, used by many. They call it "Paypal Business". I think that's the part you're not understanding. You can integrate Paypal as a credit card processor without the end users knowing it's paypal during the purchase. They don't need a paypal account.
- nickjj 5y ago> You can integrate Paypal as a credit card processor without the end users knowing it's paypal during the purchase. They don't need a paypal account. Do you have a link to their API documentation on using this? Every search around this leads to their hosted checkout page which lets you pick between PayPal or a credit card or the legacy "Payments Pro" option which is no longer recommended to use and technically labeled as unable to sign up for unless you're a pre-existing user. I have a PayPal business account btw. > used by many. A ton of folks are using Stripe too, and this PayPal notification is coming out barely 6 weeks before the change in rates. If you wanted to use their new CC rates it would mean switching your entire billing system over from Stripe to PayPal for accepting credit cards. Plus there's a ton of 3rd party services that offer SAAS apps around handling billing for you through credit card or PayPal and almost all of them use Stripe for credit cards. This makes switching to PayPal's direct CC payment not an option for many, which translates to a price increase for using PayPal.
- tyingq 5y ago> Do you have a link to their API documentation on using this? Sure... https://developer.paypal.com/docs/business/checkout/advanced-card-payments/ https://developer.paypal.com/docs/business/checkout/advanced...