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PayPal is an enormous percent of total sales at my company. We accept all sorts of other payments types. So we drop PayPal and then what exactly? Suffer the los

PayPal is an enormous percent of total sales at my company. We accept all sorts of other payments types. So we drop PayPal and then what exactly? Suffer the loss of customers?

kibwen 4y ago
If using Paypal imposes additional operational risk, it's entirely reasonable to charge users extra for using Paypal. Offer them lower prices for using a payment method that isn't 100% shite.
- mcv 4y ago
  This is indeed what I would do if I'd absolutely have to use PayPal. Customers can use it if they really want to, but they're the ones paying for the risk.
- themoonisachees 4y ago
  As a seller, you are going against paypal TOS if you charge a fee to use it, the same way a credit card carries the risk of chargebacks but you aren't alowed to charge a credit card fee. I agree that this would be an effective risk-management tactic (less the fact that the fee you charge to mitigate the risk still gets processed by the risk factor) but it would also worsen your chances of getting banned.
  - kibwen 4y ago
    Gas stations get around this by advertising the credit card price as the full price, and then offering you a discounted price for paying with cash.
    - hot_gril 4y ago
      Right, iirc the newer agreement is that they can't tack on a fee greater than the credit card fee.
marcosdumay 4y ago
I pay a few companies by PayPal. I even switch to competitors if they are very similar (reputational-wise too) and one accepts PayPal while the other requires my credit card; but that doesn't happen very often. The issue is that the credit card system is broken. PayPal is a bit less broken from the customer POV. (At least in my country, where if they just removed money from my bank account, I'd go to the police and somebody would likely be arrested - or rather, I'd report to my bank, confident they would go to the police.) I have no good solution to this either. Fixing the credit card system requires replacing credit cards, and the US will be an enemy of anybody that tries that.
- andrekandre 4y ago
  > The issue is that the credit card system is broken in what way, is it the fees?
  - slaymaker1907 4y ago
    For me, it's the extra security and convenience. If the website doesn't use Shopify/PayPal, I'm trusting them with my credit card information and who knows how good their database security is.
    - ashk811 4y ago
      A website will hardly roll their own payment processing tho. often,they dont store your cards, a third-party trustworthy processor like Stripe does.
      - marcosdumay 4y ago
        > trustworthy processor Trustworthy to whom? The customer doesn't even know who your card processor is.
  - marcosdumay 4y ago
    It's the total lack of security. With the automatic consequence that all kinds security theater get imposed, stripping people of all kinds of rights, and solving none of the problems. As a customer, I don't see the fees. But yes, by an eagle-eyes view the amount of inefficiency on the system is a problem too, as is the oligopolization. But those don't get in my mind when I make that kind of choice.
driverdan 4y ago
Have you tried promoting other methods such as standard credit card payments above PayPal? Have you AB tested removing PayPal? It could be a convenience but not a blocker.

PayPal is an enormous percent of total sales at my company. We accept all sorts of other payments types. So we drop PayPal and then what exactly? Suffer the loss of customers?

kibwen 4y ago

If using Paypal imposes additional operational risk, it's entirely reasonable to charge users extra for using Paypal. Offer them lower prices for using a payment method that isn't 100% shite.

mcv 4y ago
This is indeed what I would do if I'd absolutely have to use PayPal. Customers can use it if they really want to, but they're the ones paying for the risk.
themoonisachees 4y ago
As a seller, you are going against paypal TOS if you charge a fee to use it, the same way a credit card carries the risk of chargebacks but you aren't alowed to charge a credit card fee. I agree that this would be an effective risk-management tactic (less the fact that the fee you charge to mitigate the risk still gets processed by the risk factor) but it would also worsen your chances of getting banned.
- kibwen 4y ago
  Gas stations get around this by advertising the credit card price as the full price, and then offering you a discounted price for paying with cash.
  - hot_gril 4y ago
    Right, iirc the newer agreement is that they can't tack on a fee greater than the credit card fee.

marcosdumay 4y ago

I pay a few companies by PayPal. I even switch to competitors if they are very similar (reputational-wise too) and one accepts PayPal while the other requires my credit card; but that doesn't happen very often. The issue is that the credit card system is broken. PayPal is a bit less broken from the customer POV. (At least in my country, where if they just removed money from my bank account, I'd go to the police and somebody would likely be arrested - or rather, I'd report to my bank, confident they would go to the police.) I have no good solution to this either. Fixing the credit card system requires replacing credit cards, and the US will be an enemy of anybody that tries that.

andrekandre 4y ago
> The issue is that the credit card system is broken in what way, is it the fees?
- slaymaker1907 4y ago
  For me, it's the extra security and convenience. If the website doesn't use Shopify/PayPal, I'm trusting them with my credit card information and who knows how good their database security is.
  - ashk811 4y ago
    A website will hardly roll their own payment processing tho. often,they dont store your cards, a third-party trustworthy processor like Stripe does.
    - marcosdumay 4y ago
      > trustworthy processor Trustworthy to whom? The customer doesn't even know who your card processor is.
- marcosdumay 4y ago
  It's the total lack of security. With the automatic consequence that all kinds security theater get imposed, stripping people of all kinds of rights, and solving none of the problems. As a customer, I don't see the fees. But yes, by an eagle-eyes view the amount of inefficiency on the system is a problem too, as is the oligopolization. But those don't get in my mind when I make that kind of choice.

driverdan 4y ago

Have you tried promoting other methods such as standard credit card payments above PayPal? Have you AB tested removing PayPal? It could be a convenience but not a blocker.