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Monday, January 12, 2009

What Is The Best Payment Gateway For Small Start-up Websites?

I always recommend ecommerce websites that need more than Google Checkout or Paypal to go with Authorize.net. Their fees are actually pretty competitive compared to most non peer-to-peer solutions like Paypal.

If you are unhappy with the fees I would say go with Paypal or Google Checkout as these are probably the easiest to implement non-merchant account based solutions available.

In order to remain in operation, you have to build up a certain level of trust with your customers while keeping your payment processing costs to a minimum. In this respect, both PayPal and Google Checkout should offer you what you need; the setup for both is relatively simple and the fees are competitive. Both carry a certain trust factor with the consumer, and Pay Pal offers the buyer added protections. In addition, the customer does not have to have a PayPal account to pay for their purchase by credit card, and you get your money instantly.

If your sales are less than say 3k a month .... then gateway fees, etc. can be high with a vendor like Authorize.net or PayQuake.com. Otherwise .... Authorize.net is a viable option.

What I suggest is a shopping cart with Paypal and 2Checkout.

Why two? Some people love paypal, some hate it. Personally I would think you'd rather get the sale even if the per transaction fee is higher than what paypal charges.

Now, if your hosting service offers something called "fantasico", something you probobly might have passed by when you hosted with them, then you have two shopping carts. You can click a few buttons and the cart could be on your website. I think it's Zen Cart and ? OsCart, don't hold me to it, but there are two you can choose from.

Which shopping cart you choose really depends on what you want, what you are capable of doing yourself, OR can pay to have done.

Remember ..... if you pay for a shopping cart, make sure that it integrates with an auto responder system. This way when someone buys what you have, they automatically get put on an email list you've designated.

5 comments:

wombeat said...

Great post (and very timely for us).

Can you shed some more light on this: "Remember ..... if you pay for a shopping cart, make sure that it integrates with an auto responder system. This way when someone buys what you have, they automatically get put on an email list you've designated."

Reg- Dotcom-Productions said...

I have used both PayPal and 2CheckOut for several years now and am completely satisfied. If sales on any one site were to pass the $3000 a month line on a regular basis I would think about going with authorize.net.

Good info Michael.

www.DotCom-Productions.com

LeashesandLovers said...

I do go through Authorize.net which has it's fee along with Heartland that charges a fee. Since I'm not earning 3000k a month, should I discontinue and go with a shopping cart?

Troy said...

The best gateway service that I have found for my website is http://www.merchantguy.com. They are very nice and don't give you a 1-800-GOOD-LUCK number for support. I was tired of getting crazy high fees do to having a small business. MerchantGuy gave me great rates and great service. They rock.

Priyanka said...

Nice post!

We at DeskAway are using 2checkout and are happy with their service and support.

http://www.deskaway.com