[Foundation-l] Alternative to paypal

Ilario Valdelli valdelli at gmail.com
Sun Aug 12 19:08:46 UTC 2007

> When you accept credit cards, a percentage goes to VISA, Mastercard, etc.,
> another percentage to your merchant account provider. How's that different
> from Paypal/eBay taking a cut?
It's more complicated.

In any transaction in e-commerce we have three levels:

1.the PSP (who manage the e-commerce platform)
2.the acquirer (generally connected directly to one bank)
3.the credit card

American Express and some other credit card are also acquirer and for 
this reason they seems to be more expensive.

In these levels we have some charges fee:

1.the PSP generally applies a fee for a transaction (if you make a 
transaction of 1,00,000 euros of a transaction of 1 euro the fee is the 
same) this fee is normally 0.3-0.4 cts (some PSPs are very expensive and 
apply also a percentage fee normally 0,5% on amount)
2.the acquirer applies a a percentage that depends on credit card, 
normally 2%

This numbers can change because the PSP can have a direct access to the 
transaction databases or the acquirer make available you money quickly.

Paypal or moneybookers seems to be PSPs. Onestly I don't know the fee 
that they apply, in any case if the total of fee is more than 2,5% is a 
very bad solution.

> Either way, the question that should drive our decision regarding available
> payment methods is fairly simple: what methods do a significant number of
> donors (or a few donors with donations of a significant amount) prefer? If
> it's Paypal, that's what we ought to have. If it's checks, money orders,
> wires, debit transfers, credit cards, debit cards, Moneybookers, gift cards,
> etc. then we ought to offer those too.
The credit card has a limit, in any case for X.000 euros the best way is 
the credit card.


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