Cancel VISA or Not - Use PayPal Instead?

[allanc]

I have to admit that VISA and the TD Bank here in Canada who processes my VISA and Amex transactions are getting my back up.
A bit of background ... I have a BlackBerry 9700 (no touch screen) and do not have an electronic terminal (I use my telephone and tone recognition).
Until about a year ago, I did not have a contract with them ... I had no choice but to sign up for three years or cancel my arrangement with them.
Then they introduced full disclosure in their rates and at the same time my monthly charge without any transactions went up a large percentage.

My understanding (although I might be wrong) is that I can cancel the contract within 30 days of notice of a rate increase.
I am looking at my monthly statement and they are advising of a change in certain interchange rates effective April, 2011.

I am seriously considering canceling the contract but need a replacement for VISA.
I currently also accept PayPal.
However, when I ask some of my clients if they would like to pay with VISA through PayPal, they have no idea what I am talking about.

So, here is the point of this thread.
How do your clients who do not currently use PayPal feel about this form of payment?
Are they concerned about using their credit card on the Internet?
Are they leary about an unknown method of payment?
Other comments?

 

[AdamsAPlus]

I use Paypal to accept all forms of credit cards. I don't always tell them that it's through paypal. Not that I'm keeping it from them.

But there are several different ways to take CCs through PP. You can put in the info in a website. (I use this on my Blackberry 9700 Bold) but can be a real pain. Not to mention I do see some customers look unconformable with me typing their cc number into my phone. I now have a guy working with me that I call and he takes the info over the phone (and then he puts it into the website)

But if you are on your own paypal offers a virtual phone number. You call that number and put in the info. I have not used this but it but know some customer would be more comfortable with this, over typing their number into your blackberry.

 

[MrUnknown]

I have recently started accepting PayPal from my clients that I trust enough to rely on them actually paying me. However, I don't tell them that they are paying through PayPal.

My instructions give them a URL to click, which goes to paypal and has their bill information already filled out. I tell them to click on the "Pay with Credit Card" button and enter their details. Recently a client had an objection to paying online due to "hackers", so they mailed me a check. I tell them I can not accept the credit card over the phone or in person (and I can't, PayPal will notice a bunch of credit card transactions from the same IP address as suspicious and freeze your account or something).

Thing is, buying online is so second nature nowadays. I don't really think you will have much, if any, concerns about it. Using your credit card number at Walmart is no much safer than using it at Amazon.com. If not safer. All credit card transactions go over the internet. Most scams that steal CC info is done using scanning devices on the actual card, not hacking servers. My Mom's CC has been stolen by hackers breaking into one of the computers that process the transactions and she doesn't even own a computer.

edit: maybe I am confused. My post is relating to sending people to the PayPal site to process your transaction. The Virtual Terminal doesn't let your customer know that you are using PayPal and there is no reason to tell them. Unless I am not informed properly, Virtual Terminal is a real merchant account and the transaction will not show "PAYPAL*YOURNAME" on their statement, but just "YOURNAME"

 

[BostonGeek1]

I think you've been mislead. You don't have a contract DIRECT with Visa, in fact you don't even have a contract 1 hop away. Its usually 2 hops away. You probably have a contract with a merchant processor, who really resells from a wholesaler of theirs, who then uses a clearing house, that is then transferred to Visa. Depending on how much volume you have you can dictate terms, but usually look for 2.1-2.3 cents per dollar fees, with 10-40/month in maintenance fees. If you're off that, I would look elsewhere.

 

[AdamsAPlus]

(and I can't, PayPal will notice a bunch of credit card transactions from the same IP address as suspicious and freeze your account or something).

I'm not sure where you heard this. I use a buy now button on my website to access paypal for people to pay me. I use this at the flea market every weekend and have taken many credit cards. I have never received a block or any warning. You can see what kind of button I'm talking about by looking at the bottom of my page at http://adams-a-plus.com/ContactUs.html (feel free to press it and fill out all the info to send me money if you would like)

I do not have any special terminal or anything.

 

[allanc]

I have recently started accepting PayPal from my clients that I trust enough to rely on them actually paying me. However, I don't tell them that they are paying through PayPal.

Thing is, buying online is so second nature nowadays. I don't really think you will have much, if any, concerns about it. Using your credit card number at Walmart is no much safer than using it at Amazon.com.

Within the past week I had two customers who did not know PayPal.
One was a senior citizen (about 85+) who had never heard of it.
The other was in his 50's and had heard the term 'PayPal' but had no idea what it was all about.

 

[allanc]

But if you are on your own paypal offers a virtual phone number. You call that number and put in the info. I have not used this but it but know some customer would be more comfortable with this, over typing their number into your blackberry.

Isn't there a minimum monthly fee for use of this service?

 

[allanc]

My instructions give them a URL to click, which goes to paypal and has their bill information already filled out. I tell them to click on the "Pay with Credit Card" button and enter their details.

And, the word 'PayPal' is not part of the URL or on any page associated with the transaction? No logo?

 

[allanc]

I think you've been mislead. You don't have a contract DIRECT with Visa, in fact you don't even have a contract 1 hop away. Its usually 2 hops away. You probably have a contract with a merchant processor, who really resells from a wholesaler of theirs, who then uses a clearing house, that is then transferred to Visa. Depending on how much volume you have you can dictate terms, but usually look for 2.1-2.3 cents per dollar fees, with 10-40/month in maintenance fees. If you're off that, I would look elsewhere.

You are correct ... I think that the contract is with the merchant processor.
Since I applied for the VISA vendor thru the TD Bank and they are also the processor, I have tied them together into one dirty bundle.

 

[PDXMicro]

Google Checkout + Square

Personally, I use google checkout (extremely nice), and square for people who would rather have me swipe the card instead of them putting it on the internet. Many people say that you can't use Google Checkout for a custom payment, but that is incorrect. You can look at my website and on the "Your Account" page I have proof of that. It was really not that hard to set up either. If you need more details, feel free to PM me

 

[allanc]

If you need more details, feel free to PM me

You've got Pmail (at Technibble).

 

[Appleby]

What about using something like SquareUp? I'm using it on my iPhone and love it. I've canceled my merchant account through my bank which was a call in, touch tone based system too.

As for Paypal, here is the thing I found a few years ago when I first got in the business....there are those people, even today, who are not comfortable using their credit/debit card online. It just blows their mind and they just "know" someone will steal their cc number because they saw a special on 60 Minutes about it.lol I was going to start out using Paypal until I got my merchant account setup when I first started and 2 out of my first 3 customers freaked out, said no way was their cc card number going online and they ended up paying cash. I was embarrassed and decided very quickly that would be the end of that for me. I'd do something more professional and something people were comfortable with.

Now when I plug in my Square card reader into my iPhone people are amazed at how it works and seem to have no safety concerns for some reason. They somehow don't associate my iPhone app with the internet I guess.lol

 

[allanc]

What about using something like SquareUp? I'm using it on my iPhone and love it. I've canceled my merchant account through my bank which was a call in, touch tone based system too.

They do not offer their services in Canada.

 

[Frank]

I use Inuit Online Terminal. But I'm probably going to switch to Inuit GoPayment. They're having a promotion where you get a free card reader and $0 monthly payments if you process $1000 or less per month. Otherwise, it's $12.95/month. Most of my business is done by check, so this should work out well for me.

 

[PR Tech]

We use SquareUp when onsite to take payments and VirtualTerminal through PayPal when taking cards at the shop. We have run 100s of credit cards without a single person asking us how it is done or who it is through. I am thinking it may possibly boil down to how the credit card setup looks. If you are swiping a credit card through a card reader, people seem to be Ok with it - no questions asked. If you are manually typing in the info, people squirm and look a bit uncomfortable. We have had to manually enter in cards a few times and each time the client didn't seem thrilled. I don't blame them at all. I would feel the same way if I handed a cashier at Target my credit card and the checker started hand typing in my info.

Virtual terminal is a bit pricier to use than using custom checkout buttons made via your PayPal account and added to your website. We use a credit card swiper that was "recommended" by PayPal and purchased from Dell.com. It is attached to the side of a monitor at our checkout desk. It has worked flawlessly to date. You just go to www.paypal.com/vt and login. Then enter the amount and type of transaction (we also add the invoice id as well). Swipe the card and we are done. Convenience = higher rates, apparently. Virtual Terminal is $30/month on top of the usual fees.

 

[MrUnknown]

I use Inuit Online Terminal. But I'm probably going to switch to Inuit GoPayment. They're having a promotion where you get a free card reader and $0 monthly payments if you process $1000 or less per month. Otherwise, it's $12.95/month. Most of my business is done by check, so this should work out well for me.

I am in love with SquareUp for simply existing and creating competition in the market. All those damn minimum fees and crap is retarded for simple businesses that really don't need it.

Thanks for the heads up about Intuit and their offering. I am looking into it also now.

 

[allanc]

I use Inuit Online Terminal. But I'm probably going to switch to Inuit GoPayment. They're having a promotion where you get a free card reader and $0 monthly payments if you process $1000 or less per month. Otherwise, it's $12.95/month. Most of my business is done by check, so this should work out well for me.

Thanks.
I will see if they offer this service in Canada.