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#1
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Auction Houses that accept PayPal and/or credit cards
Why don't all auction houses accept PayPal and/or credit cards? I know it's the fees, but isn't that just one of the costs of doing business?
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#2
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When accepting CC there are many more fees than you would think. I looked into it a couple years ago and you need to buy the CC machine and choose a provider to process the payments that also charge a yearly fee. All that is on top of the per transaction fees. Then it also depends on the provider what CC/Debit cards you can accept. For me it was too much of a pain in the a$$ to do for the few customers it would add.
The auction house would have to raise buyer/seller premiums to make up the difference. I know in the state I live in you can not add the CC/paypal fees to the purchase because it is illegal. Most get around this by raising prices and giving a discount for cash. |
#3
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How is giving a discount for other forms of payment besides PayPal/cc any different than raising the price for accepting PayPal/cc?
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#4
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In reality there is no difference but it makes it legal. There are a few places around here that only accept a CC if you spend over $20. Most hate it but as a business owner I understand, those small purchases will kill your profit margin after CC fees.
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#5
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Paypal or CC charge about 3% to take their service. In my small auction company we only charge a total of 12.5% fees. If we took those payment options it would take up to 25% of our profit. That is the main reason we don't take it. The other is charge backs.....That/they would really suck.
As someone who took credit cards for the last 9 yrs, to the tune of about 700k per year in cc's, I can tell you that those services rape you and they suck bad to deal with. As a consumer I love them...but as a merchant, no way. If I was in a business that had to take them I would......but did I mention I hate Merchant Services (the cc part of companies)....?
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Leon Luckey |
#6
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Understandable Leon. What if you could raise the BP to 16% for PayPal/cc customers, and keep it at 12.5 for check/money order customers? Or is the hassle (chargebacks, etc) just too much?
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#7
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CC companies generally prohibit this discrimination. However, what I find it funny is that my card works just fine when I tell them that's all I have and start to walk out.
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Tackling the Monster T206 = 213/524 HOFs = 13/76 SLers = 33/48 Horizontals = 6/6 ALWAYS looking for T206 with back damage. |
#8
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That is because the person behind the counter is being nice to you. They are just an employee and losing money on your small purchase means nothing to them.
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#9
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Leon - I believe you about the low margins. My father-in-law's friend used to a gas station and hated it with a passion.
Sent from my iPhone using Tapatalk
__________________
Tackling the Monster T206 = 213/524 HOFs = 13/76 SLers = 33/48 Horizontals = 6/6 ALWAYS looking for T206 with back damage. |
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