payment method

easyhostmedia said:
yes, but as Paypal was, has and still is the only payment method allowed by ebay, then without ebay it would never be popular
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What does that have to do with this thread? Am I missing the point you are trying to make? Are you trying to tell us that PayPal is not a popular method of payment in the web hosting business? Are you saying that it is ? What is it?
 
Artashes said:
What does that have to do with this thread? Am I missing the point you are trying to make? Are you trying to tell us that PayPal is not a popular method of payment in the web hosting business? Are you saying that it is ? What is it?
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no paypal is popular in the hosting industry and in general due to its association with ebay which is the most popular auction site.

When Paypal started in 1998, they struggled to gain business, so in 2002 they floated the company on the stock market and then later that year Ebay bought then out and made it the sole payment option for ebay sellers and buyers, so that buying or selling on ebay you could only use paypal for the transactions. It was only then Paypal started to be used for other online transactions and within 12 months paypal become the most popular payment method due to people having paypal accounts and ebay accounts.
If it was not for ebay then paypal would not be as popular as it is today and not the most popular payment method in the web hosting industry
 
We use Paypal a secondary payment processor, it's quite a bit more expenseive than what our bank charges us. Our bank (in France) charges us €15 per month for using their system plus 0.4% per transaction for national cards and 0.6% for international cards + €0.15 fixed rate per transaction.

We allow our customer to choose between :

Credit Card (through our bank's web interface)
PayPal,
Bank transer,
Check,
SEPA direct debit

We have about 70% of payments by CC, 10% by PP, and the rest shared between other payment methods.
 
easyhostmedia said:
I agree i get my clients who pay over £20 a month to use Bank Transfer or Direct Debit.

As bank transfers only cost me 22p per transaction compared to Paypal at 3.4% plus 20p per transaction. and Direct Debits only cost me 1% to a Max. £2 GBP per transaction compared to Paypal at 3.4% plus 20p per transaction.

I have a client that was costing me in PP fees £7 a month, i got him to change to paying by Direct Debit and now it only costs £2.
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I'm going to assume you at least offered your clients the ability to stick with the method they're currently on? If I was your customer and you made me change my preferred billing method just so you can save £5 per month in fees, I would have cancelled.
 
Alex - A2hosting said:
I'm going to assume you at least offered your clients the ability to stick with the method they're currently on? If I was your customer and you made me change my preferred billing method just so you can save £5 per month in fees, I would have cancelled.
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clients are offered all methods to pay that we provide, but as our charges are passed onto clients then we suggest to our clients the best option for them to pay.

Paypal is good for small amounts, but is costly for large amounts.
 
easyhostmedia said:
but as our charges are passed onto clients
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Oh :crash:

Great if it works for you. You're the first host I am aware of actually doing that. Have you looked at your cart abandonment rates and testing what not charging fees does to your conversions?

Honestly, if I were you, I'd simply increase your package prices so they're taking into account your costs. An all-inclusive package would probably convert better than a package with fees (even if they work to be the same -- 'extra charges' just scares people away.
 
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Alex - A2hosting said:
Oh :crash:

Great if it works for you. You're the first host I am aware of actually doing that. Have you looked at your cart abandonment rates and testing what not charging fees does to your conversions?

Honestly, if I were you, I'd simply increase your package prices so they're taking into account your costs. An all-inclusive package would probably convert better than a package with fees (even if they work to be the same -- 'extra charges' just scares people away.
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Yes tested and i find no difference in conversion rates as the extra charges are not hidden.

and going back to what you stated in live chat. I am still tweeking the site
 
easyhostmedia said:
Yes tested and i find no difference in conversion rates as the extra charges are not hidden.

and going back to what you stated in live chat. I am still tweeking the site
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It isn't about the charges being hidden though. I once worked at a company and we tested this among other things (website order links including a promo or not, which billing cycle to link to, adding the fee vs adding it separately at the end etc).

When specifically doing the additional fee, the all inclusive pricing converted much better than adding it at the end. So a customer is more likely to purchase a $10 package than $7 + $3 in fees package. The additional fees just turns people away, no matter how well presented it is.

Of course, if you genuinely tested this and found this not to have any impact on your conversion rates then that is great, keep it or don't. Though the tests we ran most likely involved significantly more traffic than yours so might be worth taking into account.
 
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