[Mike Dzurko]

Occasionally we are asked to accept Paypal as payment. To date, we haven't added because it is rarely asked for.  To add it will at the least require an investment of some time and effort. Don't know about fees. IF it would be of real benefit and increase sales, it is worth checking out. IF of no real benefit, then we'll allot our resources elsewhere. Thanks!

[Big Red Machine]

my 2 cents:  people come from all walks of life and offering all available payment methods accomodates most purchasers.  I have paid more to get the convenience of the method I wanted to use at that time than use the less expensive supplier.

[Mike Dzurko]

After thinking about it for a whole minute I added an additional category. It looks like it will add an avg. 3% to the cost of the sale. So, the question is, is it worth an additional 3% for you to purchase via. Paypal.

I realize that most people aren't going to choose this option. However, if we add Paypal and don't add an additional charge, that 3% will eventually be absorbed by all purchasers.

I appreciate ALL input   

[Eric]

I would look at it from an ROI perspective. Will the additional cost be worthy the return you will see. In otherwords, are there enough people requesting it to make the additional cost worthwhile over the long haul

[Mike Dzurko]

]

Mike, do you charge a fee when customers use a credit card?

No we don't. Probably 99% of our sales are via CC so that is factored into the price of the product. Very occasionally we'll have someone ask for a slight cash discount.  My concern is that Paypal is an additional level of cost above the CC charges already factored in.  

[woodsyi]

If you don't charge additional fee for CC, I don't see why anyone would insist on using Paypal.  If they want to do transactions on line, have them send you an e-check from their bank.  It takes a little time to clear but you won't be charged any fee and the customer can do it on line. 

[Mike Dzurko]

I would look at it from an ROI perspective. Will the additional cost be worthy the return you will see. In otherwords, are there enough people requesting it to make the additional cost worthwhile over the long haul

You're right. I don't think that many people realize that something like Paypal does increase costs, and those have to be paid somewhere. Maybe should have asked if it would be alright to raise ACI prices a couple % and accept paypal.

[CSI]

I use PayPal from time to time but not having it available didn't stop me from buying my Sapphire XL's. But I was a motivated buyer, like most of the ACI fans on this forum. PayPal might be a factor for those potential buyers who have a hard time making a decision. And I think there may be an additional psychological factor. Some audiophiles buy and sell gear frequently and carry a balance in their PP account. This balance tends to burn a hole in their pocket which could work to ACI's advantage (the $ is coming from the "hifi" account and not out of Mom's grocery budget). Why not try it and, if it is a success, raise the prices later to cover the costs? (easy for me to say, I've already got mine!).

[Mike Dzurko]

If you don't charge additional fee for CC, I don't see why anyone would insist on using Paypal.  If they want to do transactions on line, have them send you an e-check from their bank.  It takes a little time to clear but you won't be charged any fee and the customer can do it on line. 

The e-check is a great idea . . .  hadn't been mentioned before. Thanks!

[TomS]

]

Mike, do you charge a fee when customers use a credit card?

No we don't. Probably 99% of our sales are via CC so that is factored into the price of the product. Very occasionally we'll have someone ask for a slight cash discount.  My concern is that Paypal is an additional level of cost above the CC charges already factored in.  

Maybe this is obvious and I missed it, but is this charge really "doubled" up?

As a buyer in Paypal, I select the funding source - debit card, direct account transfer from bank account, paypal account, credit card, or possibly an e-check.  ~3% is deducted from the gross to the seller's account by PP, but who covers the cost of debit/credit as the funding source to PP itself?  I usually use my debit card to fund from my checking account and I didn't think that fact was even visible to the seller, much less an additional fee for the Visa folks.  Of course they get their $$ from somebody.

[bpape]

There is an additional $0.30 per transaction fee for Paypal.  The advantage is, that if you also use them for CC processing and do over $10k per month, you drop down to 2.2% for the PP and the CC stuff.  Over $100k drops to 1.9% for both.

The only other fee with them is IF you do the credit card processing with them, they charge $30 per month.  This is very reasonable compared out outside bank monthly fees, gateway fees, etc.

Bryan

[Mike Dzurko]

I use PayPal from time to time but not having it available didn't stop me from buying my Sapphire XL's. But I was a motivated buyer, like most of the ACI fans on this forum. PayPal might be a factor for those potential buyers who have a hard time making a decision. And I think there may be an additional psychological factor. Some audiophiles buy and sell gear frequently and carry a balance in their PP account. This balance tends to burn a hole in their pocket which could work to ACI's advantage (the $ is coming from the "hifi" account and not out of Mom's grocery budget). Why not try it and, if it is a success, raise the prices later to cover the costs? (easy for me to say, I've already got mine!).

Great points. Just last week someone PM'd me they were interested in purchasing and they had excess in their Paypal account. I answered back that we didn't have it but if it was a deal maker, let me know and I'd see what I could do. Didn't hear back. BUT, it did make me think  . . .

[Joe_K]

Would Paypal really cost more than a CC to you? I use Paypal a lot, but when I've ordered from ACI, I just used the Visa. Paypal could be a nice option for some, as mentioned, audio funds kept in a PP account. I would think PP would be a lot better than many of the other non-visa or non MC cards. The pump at the gas station must show 20 different cards, do people really use all of them?

Joe

[woodsyi]

You can always request the credit on your PP account to be transferred to your bank account for no charge.  I do at the earliest opportunity but then I don't sell very much.   

[Mike Dzurko]

I appreciate all the good input. One factor, we have built a very good relationship with our bank and our total package includes CC processing. It could get VERY complicated if we're re-negotiating our whole financial situation. So, that ain't gonna happen. I plan on doing some check w/ paypal and giving my banker a call soon to see what options we have. Keep the input coming, it is helpful!