Have you ever wondered how Internet payment processors that don’t charge any monthly fees make money?
I’m fed up with companies like PayPal that taint the e-commerce industry by ‘deceiving’ their customers into thinking that their services come for free when in fact they do not. They market themselves as the providers of a free account as they do not charge any monthly fees. You would ask me if they do not charge monthly fees & if it is free then what is the problem? The problem lies with the fact that there is no monthly fees but there are other fees which are much higher. If you look closely you would find that these companies charge you fees for everything that you do with your account. For instance, you wish to sell things over the Internet letting people use only PayPal account.
These so called free services end up hurting legitimate Internet businesses far more than they help them. It is true they don’t charge any monthly fees however what they are not telling you is that they decline a whopping 25% of all credit worthy transactions sent their way. Just imagine how loosing 1 out of every 4 sales would hurt your business.
On top of this Not to mention the fact that those companies also hold their customers money for days on end and also charge a much higher percentage on each sale. Many new start up companies fail because of those lost sales, lack of automatic deposits and higher per item charges. It’s a shame when Internet business owners think they are getting a good deal when in fact they are not. Don’t give up all those sales and automated deposits just to save around a dollar a day.
Having taken care of all other factors contributing to successful selling, to suffer a handicap at the actual point of transaction would mean ‘penny wise, pound foolish’! Many new start up companies fail because of lost sales, lack of automatic deposits and higher charges per item. It’s deplorable when Internet business owners think they are getting a good deal when in fact they are not.