Friday, March 16, 2012

PayPal Here could be a game changing for banks and credit card companies in Australia

I just read on the internet PayPal Here has been released by PayPal in Australia today. I’ve submitted a request for details from PayPal and look forward to their response.

PayPal Here is a device which is triangular shaped and plugs into the sound socket on an iPhone. It enables businesses to use PayPal services to process credit card transactions. For a business like mine where I provide computer support, that will provide a much needed additional payment method which is convenient and easy to use.

I’ve previously produced a document for clients with the issues of using PayPal, but for smaller and start-up businesses, PayPal is a low cost and easy to use service to handle PayPal and credit cards as payment options. I currently use PayPal on my site and it has generally worked very well, but there are some catches which I explain in the document.

On the Online Connections site I have a page where people can make a payment (www.OnlineConnections.com.au) which works well. Hundreds of people have made purchases using PayPal as the payment method for online purchases from my sites. I also provide a link for those interested in PayPal for Business on the main page of JustLocal (www.JustLocal.com.au). (NOTE: The PayPal link is a referral link so potentially a payment is received if this link is used.)

For me the new option of PayPal Here offers an exciting point-of-sale option which is very much needed.

The reason it is a game changer, is PayPal is relatively low cost and when I signed up, had no upfront set-up costs.

When I approached one bank for merchant services (the ability to accept credit cards) they wanted 7% of every purchase, around $40 a month for equipment/service costs and if I recall correctly, a couple of hundred dollars set-up fees. Even worse though, their terms and conditions prohibited me from using another service (which I wanted for overseas current transactions and they couldn’t provide) and should there be an issue, I’d have to commit to paying for legal costs, which to me meant an open chequebook for them to retain any legal services at my cost and to me that was a risk I wasn’t prepared take. PayPal does come with its own associated risks, so you need to make sure you make an informed decision.

I look forward to PayPal Here being made available in Australia and the opportunity to try out the service.

Kelvin Eldridge
www.OnlineConnections.com.au
Call 0415 910 703 for computer support.
Onsite services to Doncaster/Templestowe/Eltham and the surrounding area.
Support available independent of location if onsite support not required.  

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