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PayPal vs Authorize.net for ecommerce store?

Discussion in 'PayPal' started by nbsp, Feb 21, 2007.

  1. #1
    I'm starting a new online store. What is the better way to go... PayPal or Authorize.net?

    What are the fee differences?
    How will shopper conversions be affected either way?

    With PayPal... is Wesite Payments Standard good enough? (My understanding is that the shopper will be transferred to the PayPal site for checkout)
    Or is Websites Payment Pro ($$$) the way to go? (Isn't this completely transparent to the user... like Authorize.net?)

    (looking for some advice from experienced users)
     
    nbsp, Feb 21, 2007 IP
  2. bccruzer

    bccruzer Peon

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    #2
    for a new store, go with paypal. you are not sure if you will make enough to support a gateway.
    go for standard. You neeed to be experienced with API's and have a merchant account already for merchant pro. and if you have a merchant account, why bother use paypal? I am speaking specifically for your situation, there are advantages to merchant pro
     
    bccruzer, Feb 21, 2007 IP
  3. nbsp

    nbsp Peon

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    #3
    Thanks bccruzer for the info.

    You're right, I don't know if I'll make enough money to support a gateway. I'm hopeful though!

    I believe my shopping cart, X-Cart, supports PayPal standard and Pro. So hopefully the API integration is already complete.

    I looked further into the Payment Pro setup offered by PayPal... and it states that they the merchant account is "supplied".
     
    nbsp, Feb 21, 2007 IP
  4. jestep

    jestep Prominent Member Premium Member

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    #4
    Authorize.net is a payment gateway and paypal is a 3rd party processor, so you're comparing apples and oranges if you're trying to do it head-to-head.

    Assuming that you are referring to setting up a traditional merchant account with authorize.net and comparing it to using paypal. For starting out, paypal makes a great choice, but once your business grows, you will probably find that you want a traditional merchant account.

    Here's a great article comparing 3rd party processors and traditional merchant accounts.
    http://www.merchant-account-services.org/article/merchant-accounts-compared
     
    jestep, Feb 21, 2007 IP
  5. nbsp

    nbsp Peon

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    #5
    Excellent resource... I rated it a 10. Highly recommended reading.
     
    nbsp, Feb 21, 2007 IP
  6. bccruzer

    bccruzer Peon

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    #6
    merchant account is supplied? hey, maybe I should switch
     
    bccruzer, Feb 21, 2007 IP
  7. sm500

    sm500 Active Member

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    #7
    Jestep,

    That's a terrific article. Didn't know much of that stuff...

    Thanks!
     
    sm500, Feb 21, 2007 IP
  8. jestep

    jestep Prominent Member Premium Member

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    #8
    I cant take credit for that one, but I'm sure that stymiee appreciates the praise. The merchant-account-services.org blog is his.

    Check out his other articles if you are interested in some other related topics. He puts a lot of work in every one of them.
     
    jestep, Feb 22, 2007 IP
  9. Corey Bryant

    Corey Bryant Texan at Heart

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    #9
    Payflow is owned by Paypal so you can always consider that as well. For some, people think it is more expensive, but if you have a lot of transactions, it will work out to your benefit since most gateways are going to charge you for a transaction fee as well as the merchant account provider. And then some gateways don't even bother to charge a transaction fee at all.

    If you are worried about downtime and want a gateway that some of the larger corporations use, Cybersource is an option as well.
     
    Corey Bryant, Feb 23, 2007 IP
  10. shoaeeb

    shoaeeb Peon

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    #10
    So far PayPal is best as i used.
     
    shoaeeb, Jul 23, 2008 IP
  11. qwestcommunications

    qwestcommunications Peon

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    #11
    Hey guys, how do you upload paypal's credit card gateway API certificate to cubecart. I followed Paypal's instruction to the word, but I still get a message saying the certificate hasn't been found.

    At the moment I have the standard paypal gateway, meaning I can only accept paypal payments, but iIwant to accept credit card payments through paypal too.

    At the moment people complete credit card transactions, but money never comes through to my paypal acccout.
     
    qwestcommunications, Jul 24, 2008 IP
  12. dreaminjected

    dreaminjected Active Member

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    #12
    Authorize.net is a great payment gateway, the daily payouts is nice. You may want to look into 2co as it is not only a credit card processor, but it also gives the user the option to pay with Paypal.

    It would be nice to see Authorize implement Paypal in the system, but for now if you need both options, give 2checkout a look.
     
    dreaminjected, Jan 8, 2009 IP
  13. MagikLair

    MagikLair Guest

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    #13
    If your just starting then paypal should work just fine. It all depends on the dollar amount you are processing.. I like having a merchant account, they do a direct deposit to your bank account once the order has been successively settled. There are a number of other benefits with a merchant account over paypal. (It's the same thing as authorize.net)
    Regards,
    Brian
     
    MagikLair, Jan 8, 2009 IP
  14. indyguidedotinfo

    indyguidedotinfo Well-Known Member

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    #14
    i use both authorize and paypal. paypal is cool cuz you can get instant payouts with the credit card. and authorize is cool because it makes you look more professional.

    2co sucks balls!. . who the Heck wants to wait 2 weeks to get paid
    authorize is only 36 hours at the most
     
    indyguidedotinfo, Jan 8, 2009 IP
  15. tan19852

    tan19852 Peon

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    #15
    use paypal.more common
     
    tan19852, Jan 8, 2009 IP
  16. Josh Rossdale

    Josh Rossdale Peon

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    #16
    PayPal Standard is the best way to go because it has no monthly fee. If you find that you have an extremely large volume of sales, you can upgrade PayPal to Payments Pro or Payflow Gateway.
     
    Josh Rossdale, Jan 8, 2009 IP
  17. jestep

    jestep Prominent Member Premium Member

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    #17
    Just look at all of the Paypal hate / poor support rants in this forum. There's good reason that it's not difficult to compete with paypal. Their support is terrible. Their risk management is even worse. There's always something to be said of the cheapest out there, but in the end you get what you pay for. When your business's future is relying on a company that freezes money and sometimes permanently bans businesses for no reason, but doesn't give any decent channel for support, you're playing a dangerous game.

    I use paypal all the time. I think they have some great programs, and are a great entry point to get into accepting payments. However, as a business owner, I couldn't even entertain the idea of only using them for accepting payment.
     
    jestep, Jan 8, 2009 IP
  18. plaloma3d

    plaloma3d Peon

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    #18
    for a new store, go with paypal
    It easy and good
     
    plaloma3d, Jan 8, 2009 IP
  19. sampathsl

    sampathsl Guest

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    #19
    One great advantage of authorize.net is its easy and fast to withdraw money. Its a hassle free solution for intangible items.
     
    sampathsl, Jan 9, 2009 IP
  20. user2011

    user2011 Peon

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    #20
    PayPal can ban your business with no reason!!! It's awful!!! Authorize.net is more professional and supportive.
     
    user2011, Dec 9, 2011 IP