A brief comparison of Internet Payment Options
Recently, I had to research different online payment options. Out of the box options such as Paypal, Google and Amazon compared to be same except for some minor differences. However, there were some significant differences especially in the fee structure when we analyzed an independent Online merchant account.
|
|
Paypal |
|
Amazon |
Merchant Account1 |
|
Transaction Fees Per Transaction |
Monthly sales under $3,000 2.9% + $0.30. $3,000 – $9,999 2.5% + $0.30 $10,000 – $99,999 2.2% + $0.30 $100,000 or more 1.9% + $0.30 |
Same as Paypal |
Same as Paypal. 5% for <$10 transactions. |
2.19 + 0.35 (base) Volume determines pricing. |
|
Monthly Fee |
$0 at Paypal |
$0 |
$0 |
Monthly Fixed Fee: $307 |
|
Foreign Card (in addition to Transaction Fees above) |
+1% |
+1% |
+1% |
+1 to 1.3% |
|
Authorization – Reauthorization- Capture Time limit |
29 days |
7 days6
|
Time limit not specified.2 |
No time limit specified for Reauthorization and Capture. 3 |
|
Shipping Fees setup |
Yes |
Yes |
Yes |
Yes |
|
Tax Fees setup |
Yes |
Yes (No in built support for VAT) |
Yes (No in built Support for VAT) |
Yes |
|
Digital goods transactions |
Yes need coding |
Yes |
Yes needs coding |
Yes |
|
Coupons |
Yes need coding |
Yes |
Yes need coding |
Yes |
|
Gateway account |
Buyer can or cannot have paypal account5 |
Must have google checkout account |
Must have Amazon account |
NA |
|
Checkout at |
Paypal website |
Google Website |
Amazon Website |
Your Website |
1 Average price specified. Price varies among different merchants. Custom programming required.
2No option is given for Reauthorization.
3Reauthorization must be successful to capture funds fully.
5There are complaints that after 10 or more transactions with the same credit card, buyers are required to have Paypal account. Also, transactions from outside US at times are required to create a Paypal account. Even though, it is not explicitly written on the paypal website.
6Google gives unlimited time for authorization – reauthorization – capture cycle when their API is implemented with programming.
7Average Gateway Fees and Merchant Acct Fee
[…] paypal amzn google checkout vs creditcard http://www.codelathe.com/blog/index.php/2009/06/14/a-brief-comparison-of-internet-payment-options/ […]