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

Google

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
$30 at our website

$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

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