Australian Social Media Marketing Network

PayPal Here Best Low Volume Credit Card Payments Technology [Staff Review]

There’s a tough battle underway in the world of mobile payment technology and revolutionary credit card payment handsets. PayPal is promoting the PayPal Here service in Australia and Social Media Business Boosters took time to advise some of our network on mobile payment technology as the digital specialists.

Unlike with many credit card processors, anyone can use PayPal. You don’t need to apply for a merchant account, wait for a credit check or complete any complicated paperwork to open an account.

On the topic of surcharges, which can be quite high, you can view it as a trade off for not having to deal in reconciling direct bank transfers. It is a convenience option for a client who maybe is ordering an app on the spot for example.

PayPal Here app on an iPhone 6

PayPal Here app on an iPhone 6

Some PayPal Here fees include the following:

  • $30 per month for a virtual terminal that lets you turn computers into credit card terminals and accept payments by phone
  • $30 per month for recurring payments
  • 3.5 percent transaction fee for American Express payments on PayPal Payments Pro, PayPal Payments Advanced and virtual terminal transactions (compared to the 2.9 percent plus 30 cents using the basic PayPal plan)
  • $20 per month plus 5 cents per transaction for advanced fraud management
  • $19.95 per month (plus a $29.95 setup fee) for account monitoring
  • $20 chargeback fee
  • 30 cents per uncaptured authorization (when a credit card is authorized, but the purchase is not complete) on PayPal Payments Pro
  • 30-cent refund fee for domestic transactions

Other downsides we found is that the PayPal Here terminal is reliant on your mobile data connection. And you also have to wait to transfer to your bank account from the Paypal account.

As a business with low-volume sales, these additional charges likely won’t matter to you. But if you plan on increasing your profits and expanding your business, these costs will quickly add up — you may outgrow PayPal and eventually seek a more budget-friendly service. It might then make more sense to get a portable eftpos unit from CBA that runs on data. The credit card fees are lower than Paypal however there is an approximate $20 monthly charge and other associated charges. CBA will give you same day settlement and direct bank transfer may also be quicker.

Competition has been slow to arrive, however is coming with Apple Pay offering their own secure mobile payment service. Apple’s payment service will be accepted at over one million locations, but is yet to receive an Australian launch date.

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