You are running an online business, and
therefore you simply have no other choices but to accept credit card payments
online. Conventionally it has been hard work to set up what's known as an online
merchant account. The barriers to entry were set quite high including credit
check and a large application fee.
Fortunately competition in the market-place has simplified the process and now there are Online Credit Card Processing Services you can use for selling E-Product. Two very popular options are PayPal and ClickBank. Both are great choices.
* PayPal is reliable and easy to use
PayPal is reliable and extremely user-friendly. You choose PayPal mainly because of the following advantages.
1. PayPal allows you to sell your product through your website.
2. PayPal doesn't charge set-up or monthly fees.
3. PayPal charges very low transaction fees.
4. PayPal allows you to withdraw money instantly.
5. PayPal is convenient for many of your customers to make payment because they keep a balance on their own PayPal accounts.
Among PayPal's advantages, the one I like best is the instant fund withdraw - you don't have to wait to actually get the money you just earned into your own bank account.
Here's the three-step procedure of your sales and how PayPal plays its role in it. It's as simple as 1,2,3.
1. Your customer clicks "Buy Now" and is sent to PayPal's credit card processing page.
2. The customer fills in his/her credit card information there, submits the form, and is sent to your product page to download your product.
3. PayPal deposits the payment minus transaction fee in your PayPal account.
That's it! The entire sales procedure is so straightforward and requires only a few minutes to complete. PayPal is an excellent choice as your credit card processor, or probably the only choice if you also accept other currencies - Canadian Dollars, Euros, Pounds Sterling, or Japanese Yen.
Now let's talk about another popular credit card processing service - ClickBank. ClickBank also specializes in the type of online business that you are setting up.
There're two disadvantages of using ClickBank:
1. ClickBank charges $49.99 setup fee and 7.5% + $1 per sale, compared with PayPal's $0 setup fee and 2.9% + $0.30 per sale.
2. The sale to payment period is long, compared with PayPal's instant fund withdraw. With ClickBank you have to wait weeks to actually get the money you just earned into your own bank account.
Now the advantage...
- ClickBank gives you affiliate benefit
If you choose ClickBank as your credit card merchant then they will become your affiliate program partners, and will run the program for you so that you don't need to do administration work. That's the only advantage of using ClickBank, and it's a big advantage.
One of the ways you can increase your sales figures is to set up an affiliate program - let other people sell your product in return for commission. For ClickBank members this process is completely automatic using their referral tracking system. So the affiliate benefit ClickBank offers is hard to beat.
With ClickBank, you can also recruit new affiliates to promote your product. You'll find out the details about setting up ClickBank's affiliate program in the e-book "Cash Your Knowledge".
Setting up your ClickBank account is not hard at all except that you have to pay $49.99 to activate your account.
And your sales procedure with ClickBank is similar to yours with PayPal:
1. Your customer clicks "Buy it at ClickBank" and is sent to ClickBank's credit card processing page.
2. The customer fills in his/her credit card information there, makes the payment, and is sent to the "Thank You" page - your product page for downloading product.
3. ClickBanks deposits the payment minus transaction fee in your account.
The following is a quick comparison between PayPal and ClickBank:
* Set Up Fee - 0 - versus $49.99
* Transaction Fee - 2.9% + $0.30 - versus 7.5% + $1
* Fund Withdraw - Instant - versus Slow
* Affiliate Benefit - No - versus yes
* Service Quality - both excellent
So, use PayPal or use ClickBank?
You can use both but I highly recommend PayPal.
You use PayPal because it's free to set up and cheap to use. You use ClickBank because of its affiliate benefit. It doesn't hurt to use both at the same time.
Some customers prefer to pay through PayPal, and some prefer ClickBank. Put both buttons on your website and let your customers make the choice!
* Make people feel comfortable with paying online
Paying through PayPal or ClickBank is very safe. Unfortunately not everyone feels confident about that statement. To gain their orders, you must gain their confidence about paying online. Here're the things you MUST do:
1. Provide genuine testimonials on your website so people know you are reputable business.
2. Have a physical address on your website so people know your business is not some kind of scam.
3. Show a phone and fax number on your website so people know they can talk to you if they need to.
4. Put your email address clearly near the ordering link (at the bottom of the page) inviting people to email you in case of any doubt.
5. Point out that their credit card will be securely processed (SSL).
6. Whenever people ask a question, give them a prompt response!
You have to choose.
Choose wisely!
General Information
