Going broke for taking Credit card payments?

[Henrynewbie]

A friend of mine told me offering digital services, and taking credit card payments is a sure way of going broke the first year. true or false?

How do you take payments for your digital services? BANK transfers, wire, ACH etc esp when you have international clients?

 

[Leader777]

Most of people selling digital services stay away from paypal and other payment methods like that and they actually start using cryptocurrency

 

[Henrynewbie]

Most of people selling digital services stay away from paypal and other payment methods like that and they actually start using cryptocurrency

PayPal if a f**king NO.
But businesses don't know what crypto is, a doctor doesn't lol.

 

[Leader777]

PayPal if a f**king NO.
But businesses don't know what crypto is, a doctor doesn't lol.

U are right ! i guess wire is the only thing left

 

[Henrynewbie]

U are right ! i guess wire is the only thing left

Can you use transfer wise for this?

 

[dcc24496]

Maybe sell digital services thru clickbank lower the risk of going broke ?

 

[Henrynewbie]

Maybe sell digital services thru clickbank lower the risk of going broke ?

Not applicable

 

[br3ach]

Price your services so that any fees for CC are already factored into your running costs. Doesn't mean you won't go broke, but at least it won't be the CC fees that caused it

 

[KelvyTheBlacky]

Most of people selling digital services stay away from paypal and other payment methods like that and they actually start using cryptocurrency

Then why do so many digital marketplace sellers on here use PayPal and albeit any other payment gateway?

 

[Leader777]

Then why do so many digital marketplace sellers on here use PayPal and albeit any other payment gateway?

I'm talking about "in general" a lot of sellers stoped using paypal due to fraud refund. Op understand why sellers don't like paypal for that reason

 

[iki]

I dont agree with this. Most people prefer to use paypal or cards to pay and they feel safer when using this payment method. I would ask for bank transfer only if the product is really expensive and you deal with other companies. Refunds are part of any online business just think about how many refunds clothing companies get and they are still in business. Sometimes you must invest money from your own pocket and be negative in first or even second year too. Learn why people want refund, try to offer high quality product and you should not have many problems. Only if you deal with cheaters/scammers well then think about how you can protect your product if its some software to deactivate their licence if they do chargeback or something like that.

 

[Henrynewbie]

Price your services so that any fees for CC are already factored into your running costs. Doesn't mean you won't go broke, but at least it won't be the CC fees that caused it

Nice point but I was asking due to fraud refunds

Then why do so many digital marketplace sellers on here use PayPal and albeit any other payment gateway?

Was asking due to fraud refunds, price is in xx,xxx

would ask for bank transfer only if the product is really expensive and you deal with other companies. Refunds are part of any online business just think about how many refunds clothing companies get and they are still in business

Clothes are physical products that can be returned, a service like fb ad management where you use xx,xxx to promote someone's business is a different story, can't be returned.. was asking because of fraud refunds.

 

[br3ach]

Chargeback or refund from payment providers are part of the game I suppose. Select your clients carefully and again price your services to take into account the possibility of fraudulent chargebacks.

You can use payment methods like bank transfer to avoid this but don't be surprised when most clients refuse to work with you due to lack of convenience and unconventional payment methods.

 

[Henrynewbie]

You can use payment methods like bank transfer to avoid this but don't be surprised when most clients refuse to work with you due to lack of convenience and unconventional payment methods.

Makes sense.

 

[code API]

Don't listen to everything people say. Try and see what works best for use. I have ditched PayPal as a primary payment processor, long ago.
I use everything else there are: credit/debit card, transferwise, payoneer, and bitcoin. PayPal is my least option.

 

[Henrynewbie]

Don't listen to everything people say. Try and see what works best for use. I have ditched PayPal as a primary payment processor, long ago.
I use everything else there are: credit/debit card, transferwise, payoneer, and bitcoin. PayPal is my least option.

Thanks

 

[Area 51 Man]

Take PayPal as the least option. Use other methods like credit card, debit card, BTC, transferwise.

The best way to learn is testing by yourself, use the people's advice only as a guide.

 

[GGUP]

I'm talking about "in general" a lot of sellers stoped using paypal due to fraud refund. Op understand why sellers don't like paypal for that reason

Doesnt really matter since buyers can just initiate a chargeback through their credit card company.

 

[rafark]

Do you mean because of chargebacks? Most people are paying with a credit/debit card, and the ones who aren't are using PayPal. Honestly, if I had to choose between either, I'd take credit cards over PayPal any day. But in reality, you cannot afford to only have one payment method, so your business should be accepting both.

 

[c4labs]

Doesnt really matter since buyers can just initiate a chargeback through their credit card company.

True but more hassle than opening a simple dispute on PayPal.
Also, PayPal will always push in favor of your client.

The best is to have different payment methods and PayPal but you can markup the method so you incentive the others options.

When I had an online store selling cdkeys, I simply removed PayPal.
I was losing 20-30% of sales but I ran A/B tests and between the money lost, the time wasted (to reply to disputes, etc.), the extra charge-back fee, etc. it was more profitable to NOT have PayPal on my shop.

It also depends where you sell your products. If your focus is in Europe, you can recoup potential lost sales with local options.