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What Payment Gateway is Great to Get When Dealing With A Membership Site?

Discussion in 'Membership Sites' started by TDManager87, Aug 16, 2013.

  1. TDManager87

    TDManager87 Junior Member

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    I had posted this in Kyles thread, but maybe this could help some people out on BHW. How do you solve the issue of members joining, and canceling the service? I know to make sure you have great content, but there will always be people that want to cancel, and it looks bad on PayPal even with the slightest amount of cancels? I have 2co as well. Or is there a more suitable recommended gateway?
     
  2. laowai

    laowai Power Member

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    PayPal shouldn't have anything against cancels, the problem would be high rate of refunds. Go for with PayPal unless you are worried about refunds.
     
  3. M1ndfluX

    M1ndfluX Senior Member

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    If you are targeting 'noobs' then PP all the way...
     
  4. TDManager87

    TDManager87 Junior Member

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    Yeah see, well lets say we have a nice membership site, and we get 500 members. Let's say 15% of that 500 get refunds:

    = 75 members which may be alot for paypal.

    So my question is there a better solution or rule of thumb to play by? I was thinking of going with 2co first, just to test the waters, and the switch to paypal using dap as my membership plugin.
     
  5. GreenGoblin

    GreenGoblin BANNED BANNED

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    get a merchant account, use authorize.net as the gateway...and hire a coder to code the automated recurring billing and your golden and also u can enforce your TOS a lot better rather then thinking PP will have your back
     
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  6. TedNugent

    TedNugent Junior Member

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    PayPal buddy. Just don't get banned lol
     
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  7. laowai

    laowai Power Member

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    There is no payment processor which would accept 15% refund rate. It sounds more like a scam than a service with expected 15% of refund rate. First you talk about members cancelling accounts and now you are saying those would be refunds, so which way it is?
     
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  8. netmoney1

    netmoney1 Executive VIP

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    There really isn't a single answer. A merchant account, PayPal, and 2C)O are all good options. Honestly, if you are really expecting a 15% return rate that is going to set off a lot of red flags. Not sure if that is what you are expecting or if that was just a random number...but all of the above (a merchant account, PayPal and 2CO) are all going to have issues if a 15% refund rate happens.

    Might want to work on making sure the refund/cancellation rate is low - high quality, provide a value, etc.

    Also, line up PayPal, 2CO and a merchant account (or a few) - because if sh#t hits the fan you need to slide another option right in so you don't miss a beat.
     
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  9. TDManager87

    TDManager87 Junior Member

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    *coughs* Sorry, I think I didnt make it clear enough. To be honest, this site is going to offer quality digital podcast to download, but I rather be prepared for any scenario that sorry. I wanted to know what's a good way to handle the chargebacks/refunds, or other issues?

    Chargeback = People may download all the content, and then try claim fraud, etc (it happens).
    Refund= Same scenario, but the user request a refund before the end of the 1st month.

    What I was thinking is this: If my membership is $27/month, offer the first month for $9.99 and make it nonrefundable.

    As for the chargebacks, probably set up a password and track the clicks from a link by ip to show the user downloaded the file(s).

    As for cancels, I guess thats all in the process. I mean some people are going to stick with you, some arent.

    And the 15% was just an example. How do you know for sure most companies do not have a 15% return rate?
     
  10. netmoney1

    netmoney1 Executive VIP

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    A 15% return rate is ridiculously high and will make merchants run for the hills. It sounds like you are anticipating a high rate - so be prepared and have a bunch on tap.
     
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  11. laowai

    laowai Power Member

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    I think that you are worried too much about CBs and refunds if you are offering quality content as you said. 15% refund rate would mean almost same like offering fake PPD files. You are not going to see such high numbers with legit service.

    I would go with PayPal as most people are familiar with it. Just monitor your refund rate and if there is anything alarming then seek other options before running to problems.
     
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  12. Asif WILSON Khan

    Asif WILSON Khan Executive VIP Jr. VIP

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  13. saber210

    saber210 Supreme Member

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    15% is too high for PP and 2CO, You may get flagged..

    Because they offer quality products and do not over promise to their customers. Another thing, they have customer support.
     
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  14. LaLore

    LaLore Regular Member

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    Subscription cancellations are different than consumers asking for refunds. I don't think PayPal would take issue with people canceling their subscriptions vs a whole bunch of refunds in a short time period.

    As for members who join, download & dash...you're going to have those anyway. Most membership sites probably do. It's said that members stay on avg only 3 mths, so there's going to be some attrition anyway.
     
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  15. netmoney1

    netmoney1 Executive VIP

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    OP - I am looking for a high risk merchant contact I have somewhere around here. They do processing for credit repair companies, debt settlement companies, loan modificaiton companies, etc...SUPER HIGH RISK. Might be worth you looking into them. Give me a min and I will find it and send it over. Are you in the US?
     
  16. TDManager87

    TDManager87 Junior Member

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    Thanks for all the feedback guys (net, lao, saber, ted, greengoblin, w130 and anyone I missed). Yeah, I'm one of those ocd kind of guys, have to be overly prepared lol. The content is great. Basically a member will have access to about 50 podcast (I intend to add 2-5 per month). There will also be a free section where they can get 1-2 for free.

    But I'm wondering how I should go about audio? Maybe I should limit paid members to be able to download so many podcast per month? I mean downloading all the podcast at once may make things less favorable (kind of like meeting a girl that will sleep with anybody).
     
  17. netmoney1

    netmoney1 Executive VIP

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    Just shot you that contact. Might be worth shooting him a email. Great back up that is for sure.

    And yes, don't let paid members have access to everything at once. They will take it all then bounce. Drip it....build teasers in....all on autopilot. You want them to be excited for each new month...therefore leaving their subscription active.
     
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  18. laowai

    laowai Power Member

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    You could schedule next month content and let the members see what is coming next. Members will see that there are regular updates and will stick with the subscription if there is something worth to wait.
     
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  19. netmoney1

    netmoney1 Executive VIP

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    Good point. Set up an autoresponder that constantly reaches out to them. Little things like that help them stick. When they sense there is no communication they will bounce.
     
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  20. TDManager87

    TDManager87 Junior Member

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    Thanks Netmoney, yeah, I think I may stick with paypal/2co since most people may be comfortable with that. And yeah, dripping it + adding videos, teasers, sounds like a great ideal.

    I have 40 podcast that cover around 3 different topics, but not in any particular order. I was thinking whats a good way to drip it up? Setup 40 post, and let them all listen to all 40 snipets on a the page, and they can choose 12 per month. While they are picking each on, I have a email remainder recommending a specific podcast, and letting them know when I uploaded a now one to the members area?