PayPal vs. Credit Card Gateway

Ecommerce Website Payment Methods:

If you are planning to build an Online Shop, then you need to ask yourself the question: "Do I need an online merchant account, or do I just stick to Paypal?". You also have the option to use both which is the ideal answer, but setting up a merchant account for your website can cost a lot of money and you are also looking at monthly fees, from day one. So no matter how long it takes to start generating sales (usually a few months, or up to a year), you would be paying somewhere from $40- $100 per month to the credit card processing company. You would also need an ssl certificate (secure https pages) if you wanted your website customers to enter their Visa or Mastercard details onto your website directly. The ssl certificate also costs yearly from $100 - $1000... a lot of costs that you need to consider before making up your mind about what payment methods to offer your clients.

Pro's & Con's of only using Paypal on your Website


Paypal is rree to use

Paypal is easy and cheap to setup

Paypal offers a secure credit card checkout

Paypal also allows for non-paypal account holders to pay

Paypal accepts all major credit cards


Paypal charges high commissions per transaction

Many Aussies don't like to pay using paypal (true fact!)

Paypal always helps the client with refunds even if you posted the product so people can cheat on you easies than with a credit card merchant account
Paypal will cause you a lot of headache down the track once you generate a high volume of sales (read


We always advice all our ecommerce  web design clients the following:

If you have a small budget and you can't afford SEO or SEM then you should startup the first few months with Paypal and wait till you start getting daily orders. Once you have frequent orders that average over $1000 per month, then you are ready to talk to us about adding a secure credit card gateway to your website checkout.

But if you have a well planned business plan, and you know you want to generate sales from day one with SEO or SEM or maybe some offline advertising campaign like a radio or TV ad, then you should consider setting up a credit card gateway from the start to your website development.

I hope that this post can help you decide whether to use paypal at all, partially or in combination with a secure checkout. Contact us if you are ready to proceed and let us know if you still had any open questions to this topic.


Contact a local
website designer:

Mobile Phone:
+61 (0)488 529 366

[email protected]


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