We often get asked why we do not accept Paypal any longer so I thought it would be good to explain why we chose to switch to another provider. It’s part fees, but mostly Paypal’s poor treatment of merchants.
Update: We do allow Paypal as an option as some prefer using Paypal. This option is available should Stripe not be your preference.
We used to use Paypal, and it worked pretty well. Even though the average transaction fee was over 4.75%, I justified it by telling myself that Paypal made people feel more safe and safety comes at a cost. Year after year I would look at those fees and get sick to my stomach, but what could you do.
After thousands of successful transactions and only 1 dispute, Paypal just up and closed our account. It happened in the middle of the night, when we receive most of our orders from our customers in other countries so it was pretty frustrating. I quickly switched to Google Checkout because I needed orders to be able to be processed. After weeks of phone calls and emails, Paypal told me that my account would remain closed and there was nothing I could do to reopen it.
The issue happened a week after I decided to create a personal account. The Paypal account I was using was originally my personal account but when starting DailyAppShow, I converted my account into a business account. Paypal’s terms of service state that you can have one personal account and one business account, so why was I running into an issue? They had no clear reason to give me, they said I broke their terms by opening multiple accounts.
Considering the fact that I was not thrilled about their high fees, I was not that frustrated. I needed a good reason to switch and now I had it. After using Google Checkout for a year I decided to switch to Stripe.Com, which is quickly becoming a Paypal competitor. Stripe allows the payment to be handled through the website on a secure page. After being asked by several customers for itemized invoices we decided to integrate Freshbooks Invoicing into our order process. The current order process goes like this:
- Fill out our order form and hit submit
- Invoice is automatically generated and sent to you via. Freshbooks.com
- View the invoice by clicking the link and complete the payment online using Stripe which is integrated into Freshbooks.
We feel that this new process is much more professional and provides our clients with the invoice they need for their accounting services. Many of our customers are oversea where reporting requirements are more strict than it is in the US.
If you have any questions, please let us know. We do have a Paypal account that we can use for payments if needed, but prefer not to use it if at all possible. We believe that you will enjoy our new process for order placement. It is very secure, perhaps even more secure than Paypal.
As always, your credit card information is not stored by us or Freshbooks.com. Your payment information is processed through Stripe.com.