Are Third-Party Payment Providers
Really A Good Deal?
©2002 Robert Key
Looking for an economical, fast and safe alternative to merchant
accounts? Want something that requires no credit check and no application
fee, but offers secure payment acceptance? Everybody does! These
are the primary benefits of using a third-party payment provider
(such as ClickBank or PayPal). However, is it really as good a deal
as it seems on the surface?
These payment acceptance companies can offer a great deal of convenience
and flexibility to those who want to get up and running quickly.
There are, however, two major drawbacks that you should be aware
of before making your decision to opt for a third-party provider
over a merchant account… their security and the expense.
Security – Not Of The Payment Process, But
Of Your Sales
One issue that has recently come to light is the security of the
links used for making sales. With many of the third-party payment
providers (such as PayPal), it is remarkably easy for a cyber thief
(or just an unscrupulous online surfer) to alter or completely delete
your sales code. The result? They replace your code with their own
and swipe your commission right out from under your nose. You’ll
have no idea it has happened – you’ll just gradually
watch your sales dwindle down.
Just as simple is gaining access to your download page, or to your
product itself.
Let me state right here that these problems are NOT the fault of
the payment acceptance company. They make every known effort to
provide a secure environment for your sales transactions and account
information. However, just as viruses can infect software, cyber
thieves can hack into sales links.
Because the links are easily accessible, and because they are even
more easily changed, the use of a payment acceptance company can
represent a high risk of stolen sales.
The solution? Find a way to encrypt or hide the code that these
sales hijackers are seeking. This can be accomplished by either
hiring a programmer (or scripter) to create a special code for you,
or by purchasing software that disguises your code so hijackers
can’t recognize it.
Expense – Is It Costing You More Than You
Think?
The other concern with third-party companies is the expense. While
no set up fee, or a one-time $49.95 set up fee, might sound like
a dream come true, be sure you calculate all the costs before making
your decision.
If we use an example where the same number of sales are made in
a year, most merchant accounts would come out to be less expensive,
followed by PayPal, and lastly (and most expensively) ClickBank.
Many startups, however, can’t afford the initial costs of
a merchant account. Also, if you plan to incorporate an affiliate
program or online shopping cart into your Web site, the fees for
merchant accounts would climb even more.
Third-party payment providers like ClickBank and PayPal offer excellent
alternatives that include affiliate tracking and payment, and shopping
carts or “buy” buttons. Definitely worth a look!
The Bottom Line
The decision is ultimately yours. *Can* third-party payment providers
such as PayPal be a better deal than merchant accounts? Yes! Depending
on your needs, they certainly can be. However, remember to do two
things. Be very careful to investigate the total cost of doing business
with these companies, and look for options for link security to
ensure your sales stay YOUR sales.
Robert Key is a successful
Internet entrepreneur specializing in helping online
business people protect themselves and their digital
products. Let Robert show how to protect YOUR digital
products. Visit http://clicklocker.salestipz.com
today! |
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