5 ways to tell if you’ve outgrown your payment processor.

Aug 19 2021 | PayPal editorial staff

Are you missing out? Changes in the payment industry have been a powerful boost to growth, but businesses that can’t adapt risk losing out. How can you tell if your payment processor is holding you back?
Payments are changing.
People increasingly prefer online over instore, and digital payments over cash and cheques. Devices and channels are also changing. Shoppers are paying with smartphones, wearable devices, voice assistants and over social media and email. Soon, cars will be payment-enabled, too.

Our new guide – Five Signs You’ve Outgrown Your Payment Processor – can help you spot signs that your current payment provider is inhibiting your business growth.

Let’s look at just 2 of the 5 signs covered in the guide.

Speed limit: failing to respond rapidly to customers’ changing preferences.
Over two-thirds of shopping cart transactions are abandoned and nearly 1 in 5 shoppers say that’s because the checkout process is too long or complicated.1

Perhaps, you’ve been slow to make your payment process mobile-friendly, or maybe it simply takes too long to enter all the information required.

If you see that your customers’ online experiences are inconsistent, if orders are being abandoned and if online feedback is negative, it may be that you’ve outgrown your payment platform.

The solution: Implement customer-friendly payment processes.
Customers expect to pay the way they prefer, whether that’s by card, digital wallet, PayPal or a locally-preferred method. Customer experience is an important factor in attracting and retaining new customers and, at the final payment stage, it’s critical to get this right.

PayPal is often ranked among the most convenient and efficient online transaction platforms. Using PayPal can help you provide an excellent customer experience that meets evolving payment preferences.

Danger ahead: managing fraudulent transactions.
You can’t grow your business efficiently if you’re spending too much time and money managing fraud. For example, every dollar of fraud suffered costs US retailers $3.36,2 and the Centre for Strategic Studies estimates the global cost of cybercrime to be nearly US$1 trillion per year.3

An outdated payment platform might not offer the protection you need in a world of sophisticated cybercriminals.

The solution: use the latest fraud-protection technology and programmes.
PayPal protects sellers with advanced fraud-protection and PayPal Seller Protection.

PayPal continuously tracks all transactions, helping prevent fraud and other cybercrime such as phishing and identity theft. It combines extensive, real-time intelligence from PayPal’s network with advanced machine learning that adapts to your business, so you can minimise chargebacks and protect good customer relationships.

PayPal Seller Protection is a policy that can protect your transactions from chargebacks, reversals, and their associated fees (as long as you meet the eligibility requirements). If a buyer disputes or reverses a transaction, you may be eligible to retain the full purchase amount and avoid any related chargeback fees paid.

Read all 5 signs in our new guide.
Would you like to learn more about the above and the other signs?

Five Signs You’ve Outgrown Your Payment Processor is free to download and can help you decide whether critical aspects of growth, like customer loyalty, international sales or systems integration are holding your business back.

Have you outgrown your current payment processor? Download our guide now and decide.
 
1Baymard Institute (2021), 44 Cart Abandonment Rate Statistics, Retrieved 8th April 2021, https://baymard.com/lists/cart-abandonment-rate
2Lexis Nexis, “For every dollar of fraud committed, U.S. retailers incur $3.13 of costs”: https://risk.lexisnexis.com/insights-resources/research/2020-true-cost-of-fraud-retail
3CSIS (2020), The Hidden Costs of Cybercrime, https://www.csis.org/analysis/hidden-costs-cybercrime

Frequently asked questions.

When you pay through PayPal in a currency different from the default currency of your credit card, the payment will go through currency conversion. Generally, you can choose to use one of the two currency conversion options below:
  • Use PayPal's conversion process: We'll complete your transaction using your card's currency. You can see the transaction exchange rate (which includes PayPal’s currency conversion fee) before you complete the payment.
  • Use the credit card issuer's conversion process: We'll debit the amount from your card in the currency determined by the seller. We won't know the foreign exchange rate at the time of payment. You'll only see the foreign exchange rate or any additional foreign exchange fees until you receive your card statement.
Generally, you'll be able to change the conversion option for your card payment before completing the transaction. Here are some scenarios:
  • If you're sending a payment via your Send and Request page, click Change next to "Convert currency with PayPal" in your payment details.
  • If you're making a payment at an online store, click View conversion options on the payment page. Then you can select to convert the payment amount with your card issuer.
Note: 
  • If you use an American Express card, you don't have the option to use PayPal's conversion process. American Express takes care of the conversion.
  • If you’ve authorised automatic payments at an online store, you may not have currency conversion options and PayPal may convert the currency for you. Where PayPal performs currency conversion for that automatic payment transaction, PayPal will use the transaction exchange rate (including PayPal's currency conversion fee) in effect at the time the automatic payment transaction is processed.
  • PayPal’s currency conversion fee will be included in the transaction exchange rate if your payment requires currency conversion. To learn more about the fee details, please refer to the Fees section in our User Agreement.

PayPal is the safer, easier way to pay. We use extensive security measures to safeguard your bank account or credit card numbers. We never reveal your financial information to anyone unless we have your permission or we are required by law to do so.

As a buyer, you can link your credit card or bank account to your PayPal account so you don't have to enter your card number or address every time you shop. Just log in to PayPal and quickly check out in a few clicks. View more information about how to use PayPal.

As a seller, accepting PayPal may attract more buyers, including new customers from different parts of the world where we offer our services. You can trust that our advanced technologies will help make processing payments safer for you. View more information about how to receive payments.

In addition, PayPal’s Protection policy automatically applies to your eligible transactions whether you're selling or buying, and safeguards you on the full amount of the payment.

For more information about PayPal protection policy, click Security at the bottom of the page.

The PayPal Developer Portal offers support for developers who have questions about technical topics, such as APIs or integration. Below is a list of common topics searched for by developers. You can also browse and search on the Developer Portal for additional topics.

Encrypted Website Payments
To make online payments more secure, you can make Encrypted Website Payment buttons that rely on standard public key encryption for protection.

Identity API
PayPal offers a secure commerce Identity API that lets your customers sign in to your web site using their PayPal credentials.

Instant Payment Notification
Instant Payment Notification is a message service that automatically notifies merchants of events related to PayPal transactions.

Invoicing
Merchants, developers, and business solution providers use Invoicing APIs to automate the creation, delivery, tracking, and reconciliation of invoices with an integrated payments solution.

Mobile SDK
Accept PayPal, credit cards and other payments methods through mobile apps.

Name-Value Pair (NVP) API
Information and support on name value pairs and NVP SDKs.

PayPal Checkout
PayPal Checkout gives your buyers a simplified and secure checkout experience that keeps them local to your website or mobile app throughout the payment process.

Payflow Gateway
Payflow Pro is a high performance TCP/IP-based client-server architecture solution. It includes a secure payment gateway that gives merchants total control over the payment process.

PayPal Sandbox Support
Information and support for users testing in the PayPal Sandbox environment.

Shopping Carts
The shopping cart system allows buyers to select multiple items on your website and pay for them with a single payment.

Permissions Service API
PayPal's permissions service enables you to request and obtain authorization to make API calls and take action on behalf of your customers.

SOAP
The PayPal SOAP API is based on open standards known collectively as web services, which include the Simple Object Access Protocol (SOAP), Web Services Definition Language (WSDL), and the XML Schema Definition language (XSD).

Testing Your Apps in Sandbox
A guide for developers testing their apps in the PayPal Sandbox environment.

Virtual Terminal
Information about PayPal's Virtual Terminal - a web-based application that processes credit and debit cards, replacing swipe machines.

Website Payments Pro
PayPal's Website Payments Pro is an API-based solution that enables merchants and developers to accept credit cards, debit cards, and PayPal payments directly on their website.
 
PayPal Payments Standard
You can accept credit cards online easily and offers a streamlined checkout experience to customers using mobile devices.
Virtual Terminal is part of our Website Payments Pro – Hosted Solution offered to Hong Kong merchants. With Virtual Terminal, you can accept payments over mail, fax or phone orders wherever you have Internet access. No need for card swipe machine or software to install.

To apply for Virtual Terminal, please click Apply Now on our Virtual Terminal product page and fill in your request.

When Virtual Terminal is enabled on your PayPal Business account, here’s how you can process a payment easily:
  1. Log in to Virtual Terminal. When you're ready to process a payment, go to Tools in your PayPal account, and click Virtual Terminal.
  2. Enter the order. Enter the order details and credit or debit card information. If you're mailing an item, include the shipping info.
  3. Complete the transaction. You'll receive a confirmation for successful transactions. You'll then have the option to print a receipt or packing slip – or process another payment.
  4. Get paid. Once approved, the funds show up in your PayPal account, usually within minutes. From there, you can spend the funds through PayPal or withdraw them to your bank account.
If you encounter any issues when signing up or processing Virtual Terminal payments, please contact our Merchant Technical Support.
The contents of this site are provided for informational purposes only. The information in this article does not constitute legal, financial, IT, business or investment advice of any kind and is not a substitute for any professional advice. You should always obtain independent, professional accounting, financial, IT and legal advice before making any business decision.