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You can currently accept credit card payments with a traditional, “free” PayPal account, and Memberize works equally well with PayPal and Direct Processing, but there are some differences both to the user experience and account owner utility that are summarized below:
| Processing with PayPal™ |
Processing with Payment Gateway |
| User is redirected to PayPal site where they enter their CC info. |
User pays directly from your Memberize site |
| You must log in to PayPal to issue a credit |
You can issue refunds/credits from inside Memberize |
| You must log in to PayPal to cancel a Recurring Billing Subscription |
You can cancel a Recurring Billing Profile from inside Memberize |
| Members must log in to their PayPal account to cancel their own Recurring Subscription |
Members can cancel their Recurring Profile (optional Admin setting) from inside Memberize |
| You must manually transfer funds out of your PayPal account.1 |
Funds automatically remit directly to your Merchant Account |
| You can use existing Bank Account |
You need a Merchant Account |
| No monthly fee2 |
Monthly Gateway Fee3 |
| Instant Setup |
Application and credit check |
Being redirected to PayPal also increases the number of navigation steps significantly for the user, who must then also click the “Return to Merchant” or otherwise navigate back to your site (if applicable) once the payment is complete. These extra steps can in many cases affect your conversion rate, as a larger percentage of prospects will drop out of the process, as well as increase your support calls.
Overall the integration between Memberize and a Gateway is more involved and robust, but also more expensive (on average). The cost difference will vary depending on volume, your Merchant Rates, and average transaction size. To accurately compare and budget for this cost difference you would need to compare the fee schedule between the two, and then add in the extra monthly fees for the Direct Processing. To do so you would have to budget or make assumptions about your volume and average transaction size since the fees are both per transaction and % of volume.
For more on Credit Card Processing Online see our Knowledge Base Article here
http://www.memberize.com/supportticket/Customer/KBArticle.aspx?articleid=5
1. Often subject to limits and delays
2. PayPal does charge transaction fees, their fee schedule is here (https://www.paypal.com/us/cgi-bin/webscr?cmd=_display-receiving-fees)
3. Many Merchant Providers also charge their own monthly fee as well
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