Paypal Here - Would you pay using it?

[rogerg]

Hi all,

Simple question: if you were a customer at a local market (small business stall holders) and wanted to buy something using your credit card, would you be happy to pay using a PayPal Here payment machine?

The process would involve the merchant entering the purchase amount in to their phone, then you swiping your card and entering your PIN on the PayPal here device. You would receive a receipt via email.

More information of what it looks like: https://www.paypal.com/au/webapps/mpp/accept-mobile-payments

Thanks,
Roger.

[Steffen]

It's backward and cumbersome, but probably not much worse than those dial-up EFTPOS terminals.

I can't wait for Apple Pay to land in Australia, which removes credit card information from the feeble clutches of merchants and middle men.

Cheers
Steffen.

[joele]

I think most people who already use paypal would be OK with it, some would be nervous although it is essentially not any different than using a bank provided eftpos terminal.. Though if they offer paypal I would probably prefer just to log into my paypal account on my phone and transfer the money..



I would prefer to use a bank provided credit card machine in a shop than give my CC details to Apple, I would feel the same if Google or Microsoft decided they wanted control of all our money transfers.. each to their own I guess.. For online I am happy with paypal which most reputable shops offer these days..

[killswitch]

I dont mind using but it kinda does look like a card skimming device.

From what i recall the transaction fees on this is more than a bank provided terminal. Accounts at my work turned it down after crunching the numbers.

[rogerg]

Yeah, that's my concern.



For someone who has very low turnover on an irregular basis it is much cheaper than alternatives such as hiring a more traditional machine (or always having one sitting in the cupboard). If a full time business used it, it would be more expensive than a bank.



Agree.

[Starless]

I don't use PayPal anywhere!
They are another would be monopoly.:mad2:

[Steffen]

That's not how Apple Pay works. Apple plays no part in the transactions, it only provides the end-point device. When you enrol your credit card Apple doesn't keep or store the details, instead it passes them to the issuing bank in order to obtain a token form the bank that is tied to your device and used instead of a credit card when making purchases. The token is formatted in such a way that it passes for a valid credit card number and therefore works with the existing CC payment infrastructure. Validation of the token is done by the issuing bank as if it was a normal credit card number.

That way Apple never knows what you bought, or where, or how much you paid, and the merchant never gets to see your credit card details or even your name.

If you own an iPhone you will in most likelihood also have an iTunes Store account, so Apple already knows the details of one of your credit cards – like any other online store. If and when the iTunes Store migrates to Apple Pay (which I'm sure it will) then even that requirement will go away.

Cheers
Steffen.

[Steffen]

I cancelled my PayPal account when they illegally withheld Wikileaks donations.

Cheers
Steffen.

[Starless]

Good :thumbsup:.
I would have done the same if I had one to cancel.

[multiweb]

Two valid points. I thought the exact same thing. :)

As it becomes more main stream and adopted maybe I'd use it. That said, PayPal transaction fees are pretty steep on larger amounts.

PayPal main purpose is that you don't have to enter your CC details. Using your CC on a PayPal device defeats the purpose.

If this device worked by keying in a PayPal username and a pin without the need for a CC then it would be better.

[csb]

Voted no.

I wouldn't be comfortable with paying a stall holder through such a device. No checks by higher authority to validate (eg no manipulation) their particular device.

Paypal is my preferred payment option online.

[gaa_ian]

As a merchant using this device I have to say I have mixed feelings about it.
When it is all set up, paired to the phone & the paypal app is open it is smooth sailing. Customer never gives you their credit card number & they enter their own credit card PIN. I still enter the amount on the phone. They get a receipt on the spot to their phone SMS or email.
It is a bit slow to set up if you don't use it a lot. Fees have just gone up to 2.6% but can come down to 2.2% if you have a bit more volume than the occasional sale. Most customers don't seem to mind it.
Paywave ...... now there is a concern for skimming !

[leon]

Pay Pal is not secure, as no other payment method is i guess, I like to pay by bank deposit only.
Dont have a Credit card or Pay Pal for that matter, but my wife dose and her Pay Pal account has been used improperly a number of times.
Someone even bought an IPad in her name using it.:mad2:

Money under the mattress i reckon. :)

Leon :thumbsup:

[gaa_ian]

Hey Leon
Cash is still King :D
I am always happy to take Bank deposits too ;)

[mswhin63]

I have concerns but I have started the process to get one. I do not do enough Credit Card transactions to justify getting a terminal at $30.00 per month to use it once a month. With this system there is no monthly fees but there is a fairly high percentage per transaction. Fortunately Australian laws allow that to be passed on. PayPal don't like it but they can shove it!

As far as Apple, I don't use Apple as they place restrictions on Bluetooth connectivity. Well I only use it as an example of so called Monopoly arguments in the same fashion. Bit Childish isn't it.

Still don't use Apple anyway!

[mswhin63]

UGGG, Am I becoming a troll. Jeez maybe I should make one of these for myself.

http://www.youtube.com/watch?v=BavWDFTRsQA

Just had a bad run of trolls on other forums (non astronomy)

[Waxing_Gibbous]

I prefer to pay by bank transfer when I can. Cash second, Debit card, third, CC 4th and PayPal as a last resort.
I've had hassles with PayPal and it takes forever to sort out even minor difficulties.

[rogerg]

Thanks all for your ongoing feedback and votes. Most of the negative feelings have been towards PayPal online where you have an account and a dispute, which is quite different to the scenario of paying by credit card in person without anything more than your credit card number and an amount being processed through this machine, and where you agree to that amount in person at the time.

Using a bank machine would be preferable but not an option for my transaction volumes, leaving the option as cash only, or cash + Paypal.

Given that so far 66% of people would be happy to or at the very least settle for paying by credit card using the PayPal Here, that represents a reasonable percentage of people which would not have purchased anything at all if they had insufficient cash on them but which now would have been able to buy something using the PayPal here machine.

The only real world merchant using PayPal Here that I have talked to has only had positive things to say about it and customer's willingness to use it.

Interesting to consider. I'm not yet decided.

[mswhin63]

Roger with the process to apply is quite lengthy and difficult especially in my case. 5 checks to be done for security purposes, I have completed 4 of them, only one left. I agree that most complaints are from online usage, but even online I have had little problems overall with the majority of purchases going OK.
I think the principle of the of the machine is a to accept credit cards which is separate from PayPal online purchasing. There are many merchant facilities around, I never received my merchant facility directly from the bank, always from an external provider (ezypos). I think it is the same in this case just a different fee structure.

[rogerg]

The person I talked to who was using one said it took him about 2 days to get it set up and running after buying it from Officeworks. Like me he already had a business account. I wonder why yours (and others report) is taking so long and so many checks.

[mswhin63]

Maybe because mine is a company and not a simple sole trader account. I am looking into this though but now Uni has started today I am not sure how long I have got available.

[rogerg]

Had my first real world use of the PayPal Here card reader last night at Perth's AstroFest 2015. To my complete surprise people used it with absolutely no questioning or complaint. In fact several people said comments like "oh wow, that looks neat, how do I get one!".

So, here may be a perception against PayPal online, but there certainly wasn't any hesitation shown by people using the card reader in person.

[mswhin63]

Glad it worked out for you, I was sure it would, as for me I have become quite ill and will be closing my business so all the efforts in the past were a waste of time. I would still consider it though when things improve.

[La_Displuke]

Is the only way i pay for things online

[Louwai]

I'm still trying to finalise ours. So far it has been 5 frustrating weeks. More-so caused by individual employee perceptions than anything else.

First - PayPal wants an original copy of my business registration certificate. I don't have an original.. As I found out, ASIC no longer provide ANY type of certificate. Just an electronic extract.
This wasn't good enough for the guy at PayPal. I suggested that he contact the AU Gov & check, himself.

That took a few weeks.

Then after they agreed to accept what I had provided, someone else in PayPal decided to reject it.
Repeat Process above.

Today I've been told that all documents have been accepted & my account is good to go (an existing business account).

BUT. !!! I still have to wait another 2 to 3 days for the actual PayPal Here to be activated.......

FRUSTRATING !!!!

[rogerg]

I uploaded a bunch of scanned documents for verifying my business - things like:
- Business Name Registration confirmation letter (received when I set up my business name)
- Most recent renewal receipt letter which stated when it next expires
- ASIC extract of ABN details

Uploading those PDF's seemed to go relatively smoothly, it was confirmed in a few days but I did need to call up to prompt them to actually activate it after they accepted those documents (which then took about 24 hours).

[mswhin63]

Yeah, The major problem i had is that I change the business structure part way through so things are not matching properly. I have passed all except one more. As I have decided to close operations I now need to work out how to remove them and close the account. Oh well :shrug:

When i feel enthused I will work on it. Just got to work out last month BAS then make the changes.

[Louwai]

After my previous post, have received all confirmations. Everything has been activated & the system is working.

Have found a couple of glitches, but generally it works well.

Probably the main issue is more to do with Samsung than Paypal. On my wife's Samsung, if you close the app to use the ph or another app, it automatically logs you out. So you have to log back in to use it. When this happens, it loses the connection with the card reader.
For some reason the app doesn't "remember" the card reader & won't re-connect. The card reader is still listed in the Bluetooth connections on the ph tho.
To reconnect the card reader, we have to delete the "old conection" from the bluetooth list, re-pair the card reader & then connect it to the app.

All of the above is ONLY using a Samsung Ph. My iPhone has no problems & everything works well & automatically reconnects as required...:D

[mswhin63]

Not totally related but I found that Samsung doesn't really work well with security applications so this may be the issue related to Samsung only.
I have a CommBank application that does pretty well the same thing as what you're experiencing on the Samsung. I now have a HTC and the same problem that I had with the Samsung is no longer present on the new phone.

Maybe there is a setting within the Samsung Mobile that will prevent that from happening but I really couldn't be bothered finding out at the time.

I previously had a Samsung Galaxy IV, I could test my wife's phone as she has a version 5 that at this stage it seems to be Samsung related only.