Online Payments for selling digital products

If you’re looking to sell digital products on your website, you will need to offer a payment method. Since shops on websites are not physical stores, you will want to use an online payment portal and not traditional payment methods such as cash, check, etc. Also, be warned - since there is no direct contact between the seller and the client, there is a lot of room for scams. Be careful, and always use respected payment providers, such as the ones compared below.

Pay Online - PayPal

If you ask for most popular player in the market, online payment provider PayPal is first company people will mention. PayPal is owned by eBay and was one of the first online payment processors. To this day it is wildly popular, but only because everyone has it. See PayPal has sort of a monopoly in the industry, and they take advantage of it. While all payment portals charge some sort of fee, PayPal is notorious for high fees. They charge $0.30 for every transaction, plus 2.9% of the total. However, since PayPal is such a large company, they are one of the safest choices. PayPal is widely used in the webmaster community, but be warned - when a dispute is started over a transaction gone away, PayPal will ALWAYS side with the purchaser if a digital object was involved. So, if you’re selling a download product and take a payment through PayPal and the buyer disputes the transaction, the chances are big that their money will be returned, whether you’ve delivered a digital product or not.

Skrill MoneyBookers

Another popular payment portal is MoneyBookers (Skrill). One great thing about MoneyBookers is that there is no fee to receive payments. However, there are fees to withdraw money, unlike PayPal. The specific fee depends on your country of residence, but it’s usually a flat fee instead of a percentage. MoneyBookers is definitely smaller than PayPal, but it’s still very relevant in the website industry, as many people are hesitant to use PayPal. MoneyBookers is much fairer when it comes to disputes over digital products, and most of the time both parties end up walking away happy.

Accept payments online, 2Checkout

2checkout is designed for larger-scale merchants, and their fees are pretty high. Just to start using 2checkout, you need to pay a $49 set-up fee. After that, there is a $0.45 charge per transaction, plus 5.5% of the total. As you can see, this is more than double the fees of PayPal and other payment portals. However, 2checkout is extremely safe and secure, and it can process almost any credit card. Use 2checkout if you have a higher margin on your sales and you can afford this high fees. 5.5% of everything can put a huge dent in your profit margins, but if you’re moving enough products, that won’t really matter. The nice thing about 2checkout is that you only pay if you sell something. Some merchant account providers charge monthly fees, which can really start adding up if you aren’t selling much.