If you have your own ecommerce website, then your top two choices for online payment solutions are most likely PayPal and Amazon. PayPal is of course the obvious leader but Amazon Payments is right behind at #2.
Here are some of the more notable differences between these two:
With Amazon, you can apply for a micro-payment discount if you usually receive payments of less than $10. You have to contact Amazon to see if you are eligible. Volume discounts on processing fees are given for all transactions equaling at least $10, if you have three consecutive months wherein the average monthly transaction is at least $3,000.
With PayPal, the rates differ depending on the location of the seller. Sales within the US require the standard fee of 2.9% plus $0.30. For international sales, the rates are 3.9% transaction fee plus a fixed fee based on the currency used.
Some eligible merchants and non-profit organizations may get away with lower rates depending on the volume of sales. For those with sales of $3,000 to $10,000 monthly, the fee is 2.5% + $0.30 per transaction. For $10,000 to $100,000 monthly, it’s 2.2% + $0.30 per transaction. Monthly sales exceeding $100,000 may require a fee of 1.9% + $0.30 per transaction.
PayPal international sales may also only require a discounted rate. It’s possible that a 2.9% transaction fee plus a 1% cross-border fee and/or 2.5% currency conversion may apply.
On the other hand, Amazon is relatively limited, as it is only available for merchants based in the United States, the United Kingdom, Germany, and Luxembourg.
For US merchants who only do business domestically, the choice between PayPal and Amazon payments is a virtual tossup, although the excellent customer support gives PayPal an edge. But for merchants based outside the US, PayPal seems like the clear winner.