posted on May 5, 2007 10:42:56 PM new
I came across a brief mention of accepting a buyer's payment made with their bank's Bill Pay on the ebay board.
The buyer would use his bank's Bill Pay to make a payment to the seller. The payment would then be mailed to the seller by the bank.
This seems like a great idea, in that the funds are removed from the buyer's bank account and the bank sends the check to the seller. This is better than a money order, and does not cost either party. It sure would save on PayPal fees.
What do you think? How would you word this in your payment acceptance info? How would you motivate a buyer to pay this way?
I wonder if you could set up an account to accept Bill Pay?
Bill K-
[ edited by kozersky on May 5, 2007 10:44 PM ]
[ edited by kozersky on May 5, 2007 10:46 PM ]
[ edited by kozersky on May 5, 2007 10:46 PM ]
posted on May 6, 2007 06:07:09 AM new
I think it has been replaced by ACH-automated clearing house,aka electronic bill/pay ,one of the features of online banking.
ACH is popular on Ebay-Australia,sellers will provide his bank information on the auction page.
But in this country,credit cards are more popular as we are a cash poor ,credit rich country.
USPS one time developed a system using ACH,where seller will mail a package with USPS DC and once it is delivered,USPS will authorise the bank to transfer fund from buyer account to seller account.Both buyers and sellers have to register with the post office system.
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[ edited by hwahwa on May 6, 2007 06:09 AM ]
posted on May 6, 2007 11:24:57 AM new
The following is in each item on my store at Vendio -
SAVE 25% Simply pay with a check from your Bank Bill Pay, and deduct 25% from the shipping cost of this item! We will ship the day after your Bill Pay payment has been received.
posted on May 6, 2007 11:58:55 AM new
There are two kinds of Bill Pay.
One does send an official check (e.g., Citibank does this), not on the buyer's account.
Others (e.g., Commerce Bank) send a check that is less official. As I understand it, they verify that sufficient funds are available at the time the check is cut, but I do not believe that they put a hold on the funds (i.e., it can bounce).
The reason that I know this is that I can use Citibank bill pay for my child support (and thus avoid waiting in line for an official check), but I can't use Commerce Bank's bill pay.
posted on May 6, 2007 12:21:54 PM new
I still receive payments both by check and echeck from PayPal. This is just a test to see if I can shift those type of payments over to Bill Pay. A secondary part of this endeavor is to see if I can stimulate buyers to purchase from my store at Vendio. If any other payments are switched to this method, I will be more than pleased.
Bill K-
[ edited by kozersky on May 6, 2007 12:23 PM ]
posted on May 6, 2007 01:02:05 PM new
Or you can open a bank account just to receive fund via ACH,list your bank routing number,account name and your name on the item invoice.
Anyone who uses this method get a 25% discount in shipping fee.
You dont want to use this bank account for anything else but to receive payments and empty it out every day.
posted on May 6, 2007 01:12:08 PM new
I don't think it will work, Bill. Buyers respond to FREE FREE FREE shipping. Discounted shipping doesn't seem to engage them much.
If you have repeat buyers you can help them set up electronic checks to pay you -- no wait for a paper check to arrive.
I toyed with novel payment methods for a while, such as having the customer use their credit card to buy stamps and have them shipped to me, but the Postal Service won't let you specify a third party address to ship them to.
I would even take gift cards as payment. They're practically cash anyway; you can sell a gift card usually for a high percentage of its face value on eBay.
Ah for the good old days, when a miner would bring a small bag of gold dust to the general store...
posted on May 7, 2007 06:27:45 PM new
kozersky wrote: ...The buyer would use his bank's Bill Pay to make a payment to the seller. The payment would then be mailed to the seller by the bank... This seems like a great idea, in that the funds are removed from the buyer's bank account and the bank sends the check to the seller. This is better than a money order, and does not cost either party. It sure would save on PayPal fees.
This method is popular in many markets except North America.I think CheckFree is one of the few companies in the USA that has a BillPay service that operates via ACH rather than the archane electronic check used by some competitors. BTW CheckFree Auction Payments service (discontinued on October 20, 2005) allowed eBay sellers to receive payments for online auction sales through CheckFree direct into their nominated bank account at fees way below PayPal's. As well as being faster, cheaper and guaranteed funds, payments came direct into your own FDIC-insured bank account, which could not be arbitrarily frozen (unlike with an unregulated payments processor like PayPal).
I regularly get paid by my eBay and website customers worldwide using online domestic bank transfers, which are usually free in many countries and throughout the European Union. Saves me loads in fees and more importantly it means no troublesome third-party dictating to me about what I can sell, how I can ship, and whether I must accept returns or chargebacks. Also given the weakness of the USD I don't really get too many US customers that expect every international seller to accept PayPal (especially when no SPP is available).
fluffythewondercat wrote: ...What they care about is getting their item quickly... It can take up to seven days for a Bill Pay-generated paper check to make it through bank processing and postal service transit time... That's just too long.
Actually bank transfers (outside the USA) are often credited the same or next business day to the recipient's bank account. It's all electronic bank-to-bank with no archaic printed checks sent through snailmail (as with some US banks); checks are so last century and many banks (outside the USA) no longer issue them, preferring to issue EFTPOS (aka debit) cards instead.
For sellers that accept PayPal, it's often recommended they wait as long as possible to ship (within the seven-day window) so they have a better chance of being notified of a reversal before shipping their merchandise. Since bank transfers can't be easily reversed, merchandise can be shipped immediately with no need to wait for confirmation of good funds. Also you can ship to any address provided by the buyer since there's no third-party mandated protection policy to adher to...
Disclaimer: I hold a (very profitable) position in CheckFree stock.
posted on May 7, 2007 08:12:13 PM new
Agitprop - good info for non-US sellers. US banks charge horrendous fees for transfers and is not feasible for most US sellers. Archaic? Yes, but that's the playground we're on. US eBay buyers seem very comfortable with PayPal- a seller to the US market that doesn't accept it is cutting his own throat.
posted on May 7, 2007 09:11:55 PM new
Paypal main attraction to buyers is that they can use their credit card,and the attraction to the seller is that they dont have to have a merchant account to accept credit card.
US buyers just dont have that much cash in their bank account.
Some will even write $1 rubber check in the doctor office!
Just think,they dont have one dollar in their account!
KOZERSKY,
I dont know what you sell,but 25% shipping could wipe out saving of not accepting paypal!
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Lets all stop whining !
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[ edited by hwahwa on May 7, 2007 09:15 PM ]
posted on May 8, 2007 08:06:11 AM new
Also,
why park idle fund in your checking account which accrues no interest?
Even bank savings account is nothing to write home about.
Paypal money market is paying over 5 %,if you are one of the luck ones who never have your paypal account hacked,restricted,frozen.
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Lets all stop whining !
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posted on May 8, 2007 10:35:58 AM newUS buyers just dont have that much cash in their bank account.
Well, maybe you don't.
Some will even write $1 rubber check in the doctor office! Just think,they dont have one dollar in their account!
I used to think people who overdrew their checking accounts were just too lazy to keep track, but not any more. I deposited $5,800 in cash in one of my checking accounts and was stunned to be charged $1.60 for the privilege. Turns out if you read the tiny print they can charge you 20 cents for every 100 dollars you deposit over $5,000. There are probably dozens of other arcane rules and fees that I just haven't run afoul of yet.
Credit cards aren't any better. You miss one payment on most of them and not only do they charge you a $39 late fee, they jack up the interest rate to 29.9%...or worse.
Who can keep track of all this stuff any more?
KOZERSKY, I dont know what you sell,but 25% shipping could wipe out saving of not accepting paypal!
I believe Bill sells stamps.
fLufF
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[ edited by fluffythewondercat on May 8, 2007 10:37 AM ]
posted on May 8, 2007 10:49:07 AM new
I know some banks in foreign countries (esp where there is hyperinflation),they charge a fee if you bring in too much cash for deposit,some teller has to spend time counting!
If Kozersky sells stamps,why not just offer free shipping if buyer skips paypal.
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posted on May 8, 2007 01:40:18 PM new
I'll tell you this. The day my bank charges me to deposit money is the day that I take all of my money somewhere else.
I've also found that if you are a good customer (mortgage, checking, savings accts in the same bank), they will usually dump a fee if you ask.
posted on May 8, 2007 06:57:32 PM new
fluff is correct in that I do sell stamps.
I have my shipping/handling calculated so that I can markdown handling by 25%, when the item is purchased off ebay.
I have multiples of inventory, which allows me to list in store, core and store at Vendio. I want to bring some life to this dead horse known as a Vendio store. ebay policy prevents me from pricing an item for less at my store at Vendio. However, policy is mute in regard to lower shipping costs.
posted on May 9, 2007 06:37:16 AM newI've also found that if you are a good customer (mortgage, checking, savings accts in the same bank), they will usually dump a fee if you ask.
Apparently not the case at WaMu, where we have been a *very* good customer ever since they swallowed Home Savings whole.
Closed the checking account and pretty soon the mortgage is going elsewhere, too.
Bill, just a thought that may not apply in your case: eBay can't stop you from issuing rebates, doing BOGOs, running contests (as long as they're not on eBay) or whatever.
I'm on the road this week, visiting vendors in Southern California. Last night when I stopped at a hotel, the desk clerk was holding a cellphone and staring at it quizzically. She said, "I had it in my pocket and heard it click." She brought up her picture gallery and sure enough, there was a picture of the inside of her pocket: completely black. That's what Vendio stores remind me of. They're as hard to see as the inside of someone's pocket.
posted on May 9, 2007 06:55:42 AM new
Commercial checking-banks are used to counting cash every nite and they are paid to do so.
But with individual checking,how often do you see them bringing in hoards of cash,unless they just sold their car and get paid in cash or they are dealing in you know what??
If you are using your personal account for business,I can understand your bank wants to charge you a fee for counting cash.
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posted on May 9, 2007 07:22:41 AM new
It is (was) a business account. Sorry, there's no possible excuse for a fee. It's not like I brought in 5,800 one-dollar bills.
Although that sounds like something I'd do just to annoy them now.
Bill, if there's some way for the payer's bank to notify you when the payment is issued, you could go ahead and ship in advance of receiving the check in the mail. Jay and Marie used to do something like this: If your feedback was (I think) 10 or above, they would ship before receiving your payment. They stopped doing it a long time ago, but it was good for building confidence in them.
posted on May 9, 2007 07:37:45 AM new
I agree - sales now depend on seller links and promos alone. Vendio could do more to make STORES visible and searchable - a simple redesign of the home page and Store landing page could do a lot to further Vendio Store Sales.
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posted on May 9, 2007 07:05:09 PM new
fluffythewondercat wrote: ...if there's some way for the payer's bank to notify you when the payment is issued, you could go ahead and ship in advance of receiving the check in the mail.
Banks (outside the USA) routinely send you an IM, SMS, text message or email that a payment has been credited, and to login on your WAP-enabled phone or web browser to confirm it. Most of the large banks offer this as part of their basic service. Some of the global banks like HSBC offer it in North America in a variety of languages including Chinese (both flavours).
posted on May 9, 2007 07:25:53 PM new
It is too bad USPS does not advertise enough of this system it came up with a few years ago-both buyer and seller registered with USPS,buyer will remit fund via ACH to USPS ,and USPS will release the fund to seller once the DC is swiped at buyer post office.
But then there is no buyer protection or chargeback.
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posted on May 16, 2007 03:19:59 PM new
In browsing through the methods by which one can deposit money into my ING Direct Electric Orange checking account, this appears:
To have an external party make an electronic deposit into your Electric Orange, simply provide our routing number (031176110) and your account number (658xxxxx).
Okay, so can anyone who has online banking deposit money in my account this way? Give me some examples of the online banking products that people might be using.
posted on May 16, 2007 04:20:57 PM new
fluff - I just checked a few of my online bank accounts. I can transfer you money using ACH. However, I can't use Bill Pay to transfer the cash to you.
When I transfer cash to you using ACH, I would have to provide the routing #, account #, and your name.
I'm not sure that many would understand how to do the transfer.
posted on May 16, 2007 05:03:45 PM new
People do this all the time,anyone who pays bill online is aware of this feature,they just dont want to part with their money!
Besides it is not reversible,why should they save you money,Paypal is free to them.
Also,if they bid a lot and need to pay many sellers,Paypal is much easier,they can pay in one big swoop.
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posted on May 16, 2007 05:28:19 PM new
Well, there are buyers who hate PayPal almost as much as sellers do. Probably not many, but they exist.
One of my repeat customers is a store owner in upstate New York. She refuses to use PayPal and she hates to wait for auctions to end, so she's really out of luck since all of my items are either auction or fixed price immediate payment.
She could just browse my fixed price listings, say "I'll take that one and that one and, oh, that one too", then I could end them when the money arrives in my Electric Orange account.
posted on May 16, 2007 06:44:58 PM new
fluff, I just thought of somthing. ACH transfers are not immediate like PayPal payments. They usually appear in the account that they have been transferred to, on the next day.
