The title of this article never ceases to amaze me. When I check the keywords and terms that people use to find this site online, that exact sentence turns up often. I already rank at the top of Google for searches like:
But why the heck is the phrase “without PayPal” showing up so often?
Bad Experiences With PayPal?
Apparently, there are a lot of folks out there who have had bad experiences with PayPal or are scared of it or somehow don’t understand it.
Well, let me explain a few things, perhaps dispelling some false notions and offering some alternatives.
How PayPal Works
PayPal is a service that is like a bank in many ways but it is most assuredly NOT a bank.
- You can use it to send money to someone you want to pay,
- You can use it to receive money from someone who owes you,
- You can use it to send money to yourself in different ways (like take money out of your US bank account and spend it here in the Philippines via an ATM card),
- And, very important to me, PayPal acts as a credit card merchant account for me.
PayPal Is One Of The Only Way a “Little Guy” Can Get Paid.
When I sell something online, like my specialized air-mile radius maps, the buyer just clicks on a “Buy Now” button and PayPal does the rest.
PayPal takes the money from whatever source the customer wants to use … bank account, credit card, electronic check and so forth.
PayPal then deducts a small service fee (that’s how they stay in business) and deposits the money in my PayPal account, sending me a notice that the customer ordered and paid already.
In small-volume situations like this (I only sell a few maps per month), I just couldn’t do business any other way.
Large volume e-commerce businesses usually use dedicated credit card processing services and other solutions, but for “small-time” entrepreneurs like me, PayPal is invaluable.
I’ve been doing business with PayPal for more than 14 years now and I like them fine.
But of course no service is ever perfect, and it’s very important from my Google search numbers that there are a lot of you out there who want to make money and do not want to use PayPal.
Well, great news for you.
Here are a number of proven PayPal alternatives.
TransferWise is my choice for international transactions owing to its amazingly low fee and mid-market exchange rates.
For any transaction, TransferWise simply charges 1% of the total amount transferred with the minimum being $3, it’s almost 1/3 of the fee that PayPal charges.
Best of all, it uses the mid-market exchange rate for conversion, therefore you are sure to get the best rates without TransferWise fee.
Skrill is very similar to PayPal in working. You attach a bank account or debit/card to your Skrill account and send/receive money. The service only charges 1.9% fee for a transfer between Skrill wallets.
It’s still quite less than PayPal and there are no dedicated rates for different countries/currencies.
However, the problem comes with international money transfers where the accounts use different currencies. Skrill charges 3.99% fee on currency conversion, so the international transfer can cost near 6% of the total amount.
Things get even worse if your bank currency isn’t supported by Skrill (40 currencies are supported). There will be money conversion involved in both receiving money and withdrawing to your bank account. And your bank may even add some fee as well. All this could lead to up to 12-15% fee on just receiving/sending money.
Transfast is very similar to TransferWise as it lets you direct deposit to the bank account of the receiver. However, only US residents can use the service to send money worldwide.
It supports online transactions in the USA and 50 other countries. Some of the unsupported PayPal countries are also supported.
Transfast charges a fixed $4.99 on every transaction and charges no fee over $1000 transfers. Transfers to some countries are also free, such as India or Nigeria.
Unfortunately, it uses its own exchange rates for currency conversion that depends on the currency itself. However, the exchange rate is quite competitive, you can check it on the Transfast calculator.
Payoneer is quite different from PayPal, but it is still a great online transaction method. Payoneer works through a Payoneer Mastercard that is sent to your home for free with a yearly maintenance fee of $25 (charged at the end of the year). You can use the card anywhere where Mastercard is accepted.
Payoneer is mainly created to help you receive payments from US companies like Wish, Fiverr, PayPal and over 3500 more. You can then withdraw the payment using an ATM machine or spend it right from the Mastercard.
There is no fee for sending and receiving payments from other Payoneer card users. And there is a 2% withdrawal fee when you withdraw the money in your local currency.
However, if you are receiving money from a company, they may charge a fee of their own (check company page for this).
Besides featuring stellar customer service and fraud protection, WePay is a standout alternative because consumers can make purchases without leaving your site via a virtual terminal.
Not only does this make your site look more professional, the service seems to be more focused on the individual’s interests and not just their credit card numbers.
By combining a merchant account with a payment gateway 2Checkout permits customers to receive credit card and PayPal payments.
The company also features international payments, a solid shopping cart, and recurring billing.
Authorize.Net has been around since 1996 and is supposedly the Internet’s most widely used payment gateway. Authorize.Net has over 400,000 merchants and has been the recipient of the Achievement in Customer Excellence (ACE) award for five consecutive years.
Intuit is almost an essential service if you’re a small business owner who needs help with your finances. Besides being able to accept payments, both online and in-person with GoPayment, Intuit can also help you pay employees, calculate payroll taxes, and file payroll tax forms.
ProPay offers similar features to other PayPal alternatives including the ability to receive and send money anywhere in the world and even recurring billing and a built-in shopping cart. The one big advantage that ProPay has over the others is it’s also accepted by eBay. There’s also the ProPay JAK, a mobile phone credit card reader which can process credit and debit cards in real-time on your iOS or Android phones, in case you’re doing transactions in person.
While Click2Sell has the normal features found on any worthy PayPal replacement, it’s one of the few that will accept PayPal, Google Checkout, Skrill, and credit cards with or without a merchant account. But, the most standout features are affiliate tracking, powerful reports, and automated sales management. They also have the leading sales reporting tools so you can better understand your strategies and sales tactics.
Dwolla is very similar to PayPal in that you can do everything from paying your friends back to accepting payments at your place of business. What’s unique about this service is that if both parties have a Dwolla account, then money can be spent easily through their name, Facebook ID, Twitter handle, LinkedIn profile, telephone number, or email address.
Braintree has been growing steadily since 2007. Some of the platform’s features include a payment gateway, recurring billing, credit card storage, and allowing global online and mobile businesses to accept credit card payments via a merchant account.
ClickBank has been around since 1998 and offers a ton of easy to use features. ClickBank does everything for you, including building a site for your products and optimizing your business. Basically, ClickBank is a one-stop shop for online businesses.
Stripe is a rapidly growing start-up that removes the need for a merchant account or gateway. Stripe takes care of all your payment needs from storing cards, to handling subscriptions, to direct payouts to your bank account. Web developers will dig the ability to integrate a payment system into projects by using Stripe’s API.
Still think you need PayPal to do business online?
Have you reached “nosebleed” or eye glaze level yet?
Can anyone still think that PayPal is the only solution for getting paid online? I don’t think so.
Usually when someone goes off on a tangent about how a service like PayPal did (or didn’t) do something for them, it is really an excuse for the fact they are searching for a reason NOT to try.
Well never mind that. If you really want to earn money at your keyboard while living here in the Philippines, then just do it. There is always a way to get paid, with or without PayPal.
Make Money At Your Keyboard in the Philippines without PayPal