Metapost: A new no-fee alternative to Paypal

Anyone who’s read this blog for awhile knows I’m no fan of Paypal. While I like the buyer & seller protection Paypal offers, I despise their fees. If you use eBay (which owns Paypal) it’s a double-whammy. So I’m thrilled that Amazon.com has debuted a competing payment service that Trade Market members can now use.

I heard about Amazon Payments through one of my fashion boards. It works just like Paypal — you create an account, add your credit card or bank information, and voila! You’re ready to accept or send payments. It’s free to sign up and can be linked to your existing Amazon.com account. You can also withdraw money from your Amazon Payments account to your bank just like Paypal.

If you send a payment to someone through Amazon Payments that doesn’t yet have an account, they will need to sign up for one to claim their money. Likewise if you’d like to be paid through Amazon Payments the payer will need to sign up for an account. I’ve tried a couple of payments through Amazon now and it works like a charm. I can’t tell you the thrill of no fees!

There are a few downsides you should be aware of versus Paypal:
– Currently, you can’t create a shipping label through Amazon Payments. This means you’ll need to go to the Post Office, UPS, or their website to take care of shipping your package to the buyer.
– You can’t add funds to your Amazon Payments account using a credit card; you can only use a bank account.
There is currently no buyer/seller protection offered through Amazon Payments. This is a big one, since transactions will go sour occasionally. Your best option to protect yourself is to pay by credit card so that you can do a chargeback if necessary. As a seller, you’re taking a risk using Amazon Payments because there is no intermediary party to step in if a buyer asks for a refund.

For more information, check out the Amazon Payments FAQ.

I am so thrilled to kick Paypal to the curb for my Trade Market transactions. (Note: You’re still free to use Paypal if you like. I will not be banning it.) Another option is Google Checkout, though I don’t find it as user-friendly. What do you think of this new service? Are there any other payment services you recommend?


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