SOrry but do you know how much a "real merchant account" costs?
Yes I do -- I've seen a wide range of costs anywhere from a one-time setup fee and then a straight discount rate with no monthly minimums to exurbanite setup fees, monthly fees, discount rates and per transaction fees. And yes, I did oversimplify the criteria for determining one solution over another. Many factors come into play: average ticket amount, risk factor for the type of goods you provide, risk factor for the type of consumers you market to, how long you have been in business, etc. My suggestion is shop around.
Do you know how much business you are loosing using person-to-person payment solutions like these for business-to-consumer transactions? Consumers using P2P solutions lose many, if not all of their charge-back rights and many shoppers know this. Unless you are selling something extremely unique, many shoppers are more likely speed off to purchase their goods from another site than jump through the "account setup" hoops many of these P2P solutions require in addition to losing many of their rights.
Also, since I do know the costs involved with setting up and maintaining a "true" merchant account, sites that uses these cheap alternatives strike me as being "fly-by-night" organizations or organizations where customer satisfaction may not be a priority.
As strange as you might think my views are, I know Iím not alone. So I ask again, Do you know how much business you are loosing?