Is there a Cheaper Alternative to PayPal?

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After selling a few items on eBay last week I was amazed to notice how much of my earnings went to PayPal fees.  Ebay charged me for listing the items, for selling the items, and then Paypal charged me for accepting the money.  I immediately started seeking cheaper alternatives to PayPal.  A few weeks back I came across this article that bemoans the fact that Paypal adds fees without notice.  Paypal began charging fees for “Goods and Services”.  It is important to note that this applies only to business transactions, not personal transactions.  The way the article was written I thought I must be missing out on some great discounted alternatives.  So I went on a hunt to find a cheaper way for small business owners to accept payment for products.

Survey of Money Transaction Fees | Are there Comapnies that beat PayPal Fees?



Google Checkout

Google Checkout

Revolution Money Exchange






Digital River – I looked around here for  a few moments and quickly realized that it was a system that was too complex for my needs.  So complex, in fact, that I could not find their fees.


I immediately stopped looking.  Anyone who is not willing to publicly publish their fees is not for me.


In addition, ClickBank charges $1 per transaction. Therefore, on each sale ClickBank effectively keeps 7.5% plus $1. This takes place before affiliate commissions are paid out.

Are there cheaper alternatives to PayPal?

PayPal’s fees are not out of line with the industry standards.  In fact, in many ways they are one of the cheaper alternatives.  AlertPay is just a touch cheaper to receive funds, but only by $.05 per transaction.  If, however, a person pays with credit card you will be paying 5% of the total instead of 2.5% with PayPal.  If a person were just tired of PayPal or felt deceived by the fees, the only real alternative in terms of fees and scope would be Google Checkout.

The only free option available for business transaction is Revolution Money Exchange.  The biggest disadvantage is that buyers would also need a Revolution Money Exchange account.  Not many buyers will sign up for an account just so they can do business with you.  If, however, Revolution Money Exchange appeals you can use the link below to sign up.

While we are talking about collecting fees I wanted to recommend E-Junkie.  They offer you the choice to use many of the payment options above to sell products on your website.  I use them when I sell products (eBooks) on this website.  I have found their services cost effective and very efficient.  Click on the button below for more details.

E-junkie Shopping Cart and Digital Delivery

What company do you use for collecting payments?  Would you recommend it?  Am I missing a good alternative?


  1. Cheyenne Marie says

    Since paypal fees are so high and costumer service is poor I recommend being able to accept credit card payments yourself by opening your own merchant account, you can go to it’s fast and easy to apply. I did it and got approved quickly and it was free! I was what they considered to be high risk because of my low credit score. I was amazed at how fast and easy I was able to get started. My business has taken off since I started accepting credit cards. Hope this helps. Good luck!

    • Dave L says

      No, this isn’t true really – this is merely a spam posting trying to get business for This should have been removed long ago.

  2. says

    I went through this before as well and yep, PayPal is in line with industry standards. In fact the industry often takes your credit score into effect when determining your the rate that they will charge you which makes no sense to me since they are not extending you credit. PayPal charges everyone the same rate. Kind of sucks that eBay gets you three ways though. I just raise my prices accordingly. Do a google search for eBay cost calculator and click on the first one that comes up. it’s a GREAT tool.

  3. Carole says

    I had the same experience with PayPal/eBay last week. This was the first and the last time I use their services! It’s a real rip-off!
    I’ve managed avoiding PayPal for years but then I created eBay and PayPal accounts just to sell one single item and what I’ve got? Stress and charges charges charges.
    I don’t let my son to create an own PayPal account for his online-games and give him Paysafecard vouchers instead so that we have an overview on his expenses. But eBay won’t allow users to purchase with prepaid cards because they own PayPal.

  4. Adam says is another great alternative to paypal and really cheap too for a real merchant account. 1.99% and only $7.95/month. No set up fees and no contract. You can use it on ebay or your website, email invoices and take payments on a smartphone. I had to find a paypal alternative after my paypal got suspended (for no reason at all) and this was the cheapest i could find with the fastest set up time.

    • says

      Thanks for pointing out that website. Depending on how much business a person does the fees could be higher than PayPal. However, for a person who does a lot of transactions this could be a money saver.

  5. says

    Dear Mr. Ford,

    My problem with e-Bay and PayPal is that they help finance Planned Parenthood and the homosexual activist lobby, thereby contributing to the murder and degradation of human beings and the deterioration of society. If we’re serious about serving the Kingdom of God, I can’t see why any of us would want to do buiness with either of them. On a practical level, all we’re doing is helping finance people who want to destroy us. On a spiritual level, we’re helping finance the destruction of human beings made in the Image of God.

    Thanks for listing alternatives.

    in Christ,

    Fr. Jim Rosselli +
    St. Joseph of Arimathea Orthodox Church
    La Porte IN

    • You msut read a different Bible says

      That isn’t the Jesus Christ who is my Savior and the Son of God that you are talking about.
      The Jesus who is MY Savior loves all and will judge, NOT YOU.

  6. says

    We are actually a Christian Credit Card Processing Company that solely works to glorify God. We do not process for morally objectionable businesses and we can definitely beat Paypal rates and due to the large amount of business we process we can give lower rates than most of those in the industry.

  7. says

    I think this is one of the most significant info for me. And i am glad
    reading your article. But should remark on some general
    things, The web site style is perfect, the articles is really nice : D.
    Good job, cheers

    • Toys under $20 is SPAM says

      What a cheap way to SPAM a blog by posting such general comments that could be meant for any website, and then using your business name with link to your website.
      Honestly, if you are SO POOR that you need to do this instead of advertising, youi don’t belong in any busines.
      Folks, this “toys for under $20″ is JUST SPAM>

  8. says

    I was curious if you ever thought of changing the structure of your blog?
    Its very well written; I love what youve got to say.
    But maybe you could a little more in the way of content so
    people could connect with it better. Youve got an awful lot
    of text for only having 1 or 2 images. Maybe you could space it out better?

  9. says

    Your blog post was interesting on paypal alternatives but after reading seemed inconclusive. Did you come to a solution that offered easy check out for customers without the need of opening an account, who want to just use credit cards for instance that were less expensive yet just as easy and powerful than that of paypal?

    I found myself in the same situation and am looking for a solution myself. finding your blog online I “thought” I found a Christian Bank and got all excited but looks like we really just have a good God minded person doing your due diligence in that search also.

    What solution did you come up with if any or are we all doomed by the monopolization of paypal?

    Thank you,
    Michael Baker

    • says

      p.s. You might want to check out Skrill (previously MoneyBookers). From what I can make out, it so far seems less expensive than the others and told it’s the second largest payment gateway next to PayPal recognized by many (I’m still shopping though).

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