Kluge
Member
- Joined
- Dec 2, 2011
- Messages
- 2,416
So, most of us are familiar with Paypal, now. Many assume it's their only option for receiving funds with in fundraising - and perhaps there are libertarian merchants tired of the fees, too.There are four ways most consumers use it -- either they tie it to a bank account, put money in it and use it as an online bank account, use it as a credit card ("Pay Later"), or simply use it as a credit/debit card processor.
Whereas Paypal charges something like $.30 + 2.9%, Dwolla charges a flat $.25 for transactions over $10. Someone donates $1000? $.25 using Dwolla. But... what happens when someone donates less than $10? The transaction is free! Dwolla today announced it's instant, too - so there is no longer a need to have money in the Dwolla account -- having a tethered bank account with the cash in it is now enough. It also essentially can act as an online credit card, now -- if a consumer doesn't have a tethered bank account with the cash, Dwolla will make a temporary loan to the consumer (a "Pay Later" program).
What Dwolla does not do, and will never do, is process plastic cards - and this may be a deal-breaker for many. So -- what are you to do? You can at least reduce fees by offering both options -- PayPal AND Dwolla. Dwolla saves you money, and Paypal.... well, it still has a place - but Dwolla's catching on fast. It's the primary middle-man for Bitcoin purchases because the fees are so low, and the company's quite reasonable in policy.
For fundraisers and donors, you can check out Dwolla here - and for merchants, you can scope out e-commerce software supporting Dwolla here.
Whereas Paypal charges something like $.30 + 2.9%, Dwolla charges a flat $.25 for transactions over $10. Someone donates $1000? $.25 using Dwolla. But... what happens when someone donates less than $10? The transaction is free! Dwolla today announced it's instant, too - so there is no longer a need to have money in the Dwolla account -- having a tethered bank account with the cash in it is now enough. It also essentially can act as an online credit card, now -- if a consumer doesn't have a tethered bank account with the cash, Dwolla will make a temporary loan to the consumer (a "Pay Later" program).
What Dwolla does not do, and will never do, is process plastic cards - and this may be a deal-breaker for many. So -- what are you to do? You can at least reduce fees by offering both options -- PayPal AND Dwolla. Dwolla saves you money, and Paypal.... well, it still has a place - but Dwolla's catching on fast. It's the primary middle-man for Bitcoin purchases because the fees are so low, and the company's quite reasonable in policy.
For fundraisers and donors, you can check out Dwolla here - and for merchants, you can scope out e-commerce software supporting Dwolla here.
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