For contractors, payday isn’t always great. Most contractors use a site like PayPal to process payments, and PayPal nabs a big chunk of any money earned due to processing fees.
Contractors who want to accept credit cards through PayPal have it even rougher, since PayPal takes out a big percentage when it comes to credit card fees too. That’s where the new startup WePay comes into play.
WePay is a payment service not unlike PayPal in many ways (in fact, it is PayPal’s biggest competitor today). But, there are some major differences. First of all, WePay’s fees are much lower than PayPal’s fees. Secondly, WePay’s credit card fees are a low lower. Lastly, contractors can send out invoices directly from WePay, and these invoices actually look professional (unlike the ones that PayPal creates).
How WePay Compares to PayPal
Currently, WePay charges 1% plus 30 cents per bank transaction. PayPal charges 2.9% plus 30 centers per bank transaction. So, if you’re a small business and want to save some money when it comes to transaction fees, WePay makes more sense. Setting up an account is simple too. You can log in and set up an account using Facebook.
Any money sent to your WePay account is secured and can be withdrawn to your regular banking account in the same way that PayPal sends money to an account. The difference is that you will save 1.9% on transactions, and that can add up.
Recently, WePay began accepting credit card transactions. To accept a credit card, small business owners will have to pay 2.9% plus 30 cents per transaction (what PayPal charges per bank transaction).
The big deal here is allowing small business owners to accept credit card payments simply and easily. WePay also makes it easy for online businesses to set up shopping carts without the need to hire a programmer. WePay’s online shopping setup takes just a moment to complete, and there are no monthly payments or need to commit to any kind of contract – just a pay-per-transaction fee.
Switching to WePay
I’ve had some time to play around with WePay’s invoicing system. It’s very easy to set up an invoice and send out that invoice to a client. Clients receive a notification that a WePay invoice has been sent, and can follow a simple link to the WePay website.
From there, a client has a choice to pay the due amount with a credit card or with a bank account. Once the invoice has been paid, the money is deposited into the sender’s WePay account. From there, senders simply have to withdraw the amount to a predestined bank account.
WePay does seem like a great alternative to PayPal, and it’s definitely a better way to conduct business. After all, nobody wants to see half of their paycheck go up in processing fees! Unfortunately, WePay only works in the United States right now. But, if you live the U.S., are a contractor, and want to save some cash, WePay is really worth looking into.