With the recent RM900 hike of MOLpay and iPay88 on top of their existing setup and annual fees, would this make PayPal a better option for small E-commerce owner?

MOLpay:
Setup Fees: RM 1399 (RM 900 + RM 499)
Annual Fees: free (RM 99 if didn't meet the min transaction requirement)
Transaction Charges: 3.8%
Settlement Fees: RM 2 per settlement
For more info: http://www.molpay.com/v2/merchant-solution...-plan/lite-plan

iPay88
Setup Fees: RM 1388 (RM 900 + RM 488)
Annual Fees: free
Transaction Charges: 4.0%
Settlement Fees: unknown ?
For more info: http://www.ipay88.com/products/myrgateway_soho.asp

PayPal
Setup Fees: free
Annual Fees: RM192 (RM 16 x 12 months)
Transaction Charges: 3.1% + RM 1
Settlement Fees: free
For more info: https://www.paypal.com/webapps/mpp/merchant...koutCalloutDesc

This post has been edited by jeeshenlee: Jul 16 2013, 05:24 PM

Another options:

Maybank & Webcash Merchant. Check this thread: https://forum.lowyat.net/topic/2783829/

Paypal goes down to 1.4% fees depending on how much your turnover is but nothing can beat payment gateways from your bank.

Thanks @sunsuron, @gregghawes

Here's my logic:
Scenario for study:
- Average transaction amount: RM 150
- Average transaction per month: 30
- Total transaction per month < RM 10,000
- 2 settlement per month

With the above scenario, here's the upfront cost i calculated for

MOLPay
- Setup Fees: RM 1399
- Annual Fees: RM 0
- Cost for transaction: RM 171 (RM 150 x 3.8% x 30 transaction)
- Cost for settlement: RM 4 (RM 2 x 2 settlement)
- Total cost per year (first year): RM 3499 (RM 1399 + (RM 171 + RM 4) x 12 months)
- Total cost per month (first year): RM 291.60
- Total cost per year (second year onwards): RM 2100 ((RM 171 + RM 4) x 12 month)
- Total cost per month (second year onwards): RM 175

PayPal
- Setup Fees: RM 0
- Annual Fees: RM 192 (RM 16 x 12 months)
- Cost for transaction: RM 169.50 ((RM 150 x 3.1% + RM 1)x 30 transaction)
- Cost for settlement: RM 0
- Total cost per year (first year): RM 2226 (RM 192 + (RM 169.50) x 12 months)
- Total cost per month (first year): RM 185.50
- Total cost per year (second year onwards): RM 2226 (RM 192 + (RM 169.50) x 12 months)
- Total cost per month (second year onwards): RM 185.50

MOLPay and iPay88 is really getting more and more expensive, it actually adding to the cost of entry for e-commerce.

For start-up you may just use PayPal or Webcash

Wow. RM900 hike. Afraid gonna kill some small e-comm startup. Paypal is the best option but Malaysia still not widely use it.

RM900 additional if you get Credit Card service. So what you can do to overcome this is, simply just replace the credit card service with Paypal. Other than that you can get payment gateway service.

@paul5005, good point. Haven't thought of combining both. Gonna check if it's possible to channel the payment at the shopping cart if we have two different payment options.

Anyway, me and my partner decided to go with PayPal. good news is we received payment one day after the installation. Not bad for a first attempt.

just curious with the current eCommerce boom , why people moving backward by charging more expensive. is it really an increase of cost or just transaction fees not enough to survive anymore

@kinggekko, the extra RM 900 was charge by bank because a - "few banks had been slapped a huge fine (6 digits) as a result of merchant misconduct against the VISA / MasterCard compliance guidelines. Sources (EcommerceMilo.com - Artical URL)[I]"

IIRC, the hike of cost is due to the banker impose additional cost to the gateway company. That's because bank negara introduce new rules & regulation which involve more paperwork & man power on the application process for the benefits of the consumer.

Thanks for sharing

Sad..on transferring this back to merchant..and subsequently consumer.
Well...wat to do

The are more 'stories' behind, the additional cost happened in overnight. We are facing few issues dealing with Ipay88 but no choice to adapt to their new procedures.

MOL did their part by updating their merchant and their website. But IPay88 still doesn't show the additional cost of Credit Card fees(don't know why)

Seems to me PayPal is more suitable for occasional buyers, while MOLPay is more suitable for frequent buyers.

The extra RM900 one-time processing fee is only applicable when you need the Credit Card payment option when you apply for iPay88 / MOLPay. If you do not wish to pay the additional RM900, you can always opt out for credit card payment options.

The RM900 is due to new Bank Negara's rules, where all online store that accept credit cards must use their own merchant account. Therefore the applicants are required to sign up for the sub-merchant account with the bank (in iPay88 case, it is Alliance Bank).

With this is effect, whenever you made payment with CC at an online shop that use iPay88, you will see the online shop company name appear on your credit card statement, instead of main credit account, which is iPay88 or Mobile88 Sdn. Bhd like last time.

Alll this extra works is to minimize online credit card fraud cases.

The main benefit of iPay88 / MOLPay is the local banks online payments option, which allows your customer to pay directly with their online banking from major local banks (almost all local banks are covered).

For the credit card options, as many have said, you can always use PayPal for that. PayPal is now very convenient for Malaysian to pay and accept payment from credit cards, compared to last few years. PayPal setup fee is free.

RM900 maybe a large amount for startup online shop owners, but it will become more affordable when business grows, as the extra RM900 is just an one-time fee, not annually.

ipay reflected when you ask them to send you the rate via email . otherwise website not stated

I checked at Paypal website, there is no annual fee...
Are you sure Paypal charge RM16 x 12 months?

Also, their website mentioned 3.4% + RM2, not 3.1% + RM1....

now using Ipay88. their service is damn good..

want to give a try with webcash. the fees is lower