Paymate is an alternative to PayPal and other online payment methods. The company was formed in Australia in 2001. It is similar to PayPal in a number of ways but a significant difference is that Paymate credits funds directly to your bank account. Merchants in Australia can accept payment in a variety of currencies including Australian dollar, US dollar, UK pound sterling, New Zealand dollars and euros. New Zealand merchants on the other hand are only allowed accept payments in their native currency. Paymate Express was launched in 2002 and is a service that allows buyers to pay via Paymate without having to register as the money is deposited straight into the seller’s bank account. As of 2009, Paymate’s headquarters are in the United States.
As we’ve already mentioned, only sellers need to have a Paymate account to complete a transaction. Registering is relatively easy and only takes up a few moments of your time. You click on the ‘register now’ link to complete and submit your registration. You will receive an email which tells you how to set up your account through the website. You’ll need to provide bank account information social security number etc. Incidentally, if you are hoping to use Paymate for eBay or a similar auction site, you must have a minimum of 10 feedbacks from customers and you must also have a positive feedback rating of 98% going back 6 months.
One of the most frustrating things about similar sites is the ‘freezing’ of payments. Paymate promises to be a merchant’s best friend because it allows them to be paid immediately into their bank account. If you get paid into a PayPal account for example, you will need to transfer the money into your bank account which can take 2-3 working days. No such delay exists with Paymate. The site also has a risk management system which involves manual reviews of all transactions which are deemed to be risky. Paymate claims that losses from chargebacks are less than 0.1%.
Paymate is also one of the most tenacious sites when it comes to pursuing claims. If sellers receive fraudulent chargebacks from banks, Paymate pledges to fight your corner. As long as you keep accurate shipping and delivery records, Paymate can help you. The site also handles any complaints and refunds which allows you to concentrate on your business.
However, Paymate certainly has its detractors. For example, the 98% feedback ratio on eBay automatically removes more than 25% of sellers. Secondly, eBay sellers allege that you must also sell $36,000 worth of merchandise in a year in order to use Paymate which removes another 40% of sellers. This means that only 35% of eBay users are eligible for Paymate. There are also complaints about account verification and slow customer service.
Nonetheless, for those who are eligible to use Paymate, it offers a viable alternative to PayPal and having money paid directly into a bank account is a real advantage over many of its rivals. The main issue seems to be eligibility and hopefully, Paymate can deal with that problem and prove a worthy challenge to PayPal.