Too MANY Payment Options?

Written by Cyn

With the launch of Checkout by Amazon  I have to ask myself – is there such a thing as too many payment options?  When a buyer comes to my site, what are they looking for as far as payment options?  Currently I offer Paypal, Google Checkout and a merchant account.  50% of my shoppers choose the merchant account, 25% Paypal and 25% Google Checkout.

Would I not be shooting myself in the foot by adding another payment option?  Considering each payment processor offers reduced fees based on volume, by having too many options, and spreading that volume among 3 processors, I am paying higher processing costs.

When I only offered Paypal, I had a lot of abandoned shopping carts and even a few potential customers email me that they canceled their order because they couldn’t use their credit card directly.  So I’ve added a merchant account and have had no more abandoned carts.  I may even experiment with deleting Paypal and Google Checkout for a month.  See if I get any requests for them, or if my abandoned carts return.  If I were to process all payments through my merchant account, I could save quite a bit of money on processing fees with the reduced percentages.

So for me, Amazon Checkout is a non-event.  Too many hands in the pie.