Many of you know that PayPal FINALLY decided to play nice with 1ShoppingCart.com so you can now do recurring payments in 1SC when you’re using PayPal as your merchant account and/or Gateway. Up until PayPal’s recent update on March 15, if you tried doing recurring products using PayPal and 1SC, PayPal would only charge the customer for the initial charge, but none of the recurring payments after that. Well now you can! If you didn’t know about this earth shattering change (well, at least it was earth shattering to those of us who’ve been asking for this feature for what seems like years and years.) you can read about it and download the integration instructions here.
However … as pleased as I was to see that PayPal was finally stepping up their game, I found out they have evidently made some more changes that don’t make me feel quite as warm and fuzzy as I was feeling after their last upgrade.
I have a few clients who use PayPal as their Payment processor for their membership sites and subscriptions rather than using something like 1ShoppingCart or InfusionSoft. If you have a one-time purchase, you can choose the “buy now” button when you set up the product in PayPal, but if you have a recurring product, you have to choose the “subscription” button when you set the product up. And, in the past, customers have always had the option to use their credit cards to make their purchases WITHOUT having to have a PayPal account.
Not any more! What’s really sad about this is that PayPal apparently slipped this one in with their latest upgrade, but didn’t bother to tell anyone about it. I found out about it from a client who found out about it the hard way … after a lot of stress and going back and forth with PayPal. Now, when your customers “subscribe” to a recurring product, there is a big, bold message telling them that a PayPal account is required to complete the transaction.
If you want your customers to still have the option to purchase a subscription product without having to have a PayPal account, you now have to sign up for what PayPal calls “enhanced recurring payments,” at $20 per month. This goes for existing subscription products you may already have set up before the change as well … there was no grandfathering of accounts or products.
So … if you are currently using PayPal ONLY as your payment processor for recurring products (subscriptions), please be aware that your customers will no longer be able to purchase from you using their credit cards without having a PayPal account unless you upgrade to what they are now calling “enhanced recurring payments” at a monthly charge of $20.
If you already use 1SC with PayPal and need help setting up the integration for recurring products, just let us know. We’re here to help!