Hello from Sara at Honeyfund!
This is an open letter to all Honeyfund users: past, present and future. My goal here is to spell out all there is to know about using Honeyfund with PayPal. The good and the bad.
First a little background: Honeyfund’s goal is to bring brides and grooms the opportunity to take the honeymoon of their dreams, without paying ridiculous fees! As you all know, our major competitors are charging 7-10% on the transaction amounts, which we disagree with in principle. For us that fee would have amounted to another night on our honeymoon! Unacceptable.
Our solution was to offer a simple, offline payment solution. By bypassing credit card systems we could offer our Honeyfund solution entirely free of charge! However, some of our couples really wanted their guests to have the convenience of paying online. We searched high and low for a cost-effective way to do this. The best we found was PayPal, where the payments go directly to you. PayPal deducts a fee of 2.9% + $.30 per transaction. We offer the interface free of charge. By removing the middle man, we cut the fees by more than half of our competitors–win! What’s more, some guests will still pay offline, making the overall fees our couples pay even lower.
With PayPal, you can withdraw your money at any time, free of charge. The money takes about three business days to get to your bank account. And you can withdraw as often as you like.
That’s the good. 95% of the time this system works beautifully for all parties. Another win!
Now, here’s the bad: PayPal can be very finicky and difficult for guests who have an existing PayPal account but don’t know how to access it. About 5% of our gift givers run into this. Our solution is pretty simple, they e-mail us, and we walk them through the payment or help them access their PayPal account. We also offer them alternate payment options, like paying offline for example. It takes about five minutes on the phone to resolve. (Yes we personally get on the phone, even though we have an e-mail-based customer support system.
Another common situation is this: The couple’s PayPal account must be configured to take guest credit card payments. Sometimes brides and grooms need a little help figuring it out. Again, we are happy to help and it takes about five minutes to resolve. We’ve been doing it for six years.
Finally, we have a dedicated support team at PayPal that helps us on a case-by-case basis when other wonky things come up.
All in all, what we want our users to know is, we’ve got the experience and the resources to tackle the PayPal beast when it rears it’s ugly head.
And here’s a tidbit of exciting news…while we plan to continue to offer PayPal as a wonderful and cost effective solution for our brides and grooms, we are working on more online payment solutions that will make gift giving via Honeyfund cheaper and easier for all parties. Some of these solutions are 100% online and 100% free of charge!! This is a very exciting development for us as it brings us closer to our vision, a free honeymoon registry for all.
Would love your comments and feedback!
– Sara Margulis, CEO, Honeyfund.com