Merchant Account Versus Paypal
When you think of PayPal, the common person thinks of their eBay account. However, many online merchants have begun using PayPal for all their online processing needs. Although this method is fast and easy, the benefits of using PayPal are in fact, some of its drawbacks.
With PayPal, there is no way to know who your customer is. PayPal accepts anyone and everyone, so there is no guarantee if the money actually exists to be sent to you. With a merchant account, within a matter of seconds you will find out if the credit card is acceptable. This is the safest way to do business, and it will not go unnoticed. Consumers realize that if you are taking precautions to keep your business safe, you will most likely take care of them as well. Consumers always trust a more “professional” environment and, unfortunately because of its open atmosphere, PayPal is just does not give off that attitude.
Most online businesses must establish their brand name if they’re going to be successful. However, with PayPal, you must divert your consumer to the PayPal site in order to complete their transaction. Not only does this look unprofessional (as mentioned earlier), but ultimately the customer is paying PayPal. You run the risk of failing to make a significant mark in the mind of your consumer.
In reality, the biggest problem with a PayPal account is that it does not establish you as a merchant. While this is perfectly acceptable for one person selling sporadically on eBay, for those who are running a more serious online business there is no other option but to open a merchant account. There is no other way to appear more professional, establish your brand, and run your online business like a business.
- Our easy application process takes about 5 minutes
- Accounts are usually approved within 24 hours.
- Save time & eliminate hours of bookwork each week as QuickBooks does the accounting for you.
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