At the turn of the new century, the rapid success of eBay brought its payments brand, PayPal, into the spotlight. PayPal quickly emerged as a fast, secure, and convenient way of sending payments electronically, and over the years, became somewhat of a standard when purchasing products online. Now its own independent brand, PayPal has developed new products and partnerships, many of which appeal to e-commerce merchants looking for a payment processing solution.
However convenient PayPal might be, it may not be a good idea for some merchants to invest in PayPal merchant services. In this post, we’ll look at three reasons why you may want to consider other credit card processing options before you look at PayPal.
The first reason is a simple one. PayPal is a large payment services provider. Millions of accounts have been opened with the company, meaning your interest in the product is merely a small drop in a very large pond. Should you have questions or concerns about your payment processing capabilities, it can be difficult to get ahold of someone who is familiar with your business and your processing needs.
Smaller merchant account providers can likely offer better, more direct client service than PayPal. Your merchant account would likely be tied to the same account manager you applied with, meaning every time you have a concern, they will be there to answer it.
Perhaps one of the biggest cons to using PayPal merchant services as your primary payment processing capability is the possibility of having your account canceled or frozen without warning. PayPal can do this for any number of reasons, the most common being excessive customer complaints. As an e-commerce merchant who needs to generate revenue every month, you can’t run this risk.
Some merchant accounts with PayPal can be frozen for months, often with thousands of dollars inside them. Not being able to access the money you made from your sales can be frustrating, and it should be something you don’t have to worry about.
PayPal is a hugely popular service, but it isn’t offered in all countries. If your business depends on making domestic sales as well as international sales, PayPal probably isn’t the best provider for you.
You’ll need a merchant account provider who can offer you services that accept currencies from all over the world. This will help increase appeal to consumer bases outside your country of residence, and can be just another way to watch your profits rise.
While PayPal is a great tool that many people rely on to use money online, merchants shouldn’t run the risk of relying on their merchant services. PayPal is an easy and convenient payment method that many consumers find attractive, so it couldn’t hurt to offer it on your website—but relying entirely on their merchant services could be a mistake. You should always have a reliable merchant account provider on hand in order to guarantee your business’s credit card processing safety.