paypal versus merchant credit card processing

[dawkaz]

Im thinking of switching to paypal versus the regular credit card processing done through Bank of America. Paypal is faster to deposit funds and its also very easy to get a loan if I need one. The rates at paypal are a little more than what the bank charges but I think it would be worth it. Has anyone done this? If so what are the pros and cons?

Thanks Dawkaz

[Whac-A-Mole]

who said Paypal is faster than BAC?

Paypal loves to withhold payments for reviews in case you are doing money laundering or participating in terrorism acts,

It suffers from a dissease called paranoidism.

customer service is non existant,it uses robot extensively to resolve squabbles.

staff is newly trained often gives bad information.

it is not really that cheap 30 cents plus 2.9-4.4%

chargeback is 20 ,probably cheaper than bank.

no annaul fee,no minimum fee per month.

it does offer seller protection if case meets the requirement.

if does not give a **bleep** if your customer files chargeback with his cc issuer.

youc ant talk to his cc issuer as you don own the merchanta ccount,Paypal does.

[Whac-A-Mole]

Paypal will grant every one a line of credit but it does not mean you get to use it,search this forum.

[Whac-A-Mole]

https://www.merchantseek.com/merchant-account-rates/

[DPCreations]

@dawkaz

You haven't provided sufficient details for a comparison.

You bank is NOT a credit card processor.  Generally you have a merchant account set up by the bank but with FirstData.

Who do you call when you have  problem? 

Best merchant accounts are direct with FirstData, not through your bank.

You can go directly to FirstData.com for an account.  I think you can still get a discount with FirstData through Sam's Club.

You need to consider any hardware required.

FirstData's Clover Go is an excellent service for mobile payments.

With a merchant account you work directly with the payment processor; so so with PayPal.

Merchant accounts will generally deposit your funds the next day and the complets the next day, not like PayPal's multi-day ACH transfer process.

Merchant accounts will generrally have lower rates.

Please post specific questions if you want more information.

[dawkaz]

Im currently using payapal through ebay for selling products online. I also have a air conditioning company that processes about a million dollars a year in credit cards and I was going to switch to paypal. If I processed my credit cards through payapal would the money be available immediately? I know the rate would be probably .5% higher but Im more interested in being able to access capital through payapal when I need it by simply clicking a button. I have taken a loan through paypal and I think its great the charge is not that bad there is no credit check etc. What do you think?

[DPCreations]

@dawkaz

I think merchant processing is the way to go for your volume.

As for loans, they are never guaranteed with PayPal.

Loans from your bank would likely be a better option.

If you have a low credit score, then your focus should be a fixing that as your business would greatly benefit from improved borrowing capabilities.

A direct merchant account may not be a good idea for online sales unless your merchant processor/bank has a way to integrate it.

[Whac-A-Mole]

what Paypal gives,Paypal can take it back anytime and no warning,no explanation,they do monitor your credit history closely,worse than a bank,because of the calibre of borrowers.

if you have a store selling high ticket items,and you take Paypal exclusively,Paypal would not help you when you get chargebacks,their customer service is overwhelmed ,and your chance of losing a chargeback would be higher than a merchant account.

also mosts cases are handled by robot which does not read email,story or watch movies,so you will lose dispute and then you have to appeal ,then a human will look into it.

Paypal would not tell you in a chargeback what your buyer told his cc issuer,

also their line of credit may get approved,but it is not always available.

30 cents plus 2.9-4.4% is higher than most merchant account rates,and you sell high ticket items.

Paypal will also access your credit history,read your term and agreement

[Whac-A-Mole]

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@DPCreations wrote:

@dawkaz

I think merchant processing is the way to go for your volume.

As for loans, they are never guaranteed with PayPal.

Loans from your bank would likely be a better option.

If you have a low credit score, then your focus should be a fixing that as your business would greatly benefit from improved borrowing capabilities.

A direct merchant account may not be a good idea for online sales unless your merchant processor/bank has a way to integrate it.

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if a merchant with merchant acount has rolling reserve or high reserve due to bad credit,high chargebacks,then he would not get all the sales proceeds ,but Paypal could do the same/