CreditCardProcessingAdvice.com Shows How Small Businesses Can Decide Between PayPal or a Merchant Account?

SAN DIEGO, CA, July 19, 2012

The first step in accepting payments for an online business is deciding on how those payments will be accepted. The basic discussion comes down to PayPal versus a merchant account.

The PayPal website offers an easy solution to processing credit cards online through a secure method, easy setup, and no monthly charges. What the website does not tell you is that advertisements for a "PayPal Merchant account" are false. The gateway PayPal uses allows customers to deposit money into a PayPal account that is linked to your business. Merchant accounts differ fundamentally in this process of depositing money; any purchase is placed directly into a business' bank account.

Merchant accounts have the added bonus of customer service. When PayPal loses a payment or freezes your account on the suspicion of illegal activity, there is no person you can call to clear things up or help you accept payments in the meantime. On the contrary, merchant accounts offer customer service that is available when you have questions or something goes wrong.

Where your money is placed and customer service are just pieces of the puzzle. The big picture includes the processing volume and number of transactions. Michael Lawson from the website CreditCardProcessingAdvice.com, suggests that businesses processing of $250 a month in credit card transactions will save money by processing costs using a merchant account rather than PayPal.

While processing costs may be cheaper with a merchant account businesses bringing in a low processing volume should consider PayPal as a viable option. Customer service costs bring up merchant account overall fees. PayPal runs the risk of losing a payment and having no one to consult; however, if you are not bringing in a lot this risk can be smaller on the grand scale.

Since you own your business design and flexibility may be important to you. This is another area where PayPal falls behind merchant accounts for some business owners. Lawson brings up in his analysis of PayPal and merchants accounts that: "Simple to set up and limited qualifications make PayPal an easy option, but this ease of use also brings with it a feeling of a website that may be run by anyone and not the established professional business you likely wish for your customers to think of, when they visit your website." Merchant accounts offer more capabilities on your website and the potential to expand your base of sales with mobile devices or store locations.

Deciding between PayPal and a merchant account can be difficult when you do not know how far your online business will take you. Lawson offers credible advice, saying: "If you are just getting started and will be running a very low volume business online, PayPal is a great option. For those business owners looking to run a successful small business online, I strongly recommend that you find a merchant account provider that is willing to work with you to customize the right merchant account to best fit your business."

Media Contact Info
James Brady
CreditCardProcessingAdvice.com
6197862823
http://creditcardprocessingadvice.com/
jmbrady@creditcardprocessungadvice.com

SOURCE
Creditcardprocessingadvice.com
Paypal.com

CreditCardProcessingAdvice.com is the leading resource website for merchants looking to learn more about the credit card processing industry. In addition to intrusctional articles and a merchant service provider directory, CreditCardProcessingAdvice.com also offers independant reviews on the top credit card processors in the industry.