Sunday, December 7, 2008

PayPal vs. an Online Merchant Account

If you are thinking of starting an online business or if you already have one, you have probably been considering which is better Paypal or an Online Merchant Account. Paypal has become very popular for many online businesses. The first thing you will want to think about when attempting to make your decision is what are the fees. For example what fees does Paypal charge for each transaction, and what fees will the Merchant Account charge? It is a very well known fact that merchant accounts can be pretty costly, but the question is how will it affect your sales? In order to find the answer to this question you will have to find out which more people are comfortable using when they shop.

According to some people it does not really matter, as long as the company has an SSL solution. This basically means that their site is secure and your personal information is well protected. Others will tell you that they do not like buying items from online companies that only have paypal, since you do have to sign up with them in order to use their services. This may not seem worth it just to give someone money. There is also the option of getting both, and then observing which ones your customers use most. If you decide to do this you will also want to make sure that you make a note if anyone has any complaints about using either one.

If you are still having a hard time deciding, why not investigate both further, and weigh the pros and cons. For example how much do the merchant accounts charge per month, and what additional services do they offer? Each bank will have different services as far as their merchant accounts are concerned. Beware of any hidden or additional fees that may be included. You will also want to make sure that you are getting enough sales to cover the cost of whatever service you choose. This would include the monthly cost and the fees, which are usually separate.

Many people have stated that merchant accounts seem to have a more professional appearance, even though paypal seems to be the more popular option. If you have a small business and are just starting out, then you may want to go with paypal until you are sure that you can afford the merchant account. You do not want to get in over your head. Also if you choose to go with a merchant account make sure you check their history. For example you can check with the Better Business Bureau and see if there are any complaints or problems. Remember you do not want to do anything to make customers what to go shopping somewhere else. If you do your research thoroughly than you will be able to make a good decision.

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