Is Paypal enough for your business?
If there is one thing many of us learn in our lifetime, it’s that the best known brands are not always, well, the best. Take, for example, a pizza from an iconic chain restaurant, such as Dominos or Pizza Hut. Few would prefer it’s taste or quality over a handcrafted pie from that authentic Italian restaurant on the corner.Yet millions will purchase the former, simply because they are familiar with the brand. The same holds true for merchant processing services.
Each year a large number of small to medium-sized businesses opt to retain the services of PayPal to process their online and in store credit card transactions. PayPal has tremendous name recognition, and facilitates tens of millions of dollars in e-commerce each year. But while it remains a viable option for accepting credit and debit card payments, there are some problems with paypal as well. Among its limitations are the arguably high rates and fees charged per transaction. Therefore, business owners looking for a company to handle their payment processing would be wise to conduct a closer examination of PayPal vs merchant account processors.
The additional benefits of a merchant account
There are a number of differences between PayPal and other merchant processors. For example, while PayPal professes to charging no monthly fees, they do charge between 2.2% and 2.9% plus $.30 per online transaction, substantially more for in-store purchases. These charges exceed those of most traditional merchant payment service providers. Additionally, while merchant processors, such as Merchants Bancard Network, deposit funds directly into clients’ bank accounts on a same day or next day basis, PayPal deposits funds into the client’s PayPal account instead. Customers may transfer funds from their PayPal account into an existing bank account, but the process may take several days. And it is important to note that PayPal is a private company, and is not backed by the FDIC, nor do they have to adhere to federal banking regulations.
The two services differ in other ways, as well. Online customers paying via PayPal are sometimes directed off of your site to a dedicated PayPal site. In addition, PayPal accepts most credit and debit cards, but doesn’t allow for gift cards, reward certificates, or coupon codes. So while PayPal may work for some of your customers, it won’t work for all of them. Startups, small businesses, and large corporations would all benefit by trusting their secure payments to an established and experienced merchant payment processor.
Grow faster with professional solutions
Merchants Bancard Network has over two decades of experience in the payment processing industry. If you are looking for reliable customer support, clear explanation of all charges and services, secure transactions, and a company to help you manage and grow your business, contact an agent today, and let us show you why we are the best organization to serve all of your diverse needs. Trust MBN with all your processing needs and start reaping the benefits including instant approval for your merchant account.