When it comes to online credit card payments for your products, services, or information, there are two basic choices - PayPal or a Merchant Account. Both have distinct pros and cons and that should be carefully considered to determine which is best for your business.
For those on a tight budget or just starting out, PayPal may be a better choice. PayPal is the leader in online transactions. They have no setup costs, and minimal per transaction fees. There are no monthly fees either so if you don't have a lot of sales right away, you are not incurring any extra expenses. PayPal accounts are easy to set up and there is no credit check.
A couple of the disadvantages of PayPal include some previous bad press which may deter potential customers. Despite increased security and enhanced features that have been added to PayPal since E-bay bought them out, some people still do not trust the service. Additionally you must login to PayPal to withdraw or transfer deposited funds to your own bank account. If you are doing a small volume of sales, this is generally not an issue. Should your sales volume increase heavily, it may become an inconvenience. But really, that's a great problem to have and if needed you can always switch from PayPal to a Merchant Account.
A Merchant Account is set up through your bank. It is a more expensive route due to the setup cost (usually between $100 - $200) , monthly fee of about $30, as well as a per transaction fee. The monthly fee is incurred regardless of sales... or lack thereof. A credit check may also required.
On the plus side, the funds from your online sales transactions are deposited directly into your account. For customers who have had a prior bad experience with PayPal, they will be more likely to purchase from a website that has a Merchant Account. In which case, the extra cost may prove well worth it.
Still not sure which option is best for you,? Contact Porch Puppy Online. Our experienced team will answer your questions, walk you through the process, and provide smooth integration of PayPal or a Merchant Account into your website. For more information visit http://www.porchpuppyonline.com/.
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