Why Use an Internet Merchant Account Instead of PayPal?


Choosing the Right Payment Processor: Internet Merchant Account vs. PayPal

Introduction to Payment Processing Options

If you’re just starting an online business or website, or have an existing one, you may be asking yourself what the difference between using an internet merchant account to process your payments vs PayPal is and why you should consider one over the other. After all both options allow you to accept payments right? Yes. So then it doesn’t matter which one you go with right? Yes, it does. Here are just a handful of differences between the two:

Financial Considerations: Cost-Effectiveness of Merchant Accounts

1. Transaction Fees

Merchant accounts are more cost-effective. PayPal’s transaction fees are much higher than merchant account fees. These fees can really add up and cost you a pretty penny.

2. Fee Structure and Options

Merchant account companies offer options for their transaction fees that generally include a set monthly fee. PayPal does not offer options like this.

Speed of Access to Your Funds

Merchant accounts generally deposit your funds into your account faster than PayPal, usually within 1 to 2 days. With PayPal, you have to first request a transfer of funds to your bank account and then wait up to 7 business days for the funds to be transferred.

Customer Service and Personalized Assistance

1. Quality of Customer Service

While PayPal does have customer service, your merchant account provider is more likely to give you more personalized service and help you solve nearly any problem effectively and efficiently. You are paying for their service after all; you’re not paying for a service with PayPal so you’re less likely to receive the same amount of attention and service.

Account Stability and Security Concerns

1. Risk of Account Freezing

PayPal has been known to freeze accounts for “suspicious activity” (and many times this activity has been reported by account holders to be nothing more than a boost in sales because they had a product launch or ran a huge special). In these cases, they indicate that they can hold the funds for up to 6 months while they investigate (that’s a long time to be without your money). Yes, it’s a method of fraud prevention but a rather scary one.

Education and Business Support

1. Added Value and Business Support

The best merchant account provider will educate you on how to make money with credit card processing among other things. They will also help provide you with ideas on how to protect your business. PayPal does not educate you or provide you with ideas.

Conclusion and Call to Action

These are several of the primary differences between merchant account solutions and PayPal. If you need a merchant account for your website, contact AVPS today. We offer the most competitive rates in the industry, superior customer service, and we can have you up and running in as little as 24 hours.

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