Why Use an Internet Merchant Account Instead of PayPal?

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 and 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:

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

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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