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PayPal Merchant Account vs All Others
Which merchant account do you use?

 11:08 am on Jun 5, 2013 (gmt 0)

I'm currently using PayPal for all my credit card processing, my merchant accounts are there. I'm really tired of the inconvenience, and the high fees.

I'm considering switching Merchant Accounts, and was wondering which ones you've all used, and liked, or not liked, and what you would recommend.

The other main one I'm looking at is B of A, because my accounts are there. Has anyone tried Bank of America Merchant Services?

So what service do you use, and would you recommend it?




 12:10 pm on Jun 5, 2013 (gmt 0)

Not sure merchant accounts are better actually ? (and I am one of the Paypal haters !)


 5:38 pm on Jun 5, 2013 (gmt 0)

Typically you are still going to have fees, but just a different flavor. It depends on your volume and what your numbers are, as to which one works out best as a whole. But you're going to pay one way or another. If you're low volume, PP is probably still going to be the better choice.


 11:23 pm on Jun 6, 2013 (gmt 0)

Paypal might have higher fees, but you know exactly what they are. When you have a gateway and payment process and merchant account, you have fees for all those things. There's a fee for address verification that is not part of the discount rate. There are fees for declines. There's a fee if you credit someone back (Paypal returns the fee for that). There are usually monthly fees for a bank account and for payment gateway, plus usually there is a fee for the fraud detection on the gateway. There are batch fees for every time you settle and a fee for every chargeback, often even if you win it. Plus I have found that payment processors will do absolutely everything they can to cheat you and to lie to you and hoodwink you about EXACTLY what you are paying, to the point that the only way you really know exactly what you are paying with them is to subtract what turned up in your bank account from what the gateway says you processed. There are so many layers of blood sucking with a merchant account, payment gateway, and payment processor.

In contrast, you see exactly what Paypal takes up front, right on your account. There are no other fees. They don't even charge you a fee for a chargeback. The bad thing about them is if you get on their shirt list, they will cut you off and refuse to even speak to you, like you are in eighth grade. It is not business-like. And they will invent violations that do not exist in their rules. You can almost hear them tossing their hair as they flounce off in a huff.

So a merchant account is like a grifter, whereas Paypal is like immature teenaged girl.


 2:41 pm on Jun 7, 2013 (gmt 0)

I started off using just PayPal. It was easy to get setup.
As my business grew, I implemented credit card processing using Authorize.net as the gateway and Chase Paymentech as my merchant account.

I still over PayPal as an option


 2:42 pm on Jun 7, 2013 (gmt 0)

I still offer PayPal as an option.


 2:59 pm on Jun 7, 2013 (gmt 0)

"So a merchant account is like a grifter, whereas Paypal is like immature teenaged girl"

Made me laff that one!

Also is there any evidence to suggests that customers are more aware of/trusting of paypal?


 4:45 pm on Jun 7, 2013 (gmt 0)

"Also is there any evidence to suggests that customers are more aware of/trusting of paypal?"

I think it's a wash. On the one hand, you have the people who realize it's safer than entering their credit card number on the merchant's web site. On the other hand, there are some people who just don't like PayPal or don't understand that a PayPal account is not required to complete their purchase.

If you sell low-cost items I'd recommend offering PayPal at least as an option. A lot of people think of money in their PayPal account as "play" money and will be more likely to use it for impulse purchases.


 7:02 pm on Jun 7, 2013 (gmt 0)

I offer both and I use both myself as a consumer as well. Like jadebox says, some people really like Paypal and others don't want anything to do with it. I use it myself when I feel there is anything the slightest bit dicey about a site or if I don't feel like filling out a bunch of forms. I find that about 40% of my sales come through Paypal.


 7:26 am on Jun 8, 2013 (gmt 0)

I've found that most people are OK with PP, but the people that hate them, really hate them. To the point of being hysterical about it. But I've found that a lot of that hate stems from nothing more than urban myth in most cases. They're easy to attack, because they are so well known. The average person on the net knows exactly who PP is and has most likely heard horror stories, whether real or fiction. But some random authorizing company... Most average people will not even know who they are, or even really see them... since they mainly work behind the scene.

One of the potential issues with PP, is that there's still people who think you have to be a member. This has not been the case for a very long time, but the myth lives on. Plaster it all over your site that they can use a card just like any other site. And if you send a request to somebody, include in the communication that they can pay using PP or a card.

Taking little steps like that can make a big difference with any of the potential PP haters. Every once in a great while you will still get a die hard hater, but you have to weigh the cost of having a whole other system, just to make those minority happy. Probably not worth it when doing low volume. You would lose less money just letting those people go.

That said, PP is certainly not perfect. You will have issues now and again, but you will with most others as well. It's kind of like... Go find a bank that you won't have issues with once in a while, in this day and age... Good luck.


 3:10 pm on Jun 9, 2013 (gmt 0)

Confusing what this thread is about. Paypal offers web payment standard which is extremely easy to implement utilizing the button. It also offers a web payments pro solution which is a full blown gateway API.

I've used both, I still believe web payments standard integration and more importantly implementing express checkout offers a worthwhile convenience to your customers. A lot of ours use them both.

If we're talking about Web Payments Pro, I've had positive experiences with it for many years and is the primary way I implement credit card processing. This is transparent to the customer as they don't know how the card is processed directly on your site.

The biggest downside to paypal in general is using their administrative portal/ web back end. It is a mess of new and old UI from years past. It is frustratingly slow if you do any quantity of shipping labels from there. Shipping labels at the very least should have a notification api similar to IPN. Bugs are common in the portal from my experiences. Pro accounts also have an additional portal which yet again is a totally different UI experience, very confusing. Overall those are my complaints as a merchant member.


 10:58 pm on Jan 28, 2014 (gmt 0)

Unfortunately we're not eligible for a PayPal merchant account due to the fact we're Canadian, but if we were American I'd switch to PayPal in a heart beat. PayPal is about as transparent as you'll find in a merchant provider for fees.

There's reasons to hate PayPal but fees IMO is not one of them.


 11:10 pm on Jan 28, 2014 (gmt 0)

Use Stripe and Paypal.

Web Payments Pro is still boring as customers can still make a dispute.

I cannot stand these paypal disputes that customers open with no reason.

Cannot send US customers chargebacks also.

Lukily I make so huge profit on their axx that it helps me to accept the few monkeys that every online shop has to fight with.


 12:26 am on Mar 7, 2014 (gmt 0)

I started out with a merchant account with Authorize.net. After 12 months, not one customer used it, they all used PayPal, so I dropped it. The other thing is that as someone else said, there are a bunch of other fees with a regular merchant account, the least of which is a minimum monthly charge. I think my was $25 or $30/month. I did a cost comparison and found that I would have to have something like $3000 in sales per month for the merchant account to break even with PayPal.


 11:54 pm on Jul 16, 2014 (gmt 0)

First and Foremost when you get a Paypal account you are not actually getting a merchant account. You are getting a piece of Paypal's merchant account because they are an aggregator. As a result, they are able to inconvenience you in any way they see fit. This includes delays in payment as well as super high fees.

B of A gives decent rates but will nickel and dime you on monthly fees, gateway fees, and per transaction fees. If you are doing international transactions they stick it to you on those as well. Lastly, B of A is actually a third party processor. They are sending all of their accounts through First Data who is the bank actually setting you up with an account. First Data is pretty solid, however, depending on the risk level of your business there can be some unforeseen problems down the road. If the chargebacks are too high they will stick you with a 25% reserve and then start asking questions. Usually does not happen the other way around. The gateway of choice for them is Authorize.net but there are many others that they are compatible with as well. Just know if you elect to sign up for a gateway through them directly they are going to charge you quite a bit unless you get tough with them.

Mr Bo Jangles

 7:31 am on Jul 17, 2014 (gmt 0)

I've used 2checkout for more than a decade, and have had little pain. Total fees are 5.5% or thereabouts currently. I don't have a merchant accout and so it's a bit like PayPal - you virtually use theirs.
They transfer payments into my bank account weekly.
I wouldn't change from 2checkout unless I got similar type service and features for half the price - and that's not likely to happen.

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