What Is Paypal? The Truth
What Is Paypal?
So, what is paypal? Paypal is a merchant account aggregator, in that they accept payments online on behalf of small merchants and submit those transactions to the bank networks for others in return for a fee. Paypal is not a credit card processing company that provides merchant accounts. This is why, when payments are made from and to someone, the receiving or delivering bank shows a transaction from or to Paypal. When a regular payment is made to a company with a credit or debit card, the receiving company’s name shows up on your bank statement.
What Is Paypal Used For?
What is paypal used for? A Paypal merchant account is good to use if you sell digital products like ebooks, images, software. It’s also a good option if you sell services or physical products but have a small sales volume. If your monthly sales average is below $3,000 or accept credit cards only a few times.
Paypal also offers the ability to create website payment buttons so customers can pay online without your help and you receive an email when the payment is generated. Alternatively, Paypal also offers a virtual terminal that allows you to directly enter credit card payment information for your customers.
For a fee Paypal offers credit card processing services for very small businesses. However, if your business generates regular monthly sales and the total sales are above $3,000 Paypal can cost more than a regular merchant account. If you own a restaurant or beauty salon Paypal is not a good solution. Why? This is where you will lose the opportunity to save money in per transaction fees.
What Is Paypal Charging?
Paypal charges 2.9% plus $0.30 for online sales. 2.7% plus $0.30 for card swiped sales. 3.5% plus $0.15 per transaction when you type in a card number for a customer.
In comparison, with us, merchant account fees for swiping a credit card can be as low as 1.69% plus $0.25 per transaction. 2.2% plus $0.25 for online and typed-in sales.
Paypal also charges $30 per month for a virtual terminal without a contract. You can enter credit card payments on behalf of your customers. Our virtual terminal costs $15 per month with a minimum 12 month agreement. Your best choice depending upon how long you expect to be in business. Now, which one makes the most sense?
If you want a regular merchant account call me today (956) 887-0090.
Did we answer what is paypal?