Do you use your own merchant aacount or just use Paypal?

Elizabeth26 · 01-12-07, 09:23 PM

I know a few months back I was in search of a merchant account because I wanted to accept payments. Is it cheaper to set up a merchant account or go through paypal?

DaConciousChick · 01-12-07, 09:56 PM

I hear that Paypal is good for low price items but a merchant account is the way to go for higher price items. I guess you can research different merchant accounts and compare them to Paypal.

Copeland · 01-12-07, 09:59 PM

I use Paypal for most of my transaction. I would like to set up a merchant account in the future.

penguinmama · 01-13-07, 02:08 AM

Paypal works for most things, but we are looking at doing some serious web hosting and will likely set up a merchant account for that, since not everyone wants to deal with PayPal.

SeeMe · 01-13-07, 10:42 AM

It is cheaper to go through Paypal - but there can be a perception that your site doesn't seem as professional if you choose paypal only. I think the perception is changing, a lot of the larger corporations are also starting to offer paypal, just be aware of it. Merchant transactions usually include both a per transaction fee plus a percentage of the transaction. You can go through one credit card and they can arrange accounts with the other major credit cards, and then usually the per transaction fee is waived for that card (but not the percentage of the transaction). You can call the merchant services departments at the credit card companies to get the information, and you don't have to sign up for it.

Corey Bryant · 01-13-07, 07:39 PM

Usually a merchant account with an electronic payment gateway is cheaper in the long run. With Paypal from what I can remember, you have to sign in to tell them you want your money.

With a merchant account, the money is deposited into your bank account usually withing two business days of the transaction.

Some gateways will charge you a transaction fee on top of what the merchant account provider charges. And some will only charge you a flat rate.

Also keep in mind that Paypal also owns Payflow, an electronic payment gateway. So you can use that API to accept and process transactions on your secure website.

-thoma- · 01-14-07, 09:14 AM

I just use paypal. Actually, I trust paypal more than any other service. I usually ask for a money order from the buyer if the cost is anything over $50, just so it's more secure.

trick-r-treat · 01-14-07, 11:11 AM

Paypal is very convenient for me, so I really wouldn't want to try anything else. It is accepted worldwide, too.

Rohitpatel · 01-27-07, 01:54 AM

Well I do not use my own merchant account because I only like PayPal. PayPal is very safe payment processor and we can trust on their service and secure system.

I also got all my checks regularly from PayPal and have no problem since I was using.

SophMedia · 02-03-07, 12:10 PM

I totally disagree that PayPal is cheap as much as I and you guys like it. If I remember right, it's around 5% on the transaction plus $0.45 per transaction.

However, we have a merchant account through WellsFargo, pay $0.15 a transaction for Visa/MC and 2.17%. If you're doing any kind of volume it pays for itself.