PayPal is a trusted online payment system that allows people to send money and make payments without using cash or credit cards. PayPal's security features are the best in the industry, which makes it an ideal solution for small businesses who want to increase their sales by making it easy for customers to purchase from them. But don't let this article fool you, there are some drawbacks as well! We'll explore both sides of this issue in depth so that you can decide if PayPal is right for your business.
What is PayPal?
PayPal is a secure online payment system that allows people to send money or make payments without using cash, credit cards or checks. one can Send money using your PayPal account even if you don't have traditional bank accounts.Transfer money or make payments from one person to another with just their email address. And also you can Pay for goods or services with just a few clicks of the mouse from home, office or anywhere in the world.
Type of Paypal Account
Personal Account- You can withdraw money from your account into a bank account in any country.
- Premier Account: You can withdraw money from your account into a bank account in any country, and you are also eligible for PayPal Credit.
- Business Accounts: There are two types of Paypal business accounts, the Premier and Business Plus account. The Premier is recommended for most small businesses because it has zero monthly fees and offers useful features like invoicing tools that make billing easy with quick online payments. The Business Plus account is geared more towards larger businesses and offers features to help them manage their business' finances, as well as the option for a custom branded credit card.
How to Open a Paypal Account?
You can open a Premier or Business Plus account by going to the PayPal website and filling out an application. It's best not to use personal information in your business so that you don't have to worry about someone trying to steal your identity when they're shopping online. Once you've opened your account, it may take up to three days for your account to be verified and you'll have access to your Business Account Manager.
Pros of using PayPal for your business
- You can get your funds in as little as 24 hours
- It's free to sign up and there are no monthly charges
- It's a secure way to do business with your customers
- PayPal Makes It Easy To Accept Payments From Customers Around The World
- Consumers are more likely to buy from a website if it accepts PayPal.
- You don't have the hassle of dealing with payments and currency conversions
- It's easy for customers: they just select PayPal as their preferred payment method, enter their info and login details
- PayPal also provides an invoice service that makes it simple for you to send invoices to your customers
- Your customer's funds are transferred immediately and securely, which means you don't have the risk of late or missed payments
You can also withdraw money from your PayPal account quickly in order to meet any payment deadlines.
Cons of using PayPal for your business
- It's more expensive than other payment providers, which can be a problem for companies with tight margins.
- Customer transactions are irreversible and there is no chargeback protection. If someone uses their PayPal account to buy from your store and then requests their money back, you have to refund them the full amount or close out of your account altogether.
- PayPal accounts come with different levels of account privileges and offer small business owners different pricing plans. In order to qualify for a free account, your business must meet the following requirements:
- The percentage of orders you cancel or refund does not exceed 0.30%
How to use PayPal in a way that benefits you the most as a small business owner
- Sign up for a free account and use your PayPal debit card to make purchases.
- Use the website as an online payment gateway. Register with them at least two weeks before you want to start accepting payments so they can verify that your business is legitimate.
- Consider upgrading to one of their paid plans if you have more than 20 orders per month. If you have more than 100 orders, PayPal will be the most cost-effective option.
What are some alternatives to using PayPal if you're not happy with their service or fees?
- Square is an easy and affordable way to accept credit card payments
- Amazon Payments offers a payment gateway for websites that's free for the first month, then $29 per month. It's great if you're only selling physical goods on your website because they don't charge any fees to receive money from customers or suppliers who pay you using Visa, Mastercard or American Express
- SumUp is a European payment provider that doesn't charge any transaction fees and provides free online invoicing for their customers
- Stripe is an easy to use option with no monthly fees if you have low transactions (less than $1000/month)
Finally make sure you learn about the risks of having a merchant account and how to protect yourself.
Conclusion
PayPal is a great way for small businesses to accept credit card payments. The process of setting up your account and getting it approved can be confusing, but once you get the hang of it, there are many benefits to using this payment processing service.
If you're still on the fence about whether or not to use PayPal as a business owner, make sure you go through all these pros and cons first! You may discover that some of them suit your needs better than others. And if they don't? No problem - we recommend checking out Square instead (they offer free POS software!). There's always an alternative in today's market; just remember that nothing is perfect!
